Special mechanism to be implemented for trade and financial operations between Iran and EU

Business Materials 2 May 2019 09:27 (UTC +04:00)

Baku, Azerbaijan, May 2

By Elnur Baghishov – Trend:

After the development of a special mechanism for trade and financial operations between Iran and the EU, it will be implemented in coordination with Iranian and European banks, CEO of the special Iranian joint stock company for trade and financing between Iran and Europe (SATMA) Ali Asghar Noori said, Trend reports referring to the website of the Central Bank of Iran.

According to Noori, following joint meetings of officials from European countries and INSTEX, an initial financial transit is supposed to be carried out via coordination of both parties.

In his words, the Iranian side is ready for the mechanism to be launched. He also stressed the importance of speeding up the implementation of the financial mechanism.

"Coordination meetings have been held with Iranian banks to this end, and several meetings will be held next week to introduce the mechanism and its capabilities to Iranian importers and exporters," Ali Asghar Noori said.

The Central Bank of Iran and other Iranian banks continue taking steps to launch of this mechanism in the nearest future.

The US announced its withdrawal from the Joint Comprehensive Plan of Action in May 2018. Three European signatories of the agreement including 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 in the 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.