The U.S government issued a serious warning to Europe against establishing the Special-Purpose Vehicle (SPV) for trade with Iran and emphasized that U.S is serious about confronting any person or institution that undermines the sanctions.

According to Associated Press, an American Official who remained anonymous said that Washington will fully impose the sanctions against Iran and any person or organization that would try to undermine them.

The European Union is trying to establish a mechanism for trade with Iran, which is expected to be officially announced on Monday, January 28.

Through this channel, the money from Iran’s oil export to European countries will be saved in a bank, which will allow Tehran to use that account to buy goods or services from those countries.

The trade with Iran will be done in Euro so it wouldn’t be affected by U.S sanctions.

Bahram Ghassemi, the spokesman for the Islamic Republic foreign ministry also said today that Iran is awaiting the SPV announcement.

Behzad Saberi, a consultant to Foreign Minister Javad Zarif, wrote in a tweet on Monday that the European side has explained that the reason for the delay in establishing SPV is that the goal of this financial channel is not just “providing goods that are not sanctioned,” but to confront the illegal sanctions imposed by the U.S.”

Ali Majedi, former ambassador of the Islamic Republic to Germany had recently claimed that: “This mechanism will not be limited to food for oil.”