The three major western powers, such as Germany, the UK and France, have established a new payment channel to evade the United States’ economic sanction on the Middle Eastern country of Iran.

The new payment channel, the Instrument for Supporting Trade Exchanges (INSTEX), shares no links with the US-linked payment channels the west presently uses widely.

It is this detachment from the popular payment channels that helps the new channel evade the sanction imposed by the US on Iran.

Iran is one of the most important trading partners of the three major European powers. The countries see the Shia-dominated nation not only as a source of cheap oil but also as a potential market for their goods and services.

It was the US’ belief that Iran involved in the destabilisation of some of its prime allies in the region such as Israel and Saudi Arabia that promoted the world’s most powerful country to impose an economic sanction against the Arab country.

The three important western countries were not in the favour of the sanction. It even urged the US to withdraw the sanction.

The latest move is capable to provoke the US. The US’ present regime is already unhappy with the European powers’ attitude against its long standing demand that the European countries should step up their defence spending to pay justice to their financial obligation to the NATO force.

Vignesh. S. G
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