International Regulatory Enforcement (PHIRE)

The EU is Launching "INSTEX" to Support Trade with Iran Despite U.S. Sanctions

February 04, 2019

Bruno Cova & Fabio Cozzi

France, Germany and the United Kingdom—backed by the EU Commission—announced the creation of INSTEX SAS (Instrument for Supporting Trade Exchanges), a Special Purpose Vehicle aimed at facilitating trade between EU companies and Iran, in the attempt to prevent the effects of the snap back of U.S. sanctions targeting Iran.

• The EU Commission continues to support trade with Iran and it is introducing a tool—INSTEX—aimed to protect EU operators from U.S. sanctions.

• INSTEX is not yet operative and, as a first step, will apply to trade in humanitarian, medical, and farm products only.

• There is a risk that the U.S. may react thereby strenghtening the enforcement of measures to penalize EU companies dealing with Iran.

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