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with the United States or US companies."
It added that the US did not expect that Instex would "in any way impact our maximum economic pressure campaign" against Iran.
Belgian Foreign Minister Didier Reynders reacted to the formation of Instex by saying that while Europe did share some US concerns about Iran "at the end of the day it will be companies that decide whether or not they want to work in Iran, bearing in mind the risk of American sanctions".
Analysts have said that the US could define Instex as a legitimate target for its sanctions on the basis that any European entity with US connections, or which uses US dollars, that trades with Iran could expose itself to big fines.
Instex was expected to receive the endorsement of the entire EU at a meeting of European foreign ministers in Bucharest late on January 31.
In 2017, Europe’s drug exports to Iran were worth $884m, according to UN data. Those from China and India were valued at $194m and $52m, respectively.
The Guardian r eported that if Europe placed a high-level diplomatic representation on the Instex supervisory board that may act as a firewall preventing the Trump administration from imposing sanctions.
2.2 Nuclear deal exit worries mount as Iran official talks of designing nuclear reactor fuel
Iran’s nuclear chief has said initial steps have been taken towards designing uranium fuel with a purity of 20% for reactors instead of having to copy foreign designs. The statement will generate some anxiety over whether Tehran is putting itself in a position to walk out of the nuclear deal.
Under the deal, formally known as the Joint Comprehensive Plan of Action (JCPOA), Iran has committed to only producing low enriched uranium with a 3.67% purity, a long way below the 20% it was reaching before the deal. Purity of around 90% is needed for the weapons-grade material used in the production of a nuclear bomb. Iran is, however, permitted to produce nuclear fuel under strict conditions that would have to be approved by a working group set up by the nuclear deal signatories. Those conditions include guaranteeing that the fuel cannot be converted to uranium hexafluoride, which is the feedstock for centrifuges that enrich uranium.
Mehr News Agency on January 13 reported Iran’s nuclear development boss Ali Akbar Salehi as saying Iran was on the verge of producing modern 20% uranium. It would be different than the previous 20% fuel the Iranians were producing and could be used in any reactor built like the Tehran reactor.
He reportedly added that Iran’s oldest reactor was due for an upgrade and locally made uranium from the country’s nuclear industry, heavily inspected by the UN atomic watchdog under the JCPOA accord, would be available for it. Noting Iranian nuclear development achievements, Salehi said designing reactors was now “easily achievable” thanks to domestic knowhow.
7 IRAN Country Report February 2019 www.intellinews.com