Six European countries join barter system for Iran trade

Paris, London and Berlin on Saturday welcomed six new European countries to the INSTEX barter mechanism, which is designed to circumvent US sanctions against trade with Iran by avoiding use of the dollar.

"As founding shareholders of the Instrument in Support of Trade Exchanges (INSTEX), France, Germany and the United Kingdom warmly welcome the decision taken by the governments of Belgium, Denmark, Finland, the Netherlands, Norway and Sweden, to join INSTEX as shareholders," the three said in a joint statement.

The Paris-based INSTEX functions as a clearing house allowing Iran to continue to sell oil and import other products or services in exchange.

The system has not yet enabled any transactions. Washington in 2018 unilaterally withdrew from the international agreement governing Iran's nuclear programme and reinstated heavy sanctions against Tehran.

The accession of the six new members "further strengthens INSTEX and demonstrates European efforts to facilitate legitimate trade between Europe and Iran", France, Germany and Britain said.

It represents "a clear expression of our continuing commitment to the Joint Comprehensive Plan of Action" - the 2015 Iranian nuclear deal - the trio added.

They insisted Iran must return to full compliance with its commitments under the deal "without delay". "We remain fully committed to pursuing our efforts towards a diplomatic resolution within the framework of the JCPoA." The 2015 deal set out the terms under which Iran would restrict its nuclear programme to civilian use in exchange for the lifting of Western sanctions.

Since the US pullout, Iran has taken four steps back from the accord. The latest was on November 4 when its engineers began feeding uranium hexafluoride gas into mothballed enrichment centrifuges at the underground Fordow plant south of Tehran.

Meanwhile, Israel on Sunday scolded six new European members of the INSTEX barter mechanism with Iran, saying it encouraged Tehran's repression of protests.

"Belgium, Denmark, Finland, the Netherlands, Norway, and Sweden could not have picked worse timing," said an English-language statement from the Israeli foreign ministry.

"The hundreds of innocent Iranians murdered during the latest round of protests are rolling in their graves."

Protests broke out across sanctions-hit Iran on November 15, hours after a sharp fuel price hike was announced.

Reports of deaths and arrests emerged as security forces were deployed to rein in demonstrations which turned violent in some areas, with dozens of banks, petrol garages and police stations torched.

London-based human rights group Amnesty International has said 161 demonstrators were killed. A 2015 international agreement set out restrictions on Iran's nuclear programme in exchange for the lifting of Western sanctions.

Last year Washington unilaterally withdrew from the deal and reinstated crippling sanctions against Tehran. Israel, which accuses the Islamic republic of seeking to acquire nuclear weapons, vigorously opposed the 2015 pact and is lobbying for more sanctions, not fewer.

"We ask these European countries - what message are you sending to the Iranian people?"

Israel's Sunday statement said. "Would it not be more effective and ethical to designate the regime officials responsible for the murder of innocent civilians?"

The Paris-based INSTEX functions as a clearing house allowing Iran to continue to sell oil and import other products or services in exchange. The system has not yet enabled any transactions.