EU takes 1st step to evade US’ Iran sanctions as it sets up payment channel for ‘humanitarian’ trade

EU takes 1st step to evade US’ Iran sanctions as it sets up payment channel for ‘humanitarian’ trade
Published time: 31 Jan, 2019 14:23
Edited time: 31 Jan, 2019 16:40
Get short URL
EU takes 1st step to evade US’ Iran sanctions as it sets up payment channel for ‘humanitarian’ trade
  Global Look Press
Germany, France and the UK are setting up a transaction channel with Iran in a bid to thwart US sanctions and continue business with Tehran. For now, the non-dollar trade is said to be limited to humanitarian goods only.
The new payment system is called INSTEX – short for “Instrument in Support of Trade Exchanges.” It will reportedly be based in Paris and managed by a German banking expert, German media say. The UK is expected to head the supervisory board.

At present, EU countries have limited the channel to the sale of humanitarian goods such as food, medicine and medical devices to Iran, which are technically exempted from US sanctions. Despite the exemption, many pharmaceutical and agricultural companies stopped trading with Iran under the threat of secondary sanctions.

ALSO ON RT.COM
Europe working on payment system alternative to SWIFT & IMF to attain financial independence from US
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.

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.
MORE https://www.rt.com/business/450243-iran-eu-transaction-channel/?utm_source=browser&utm_medium=push_notifications&utm_campaign=push_notifications