New York– Ali Barada

France, UK, and Germany risk angering the US after agreeing with Russia and China as well as Iran to establish a new financial mechanism within the EU to assist and reassure economic operators pursuing legitimate business with Iran including its oil exports.

In May, US President Donald Trump decided to abandon the nuclear deal and restore economic sanctions on Iran, including those that seek to force the OPEC member's major oil customers to stop buying Iranian crude.

In a statement after a meeting, the group said they were determined to develop payment mechanisms to continue trade with Iran.

"Mindful of the urgency and the need for tangible results, the participants welcomed practical proposals to maintain and develop payment channels notably the initiative to establish a Special Purpose Vehicle (SPV) to facilitate payments related to Iran's exports, including oil," the group said in a joint statement issued after the statement.

A diplomat explained that the purpose is to circumvent US sanctions due to be restored in November under which Washington can cut off from the US financial system any bank that facilitates an oil transaction with Iran.

It serves as a "clearing house" of sorts for transactions with Tehran in order to avoid involving central and commercial banks, who fear US penalties on their operations.

A top French diplomat asserted that making all options available is important to show Iranian officials that the “door will remain open.”

Several European diplomats said the SPV idea was to create a barter system, similar to the one used by the Soviet Union during the Cold War, to exchange Iranian oil for European goods without money changing hands. This means, if Iran sold oil to Spain and Germany sold equipment to Tehran, revenues of the oil shipment will be used to pay the German company.

Speaking to reporters after the meeting, European Union foreign policy chief Federica Mogherini said the decision to set up such a vehicle had already been taken and that technical experts would meet again to flesh out the details.

"In practical terms this will mean that EU member states will set up a legal entity to facilitate legitimate financial transactions with Iran and this will allow European companies to continue to trade with Iran in accordance with European Union law and could be open to other partners in the world," she said at the presence of Iranian Foreign Minister Javad Zarif.