Iran looking to establish INSTEX mirror company to trade with Europe

Business Materials 4 February 2019 11:27 (UTC +04:00)

Tehran, Iran, Feb.4


An Iranian official at the Organization for Trade Development of Iran, announced that the Iran has not yet determined which organization has to cooperate with Europeans through Iran's "Instrument in Support of Trade Exchanges" or INSTEX.

INSTEX (Instrument in Support of Trade Exchanges) is a mechanism, created to facilitate non-dollar trade with Iran, allowing European companies to trade with the Islamic Republic without being hit by the sanctions.

Iranian Deputy Foreign Minister Abbas Araghchi confirmed that for the trade scheme to work, Iran must establish a mirror company of its own, according to Reuters.

"The financial mechanism of transactions between Iran and Europe has been implemented in France, Germany has been introduced as the head of body, and the United Kingdom has a supervisory role,” Iran Trade Promotion Organization's (TPO) top official, Majid Ghorbani said at a press conference, Trend reports citing IRNA.

"Given that this is a financial, commercial and economic phenomenon, it seems that the Central Bank, the Chamber of Commerce Iran and the Foreign Trade Office of the Ministry of Industry, Mining and Trade are the custodians of the implementation of the INSTEX,” he said.

Referring to the European pre-conditions for implementing the mechanism, he said that the adoption of the Palermo Convention and the membership of the Iran in FATF is one of the conditions for the full implementation of the INSTEX.