{"id":26195,"date":"2019-05-12T07:18:21","date_gmt":"2019-05-12T06:18:21","guid":{"rendered":"https:\/\/www.ncr-iran.org\/en\/issues\/economy\/26195-europe-s-instex-financial-mechanism-helpful-to-iran-regime-or-not"},"modified":"2023-01-20T05:56:11","modified_gmt":"2023-01-20T04:56:11","slug":"europe-s-instex-financial-mechanism-helpful-to-iran-regime-or-not","status":"publish","type":"post","link":"https:\/\/www.ncr-iran.org\/en\/news\/economy\/europe-s-instex-financial-mechanism-helpful-to-iran-regime-or-not\/","title":{"rendered":"Europe’s INSTEX Financial Mechanism, Helpful to Iran Regime, or Not?"},"content":{"rendered":"

\"Europe's<\/p>\n

By\u00a0Shahriar Kia<\/p>\n

INSTEX, the European financial mechanism, is an enigma for which the Iranian regime\u2019s pundits and analysts have not been able to answer. In fact, on May 7th, Iran regime\u2019s state-run television devoted an entire broadcast to try to tackle the question.<\/p>\n

The Iranian regime\u2019s official channel one television explained, \u201cAfter the U.S. exited the JCPOA, the Europeans were supposed to provide for Iran regime\u2019s interests under the JCPOA framework. However, after one year, Europeans did not want or could not cover those interests. Europe\u2019s promise was downgraded to a limited and narrow channel that hasn\u2019t been made operational until now. According to Mr. Zarif [Iran regime\u2019s foreign minister], Europe has been respecting only one percent of its obligations in real terms. [Iranian President Hassan] Rouhani also warned a few days ago that regime\u2019s patience is limited.\u201d<\/p>\n

Going on to quote Federica Mogherini, High Representative of the European Union for Foreign Affairs and Security Policy, channel one reports her as saying, \u201cWe are obliged to fully respect all the obligations that are provided by the JCPOA and this must mean for the Iranians to respect all their nuclear obligations.\u201d She continues, \u201cThey forced foreign companies to leave Iran and by violating the JCPOA, they did everything in their power: from [U.S. Secretary of State] Pompeo\u2019s 12 conditions… to labeling the Revolutionary Guards (IRGC<\/a>) as a terrorist and promising to zero our oil sales. Not to mention that alongside an economic war, the Americans are also waging a full-fledged media war, too.\u201d<\/p>\n

German Foreign Minister Heiko Maas\u2019 is also quoted, saying, \u201cWe\u2019ve made it clear to Iran that we don\u2019t have the capability to cover the losses of European companies who are hit by losses in their business with Iran because of the threat of U.S. sanctions,\u201d he said.<\/p>\n

The program commentator adds, \u201c\u2026 we are the point where the U.S. left the JCPOA and started violating its obligations. This is the very point where Iran\u2019s patience runs thin.\u201d<\/p>\n

Citing a warning from Iranian Deputy Foreign Minister Abbas Araghchi, Channel One television ends the program on this note: \u201cUnfortunately, I have to say that the JCPOA is very close to its end and it is unfortunate if it ends. However, its end won\u2019t be on Iran.\u201d<\/p>\n

Foreign Minister Mohammad Javad Zarif\u2019s interview with Russia\u2019s Sputnik were also republished in Iranian media. \u201cAs long as Europe stays committed to the nuclear deal, Iran will comply with it. The Iranian version of Europe\u2019s INSTEX is a company called SATMA. We have informed Europe about the launching of this company. We may implement a similar mechanism to INSTEX with other stakeholder countries, including Russia and Turkey.\u201d<\/p>\n

Later, Iran regime\u2019s Mehr news agency mocked Zarif\u2019s rhetoric of a non-European INSTEX as a \u201cbitter joke.\u201d The piece reads, \u201cThe European INSTEX is still limited to talk and registration and is far from implementation. Nonetheless, officials and Zarif talk about a None-European INSTEX. This means [further] complicating the economic situation.\u201d<\/p>\n

State-run Tasnim news agency, affiliated to the IRGC Quds force, quotes an economic official saying, \u201cThe main problem is that as long as a bank or financial institution isn\u2019t ready to cooperate with INSTEX, it won\u2019t be able to do anything meaningful.\u201d The report reads in full, \u201cUnfortunately, the sanctions have resulted in a situation that no bank is ready to do business with Iran.\u201d The official adds, \u201cNow, three months after INSTEX was established, it appears that Iran and Iranian businessmen have got \u2018nothing\u2019 and INSTEX has not been able to open a route for trading between Iran and Europe.\u201d<\/p>\n

Whether INSTEX will eventually help or hurt Iran appears to be a highly political and biased position. But, one thing is clear \u2014 Europe\u2019s financial mechanism hasn\u2019t done much to assist Tehran.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Shahriar Kia INSTEX, the European financial mechanism, is an enigma for which the Iranian regime’s pundits and analysts have not been able to answer. In fact, on May 7th, Iran […]<\/p>\n","protected":false},"author":17,"featured_media":53129,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[178],"class_list":{"0":"post-26195","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-save"},"yoast_head":"\nEurope's INSTEX Financial Mechanism, Helpful to Iran Regime, or Not? - NCRI<\/title>\n<meta name=\"description\" content=\"By\u00a0Shahriar Kia INSTEX, the European financial mechanism, is an enigma for which the Iranian regime\u2019s pundits and analysts have not been able to answer.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ncr-iran.org\/en\/news\/economy\/europe-s-instex-financial-mechanism-helpful-to-iran-regime-or-not\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Europe's INSTEX Financial Mechanism, Helpful to Iran Regime, or Not? 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