INSTEX: Beijing calls on the world to mitigate the effect of US sanctions


China has welcomed European countries’ efforts to establish the Trade Support Instrument (INSTEX) with Iran and preserve the Iranian nuclear agreement, said the spokesman for the Chinese Foreign Ministry.

Speaking to the Islamic Republic of Iran News Agency (IRNA) on Friday, Geng Shuang said that the launch of INSTEX demonstrated the EU’s determination to oppose unilateralism and support multilateralism.

Referring to the fact that INSTEX promotes economic cooperation between Iran and the international community, he said that China, as a third party, would soon strengthen this mechanism.

He went on to say that China also supports the EU’s political and diplomatic efforts to preserve the agreement with Iran, also known as the Comprehensive Joint Action Plan (CJAP).

China believes that the PGAC is an achievement of multilateralism and an international agreement that has been endorsed by the Security Council and that it must be implemented in a comprehensive and effective manner, Shuang noted.

In addition, the Chinese official news website Global Times reported on Saturday that the launch of this mechanism by France, Germany and the United Kingdom, formerly close allies of the United States, had set up a payment system allowing European companies to bypass US sanctions and trade with Iran.

“This decision is seen not only as an irrefutable opposition to last year’s decision by US President Donald Trump to abandon the 2015 Iranian nuclear agreement to lift international sanctions against Iran, but also as a sign of Europe’s economic independence from Washington,” the Chinese newspaper noted.

The Chinese state newspaper, in its article on the announcement of the launch of INSTEX, called on countries around the world to unite against unfair US sanctions and weaken the global domination of the US dollar in order to challenge US economic hegemony.

Following the US withdrawal from the Iranian nuclear agreement last May, the EU took a stand against the US President’s decision by undertaking projects to preserve the international agreement.

Last Thursday, at a press meeting in Bucharest, the German, British and French Foreign Ministers officially announced the launch of the European Special Financing Facility, known as INSTEX.

In recent months, Iran has repeatedly criticized Europe for its delay in launching the payment system.

Iran said earlier this week that it was waiting to see how the EU would catch up on its delay in establishing the mechanism.

In addition, for almost a month, instead of apologising to Iran for the successive postponements of the fulfilment of their commitments, European officials have been making false accusations of terrorism against Iran by taking a stand against Iran’s defensive ballistic programme and Tehran’s regional policy.

Seyyed Abbas Araqchi, Iran’s Deputy Foreign Minister, commented on the information, describing the launch as “the first commitment to Iran that Europeans must respect” and hoping that the mechanism will not remain incomplete.

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