Three European signatories to the nuclear deal of 2015, Germany, France and the UK, are expected to inject capital into INSTEX to open credit lines for European companies that are interested in doing business with Iran.
The European Union’s External Action High Representative Federical Mogherini has said that the INSTEX is ready to be operational and carry out the first trade exchange with Iran before Tehran’s 60-day ultimatum expires next week.
High-level Russian and Dutch officials have said that their countries are very keen on maintaining trade with Iran through the INSTEX mechanism.
Central Bank of Iran (CBI) says these alternative routes are not susceptible to US sanctions and pressures that have been applied by Washington as part of its so-called maximum pressure campaign.
The joint bank will be used to handle the Iranian export of gas to Turkey as well as import of other commodities to the country.
The Export Guarantee Fund of Iran (EGFI) says the MoUs will facilitate the transaction of first financial dealings between Iran and Europe within INSTEX and its Iranian counterparty STFI.
The two Iranian and European companies are laying the groundwork for realising the first financial transaction months after they were created.
Madrid says PM Sánchez is considering plans on how to join the E3 in the financial channel with Iran that has been created to allow humanitarian trade and other items in the future.
Iran’s main financial institution has devised a six-point contingency plan to resist possible consequences of the US move no to renew sanctions waivers for clients of Iranian energy.
Special Trade and Finance Instrument between Iran and Europe (STFI), called SATMA in Persian, was registered on 22 April in Tehran in a bid to further facilitate Iran-Europe trade in the wake of US sanctions.