INSTEX works if includes oil revenues
Tehran, Iran, Oct.9
Launch of INSTEX will reduce the sanction pressure only if it includes oil sale and banking transactions, said the head of Export Development Bank of Iran.
Ali Salehabadi discussed the Instrument in Support of Trade Exchanges (INSTEX) in an interview with Trend.
"In order to preserve Joint Comprehensive Plan of Action, the Europeans launched financial channel known as INSTEX to facilitate trade transactions with Iran to make transparent transaction and money transfer," he said.
"The statement of three signatory countries (France, Germany and the UK) implied that the channel would be for transaction of non-sanctioned items including food items, agriculture products, medicines and medical equipment, and only eight European countries including Austria, Belgium, Finland, The Netherlands, Slovenia, Spain, Sweden and Norway joined so far," Salehabadi added.
"In case the mechanism is implemented, the economic problems caused by the sanctions will not be resolved, but if oil sale and banking transactions are included in the deal, ther countries such as China and Russia, may join INSTEX and this will reduce the pressure of the US sanctions, " the official indicated.
"There are two possible scenarios. The first one is that Americans will lift all the severe sanctions and return to the Joint Comprehensive Plan of Action. The second is related to the concern over launching the financial channel," he added.
Salehabadi went on to say: "If European countries will fully support the financial channel, stand against America and expand financial, banking and trade relations with Iran, this will eventually reducing the sanction pressure."
In his words, the other way is to form a pilot financial channel to preserve Iran's nuclear deal. "However, Europeans have not followed 11 commitments in the Joint Comprehensive Plan of Action, and if they accept the sanction, the project will fail," he added.