Iran praises INSTEX ‘strategic value’, says it needs Tehran oil revenues

The Iranian foreign minister says the European payment mechanism isn’t enough but that it’s strategic. Also, the Iranian oil minister says the channel needs Iranian crude money as capital.

1 July 2019
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Iran’s Foreign Minister Mohammad Javad Zari says the European INSTEX has “strategic value”, stressing that it doesn’t meet Iran’s requests.

“Although INSTEX is no response to the Islamic Republic’s demands and the European commitments, it has strategic value,” said Iranian Foreign Minister Mohammad Javad Zarif on Monday, addressing a conference to celebrate National Industry and Mine Day in Tehran, IRNA reports. 

“This [mechanism] means that closest US allies are distancing themselves from that country. The US has now been defeated in many aspects and that’s why it has taken on economic factors,” he added to explain INSTEX “strategic value”.

Instrument in Support of Trade Exchanges (INSTEX) was created by Germany, France and the UK, also known as the E3, signatories of the Iran nuclear deal, in late January.

Iran has also set up a counterparty to INSTEX, called Special Trade and Financing Instrument between Iran and Europe (STFI) to resume bilateral trade.

Europe says the mechanism is operational and that first transactions are being processed. But, no transaction has been finalised so far.

Zarif called for national production capabilities to counter the US sanctions.

Meanwhile in Vienna, the venue of OPEC meeting, Iran’s Oil Minister Bijan Zanganeh said INSTEX needs the money from purchase of Iranian crude to start operations.

“If they consider INSTEX as an operation, this mechanism won’t be operational without the deposit of safe capital. Injecting 3 to 4 million euros won’t be enough. It needs Iranian oil money,” said Zanganeh as he entered the Coburg Hotel in Vienna to attend the OPEC meeting, according to Tasnim News Agency. 

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