On 31 January, France, Germany and the UK launched a special purpose vehicle to facilitate trade between the EU and Iran. The vehicle, termed the Instrument in Support of Trade Exchanges (INSTEX) will initially be applicable for transactions involving humanitarian aid, food and pharmaceuticals, with the potential to extend to cover other industries in the coming months. Here we discuss the drivers behind INSTEX and its implications on the regional and business environment both in Europe and the Middle East.
Key points include:
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