MNA � European Union�s spokesperson said Mon. that the bloc is still working on setting up a payment mechanism to facilitate trade with Iran and bypass US sanctions.

�Actually, this is the work that is carried out by the (EU) member states. And according to the information that we have, the work is continuing and advancing well,� Maja Kocijancic, spokesperson for EU High Representative Federica Mogherini was quoted by Kuwait News Agency as telling a news conference in Brussels on Monday.

She said the trade mechanism, formally known as the Special Purpose Vehicle (SPV), will be established �soon�, adding �we believe that it will be established in the coming weeks to promote legitimate business with Iran.�

The EU spokesperson went on to add that �this is part of the broader efforts of the European Union to preserve the nuclear agreement as long as Iran continues to repsect its nuclear-related commitments.�

Following the US� unilateral withdrawal from the Iran nuclear deal (JCPOA) last May and the re-imposition of sanctions against Tehran targeting the country�s banking sector, EU promised to set up an alternative payment mechanism for Iran to continue business with the Islamic Republic in exchange for the country to remain in the nuclear agreement.

Meanwhile, Iran has been critical of the EU�s delay in establishing the SPV, citing the bloc�s fear of the US punitive measures against any country that decides to host the mechanism.