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A8 WORLD NEWS
Friday 1 February 2019
European nations create workaround to US Iran sanctions

By DAVID RISING of INSTEX, saying in a tweet
BERLIN (AP) — Three Euro- it was a "long overdue 1st
pean countries that have step" to save the nuclear
been working to preserve deal.
a deal limiting Iran's nucle- "We remain ready for con-
ar capability have estab- structive engagement with
lished a new system so their Europe and on equal foot-
companies can continue ing & with mutual respect,"
trading with the Mideast Zarif wrote.
nation without incurring U.S. The European Union's for-
sanctions, diplomats said eign policy chief, Federica
Thursday. Mogherini, who helped ne-
The barter-type system set gotiate the 2015 accord
up by France, Germany with Tehran, said the new
and Britain is designed to system would be "essential
allow businesses to skirt for the continued full imple-
direct financial transac- mentation of the nuclear
tions with Iran and thereby deal with Iran."
evade possible U.S. sanc- The U.S. State Department
tions, setting up a potential said it was "closely follow-
collision with President Don- ing" reports on the Euro-
ald Trump's hard-line poli- In this Oct. 26, 2010 file photograph, a worker rides a bicycle in front of the reactor building of the pean mechanism, which
cies on Tehran. Bushehr nuclear power plant, just outside the southern city of Bushehr. originally was known as a
Once the process is up and Associated Press "special purpose vehicle,"
running, a financial institu- for details about exactly
tion, known as an "Instru- sible fears. decision last year to unilat- sia and China — have what would be involved.
ment in Support of Trade Ex- "INSTEX will function under erally withdraw from the in- been scrambling to keep "As the president has made
changes" or INSTEX, would the highest international ternational accord aimed the deal alive. In recent clear, entities that continue
run a payment channel, standards with regards to at preventing Tehran from months, Iranian officials to engage in sanctionable
brokering Iranian imports in anti-money laundering, developing nuclear weap- threatened to resume en- activity involving Iran risk
and European exports out, combating the financing ons in exchange for eco- riching uranium to higher severe consequences that
while insulating the compa- of terrorism and EU and U.N. nomic incentives. His ad- purities than allowed under could include losing access
nies involved. sanctions compliance," ministration also introduced the deal, putting pressure to the U.S. financial system
In a joint statement, the for- their statement said. new sanctions on Iran. on the Europeans to find a and the ability to do busi-
eign ministers of Germany, The three nations have The other parties to the way around the sanctions. ness with the United States
Britain and France sought been working on the plan 2015 agreement — France, "This is a clear, practical or U.S. companies," the
to allay Washington's pos- for months. It follows Trump's Britain, Germany, Rus- demonstration that we re- State Department said in a
main firmly committed to statement.
the historic 2015 nuclear INSTEX is to be headquar-
deal struck with Iran... for tered in Paris and overseen
as long as Iran keeps imple- by a German banker.
menting it fully," British For- The three foreign ministers
eign Minister Jeremy Hunt said a parallel structure
said.. would have to be set up in
The ministers emphasized Iran and other work needs
that their payment chan- to be done to "address all
nel is "aimed at facilitating the technical and legal as-
legitimate trade between pects required to make this
European economic op- vehicle operational."
erators and Iran." At the outset, the European
"We're making clear that institution will concentrate
we didn't just talk about on products that are not
keeping the nuclear deal currently subject to U.S.
with Iran alive, but now sanctions, such as medi-
we're creating a possibility cine, medical supplies, and
to conduct business trans- agricultural goods.
actions," German Foreign Many of Europe's biggest
Minister Heiko Maas told companies shut off all com-
reporters Thursday after merce with Iran when the
a meeting with European U.S. stepped up sanctions,
counterparts in Bucharest, exercising an abundance
Romania. of caution. The govern-
"This is a precondition for ments of Germany, France
us to meet the obligations and Britain hope the work-
we entered into in order to around will lure back some
demand from Iran that it trade of non-sanctioned
doesn't begin military ura- goods, though it's not clear
nium enrichment," Maas if companies would try to
said. do business through the
Iranian Foreign Minister Mo- new state-run system and
hammad Javad Zarif wel- risk possible U.S. retribution
comed the establishment down the road.q