Suppose we accept this definition of the EU that the Instrument in Support of Trade Exchanges (INSTEX) is an especial-purpose vehicle (SPV) to facilitate the non-oil trade with Iran against the U.S. sanctions which was established in January 2019 by France, Germany and the United Kingdom. The SPV is headquartered in Paris, France, and is headed by German national Per Fischer, who formerly served as Head of Financial Institutions at Commerzbank, between 2003 and 2014.

The SPV was aimed at preparing the ground for saving normal financial activities between European small medium-sized enterprises with Iran and in the first step, it was to cover medicines and food trades.

The head of the SPV Mr. Fischer went to London last week to talk with British businessmen, traders and financial institutes to find legal mechanisms and grounds for launching the SPV, and ways to lessen fears of British businessmen from the U.S. reactions.

In a meeting with the British commercial companies and officials in London, he presented an explanation on the function of the system and addressed concerns of the British companies in doing business with Iran.

The meeting was held on the initiative of the UK Department for International Trade and the British Iranian Chamber of Commerce.

In London, Fischer said that he was there to develop interactions between the INSTEX and British banks and business institutes, adding that he was happy to say that the INSTEX was seriously seeking to conduct the first trade exchange with its similar Iranian company in the shortest time possible despite existing challenges.

He added that the meeting indicates that London is fully eager to take advantage of this new mechanism “INSTEX”, adding while they are getting closer to the launch of the mechanism, those talks become important in order to become certain that the mechanism is on the right track, saying that the mechanism has been prepared in accordance with Iran’s demands.

Before his meeting in London, Fischer had meetings with Iranian officials in late April. He then in London got necessary licenses and green-lights and both sides signed agreements for the next steps and UK’s share of the INSTEX.

European sides have claimed that since February, the INSTEX has witnessed good progresses and effective steps have been taken, adding that after removing hurdles, it will become operational.

Many in Iran believe that Europe will never enter this game with Iran and the INSTEX is like an elusive rattlebox which has been created to entertain Iran for a while.

That it is said some good progresses have been made since February is like a joke and this progress has not been felt by any Iranian to confirm this belief that Europe has been really after a solution

By: Hamid Reza Naghashian