A member of Iran Steel Association says that the European Union has not renewed the agreement to buy Iranian steel, pending the possible launch of a barter arrangement of trade, called Special Purpose Vehicle or SVP.

Ahmad Donya Noor, who is also a steel executive, told Iran’s ILNA, “The European side has informed that until clarification of SVP it refrains from renewing the agreement, due to U.S. sanctions”.

Donya Noor explained that Europe is still grappling with the operationalization of the special trade arrangement, whereby trade with Iran can continue despite U.S. sanctions.

After the United States withdrew from the Iran nuclear deal, Europe promised Iran to do its utmost to preserve trade, as Tehran threatened to also withdraw from the agreement if no economic incentives were left. THE SVP was a scheme proposed by major European countries to essentially pave the way for barter trade, without the use of the U.S. dollar.

Donya Noor added that Iran’sb steel agreements with India and China are still valid for six months and the country will try to export its products to these two countries.