Denmark is the second Scandinavian country that is considering joining the European payment mechanism INSTEX in a bid to keep trade with Iran afloat in the wake of US sanctions.
Denmark reviewed the prospects for expanding the INSTEX payment mechanism, according to a French Foreign Ministry press release about a meeting between Danish and French Foreign Minister Jeppe Kofod and Jean-Yves Le Drian on 19 July in Paris.
“The two ministers reviewed the prospects for expanding the INSTEX payment mechanism, a now operational structure to facilitate the development of legitimate trade with Iran, and which other EU member states, including Denmark, are eligible to join,” according to the statement.
INSTEX or Instrument in Support of Trade Exchanges between Europe and Iran was created in January. It has become operational but has not finalised any transactions so far. The EU and Iran announce that the mechanism is processing first transactions.
Outgoing European Union’s Foreign Policy Chief Federica Mogherini has said many other EU and non-EU nations have expressed their readiness to join the channel.
Earlier July, Finland said it was ready to be part of the European trade mechanism with iran.
Netherlands and Russia are the other known countries that are publicly in favour of joining INSTEX.