INSTEX 1st step of EU commitment towards Iran: Tehran

Tehran, Jan 31, IRNA – Deputy Foreign Minister for Political Affairs Abbas Araqchi says registration of the Instrument in Support of Trade Exchanges (INSTEX) with Iran will serve as the first step in the series of Europeans' commitments towards Iran.

'We hope they will be fully implemented and will not be incomplete,' Araqchi, who is in Bulgaria, told the Islamic Republic of Iran's Broadcasting (IRIB) Channel One on Thursday.

He said INSTEX is a special financial mechanism that Europeans have been trying to set up in the past few months to facilitate Iran's global trade.

He added that the mechanism tries to include collection of payments and receipts between Iran and Europe, i.e. the exports and imports by Iran and all of them, thus making bilateral exchanges possible.

A similar mechanism is to be set up in Iran for the purpose to make it possible for the Iranian parties to have exchanges in rials.

According to the official, the mechanism will be fully of benefit to Iran when accessible for all countries and non-European companies, as well.

This seems to be the next phase, said Araqchi, adding that in that case, collection of our international purchases can fall under such a mechanism.

'But how such a mechanism will precisely work will depend on the expert sessions that we will have with the European parties; our Central Bank should engage with the mechanism and specify the form of works to be done.'

He noted, 'As far as we know, Europeans have designed the mechanism in a way that the companies willing to work with Iran will not be subject to the US sanctions'.

'The US pressures will be in place, of course,' he added.

'Americans have threatened that they will confront such a mechanism; the prolongation of the process to decide about the mechanism by the Europeans was because of their efforts to introduce strategies that will prevent the sanctions going into effect.'

'The mechanisms have been designed principally for the goods subject to sanctions; …. Principally, the mechanism will be helpful for the sanctioned goods and the mechanism targets the sanctioned goods.'

'In our opinion, that's the first step in the collection of the commitments of Europeans towards Iran; Based on the May 2017 statement, signed by foreign ministers of Iran and three European countries (Germany, Britain and France), Europeans have undertaken a series of commitments and that's the first step towards remaining activities following establishment of a channel.'

Araqchi hoped that the financial channel will be fully implemented and will not be incomplete, while covering all goods.

He said the mechanism aims at supporting the companies engaged in trade with Iran.

He noted that expert sessions will be held to that end and the interested companies will be informed to work in the field.

Meantime the Iranian foreign ministry official said the three European states will officially announce the issue Thursday afternoon in a statement.

'Within perhaps the next one or two months, related works will be done but we hope Europeans will speed up the work and not to enter delayed games so that we will witness the mechanism becoming operational,' Araqchi said.

1391**1420**2044

Follow us on Twitter @IrnaEnglish