INSTEX Activities Only Limited to Coronavirus Era
IRAN NEWS ECONOMIC DESK
TEHRAN – Head of Iran-Austria Chamber of Commerce says activities of European Union’s financial mechanism, INSTEX, is currently limited to the Coronavirus era and Iran’s main challenge will be providing necessary financial resources for saving the INSTEX activities.
Speaking to ILNA, Pedram Soltani said that the main challenge for Iran regarding the INSTEX is to provide financial resources for it in order that the trade through the channel could survive and this trade should be formed via the sales to EU, via oil and oil products revenues and state-owned forex or via the blocked money in the banks across the world. He added that the country should take advantage of its oil revenues frozen in China, South Korea, Turkey, Iraq, and in Japan and Europe if they are allowed to be transferred.
On the activities of INSTEX, he said, “We do not have a few options to choose whether to join INSTEX or not because INSTEX is a financial mechanism which had been promised to Iran by EU 18 months ago for trade with Iran and Iran pursued it and insisted on its operation. But it lasted too long and became more complicated that even EU did not expect it. Of course in this delay, we were also guilty and some sabotages and hurdles in the country slowed down the process.”
Soltani added that hurdles and sabotages on Iran’s joining the FATF by the owners of the power even made EU become sensitive and cautious towards Iran.
He noted that Iran is currently involved in fighting with Coronavirus and maybe EU with a humanitarian approach took action to launch this financial mechanism and the first transaction was for medicines but the main challenge for INSTEX is to inject cash in it and the country should work for injecting cash in it from its frozen money in some countries if they are allowed to be transferred.
On Austria’s joining the mechanism, he said Austria has announced its readiness to join INSTEX and it is ready for cooperating as the mechanism is now fully ready but it first needs financial resource to be used by any country like Austria.
Soltani added that currently and due to humanitarian purpose, the mechanism is used for trade with Iran only for food and medicines but he does not think the trade exceeds medicines and food and it will continue till the moment Iran can pass Coronavirus era and then everything will be like before.