“INSTEX is a useless mechanism which cannot solve economic problems created by [US] sanctions,” Mohammadreza Pour-Ebrahimi, a member of the Parliament’s Economic Committee, told Mehr News Agency on Sunday.

“Europe should return to its commitments under the JCPOA [Joint Comprehensive Plan of Action] because INSTEX has no effect on Iran’s economy,” he added.

The remarks came as the Joint Commission of the JCPOA announced on Friday that long-awaited INSTEX had finally been made operational and available to all EU Member States and that the first transactions are being processed.

According to the Nuclear Deal, the Europeans were obliged to establish trade relations with the Islamic Republic of Iran and to allow banking transactions to take place in the European banking network, however, after the JCPOA implementation, Europeans did not fulfill these two commitments, noted the MP.

Pour-Ebrahimi went on to say that recent developments, including the downing of an intruding US spy drone by Iranian Armed Forces and Iran’s announcement on reducing commitments to the deal, made Europeans feel that they should pay the price for Iran’s remaining in the JCPOA. “So they announced that INSTEX had been operational but this mechanism is not related to JCPOA commitments, rather, it can be a beginning for implementation of the deal.”

“INSTEX is actually banking transactions for trading food, medicine and medical equipment; this an insult the Iranian nation,” he lamented, adding, “the way Europeans act on INSTEX is not acceptable … Europe should honor its JPCOA commitments in trading and banking sectors with Iran. The export of Iranian oil and products are an important part of the JCPOA.”

In late January 2018, Europe announced the establishment of a special trade mechanism dubbed as INSTEX (Instrument in Support of Trade Exchanges) in a bid to save JCPOA after the withdrawal of the United States. The mechanism, which is yet to prove its effectiveness, is said to initially cover trades of food, medicine and medical devices and to gradually include other areas.

Also earlier on Saturday, Iranian envoy to the United Nations Majid Takht-e Ravanchi said “I personally believe that INSTEX is not enough in the current circumstances. Without money, this mechanism is like a beautiful vehicle without fuel.”