Europe Has Failed to Keep INSTEX Running: Iran’s Envoy

Iran’s Ambassador to the United Nations Majid Takht Ravanchi criticized Europe for failing to provide enough credit to make INSTEX -a payment channel that the three EU signatories to the JCPOA have set up to maintain trade with Iran- fully operational.

“Since the US withdrew from the JCPOA, the Europeans have not done anything tangible, meaning it is malfunctioning,” Takht Ravanchi told reporters in New York on Saturday.

“We cannot continue to carry out our obligations under JCPOA single-handedly and not to benefit from it,” he added.

Takht Ravanchi said INSTEX was not doing enough to allay Iran’s concerns, insisting that the Europeans have failed to provide enough credit to keep the scheme running.

“This mechanism without money is like a very beautiful car which has run out of fuel,” said Takht Ravanchi, adding, “Personally, I think INSTEX does not suffice in (its) current condition.”

INSTEX is planned to be based in Paris and be managed by a German banking expert. Britain will head the supervisory board.

It was established in January but was not operational and had carried out no transactions. Initially, European companies will be focused on trading humanitarian products like medicine, medical devices and food, which are not targeted by US sanctions.

On Tuesday, European Union foreign policy chief Federica Mogherini said INSTEX was ready to be deployed. A formal announcement of this is expected in coming days, officials said.

The trade mechanism is designed to allow European companies which import Iranian goods to effectively pay European companies exporting goods to Iran, with INSTEX ensuring that payments are correctly offset.