EghtesadOnline: Work on setting up a special purpose vehicle for business with Iran is taking longer than expected, a German government spokesman said on Wednesday.
“Currently, the last steps need to be taken for this corporation to be able to operate, that includes Iran making the necessary preparations on its side,” spokesman Steffen Seibert told a regular government news conference.
He was referring to a new channel for conducting non-dollar trade with Iran established by France, Germany and Britain dubbed Instrument in Support of Trade Exchanges (INSTEX) to avert US sanctions.
INSTEX is headquartered in Paris with a German chief executive officer. Germany, France and the UK will be shareholders, according to Financial Tribune.
The mechanism “will allow for legitimate trade to continue as foreseen in the nuclear agreement,” EU Foreign Policy Chief Federica Mogherini has been quoted as saying.
A counterpart was officially registered in Iran late last month to link up with the European trade mechanism.
The so-called Special Trade and Finance Institute was officially registered as a private company based in Tehran. It is the reciprocal entity of INSTEX.
The company provides payment settlement services to legal and natural importers and exporters, as well as domestic and foreign banks. It will seek to build relations with its European monetary channels in other countries.
On Wednesday, the United States warned European banks, investors and businesses against engaging with INSTEX.
“If you are a bank, an investor, an insurer or other business in Europe you should know that getting involved in the … special purpose vehicle is a very poor business decision,” Tim Morrison, special assistant to the president and senior director for Weapons of Mass Destruction and Biodefense told a conference.
Despite the establishment of the trade mechanism, Iranian officials say it is far from sufficient in fulfilling the commitments of signatories of the Joint Comprehensive Plan of Action, especially the EU.
President Hassan Rouhani said on Wednesday that Iran will give the states parties to the nuclear deal 60 days to remedy their breaches and restore Iran's interests enshrined by the international deal, IRNA reported.
The European signatories to JCPOA were doing well in lip service, but were practically unable to implement what they vowed, Iran's President Hassan Rouhani said on the first anniversary of the US withdrawal from the deal.
"Based on a decision made by Iran's Supreme National Security Council, I sent messages to the remaining five countries in the nuclear deal, announcing that we gave them one year as they requested us," Rouhani said.
"It was a strategic patience on our part,” he said, clarifying that Iran “is not leaving the nuclear deal today".
"It is not the end of JCPOA; rather it is a new phase of the deal in the context and in line with the wording of JCPOA."