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Instex, nonsensical game

Iran’s supreme leader has described the trading company Instex, founded by Germany, France and Britain, as a “nonsensical game” of the European trio. “We should not trust anyone and we should not take their promises seriously, such as this nonsensical game of the Europeans called Instex,” Ayatollah Ali Khamenei said on Friday on state television. Instex was founded in January 2019 after the United States withdrew from the nuclear agreement with Iran in order to continue trade between the remaining European signatories and Iran despite US sanctions.

After more than a year of preparation, the company had completed its first deal in spring. The special purpose vehicle can be used to process payments for Iranian transactions if private banks are no longer willing to do so due to the threat of US sanctions: “We should (within the framework of Instex) make our money available to the (European) authorities and they would then decide what it should be spent on (…) but they have not even managed to do that,” said Khamenei. Waiting in vain for the results of the Instex ultimately only harmed the Iranian economy, said Iran’s spiritual leader, who according to the constitution has the last word in all strategic matters of the country.
The 2015 nuclear agreement should ensure that Iran does not acquire the capability to build a nuclear bomb. In return, sanctions against the Islamic Republic should be lifted. However, US President Donald Trump cancelled the agreement in May 2018 and also imposed new severe sanctions against Iran.