INSTEX shows EU's resolve to uphold Iran nuclear deal: China

The European signatories to the nuclear agreement, officially known as the Joint Comprehensive Plan of Action (JCPOA), issued a joint statement on Thursday, announcing the launch of a long-awaited direct non-dollar payment mechanism meant to safeguard their trade ties with Tehran in the face of the sanctions.

Following months-long preparations, foreign ministers of France, Germany and Britain finally unveiled the mechanism, officially called the Instrument in Support of Trade Exchanges (INSTEX), after a summit in Bucharest, Romania.

On Friday, China's Foreign Ministry spokesman Geng Shuang highly appreciated the efforts made by European countries to uphold the JCPOA after the US withdrawal from the agreement.

"It (INSTEX) fully demonstrated the EU's determination to uphold multilateralism. China firmly supports the continued cooperation between the EU and Iran to put the mechanism into operation as soon as possible and open it to third parties so as to promote normal economic and trade cooperation between the international community and Iran," he said.

The Chinese spokesperson also threw his country's weight behind the 28-member EU's "political and diplomatic efforts" to safeguard the Iran nuclear deal.

Geng said the JCPOA is an important outcome of multilateralism and an international agreement approved by the United Nations Security Council Resolution 2231.

He stressed the importance of "fully and effectively" implementing the JCPOA, which is conducive to peace and stability in the Middle East, the global nuclear non-proliferation, and is also in the common interests of the international community.

"We hope that relevant parties can proceed from the overall and long-term interests, stick to the direction of political and diplomatic settlement and jointly uphold this deal," Geng said.

President Donald Trump of the United States withdrew Washington in May from the landmark Iran nuclear agreement, reached between Iran and the P5+1 group of countries in 2015, and decided to re-impose unilateral sanctions against Tehran.

Under the deal, Iran undertook to put limits on its nuclear program in exchange for the removal of nuclear-related sanctions.

Trump's administration announced re-imposition of the “toughest” sanctions ever against Iran's banking and energy sectors with the aim of cutting off the country's oil sales and crucial exports.

Despite Washington's withdrawal, Iran has not left the deal yet, but stressed that the remaining signatories to the agreement have to work to offset the negative impacts of the US pullout for Iran if they want Tehran to remain in it.

Europe's new trade mechanism with Iran legitimate: Germany's BGA
Germany's BGA trade association also on Friday welcomed the new channel for non-dollar trade with Iran.

BGA President Holger Bingmann said the mechanism is legitimate and sends an important signal of Europe's reliability as a trade partner.

INSTEX, EU’s first step in implementing commitments: Iran
Iranian Foreign Ministry Spokesman Bahram Qassemi on Thursday welcomed the establishment of INSTEX, saying it is the EU’s first step in implementing its commitments vis-à-vis Iran.

"The Islamic Republic of Iran regards the recent measure by the European Union to announce a special financial mechanism (for trade) with Iran as Europe’s first step in fulfilling its obligations to Iran as per a May 2018 statement by the foreign ministers of Iran and the three European countries,” Qassemi said.

However, he added, Iran calls for the implementation of all commitments of the EU "in the shortest possible time."

The Iranian spokesperson said after the US withdrawal from the JCPOA, the EU has been pursuing a stance based on the necessity to maintain the deal and make it possible for Iran to reap its economic benefits, adding, "Unfortunately, we have not witnessed a tangible result and practical move in line with Iran’s benefits.”

Qassemi criticized the EU for taking the measure to establish the special financial mechanism "too late" and urged the three European signatories to the JCPOA to ensure that INSTEX would compensate for some part of the "illegal" US sanctions.

He once again expressed the Islamic Republic's readiness to continue its constructive interaction with the EU based on mutual respect and common interests.

Following the three European countries' announcement of the new trade mechanism, Iranian Foreign Minister Mohammad Javad Zarif welcomed the move, saying Tehran's European partners in the deal finally took a "long overdue first step."