Iran says it will soon register its mirror company for INSTEX, and that it has been named Special Trade and Financial Instrument (STFI).
"A mechanism similar to the [European] channel introduced from the E3 will soon be registered in Tehran under the Special Trade and Financial Instrument (STFI)," Governor of Central Bank of Iran Abdolnaser Hemmati said on Saturday, referring the Germany, France and the UK that have set up the European special financial mechanism with Iran called Instrument in Support of Trade Exchanges (INSTEX).
The announcement comes after a visit to Iran by INSTEX president Per Fischer to work out details of the payment channel. “Through talks that my colleagues held with representatives of the three European countries and the INSTEX director at the Central Bank of Iran, complete explanation about the Iranian mechanism similar to the European version was given and we are waiting for practical steps from Europe,” Hemmati added.
Per Fischer (middle) poses with the E3 heads of mission in Iran. (Photo: Uk Embassy in Iran Twitter)
“Registering this company doesn’t mean at all that Iran has been waiting for the implementation of the European mechanism,” Hemmati added in declarations that seem to be meant to calm down internal conservative critics who have been slamming the government for “waiting for Europe” to make Iran benefit from the dividends of the 2015 international nuclear treaty, also known as the Joint Comprehensive Plan of Action (JCPOA) from which the US walked out unilaterally.
The CBI governor noted that Tehran "will continue its strategy to secure finance and trade under the sanctions especially through our neighbours and other trade partners."
Iran has already been able to set up payment channels with its major regional trade partners such as Iraq, India and Russia in a bid to avoid dollar transactions to skirt unilateral US sanctions that were reimposed on Tehran in two rounds last August and November.
INSTEX was introduced by foreign ministers of the European trio on the sidelines of a European Union summit in the Romanian capital Bucharest on the last day of January.
INSTEX has been registered at the address of France's Economy and Finance Ministry in Paris. German banker Per Fischer has been chosen for a period of six months to run it. Also, a senior UK diplomat is expected to head the Supervisory Board.
The channel is meant to help facilitate trade of essential non-sanctioned goods that have been restricted under the secondary US sanctions that have been designed to block major financial transactions with Iran.
The first phase is expected to pharmaceuticals, medical equipments and agri-foods.