Britain, France and Germany to bypass US sanctions on Iran

Published on February 03, 2019
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"

About me

ramandeep singh

My name is Ramandeep Singh. I authored the Quantitative Aptitude Made Easy book. I have been providing online courses and free study material for RBI Grade B, NABARD Grade A, SEBI Grade A and Specialist Officer exams since 2013.

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