Two European countries join INSTEX mechanism for trade with Iran; Senior Advisor to EU

Speaking to ILNA news agency, the Iranian economic expert in Europe said “Joining the six countries to the INSTEX mechanism was an important event and now two more European countries are negotiating to join it.”

Finland, Belgium, Denmark, Netherlands, Norway, and Sweden joined the INSTEX mechanism last November after further talks between parties to the Iran nuclear deal in Vienna.

EU foreign relations expert referred to Iran is on the FATF blacklist and added that this does not mean that all Iranian companies are involved in money laundering.

Mehrdad Emadi further asserted that if those companies strive to increase transparency in their business, they can operate within the INSTEX framework.

According to Iranian expert on energy issues, the first trade with Iran within the INSTEX financial mechanism shows that Europe and especially Germany want to illustrate the US that they are independent in foreign relations.

A great opportunity seems to be slipping away from US businesses caused by the insistence of the US Congress attempting to restrict Iran's access to US financial markets, as well as its currency outside the US, he said.

“Despite heavy investment, US and Saudi-Israel lobbies have failed to prevent the Euro from being used in a financial channel with a country under US embargo,” Emadi confirmed.

The Federal Foreign Office of Germany in a tweet confirmed the first transaction with Iran through the Instrument in Support of Trade Exchanges (INSTEX) on Tuesday.

The Federal Foreign Office of Germany wrote in its Twitter page, “France, Germany and the United Kingdom confirm that INSTEX has successfully concluded its first transaction, facilitating the export of medical goods from Europe to Iran.”

INSTEX is a special-purpose vehicle (SPV) launched in January 2019 by France, Germany, and the UK, with the goal to facilitate non-USD transactions with Iran. INSTEX is based in Paris. However, European companies have not used this mechanism for fear of US sanctions on them.

The three European countries have already contributed €5 million to Iran in order to fight with spread of coronavirus. The help was made through the United Nations and the World Health Organization.

The bloc is preparing to send 20 million Euros’ (USD 21.5 million) worth of humanitarian aid to Iran and Venezuela in the coming weeks.

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