Tehran, Iran, Feb.11
Trend:
The EU-launched INSTEX mechanism would benefit Iran and take off psychological pressure off the people in the country, Deputy Head of Iran-China Chamber of Commerce Majid Reza Hariri told Trend.
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.
"It’s a step forward, and a political win," he said.
"Although it should be verified, and seen how the mechanism operates and if it covers Iran oil transactions as well," he added.
"Iran's non-oil exports to Europe aren't big, as major exports are oil, gas and petrochemicals, so if these products can be traded using INSTEX, it would mean the channel is efficient," Hariri said.
"Also, if Russia, China and India can connect to this mechanism, it would create new atmosphere, but it all remains to be seen," he said.
Hariri noted that INSTEX is unlikely to be initiated in the next several months, and it probably would be finalized by May, since US president Trump is to implement the next phase of sanctions in May.
The US administration pulled out of nuclear deal on May,2018 and re-imposed sanctions against Iran in August and November while it is likely that the US would cut number of waivers it has issued for Iran oil buyers in May 2019.
"However the real effect of INSTEX is not clear until the mechanism starts to operate. The released data indicates it would include non-sanctioned items, which is not enough," said Hariri.