Iran private sector welcomes INSTEX, vows to make it ‘big success’

INSTEX (Instrument in Support of Trade Exchange) is the new denomination of Europe’s special purpose vehicle (SPV) that’s been designed to include trade of pharmaceuticals, medical devices and agri-foods between three European countries and Iran in the face of unilateral US sanctions.

6 February 2019
ID : 11819
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Iran private sector has welcomed the creation of Europe’s financial channel with Iran, called INSTEX, promising to do whatever it can to make the mechanism operational.

“We really welcome the framework, the INSTEX; we are looking to make it as much operative and successful as possible,” Pedram Soltani, Vice President of Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) said on Monday.

“From the side of the Iranian private sector, we assure that we will have our utmost effort to make it a big success for doing business between Iran and Europe and to make it a successful experience as well as an exemplary alternative for covering international transactions,” he added in an interview with Iran Chamber Newsroom on the sidelines of a ceremony to celebrate the first anniversary of establishment of Iran-Austria Chamber of Commerce.

Soltani stressed that such a mechanism, should it become successfully operational, “can protect the European states, Iran and other countries against extraterritorial sanctions like the US ones in future.”

The ICCIMA VP stressed that systems such as INSTEX are needed in a bid to “bring more assurance to the international trade.”

Watch video: Iran Chamber of Commerce VP, Pedram Soltani, discusses INSTEX 

INSTEX (Instrument in Support of Trade Exchange) was announced by foreign ministers of three European countries, Germany, France and the UK (also known as the E3) on the last day of January. The E3 are the same signatories to the 2015 Iran nuclear agreement, from which the US walked out unilaterally last May and restored economic sanctions.    

Soltani explained that there are some 10,000 Iranian companies with European trade exchanges that are prepared to utilise this financial system.

The businessman, who’s been head of Iran Chamber of Commerce vice presidency for nearly eight years, stressed that there’s urgency by the private sector to fully use INSTEX as a new instrument to keep business with Europe, denying that enterprises are waiting to see what will happen with the new financial structure. “As soon as we know how we can use this measurement, I believe the Iranian firms are going to start working with it," he assured. 

INSTEX has been registered at the address of French Economy and Finance Ministry in Paris. German banker Per Fischer has been reportedly chosen for a period of six months to run it. Also, a senior UK diplomat is expected to head the Supervisory Board.

A view of French Economy and Finance Ministry in Paris 

Soltani, who is also president of Iran-Austria Joint Chamber of Commerce, said he’s waiting for the instructions on how to make use of INSTEX so the Iranian businessmen and women who are the joint chamber’s memebers can resume trade with Austrian and European firms.

He said the Iran-Austria chamber will be in touch with its counterpart chamber in Austria to get to know INSTEX better and to test it faster.