Six European countries join barter system for Iran trade
0 month ago, 01-Dec-2019
A man counts Iranian rials at a currency exchange shop, before the start of the US sanctions on Tehran, in Basra, Iraq. Paris, London and Berlin welcomed six new European countries to the INSTEX barter mechanism, which is designed to circumvent US sanctions against trade with Iran by avoiding use of the dollar. Reuters photo
PARIS: Paris, London and Berlin welcomed six new European countries to the Instrument in Support of Trade Exchanges (INSTEX) barter mechanism, which is designed to circumvent US sanctions against trade with Iran by avoiding use of the dollar.
As founding shareholders of the INSTEX, France, Germany and the UK warmly welcome the decision taken by the governments of Belgium, Denmark, Finland, the Netherlands, Norway and Sweden, to join INSTEX as shareholders, the three said in a joint statement.
The Paris-based INSTEX functions as a clearing house allowing Iran to continue to sell oil and import other products or services in exchange.
The system has not yet enabled any transactions.
Washington in 2018 unilaterally withdrew from the international agreement governing Irans nuclear programme and reinstated heavy sanctions against Tehran.
The accession of the six new members further strengthens INSTEX and demonstrates European efforts to facilitate legitimate trade between Europe and Iran, France, Germany and Britain said.
It represents a clear expression of our continuing commitment to the Joint Comprehensive Plan of Action the 2015 Iranian nuclear deal the trio added.
They insisted Iran must return to full compliance with its commitments under the deal without delay.
We remain fully committed to pursuing our efforts towards a diplomatic resolution within the framework of the JCPoA.
The 2015 deal set out the terms under which Iran would restrict its nuclear programme to civilian use in exchange for the lifting of Western sanctions.
Since the US pullout, Iran has taken four steps back from the accord.
The latest was on Nov 4 when its engineers began feeding uranium hexafluoride gas into mothballed enrichment centrifuges at the underground Fordow plant south of Tehran. AFP