European countries dissolve an instrument against Iran sanctions

INSTEX, a special purpose tool designed to circumvent US sanctions against Iran, will be dissolved. The 10 European countries participating in the tool have decided so, the German Foreign Ministry announced on Thursday. Instex was established in 2019 by Germany, France and the United Kingdom to “facilitate legitimate trade between Europe and Iran, especially in humanitarian goods,” according to the ministry.

Iranian embassy via dts news agency

There has been strong and sustained demand for the use of the mechanism from European exporters, especially from the humanitarian sector. For political reasons, Iran has systematically prevented INSTEX from carrying out its mandate. Iran has only agreed to one deal, the State Department said, which is the export of medical supplies from Europe to Iran in early 2020.

Subsequently, Iran has consistently and deliberately blocked further proposals for transactions between the United Kingdom, Norway, the European Union, and Iran. The reason for this is the political determination to prevent the use of INSTEX under any circumstances.” The Iranian leadership decided to act against the interests of its people by refusing to cooperate in the export of medical supplies and other life-saving products, according to the joint declaration of the partner countries.” In the face of Iran’s continued refusal To cooperate with the company, the shareholders of INSTEX have concluded that there is no longer any basis for INSTEX to continue.”

She added that the decision was taken independently of other factors and for purely economic reasons.

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