Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Europe trade channel with Iran close to 1st deal in days - France

EconomyJul 04, 2019 19:01
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

POZNAN, Poland (Reuters) - French Finance Minister Bruno Le Maire said on Thursday he hoped a special trade channel set up with Iran would complete a first, limited transaction in the coming days.

Set up by France, Britain and Germany, Instex is a barter trade mechanism that aims to avoid direct financial transfers by offsetting balances between importers and exporters on the European side.

The mechanism is aimed at making it possible for trade between European Union members and Iran to continue in the face of stiff U.S sanctions since Washington quit a 2015 nuclear accord between Tehran and world powers last year.

Those sanctions have effectively suffocated Iran's economy by clamping down on its oil sales.

"We want Instex to enter into force in a few days, and I hope that we will be able to operate in a few days. I hope the first transaction will be completed in a few days," Le Maire told journalists at a meeting in Poland.

"The first transaction will be a limited one, but this is a starting point and we expect Instex to be an efficient tool," Le Maire added.

Iran has said it wants to keep the nuclear deal alive but must receive promised economic benefits. On Monday, it said it had amassed more low-enriched uranium than permitted, its first major breach of the nuclear pact, and it has said it will announce further measures on July 7.

France's foreign ministry said on Wednesday that Instex would become operational based on Iran's "full compliance with its JCPOA (Iran deal) commitments."

"We aren't going to press the yes button if there are doubts about its compliance," said one European diplomat.

Two other European diplomats said that while possible transactions had been identified, it was too early to move ahead as due diligence was still underway and that as of yet the Iranian side had still to complete a mirror company that would facilitate the process.

However, the Europeans have created an advanced payment system that could enable some small transactions soon.

Even then, the system initially will only deal in products such as pharmaceuticals and foods, which are not subject to U.S. sanctions.

Iranian officials have repeatedly said Instex must include oil sales or provide substantial credit facilities for it to be beneficial.

Europe trade channel with Iran close to 1st deal in days - France
 

Related Articles

European stocks rebound at end of volatile week
European stocks rebound at end of volatile week By Reuters - May 14, 2021

(Reuters) - European shares rose on Friday, as investors picked up beaten down stocks after rising inflation worries led to sharp losses earlier this week. The pan-European STOXX...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email