Europe exports medical goods to Iran using INSTEX

BERLIN

European countries used INSTEX trading mechanism for the first time for exporting medical gear to Iran, the German Foreign Ministry announced on Tuesday.

“France, Germany and the United Kingdom confirm that INSTEX has successfully concluded its first transaction, facilitating the export of medical goods from Europe to Iran,” the ministry said in a statement, adding that the goods were transported to Iran.

The INSTEX mechanism was set up last year by Germany, France and the U.K. to save the 2015 Iran nuclear deal, by allowing European companies to continue trade with Iran despite sanctions imposed by the U.S.

“Now the first transaction is complete, INSTEX and its Iranian counterpart STFI will work on more transactions and enhancing the mechanism,” the German Foreign Ministry said.

In 2015, world powers including the U.S., China, Russia, France, Germany and the U.K. had agreed to lift economic sanctions on Iran in return for Tehran agreeing to limit its nuclear activity to civilian purposes.

But U.S. President Donald Trump unilaterally withdrew from the deal in 2018, and intensified pressure on Tehran by re-imposing broader sanctions.

Despite Trump’s “maximum pressure” campaign, Europe’s three major powers Germany, France and the U.K. continue to back the 2015 nuclear deal with Tehran, arguing that the agreement is the best solution to limit Iran's nuclear ambitions.