Europe is trying to save the nuclear deal with Iran

Radio France International International approach

February 4, 2019

The UK, France and Germany have put in place a mechanism to continue trading with Iran and to avoid the sanctions imposed by the US after dropping out in May 2018, of the nuclear agreement with Tehran.

The mechanism proposed by the European INSTEX for the acronym "Instrument for the support of trade" has for main purpose to save the agreement on the nuclear concluded with Iran, signed in 2015 by this country and six powers, the United States, China, Russia, United Kingdom, France and Germany.

By avoiding financial transactions, the mechanism seeks to circumvent US sanctions. As expected, the announcement did not please Washington, which warned that this would have consequences. The threat could discourage European companies.

In addition to allowing trade, Gonzalo Escribano, director of the Energy and Climate Change program of the Royal Elcano Institute. proposes a double political reading: firstly as a position of Europe against the dictates of the United States and, secondly, as a nod to the Iranian reformists, under the attacks of conservatives in Tehran who wish continue the ballistic nuclear program.

For the Instex mechanism to work, Iran must in turn create a parallel structure. A process that can take time, especially in a complex national context.

The Iranian authorities are far from reaching a consensus between them. The head of the Iranian judiciary, Sadeq Larijani, said his country "will never accept the rare and humiliating conditions".

Interviewed:

Gonzalo Escribano, Director of the Energy and Climate Change Program of the Royal Elcano Institute.

Luciano Zaccara, professor at the Gulf Studies Center of the University of Qatar.

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