Is INSTEX the Answer to Iran’s International Banking Needs

By: Kayhan Int’l

Is the European Union living up to its promise of official trade and industrial transactions with the Islamic Republic as per the international banking system by formally rejecting the illegal US economic sanctions, or is it beating around the bush in a time-wasting tactics in a bid to prevent Iran from its inalienable right to increase uranium enrichment for peaceful purpose following Washington’s blatant violation of and withdrawal from the JCPOA (Joint Comprehensive Plan Of Action). 

Thursday’s announcement in the Romanian capital Bucharest by foreign ministers of France, Germany and Britain on a so-called Instrument in Support of Trade Exchanges (INSTEX) for facilitating what they said in their joint statement "legitimate trade between European economic operators and Iran”, has drawn mixed reactions.

While some have hailed it as the long-awaited Special Purpose Vehicle (SPV) that might initially cover medical, food and other basic humanitarian commodities, others have expressed disillusionment as too little and too late.

Those viewing INSTEX as positive, hope it will be expanded in course of time to cover all aspects of Iran’s international commercial dealing with the rest of the world following the caving in to US demands by the Belgium-based Society For Worldwide Interbank Financial Telecommunication (SWIFT) to cut off Iran from the international banking system.

Those who have a negative view of INSTEX are of the opinion that if this is restricted to humanitarian trade, it will be apparent that Europe will have failed to live up to its end of the bargain for Iran. It means the EU is unwilling and unable to confront the threats of US president, Donald Trump. At the time it is not taking seriously enough the Islamic Republic’s frank and forthright statements that its patience is running thin and it might finally consider JCPOA as a dead horse.

Thus, even if all 28 EU members were to formally endorse INSTEX, there is no guarantee Iran’s rights will be fully observed and the US illegal sanctions totally ignored.

Whatever the results of the latest developments, Washington for its part is not expected to lessen its pressures and threats on the EU and will try to abort this new deal with despite its apparent humanitarian aspects.

The US is already irate. It is fuming and swearing at European companies that in case of business with Iran they will be cut off from the American business sector.

It should be noted that the Europeans are after all no friends of Islamic Iran. Their main intention is to keep the Islamic Republic embroiled in economic difficulties, while hoping against hope for a breakthrough.

At any rate, INSTEX which was announced on the eve of the 40th anniversary of the victory of the Islamic Revolution, is another proof of the fact that despite their plots, both Europe and the US have failed to undermine the progress of Iran, let along realize their daydream of replacing the system of government.