The newly-introduced Instrument for Supporting Trade Exchanges (INSTEX) will not change much in terms of Iran’s economy, Hooman Majd, an Iranian-American author and commentator said, commenting on the new payment channel established by Germany, France, and the UK.
On 1 February 2019, Germany, France, and the UK officially established the Istrument for Supporting Trade Exchanges (INSTEX), a special purpose vehicle (SPV) to allow them to bypass US sanctions on trade with Iran. The mechanism will initially deal with food and medicine. By setting up the channel, the bloc is trying to save the Joint Comprehensive Plan of Action (JCPOA), commonly known as the Iran nuclear deal, from collapse.
The commentator expressed hope that this mechanism “will at least… facilitate medical goods and foodstuffs from being exported to Iran”.
In November 2018 the Trump administration granted waivers to eight Iranian oil buyers that are set to expire in May 2019. However, Reuters presumed on 18 January that Washington could at least partially extend the waivers, citing US-based analysts at Eurasia Group.The views and opinions expressed by the speaker do not necessarily reflect those of Sputnik.