Europe dissolves Iran trade system that never took off
European countries say they have decided to dissolve a system that was conceived in 2019 to enable trade with Iran and protect companies doing business with it from U.S. sanctions, but only ever processed one transaction
BERLIN (AP) — European countries said Thursday they have decided to dissolve a system that was conceived in 2019 to enable trade with Iran and protect companies doing business with it from U.S. sanctions, but only ever processed one transaction.
The German and French foreign ministries said the 10 shareholders of INSTEX — Belgium, Germany, Finland, Denmark, France, the Netherlands, Norway, Spain, Sweden and the U.K. — concluded that there was no basis to keep it going after Iran persistently refused to work with the institution.
The decision comes at a time when tensions between the West and Iran have increased following Tehran's crackdown on internal dissent, its supply of armed drones to Russia that have been used in the war in Ukraine, and the de facto breakdown of its 2015 nuclear deal with world powers including Germany, France and the U.K.
However, Thursday's statement said the decision to wind up INSTEX was taken for purely business reasons and independently of other factors.
