News ID: 262252
Published: 0338 GMT November 29, 2019

Six more European countries join INSTEX

Six more European countries join INSTEX

Finland, Belgium, Denmark, Netherlands, Norway, and Sweden will join the INSTEX mechanism for trade with Iran, the six countries declared in a joint statement on Friday ahead of further talks between parties to the Iran nuclear deal in Vienna next week.

“In light of the continuous European support for the agreement and the ongoing efforts to implement the economic part of it and to facilitate legitimate trade between Europe and Iran, we are now in the process of becoming shareholders of the Instrument in Support of Trade Exchanges (INSTEX) subject to completion of national procedures,” the joint statement said as reported by Sputnik.

The six EU member states joining the mechanism reiterated that they “attach the utmost importance to the preservation and full implementation of the Joint Comprehensive Plan of Action on Iran’s nuclear program by all parties involved”.

They also urged Iran to return to full compliance with the terms and provisions of the nuclear agreement.

INSTEX was born as the brainchild of France, Germany and the UK in January 2019. It was created as a special purpose vehicle to help EU companies do business with Iran and facilitate non-USD transactions to avoid breaking US sanctions against the country.

Following a meeting of the Joint Commission of the JCPOA in June, EU’s foreign affairs chief Federica Mogherini said that the purpose of INSTEX is to facilitate “legitimate trade” with Iran for any EU member and that it has been conceived to be open to non-EU countries.

The system was expected to circumvent the sanctions that the US began reimposing against Iran after leaving the nuclear deal with Iran, France, Britain, Russia, China and Germany.

The system came into force after Iran complained why the European countries did not keep up their trade with the country as the nuclear deal mandates them to, and instead bow under the US sanctions targeting the Islamic Republic.

In May, Iran initiated a set of countermeasures against Washington’s withdrawal from the nuclear agreement and the European deal partners’ failure to guarantee Tehran’s business interests under the agreement.

Iran says its reciprocal measures will be reversible as soon as Europe finds practical ways to shield the Iranian economy from unilateral US sanctions.

The European signatories have expressed vocal support for the deal, but failed to provide meaningful economic incentives as required under the nuclear agreement.

 

 

 

 

 

 

 

   
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