Iran, EU claim Instex is operational; may avoid US sanctions with non-dollar trade

Iran's deputy foreign minister, Abbas Araghchi, has said that Instex is now operational and also claimed that its first transactions have been processed, according to media reports.

The European powers have set up a mechanism for barter trade called Instex, in an effort to protect at least some of Iran's economy from the U.S. sanctions. Instex would net out amounts at either end but is not yet operational and diplomats have said it will only be able to handle small volumes of items such as medicine, not the large oil sales Iran is seeking.

Secretary-General of the European External Action Service, Helga Schmid, also confirmed the development through her official Twitter handle.

INSTEX now operational, first transactions being processed and more EU Members States to join. Good progress on Arak and Fordow projects

— Helga Schmid (@HelgaSchmid_EU) June 28, 2019