Russia calls on Europe to join Iran trade mechanism

The Russian Permanent Representative to the European Union Vladimir Chizov told Interfax news agency that Russia is holding talks with European countries on being included in the INSTEX trade mechanism with Iran.

Chizov acknowledged that the mechanism has not been successful so far. "[We are] holding talks. They are not making it a secret that INSTEX was created and continues to be created with quite serious difficulties” he said and added, "However… they are not giving up plans to set this instrument in motion”.

The Instrument in Support of Trade Exchanges (INSTEX) is EU's special payment channel with Iran, which was announced by the EU in January to secure trade with Iran and skirt US anti-Iran sanctions after Washington pulled out of the 2015 Iranian nuclear deal (JCPOA) in May 2018.

Iran in turn has set up a matching channel called Special Trade and Finance Instrument (STFI). The Islamic Republic had given about a year to Europeans to implement the mechanism, and now expects them to implement the arrangement. The mechanism, which will deal essentially with food and medical trade, is struggling to become operational.

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