The Instrument in Support of Trade Exchanges (INSTEX) was a European special-purpose vehicle (SPV) established on 31 January 2019 and liquidated in March 2023. Its stated mission was to facilitate non-USD and non-SWIFT[1][2] transactions with Iran to avoid breaking U.S. sanctions.[3]
| Company type | Société par actions simplifiée |
|---|---|
| Industry | Clearing house |
| Founded | 31 January 2019 |
| Headquarters | , |
Key people | Per Fischer (managing director) Sir Simon McDonald (chairman of the supervisory board) Miguel Berger (member of the supervisory board) Maurice Gourdault-Montagne (member of the supervisory board) |
| Owner | |
| Website | instex-europe |
History
editon 1 January 2019, the initial announcement of INSTEX by France, Germany and the UK specified that the SPV would be headquartered in Paris and headed by Per Fischer, who formerly had served as Head of Financial Institutions at Commerzbank between 2003 and 2014.[4]
In Iran, INSTEX was mirrored by the STFI (Special Trade and Finance Instrument), a similar SPV. STFI matches incoming and outgoing transactions in the same way. In effect, two Iranian entities pay each other, thus, no money crosses the Iranian border.[5] Ali Khamenei, Leader of the Islamic Revolution, commented by likening the European financial mechanism for trade with Iran to a “bitter joke".[6]
As of May 2019, the use of the SPV was limited to humanitarian purposes; such as the purchase of foods or medicines.[2] INSTEX had been made available to all EU member states. On 11 February 2019, Russian deputy foreign minister Sergei Ryabkov stated that Russia would be interested in participating in INSTEX.[7]
On 28 June 2019, France, Germany and the United Kingdom told a meeting of the JCPOA Joint Commission that INSTEX had been made operational and available to all EU member states.[8][9] Federica Mogherini, High Representative of the European Union for Foreign Affairs and Security Policy stated that the purpose of INSTEX is to facilitate "legitimate trade" with Iran for any EU member and has been conceived to be open to non-EU countries.[10]
In addition to the three founders, five other EU nations declared in a joint statement on 29 November 2019 that they will join the INSTEX mechanism for trade with Iran: Belgium, Denmark, Netherlands, Finland, and Sweden.[11]
On 31 March 2020, over one year after the introduction of the platform,[12] the first INSTEX transaction was concluded. It covered an import of medical equipment to combat the COVID-19 outbreak in Iran.[13][14]
European countries stated in March 2023 they had decided to end INSTEX, through which only a single transaction had traded.[15]
Academic Tim Beal described INSTEX as one among the responses to United States sanctions viewed by commentators as contributing to dedollarisation.[16]
See also
editReferences
edit- ^ "European powers launch mechanism for trade with Iran". Reuters. 31 January 2019. Archived from the original on 5 February 2019. Retrieved 31 January 2019.
- ^ a b Girardi, Annalisa (9 April 2019). "INSTEX, A New Channel To Bypass U.S. Sanctions And Trade With Iran". Forbes. Archived from the original on 18 April 2024. Retrieved 3 May 2019.
- ^ Coppola, Frances (30 June 2019). "Europe Circumvents U.S. Sanctions On Iran". Forbes. Archived from the original on 4 April 2023. Retrieved 7 August 2019.
- ^ "INSTEX: Europe sets up transactions channel with Iran". Deutsche Welle. 31 January 2019. Archived from the original on 11 June 2019. Retrieved 31 January 2019.
- ^ "EU nations launch mechanism to trade with Iran". Euronews. 31 January 2019. Archived from the original on 24 August 2019. Retrieved 7 August 2019.
- ^ "Leader likens European financial mechanism to a 'bitter joke'". 21 March 2019. Archived from the original on 11 March 2023. Retrieved 28 July 2024.
- ^ "Рябков: РФ будет добиваться участия в механизме внешнеторговых расчетов INSTEX с Ираном" [Ryabkov: Russia will seek participation in the mechanism of foreign trade settlements INSTEX with Iran]. TASS (in Russian). 11 February 2019. Archived from the original on 12 February 2019. Retrieved 11 February 2019.
- ^ "Europe says Iran trade channel operational -statement". news.trust.org. Retrieved 28 June 2019.
- ^ "Chair's statement following the 28 June 2019 meeting of the Joint Commission of the Joint Comprehensive Plan of Action" (Press release). Vienna: European External Action Service. 28 June 2019. Archived from the original on 23 March 2022. Retrieved 28 July 2024.
- ^ "Remarks by High Representative/Vice-President Federica Mogherini following the Foreign Affairs Council". Brussels: European External Action Service. 15 July 2019. Archived from the original on 18 March 2022. Retrieved 28 July 2024.
- ^ Didili, Zoi (3 December 2019). "Six European nations join INSTEX mechanism for trade with Iran". New Europe. Archived from the original on 21 December 2019. Retrieved 21 December 2019.
- ^ "No transaction has been done through INSTEX: Iranian diplomat". Tehran Times. 4 March 2020. Archived from the original on 3 June 2023. Retrieved 28 July 2024.
- ^ "INSTEX successfully concludes first transaction". GOV.UK. Foreign & Commonwealth Office. 31 March 2020. Archived from the original on 1 June 2023. Retrieved 28 July 2024.
- ^ "European countries to send medical aid to Iran in first INSTEX transaction". AMN. 31 March 2020. Archived from the original on 30 April 2020. Retrieved 31 March 2020.
- ^ "Europe dissolves Iran trade system that never took off". Associated Press. 9 March 2023. Archived from the original on 27 March 2023. Retrieved 28 July 2024.
- ^ Davis, Stuart (2023). Sanctions as War: Anti-Imperialist Perspectives on American Geo-Economic Strategy. Haymarket Books. p. 40. ISBN 978-1-64259-812-4. OCLC 1345216431.