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