Iranian economist talks special financial mechanism
Baku, Azerbaijan, Feb. 3
By Elnur Baghishov – Trend:
According to the forecasts, the special financial mechanism has been partially approved and concerns medicines and food products, Vahid Shaqaqi, member of the scientific community of Iran’s Kharazmi University, said.
Instrument in Support of Trade Exchanges (INSTEX) did not cover export of raw materials, spare parts, industrial equipment, Shaqaqi added, Trend reports referring to ISNA.
He added that the term "step-by-step" is related to the Financial Action Task Force (FATF) in the statement of three presidents of the European countries.
FATF applies international standards for combating money laundering or other property, financing terrorism and the proliferation of weapons of mass destruction.
Two of the four FATF projects have been approved in Iran. Two projects Palermo and CFT have not been approved yet.
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.