The launch of a European financial mechanism to secure trade with Iran and evade US sanctions was an “important” and “positive” step, a senior lawmaker said, criticizing efforts to dampen hopes for an economic breakthrough.
“Unfortunately, certain groups inside the country are seeking to cause a sense of frustration in the economic sector, while INSTEX provides enough solutions to help improve the country’s economic conditions,” Heshmatollah Falahatpisheh, chairman of Majlis National Security and Foreign Policy Commission, told ICANA in remarks published on Sunday.
INSTEX refers to the Instrument in Support of Trade Exchanges recently put in place by France, Germany and Britain, which will allow Europe to continue humanitarian trade with Iran and uphold what is left of the Joint Comprehensive Plan of Action, commonly known as the Iran nuclear deal.
US sanctions went into place last year after US President Donald Trump’s withdrawal from the agreement, halting a significant portion of trade between Iran and its European partners.
Falahatpisheh maintains that the instrument bodes well for the future despite the fact that it does not cover oil sales in the initial stage, which Tehran says is an essential element to keep the nuclear deal afloat.
“By setting up INSTEX, the Europeans tried to meet Iran’s minimum demands while paving the way for striking a bargain with the Americans and holding negotiations as an EU troika to help improve Iran’s situation,” he said.
Falahatpisheh noted that the new payment mechanism is part of a “political transition” for Iran, which will encourage other European countries as well as Russia and China to join later.
A Shot in the Arm
Lawmaker Mohammad Kazemi believes that the new development can give the nuclear accord a shot in the arm.
“The introduction of this financial system is an important step toward reviving JCPOA and should be welcomed,” the deputy chairman of Majlis Judicial and Legal Affairs Commission was also quoted as saying on Sunday by ICANA.
The lawmaker noted that the “unprecedented” measure taken by Europe can act as a counterbalance to “unchecked American unilateralism”.
“Any kind of economic relations that Iran can establish and strengthen independently from the United States is not only a defeat for the White House but also an achievement for a multipolar world,” he said.
“By setting up INSTEX, the Europeans tried to meet Iran’s minimum demands while paving the way for striking a bargain with the Americans,” says a senior lawmaker
Kazemi said those who have turned a blind eye to this reality are leveling criticism at the Foreign Ministry, ignoring the fact that diplomacy is the best way forward.
Mohammad Javad Jamali, another parliamentarian, said the European trade vehicle is not “transparent” enough and is meant to gain concessions from Iran on non-nuclear issues, ICANA reported on Sunday.
“We expect Europeans to buy oil from Iran and help the country repatriate oil payments so that it can import the commodities it needs from other countries. We do not want it to be an oil-for-food or an oil-for-medicine program as it would result in a dangerous situation,” he said.
Jamali noted that Europe’s decision to link the further development of INSTEX to the implementation of all FATF standards is aimed at putting Iran in a position where it has to make a compromise on other issues.
Iran has been making efforts to implement standards set by the Financial Action Task Force, an inter-governmental organization that underpins regimes combating money laundering and terrorist financing. It hopes to be removed from a blacklist that makes some foreign investors reluctant to deal with it.
“INSTEX will function under the highest international standards with regard to anti-money laundering, combating the financing of terrorism … and EU and UN sanctions compliance. In this respect, the E3 expect Iran to swiftly implement all elements of its FATF action plan,” German, French and British foreign ministers said in a joint statement on January 31, in which they announced the creation of the special purpose vehicle.
