The European Union and in particular, Paris, Berlin and London have been working out ways to continue what they call "legitimate trade" with Iran in a bid to lessen the effect of unilateral US sanctions that have been hampering financial transactions.
The new European payment channel for trade with Iran, INSTEX, could include 12 vital staples and medical devices in its first phase, says Iran’s envoy to the UK.
“In order for a rapid implementation of the payment channel, the three European countries have proposed that its first phase cover payment of vital commodities and medical devices,” wrote Hamid Baeidinejad, Iranian Ambassador to the UK in a Twitter thread in Persian.
“Various agricultural products such as soya and corn, various food products, fruit and vegetables, agricultural pesticides, fertilisers and plant seeds, animal feed including press cake and grass,” enumerated the diplomat.
The Iranian envoy went on to say that “dry milk and raw materials, pharmecutical raw materials, various general and special diseases medicine, various medical and hospital devices,” are also on the list of initial trade items through the INSTEX.
INSTEX (Instrument in Support of Trade Exchange) was announced on Thursday 31 January by foreign ministers of Germany, France, and the UK (the three European signatories of the 2015 nuclear deal) as a new payment channel with Iran in the face of unilateral US sanctions.
According to head of the Iranian diplomatic mission in London “advanced surgical and operation room devices, advanced cancer-related devices used in radiotherapy as well as human and livestock vaccines” have been offered to export to Iran.
“Every year Iran paid out up to 8 billion dollars to purchase these products, whose payment has been facing problem because international banking systems aren’t prepared to take the risk of handling such transaction due to the US sanctions,” he stressed.
Danish media have reported that giant Diabetes medcine producer Novo Nordisk has given the green light to use the new special purpose vehicle (SPV) to resume trade with Iran. The Iranian embassy in Copenhagen has also annoucned the news in its Twitter account.