Iran Underlines Need for Financing INSTEX through Oil Exports to Europe

Governor of the Central Bank of Iran (CBI) Abdolnasser Hemmati underlined the need for the EU to purchase Iranian crude to finance the Instrument in Support of Trade Exchanges (INSTEX).

TEHRAN TIMES- Hemmati wrote on his Instagram page on Sunday that to sustain normal operation, INSTEX should not act as a channel within the framework of the US sanctions rules, and should be a channel operating under the nuclear deal and all transactions allowed under the agreement should be possible through the mechanism.
He added that although the INSTEX may first include unsanctioned goods, it should cover all commodities at a later stage.
"Its (financial) resources should be provided through oil exports to Europe and if Europe faces temporary restriction to buy crude from Iran, a long-term credit line with oil futures return is a temporary solution which can be studied. The Europeans have also in their negotiations hinted at a similar solution," Hemmati said.
He also added that INSTEX contributes a limited share to the CBI's strategy in the currency market.
His remarks came after the remaining signatories to the nuclear agreement met in Vienna on Friday at a nuclear deal Joint Commission meeting in a last-ditch effort to save the agreement.
After the meeting, Iranian Deputy Foreign Minister Abbas Araqchi described the event as "a step forward" but explained that the progress was still not "meeting Iran’s expectations".
He said that the Europeans had confirmed that the planned INSTEX trade mechanism is now “operational” and that first transactions are already processed, but added that it was still insufficient because European countries were not buying Iranian oil.

Jul 1, 2019