Experts from Iran and the three founders of a special European financial trade mechanism are to hold negotiations in Paris soon to work out the practical details of the payment system that aims to circumvent American sanctions on Tehran.
The arrangement was announced following consultations between Iranian and French diplomats on Tuesday, ISNA reported.
France, Germany and the United Kingdom (E3) announced last week the official registration of their special trade vehicle named INSTEX (Instrument in Support of Trade Exchanges), but it will not be activated until the operational details are finalized and a corresponding entity is established in Iran.
The establishment of INSTEX is part of the European Union’s commitment under the Joint Comprehensive Plan of Action (the 2015 nuclear deal between Iran and major world powers) to preserve Iran’s economic interests jeopardized by the United States.
The US withdrew unilaterally from JCPOA last year and reimposed the lifted sanctions while the EU remained committed, pledging to salvage the deal through measures to shield Iran from American hostile policies.
Hope for Swift Enforcement
Deputy Foreign Minister Abbas Araqchi welcomed the positive move of E3 during his Tuesday meeting with Maurice Gourdault-Montagne, secretary-general of the French Foreign Ministry, hoping it will be operationalized soon.
“The mechanism was registered after a long delay and we hope the operational stages will be completed quickly,” he said.
Zarif says the fact that Europeans have announced that they want to devise a system to bypass the US sanctions is “a positive measure at the political level”, but they are yet to prove how far they can go in the operational phase
Referring to Iran’s full implementation of its obligations under the nuclear accord, Araqchi lamented that “the balance of the agreement has been disrupted” due to other parties’ failure to fulfill their commitments.
Gourdault-Montagne reaffirmed France’s support of the deal, emphasizing that the special trade vehicle has been designed for this purpose.
“France is keen on maintaining its dialogue with Iran as an important and influential player about all issues of common interest,” he said.
Still Merely Political
Foreign Minister Mohammed Javad Zarif also described INSTEX as a positive measure, but only at the political level yet.
“The fact that Europeans have taken a step against the US or have announced that they want to devise a system to bypass the sanctions is a positive measure at the political level,” he said in a Tuesday interview with ICANA.
However, they are yet to prove how far they can go in the operational phase, he added.
According to Zarif, at the initial stage, the mechanism will be used by the 28 EU member states for non-sanctioned goods, but it is not going to be confined to these countries and goods.
“At the first stage, private firms are to be encouraged to use the system so that it can be later extended to other sectors in an efficient manner,” he said, adding that it depends on Europe to turn the political act into a practical solution.
Although Iran is waiting for EU’s measures, it has not been without alternative plans over the past nine months.
“We have had our ties with Russia, China, India, Turkey and Iraq, will pursue them and will not wait for Europeans,” he said, calling on Europe to take a practical step to prove it is a reliable partner.
The E3 statement pointed out that INSTEX will function under the international standards of the Financial Action Task Force regarding anti-money laundering and combating the financing of terrorism, calling on Iran to “swiftly implement all elements of its FATF action plan”.
It sparked strong reaction by several Iranian officials and experts who criticized E3 for imposing conditions on Iran to implement their plan.
Zarif said the text does not suggest that the mechanism’s activation is conditional.
“The Europeans have not mentioned FATF [guidelines] as a condition; in fact our trade partners recommend that if FATF reforms are implemented, foreign banking transactions will be facilitated,” he said.
