Current Affairs

Britain, France and Germany to bypass US sanctions on Iran

INSTEX- "Instrument in Support of Trade Exchanges", is a project of the three governments of Britain, France and Germany to bypass US sanctions on Iran.
Britain, France and Germany to bypass US sanctions on Iran

More Details about INSTEX:

  • INSTEX is a special payment system which will help to save the Iran nuclear deal by allowing Tehran to keep trading with EU companies despite Washington reimposing sanctions.
  • INSTEX is registered at Paris with an initial 3,000 Euros in the capital and a supervisory board with members from France and Germany and chaired by by Britain.
  • INSTEX will support legitimate European trade with Iran, focusing initially on the sectors most essential to the Iranian population such as pharmaceutical, medical devices and agri-food goods. 
  • INSTEX is primarily aimed at small and medium-sized companies.
  • In future, INSTEX will also be opened to other countries wanting to trade with Iran. 
  • INSTEX to be operational requires Iran to set up a parallel structure of its own.

How would INSTEX provide protection against US Sanctions?

  • INSTEX would receive payments from companies that want to trade with Iran, either by receiving waivers for oil imports or permissible trade in goods like food and medicine. 
  • As a result, there would be no direct transfer of funds between Iran and European companies.
  • This would theoretically insulate firms from U.S. penalties.

Question:

Q. Which is a project of the three governments of Britain, France and Germany to bypass US sanctions on Iran?
a. INSTEX- "Instrument in Support of Trade Exchanges"
b. PSTEX- "Project in Support of Trade Exchanges"
c. OSTEX- "Organization in Support of Trade Exchanges"
d. CSTEX- "Council in Support of Trade Exchanges"
Britain, France and Germany to bypass US sanctions on Iran Britain, France and Germany to bypass US sanctions on Iran Reviewed by Inderjeet Virdi on February 03, 2019 Rating: 5

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