Special Trade and Finance Instrument between Iran and Europe (STFI), called SATMA in Persian, was registered in Tehran in a bid to further facilitate Iran-Europe trade in the wake of US sanctions.
The Iranian mirror company for the European payment channel INSTEX will carry out the first financial transaction with Europe in coordination with its trade partners.
After the creation and registration of SATMA [the Iranian counterparty to INSTEX] and taking into account the meetings and coordination efforts between European countries and INSTEX, the first financial transactions between Iran and Europe is supposed to be carried out in coordination with trade partners including the Iranian and European banks.
The Iranian counterparty has a four-member Board of Directors, made up of three banks and one online banking services firm.
Germany, France and the UK, the three European signatories to the Iranian nuclear deal of 2015, also known as the Joint Comprehensive Plan of Action (JCPOA), announced creation of their Special Purpose Vehicle (SPV) for trade with Iran on the last day of January.
The special payment mechanism is meant to unblock humanitarian trade with Iran, including medicine, medical devices and agri-foods.
The US unilateral sanctions on Iran have also hindered trade of such items although they are exempt from any sanctions regime. However, the US targeting of any international banking ties with Iran has made many banks shy away from clearing financial transactions with Tehran out of fear of US reprisals.
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