INSTEX, the trade mechanism established by Germany, the UK, France and Germany in response to US sanctions against Iran and joined by 10 European countries, has been dissolved.
The UK, France and Germany issued a joint statement on INSTEX, a private payment company established in 2019 to maintain trade with Iran.
The statement said that INSTEX shareholders Belgium, Denmark, Finland, France, Germany, Germany, the Netherlands, Norway, Norway, Spain, Sweden and the UK have decided to liquidate the company.
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The statement reminded that INSTEX was established to facilitate legitimate trade between Europe and Iran, especially in products such as medicines and food.
“Iran has systematically and politically obstructed INSTEX from fulfilling its mandate,” the statement said.
The statement reminded that Iran agreed to make only 1 transaction with INSTEX for the export of medical supplies from Europe to Iran in 2020, and argued that Iran has continuously and deliberately blocked various transaction offers with EU countries, the UK and Norway.
“Shareholders have concluded that there is no longer a basis for keeping INSTEX operational,” the statement said, pointing out that Iran has persistently refused to engage with the INSTEX company.
INSTEX shareholders held an extraordinary general meeting on March 9, the statement said, emphasizing that all shareholders voted for the dissolution of INSTEX.
During Donald Trump’s presidency, the US withdrew from the nuclear deal with Iran and reimposed sanctions on the country.
In the face of the decision, European countries had established a special payment mechanism called INSTEX to prevent EU investors from being affected by the US sanctions on Iran and to maintain trade relations with the country.
