INSTEX should be funded by Iran's oil export to EU: Hemmati

TEHRAN, Jun. 30 (MNA) – Governor of the Central Bank of Iran (CBI) Abdolnaser Hemmati said that INSTEX needs to be funded by exports of Iranian oil to European countries.

INSTEX should be funded via exports of Iranian oil to Europe and in case Europeans have some considerations for purchasing oil, opening a long-term credit line for Iran could be a transient solution, to which Europeans have also referred to in previous talks, Hemmati wrote Sunday in an Instagram post.

"While the infrastructure of the Iranian mirror system to INSTEX has been thoroughly completed by the CBI, Europe is increasing efforts for having INSTEX implemented," he wrote.

“To see a stable performance in INSTEX’s operation, the financial mechanism should rely on the JCPOA, not a channel in the framework of US sanctions' regulations [i.e.] all the transactions allowed under JCPOA should be possible in INSTEX.”

“Primarily, INSTEX covers trade of non-sanctioned goods but it should be developed to be used for trading all types of goods,” he underlined.

Other methods for participation of other JCPOA supporters in INSTEX are being developed, he informed.

“By the way, INSTEX plays a minor role in CBI’s road-map for controlling domestic forex market, while other plans and programs in this regard have been or are being implemented,” he said.

The Joint Commission of Joint Comprehensive Plan of Action 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.

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.

HJ/4654156

News Code 147030

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