Britain, France and Germany have set up a company that will allow indirect trade between Iranian firms and companies from other countries using a currency other than the dollar. The three signatories to the Iran nuclear deal of 2015 hope this will encourage the Iranian government to stay committed to the agreement, which has been abandoned by the US under President Trump, at which the US administration reimposed banking sanctions on Tehran.
By using the new firm, which was named The Instrument in Support of Trade Exchanges, or Instex for short, companies from all the world should be able to trade with Iran without violating US sanctions. However, in response to the establishment of Instex the US State Department warned that “entities that continue to engage in sanctionable activity involving Iran risk severe consequences that could include losing access to the U.S. financial system and the ability to do business with the United States or U.S. companies.”
Read more: 3 European Nations Create Firm to Trade With Iran, but Will Anyone Use It?
