Baku, Azerbaijan, Feb. 27
By Elnur Baghishov – Trend:
INSTEX is a mechanism for barter of products, Director of the Investment Center of Tehran Chamber of Commerce Faryal Mustoufi said.
Financial Action Task Force (FATF) is not required for the implementation of INSTEX mechanism, Mustoufi added, Trend reports referring to Mehr news agency.
He added that money will not be transferred via this mechanism.
Therefore, there is no need to join some international projects, such as FATF, to implement this mechanism, Mustoufi said.
He said that if there is a need to join the abovementioned projects, there is no need for INSTEX, to join such projects to maintain relations at the international level.
UK, France and Germany, which are the members of the Joint Comprehensive Plan of Action (JCPOA), have introduced INSTEX financial mechanism to protect JCPOA.
On Jan. 31, three European countries – France, Germany and the UK (shortened as E3) – officially announced the creation of the Instrument in Support of Trade Exchanges (INSTEX), a special purpose vehicle, to allow them bypass US sanctions on trade with Iran. INSTEX facilitates non-dollar trade with Iran, allowing European companies to trade with the Islamic Republic without being hit by the sanctions.