INSTEX not a widespread mechanism: Iranian minister
Tehran, Iran, Feb. 1
The newly registered special purpose vehicle, called INSTEX (short for the Instrument in Support of Trade Exchanges), is a payment mechanism that will allow European companies to trade with Iran without being hit by US sanctions.
Iranian Minister of Roads and Urban Development Mohammad Eslami said that Europeans designed this financial mechanism to protect their companies against US sanctions, but it is not a widespread measure.
"The purpose of this mechanism is to protect those European companies that have ties with Iran or intend to cooperate with the country," said Eslami at the Mehrabad International Airport, Trend reports citing IRNA.
The three founder countries of INSTEX have revealed in an official statement that this mechanism is focusing initially on the sectors most essential to the Iranian population, such as pharmaceutics, medical devices and agri-food goods.
Iranian Deputy Foreign Minister Abbas Araqchi, commenting on INSTEX registration, noted that it has been invented "essentially for sanctioned goods.”
"Essentially it is beneficial for sanctioned goods," he said.