A new European Union mechanism to facilitate payments for Iranian exports should be legally in place by November 4, when the next phase of US sanctions hit, diplomats said. They added that it will not be operational until early next year, Reuters reported. The mechanism, called special purpose vehicle, is designed to circumvent the sanctions, under which Washington can cut off any bank that facilitates oil transactions with Iran. The SPV would work as a barter system, avoiding the US financial system by using an EU intermediary to handle trade with Iran. It would ensure that Iranian oil bought by Europeans could be paid for with EU goods and services of the same value.