On the evening of Monday 4 February, the 28 Member States of the European Union supported – by means of conclusions adopted by written procedure – the mechanism created by Germany, France and the United Kingdom called Instex, which is intended to enable legitimate trade with Iran to continue (see EUROPE 12184), after the restoration of American sanctions that are “deeply” regretted by the EU.
Underlining "the efforts made to preserve the economic and broader benefits for Iran as provided for in the Common Global Action Plan", the Member States warned, in their conclusions, that "their determination to complete this work was unwavering".
The efforts are underpinned by the initiative of France, Germany and the United Kingdom to make operational the ad hoc entity "with a view to having a positive impact on trade and economic relations with Iran, but also and in particular, a positive impact on the lives of Iranians", states the text. According to Europeans, Instex should provide support to European economic operators who legitimately trade with Iran.
Compliance with FATF standards
Registered on 31 January, this entity will only be fully operational once its Iranian counterpart is operational. It will have to: be established outside of the Iranian Central Bank; be subject to sanctions; meet requirements in terms of money laundering and the fight against terrorism.
In their conclusions, Member States therefore called on Tehran to adopt and implement the necessary legislation in line with its commitments under the action plan of the Financial Action Task Force (FATF). They expressed their readiness to provide technical assistance in relation to implementing the FATF Action Plan. The link between making Instex operational and compliance with FATF requirements was deemed "unacceptable" by the Iranian Ministry of Foreign Affairs.
The Council has noted its support for the development of EU-Iran relations in areas of common interest (see EUROPE 11534), including political dialogue, economic cooperation, trade and investment, agriculture, transport, energy and climate change, civil nuclear cooperation, the environment, research and innovation, education, culture, the fight against drug trafficking, and regional and humanitarian issues. These areas also include human rights, including the issue of the death penalty and the rights of women, girls and persons belonging to minorities. Another subject of common interest is migration. The EU and Iran are expected to establish a dialogue in this area in the near future.
Numerous areas of tension
While Europeans support the Iranian nuclear agreement, they are not ignoring the issues of discord with the Iranians. The conclusions state that, "the Council supports a comprehensive and balanced approach towards Iran, including a dialogue, aimed at addressing all issues of concern in a critical spirit in the event of differences, and in a spirit of cooperation on issues of common interest".
While Europeans have recently sanctioned two Iranian diplomats and the Internal Security Directorate of the Iranian Ministry of Intelligence for their link to an attempted attack in Paris (see EUROPE 12167), the Council has urged Iran to "immediately stop" their hostile activities in the territory of several Member States, which it has called “intolerable behaviour”.
The Council also reiterated its serious concerns about Iran's ballistic missile activities. The Council has noted that Tehran must refrain from such activities and it has denounced Tehran's continued efforts to increase the range and accuracy of its missiles, while also increasing operational testing and firing. "These activities have the effect of stirring up mistrust and contributing to the instability of the region”, stressed Europeans. They called on Iran to take all necessary measures to comply fully with the relevant UN Security Council resolutions.
A further concern of the 28 Member States is Iran's role in the growing tensions in the region, "including the provision of military, financial and political support to non-state actors in countries such as Syria and Lebanon". The current tensions and mistrust in the region should not be further heightened, noted the Council, and the called on Iran and all actors in the region to play a constructive role in this regard, thus avoiding sterile rhetoric.
The adoption of the conclusions was delayed by several days due to a dispute between Italy and Spain over the reference in the text to the informal E4 format (Germany, France, United Kingdom and Italy) pertaining to discussions with Tehran on the subject of Yemen (see EUROPE 12095). This is only mentioned indirectly, with the conclusions merely highlighting the ongoing regional political dialogue with Iran under the aegis of the EU. (Original version in French by Camille-Cerise Gessant)