INSTEX

  • Iran’s Strategy to Tackle Sanctions: Pre-selling Oil

    Iran’s vice president, Eshaq Jahangiri, announced July 8 that any powerful country that is willing to work with Iran can pre-purchase Iranian oil. Iran is actively trying to convince its traditional costumers to purchase its oil for future deliveries in return for investment, goods or services in advance. Pre-selling oil is designed to get around US sanctions while building leverage for Iran in the short and long-term.

    This method can help Iran access the credit it needs for investment, goods and services. It could also be used as a floating credit in INSTEX, the trading vehicle set up by the European Union (EU) to keep Iran in compliance with the Joint Comprehensive Plan of Action (JCPOA). EU countries have all halted their oil

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  • INSTEX: More About Politics Than Economics?

    Ever since the US withdrawal from the Iran nuclear deal in May 2018, the European Union (EU) has emphasized its sovereignty regarding both commercial and political relations with Iran, insisting that it could continue trade under the framework of the 2015 Joint Comprehensive Plan of Action (JCPOA). Despite that, trade has cratered and a mechanism—the Instrument for Supporting Trade Exchanges (INSTEX)—expressly created to keep up commercial ties has not yet been implemented.

    When INSTEX was announced on January 31, Per Fischer, the former head of financial institutions at Commerzbank, was appointed as its president. The INSTEX supervisory board includes Simon McDonald, the UK Permanent...

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  • US Sanctions Are Causing Medicine Shortages, According to Iranians

    The re-imposition of US sanctions since President Donald Trump abandoned the Joint Comprehensive Plan of Action (JCPOA) in May 2018 has had a devastating effect on the Iranian economy and has especially impacted the lives of those who struggle to provide medicine for themselves and their families. 

    Medicine is supposed to be exempt from the sanctions. Yet Europeans companies and banks have refused to participate in financial transactions involving pharmaceuticals out of fear of US secondary sanctions.

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