INSTEX

INSTEX

Question: Recently European nations came forward to support Iran against the US sanctions and proposed plan for INSTEX. What is INSTEX?
(a) Iran Trade promotion plan
(b) Oil export plan
(c) Visa permit for Iranian citizens
(d) military exercise with Iran
Answer: (a)
Related facts:

  • France, Germany and Britain have set up a financial mechanism (INSTEX) designed to avoid US sanctions against Iran which keeps the nuclear deal alive.
  • INSTEX (Instrument for Support of Trade Exchanges) will act as a proposed bilateral payment channel from Europe to Iran.
  • This plan will not be fully operational until later this year.
  • This mechanism will be used for humanitarian supplies and in later stage will be expanded to help firms trade.
  • Through the INSTEX trade vehicle, they hope to say European economic sovereignty within the face of Washington’s determination to impose its policy on Europe.
  • The strategy would at the start specialize in making an attempt to ease the flow of humanitarian supplies to Iran.
  • Such supplies, including medicines and foodstuffs, are not supposed to be subject to US sanctions.

Iran Nuclear Deal:

  • Earlier in 2015, Iran agreed a long-term deal on its nuclear programme with the P 5+1 group of world powers- the US, UK, France, China, Russia, and Germany.
  • Nuclear deal signed in 2015 between Iran and was crucial for the security of the region.
  • EU refused to follow US last year in pulling out of the 2015 nuclear deal.

                                                                                               By Ramayan Upadhyay

Links:

https://www.theguardian.com/world/2019/jan/31/europe-sets-up-scheme-to-get-round-us-sanctions-on-iran

https://www.bbc.com/news/world-middle-east-33521655

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