The Strategist

Mogherini: EU-Iran trade mechanism is almost ready

06/26/2019 - 12:24

The special INSTEX settlement mechanism between Iran and the European Union, bypassing US sanctions, is ready for launch, said Federica Mogherini, Head of European diplomacy.

EU2017EE via flickr
EU2017EE via flickr
"We have worked a lot with the EU member states on a mechanism that would allow legitimate trade with Iran. I believe that it is now ready, and I hope that this will help Iran continue to fulfill its obligations under the Joint Comprehensive Plan of Action (JCPOA) for Iran’s nuclear program,"- said Mogherini.

"We are trying to do everything in our power to ensure that Iran continues to fulfill its obligations. We will continue to do so in the coming days, the most difficult for the nuclear deal," Mogherini explained.

Iranian Deputy Foreign Minister Abbas Araghchi said earlier that European countries are not willing to pay the price for the sake of maintaining the JCPOA, and Iran sees no reason to comply with it. "It is regrettable that there is no balance between our obligations and rights in the framework of the JCPOA, so there is no longer any reason for Iran to continue to comply with this agreement," Araghchi said.

"We are convinced that Europe’s failure to fulfill its obligations under the JCPOA does not result from inability, but from a lack of determination to do so. Europe is not ready to pay its price for the sake of JCPOA. European companies do not dare to disobey orders of the US Treasury Department even within their own borders. The decision to reduce the amount of obligations under the JCPOA is irreversible, and this trend will continue until our requirements are met,” Araghchi emphasized.

A year after the US’s withdrawal from the deal, namely, on May 8, Tehran announced that it was suspending fulfillment of a part of its obligations regarding restrictions on reserves of low-enriched uranium and heavy water in Iran. In a deal concluded in July 2015 with the six international mediators (Russia, USA, France, England, China and Germany), Iran pledged to sell surplus uranium and heavy water abroad for 15 years. The deal allows Iran to keep 300 kg of low-enriched uranium and 130 tons of heavy water.

Iran has given European countries 60 days to fulfill their obligations, bearing in mind, above all, the creation of a special payment mechanism that will allow trade with Tehran, primarily oil, bypassing US sanctions. Otherwise, Iran will resume uranium enrichment and begin upgrading the heavy-water reactor in Arak.

Iranian Foreign Minister Javad Zarif clarified that Tehran will begin the second phase of reducing its obligations under the JCPOA on July 7. 


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