This article is from the source 'rtcom' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.rt.com/business/450243-iran-eu-transaction-channel/
The article has changed 4 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| EU countries move to evade US’ Iran sanctions by setting up payment channel for ‘humanitarian’ trade | |
| (35 minutes later) | |
| Germany, France and the UK have announced they have set up a mechanism allowing “legitimate trade” with Iran to continue in wake of US sanctions. The scheme, limited to “essential” goods for now, could be joined by more countries. | |
| The new payment system is called INSTEX – short for ‘Instrument in Support of Trade Exchanges’. As of now, it is aimed at facilitating trade between the companies of the three nations and Iran. “In the long term,” the mechanism will be “open” to enterprises from third countries, the joint statement said, adding that Berlin, London and Paris will “explore how to achieve this objective.” | |
| The system will initially focus on “the sectors most essential to the Iranian population” – such as food, pharmaceutical and medical devices, the statement said. While the sale of such goods are technically exempt from US sanctions, many pharmaceutical and agricultural companies stopped trading with Iran under the threat of secondary sanctions. | |
| The use of INSTEX is described as “expandable,” suggesting that it could be used for non-humanitarian goods in the future – which would set the EU on a direct collision course with the US. However, it remains unclear whether the bloc is willing to sidestep Donald Trump and use it for the oil trade. | The use of INSTEX is described as “expandable,” suggesting that it could be used for non-humanitarian goods in the future – which would set the EU on a direct collision course with the US. However, it remains unclear whether the bloc is willing to sidestep Donald Trump and use it for the oil trade. |
| German Foreign Minister Heiko Maas hailed the future mechanism as an important step in preserving the 2015 Iranian nuclear deal as it would help the European parties to the agreement to stay committed to their part of the treaty. | German Foreign Minister Heiko Maas hailed the future mechanism as an important step in preserving the 2015 Iranian nuclear deal as it would help the European parties to the agreement to stay committed to their part of the treaty. |
| Maas said he was “glad” to see INSTEX being established, adding that it would “make it clear” that the EU is “determined” to “resolutely go its own way” even if “some other [parties] see things differently.” | Maas said he was “glad” to see INSTEX being established, adding that it would “make it clear” that the EU is “determined” to “resolutely go its own way” even if “some other [parties] see things differently.” |
| “It is a first step taken by the European side... We hope it will cover all goods and items,” Iranian Deputy FM Abbas Araqchi told state TV on Thursday, as EU foreign affairs chief Federica Mogherini promised that the system would be officially launched within hours. | “It is a first step taken by the European side... We hope it will cover all goods and items,” Iranian Deputy FM Abbas Araqchi told state TV on Thursday, as EU foreign affairs chief Federica Mogherini promised that the system would be officially launched within hours. |
| The EU countries have been considering the idea of a special payment channel with Iran since last year, after the US’ dramatic withdrawal from the landmark nuclear deal, signed by Tehran and six world powers in 2015. Washington then reintroduced its sanctions against Iran. | The EU countries have been considering the idea of a special payment channel with Iran since last year, after the US’ dramatic withdrawal from the landmark nuclear deal, signed by Tehran and six world powers in 2015. Washington then reintroduced its sanctions against Iran. |
| As the project initially stalled, Tehran criticized the EU for strategic indecision, and cited “dollar domination” and Washington’s threats to European companies as a key factor for the delay. | As the project initially stalled, Tehran criticized the EU for strategic indecision, and cited “dollar domination” and Washington’s threats to European companies as a key factor for the delay. |
| The US hasn’t reacted to the new payment channel but, last November, Secretary of State Mike Pompeo warned of “swift punishment” for other countries doing business with Iran. | The US hasn’t reacted to the new payment channel but, last November, Secretary of State Mike Pompeo warned of “swift punishment” for other countries doing business with Iran. |
| Earlier, the EU introduced legislation to shield EU companies from re-imposed US economic restrictions on Iran. However, the measure failed to prevent European business giants, including Total, Volkswagen, Daimler, Peugeot, Renault and Siemens, from quitting business in the country. | Earlier, the EU introduced legislation to shield EU companies from re-imposed US economic restrictions on Iran. However, the measure failed to prevent European business giants, including Total, Volkswagen, Daimler, Peugeot, Renault and Siemens, from quitting business in the country. |
| Think your friends would be interested? Share this story! | Think your friends would be interested? Share this story! |