Iran urges 'practical steps' by Europe

TEHERAN - Political sympathy from Europe with Iran's nuclear deal is "not enough" and they should take more "practical steps" to guarantee Iran's economic interests from the deal, Iranian Foreign Minister Mohammad Javad Zarif said on Sunday.

"With the withdrawal of America... the European political support for the accord is not sufficient," Mohammad Javad Zarif told Arias Canete in Teheran, Iran's state news agency IRNA reported.

Miguel Arias Canete, European Commissioner for energy and climate, said Teheran wanted the 28-nation bloc to act fast to preserve its oil trade with Iran, and to consider making direct euro-denominated payments for Iranian oil to Iran's central bank, bypassing the US financial system.

Since US President Donald Trump announced on May 8 that he would pull the United States out of the deal, the US Treasury said Washington would reimpose a wide array of sanctions after the expiry of 90-and 180-day wind-down periods, including sanctions aimed at Iran's oil sector and transactions with its central bank.

EU leaders had pledged to keep Iran's oil trade and investment flowing, but conceded that would not be easy.

"We have to preserve this agreement so we don't have to negotiate a new agreement," Arias Canete said after two days of meetings with Iranian officials in Teheran.

"Our message is very clear. This is a nuclear agreement that works."

Under the deal, Teheran agreed to curb its nuclear work in return for the lifting of most Western sanctions. With the threat of new US sanctions looming over them, some foreign firms have already started signaling their intention to pull back from Iran.

"The announcement of the possible withdrawal by major European companies from their cooperation with Iran is not consistent with the European Union's commitment to implementing (the nuclear deal)," Zarif said.

He appeared to be referring to announcements by several large European companies last week suggesting their activities in Iran would end or be curtailed because of the reimposition of US sanctions.

Following the withdrawal of Washington, Iran said it would remain in the deal only if Teheran achieved its goals - namely being protected from sanctions on key sectors of its economy such as oil - in cooperation with other signatories of the pact.

EU investment in Iran, mainly from Germany, France and Italy, has jumped to more than 20 billion euros ($23 billion) since the lifting of sanctions in 2016, in projects ranging from aerospace to energy.

But to improve its oil-reliant economy, Teheran needs to attract $100 billion in foreign investment to boost its oil industry and major western investors have stayed away from Iran, partly because of the remaining US sanctions.

"The announcement, in cascade, of European companies that will not keep investing in Iran are making things much more complicated at the moment," Arias Canete said.

"So what he (Zarif) is asking the European Union is that we have to have concrete solutions in order to implement the European Union commitments, which is something that we fully recognize."

Arias Canete said Iranian officials were keen to mitigate the impact of US sanctions under a proposal for EU governments to make direct euro-denominated payments for Iranian oil to Iran's central bank, bypassing the US financial system.

"The EU will consider it," he said, adding that the EU needed to deliver fast on preserving oil trade with Iran.

Reuters - Xinhua