Iranian economist: Government should be cautious with INSTEX
TEHRAN, Iran, Dec.17
Iranian economic analyst Farshad Momeni has warned that the EU's INSTEX initiative for Iran may be become a trap for production industries if it becomes a tool for importing manufactured goods instead of raw materials, Trend reports via ILNA.
The Instrument in Support of Trade Exchanges (INSTEX) is a European special-purpose vehicle (SPV) established in January 2019. Its mission is to facilitate non-USD transactions and non-SWIFT to avoid breaking U.S. sanctions.
"If negligence in the higher management of the country continues, I can say that the launch of INSTEX may mean a shutdown for the country's strategic industries," Momeni said.
In particular, he mentioned the medical supplies.
"We are currently producing 96 percent of the country's medicinal needs domestically. Interestingly, they (the EU countries) are also making a humanitarian gesture and saying that whatever medicine we want, they can provide,” Farshad Momeni added.
"So we need a high level of intelligence to not let the INSTEX becomes tool to facilitate the import of manufactured goods,” he said. “If that happens, the economic and social catastrophic consequences for the country could be several times higher than the current situation."