INSTEX will effect Iran, Iraq ties

Finance Materials 16 July 2019 14:48 (UTC +04:00)

Tehran, Iran, July 16


The Instrument in Support of Trade Exchanges (INSTEX) is expected to be accessible to third party members, while Iran and Iraq seek to use the mechanism to improve ties.

Hamid Hosseini, Secretary General of Iran-Iraq joint Chamber of Commerce discussed the effect of INSTEX on bilateral relations in an interview with Trend.

"If the Europeans are determined to implement INSTEX, the Iraqi government can transfer $4 to $5 billion per year to its account for gas and electricity payment and, thus, to improve trade," he noted.

Federica Mogherini, High Representative of the European Union for Foreign Affairs, recently told reporters the special purpose mechanism with Iran known as INSTEX would be open to third-party countries.

"A delegation of Iraq's chambers of industries visited Iran to review the opportunities for cooperation between Iranian and Iraqi companies and the possibilities of Iranian companies' participation in gas and oil projects have been discussed," Hosseini said.

"During the meeting, it has been emphasized that due to the US sanctions against Iran, there is no opportunity for Iranian companies to directly work in Iraqi oil industry. The trade delegation was asked to consider cooperation of Iranian companies in Iraq's public and private sectors alongside the opportunity to be active in Iraq oil and gas projects," the secretary general of joint Iran and Iraq Chambers of Commerce added.

"Soon, Iranian visitors and businessmen will not need to have Iraqi visa to enter the country, and this helps to expand bilateral cooperation," he said. "Lifting Iraq's visa for Iranian visitors will be implemented before October 19 for Arba'een Pilgrimage."