The Instrument in Support of Trade Exchanges (INSTEX), was proposed by the European countries to bypass the US sanctions after Washington unilaterally withdrew from the 2015 nuclear deal with Iran in May 2018 and re-imposed sanctions against the Islamic Republic.
"This financial system has been suggested too late and [it] operates at a low level. It has not been yet fully implemented," Araqchi told Sputnik.
He also stressed that this system will be successful only if the Europeans buy Iranian oil which is the country’s main export to Europe. “If not, there will not be a large amount of money left for trade in accordance with this tool (INSTEX)."
Last week, Russian Foreign Minister Sergei Lavrov also said INSTEX still remained on paper.
Iran and the five permanent members of the United Nations Security Council – the United States, France, Britain, Russia and China – plus Germany signed the nuclear deal on July 14, 2015 and started implementing it on January 16, 2016.
Under the deal, Iran put limits on its nuclear program in exchange for the removal of nuclear-related sanctions.
However, US President Donald Trump pulled his country out of the international deal last year and stepped up sanctions on the Islamic Republic.
Following the US withdrawal, the European signatories to the contract tried to save the nuclear agreement but have so far failed to uphold their end of the deal. They have expressed vocal support for it, but failed to provide meaningful economic incentives as required under the nuclear agreement.