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Six EU countries join US sanctions bypass mechanism for trade with Iran

In total, nine countries now use the loophole.

Belgium, Denmark, Finland, the Netherlands, Norway and Sweden joined the INSTEX payment mechanism . It allows you to circumvent economic sanctions for trade with Iran.

The INSTEX system was created by France, Germany and the United Kingdom in January 2019. It began to be used in the summer of 2019, first for humanitarian needs, and then for ordinary trade with Iran.

INSTEX was introduced amid the US withdrawing from the Joint Comprehensive Action Plan. In 2015, six intermediary countries approved the JCPOA plan; it envisaged lifting all sanctions from Iran in exchange for the country’s use of only “peaceful atom”.

In May 2018, Donald Trump announced the U.S. withdrawal from the transaction, saying that Iran did not comply with the conditions, imposed sanctions against Iran, and then tightened them. Amid restrictions, the country began to abandon its nuclear deal obligations.

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