The European SPV: An Adequate Response to U.S. Sanctions?

The European SPV: An Adequate Response to U.S. Sanctions?

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In May 2018, President Trump withdrew the U.S. from the Joint Comprehensive Plan of Action (JCPOA), the landmark accord signed by Iran and the P5+1 (the five permanent members of the U.N. Security Council and Germany).  The JCPOA, a hallmark of the Obama Administration’s foreign policy agenda, imposed restrictions on the Iranian nuclear program in exchange for Iran’s re-entry into the international economy.  Perhaps the most important concession granted to the Iranians in the JCPOA was the lifting of U.S. secondary sanctions.  These sanctions prevented Iran from trading with much of the world out of fear of U.S. retaliation.  When given the opportunity to trade with Iran or the U.S. almost any company would choose the U.S., which is the world’s largest economy.  As a result, the lifting of sanctions provided a lifeline for the Iranian economy.