Vice Speaker: Europeans determined to set up INSTEX

IRNA – The Iranian Parliament Vice Speaker stressed that the Europeans are determined to set up the financial mechanism called Instrument in Support of Trade Exchanges (INSTEX), which cannot be said to have great effects but to help alleviate the effects of sanctions.

Pointing to the Monday trip of INSTEX president to Iran Per Fischer, Ali Motahhari said on Tuesday he had traveled to Iran to discuss with the Iranian side and review the mechanism of the INSTEX.

The vice president of the parliament stated that one of the goals of the trip was to clarify the ambiguity of the INSTEX, adding that Fischer has traveled to Iran to launch the system through agreements.

Motahhari emphasized that the head of the INSTEX’s visit to Iran could be a step forward, and said Europeans are determined to set up the INSTEX and this system is also beneficial for our country, which will be launched in the future.

Meeting of Iranian experts with senior managers of Instrument in Support of Trade Exchanges (INSTEX) to operate a mechanism to support trade between Iran and Europe and how it cooperates with the relevant Iranian institutions is underway.

Representatives of related government agencies, including Central Bank, Ministry of Industry, Mining and Trade, Ministry of Petroleum, Ministry of Economy and Finance, Ministry of Agriculture Jihad, Ministry of Health and Medical Education, Ministry of Roads and Urban Planning, Ministry of Energy, Ports and Maritime Organization, Iran Shipping Company and Iran Air are attending the meeting.

There are also specialized sub-meetings between some departments (especially in the banking sector) with delegations from other parties which have been held or are underway.

In these meetings, the Iranian side’s expectations of INSTEX are clearly outlined in detail in the fields of expertise, and the parties discuss technical and expert discussions on possible solutions to the problems caused by US sanctions in this area.

On January 31, the UK, Germany and France (the European Union signatories of the nuclear deal) launched a special purpose vehicle (SPV) dubbed the Instrument in Support of Trade Exchanges (INSTEX) in order to facilitate legal trade with Iran.

France agreed to take the SPV under its jurisdiction, while Iran is expected to establish a similar entity. The vehicle should support technical opportunities of making transactions with Tehran and does not relieve those using it from the US sanctions.