The latest news regarding the special financial channel between Iran and Europe (INSTEX)
The Instrument in Support of Trade Exchanges (INSTEX) was officially launched in early February 2019 through incorporation of a company in Paris. The purpose behind this channel is facilitation of financial relations and money transfers between Iran and Europe in response to new sanctions imposed by USA.
This channel is mainly sponsored by the three largest European countries, namely France, Germany and UK who are party to JCPOA. However, according to EU officials, other European Union countries will also support this channel. In the early stages INSTEX shall be used to facilitate money transfers for food, drugs, and agricultural products exported to Iran. However, its usage shall be expanded later according to the experts.
According to ISNA News Agency, Mr. Pourghazi, the president of the Industrial Commission of Iran Chamber of Commerce hailed the opening of INSTEX as a positive development in economic relations between Iran and Europe. He warned that functionality of INSTEX will depend on the determination of both parties and their approach to mutual relations and it is too soon to evaluate the impact of INSTEX.
INSTEX is already showing some modest positive impacts, as according to Reuters, Vilmorin, a French company and the fourth largest producer of Seeds in the world, announced on March 05, 2019 that it will join INSTEX procedure and shall continue its commercial activities in Iran by assistance of a small French bank. Vilmorin is one of around 70 food and agriculture companies who were invited by INSTEX to discuss the issue of commercial activities with Iran.
Respectfully submitted by Dr. Mahnaz Mehrinfar & Dr. Shahin Fadakar