Europe's Special Trade Mechanism with Iran Launches on Thursday: Under the New Name INSTEX

German news agency reports that Britain, Germany, and France will launch a special trade mechanism with Iran known as SPV on Thursday; previously, the United States had warned that it would strictly enforce sanctions against this European action. According to reports, this special mechanism is set to be launched under the new name 'INSTEX', meaning 'Instrument in Support of Trade Exchanges'. Last week, informed sources in the European Union told Radio Farda that the EU is expected to express concern about Iran's role in regional tensions and Tehran's missile program in a statement regarding Iran, but it will still emphasize cooperation with Iran and support for the JCPOA. The announcement of the European Council's position on Iran's behaviors coincides with the registration of the 'special mechanism'. The German news agency, citing informed sources, stated that the launch of SPV on Thursday is intended to allow those traders and businesses with legal and legitimate economic relations with Iran to pursue these relations without violating U.S. sanctions. The news agency says that the special trade mechanism with Iran is expected to facilitate financial transactions in sectors not targeted by U.S. sanctions. Meanwhile, the news agency reports that the process of launching SPV is set to be discussed at an informal meeting of EU foreign ministers on Thursday, February 11, alongside discussions about the EU's unified approach to events in Venezuela. The informal meeting of foreign ministers will take place in Bucharest, Romania. The Wall Street Journal has also reported that the three European countries have begun the process of registering the special mechanism. Previously, an unnamed senior U.S. official told the Associated Press that Washington would fully enforce its sanctions against Iran and would confront any individual or entity that undermines these sanctions. The White House has warned Europeans about registering and launching SPV, stating that if they attempt to circumvent sanctions against Iran, they will face 'severe penalties and punishments'. Informed officials have stated that the European Union supports the special mechanism but is not expected to engage directly. According to these European officials, the goal of SPV is to protect European companies from U.S. judicial reactions and to allow them to compensate for potential financial losses related to sanctions. In the U.S., in addition to the government, several Republican politicians have warned about the launch of this mechanism, including Senator Tom Cotton, who stated that Europeans 'must choose between doing business with Iran or with the United States'. In Iran, officials of the Islamic Republic are still responding cautiously to SPV; on February 8, the spokesperson for the Islamic Republic's Foreign Ministry stated that 'Iran has not been waiting for the European financial mechanism from the beginning, but... it is better to wait and see what the European side announces'. The U.S. government exited the JCPOA last spring. Donald Trump, a staunch critic of the nuclear agreement with Iran, stated that this agreement not only does not prevent Iran's military nuclear program in the long term but also does not stop the development of ballistic missiles, 'malicious' activities, support for 'terrorism' in the region, and other issues. The Islamic Republic claims it is not seeking to build nuclear weapons and rejects U.S. accusations of supporting terrorism, while Tehran officials have emphasized they are not willing to abandon their missile program. European countries, despite supporting the JCPOA, have repeatedly protested Iran's missile program and the Islamic Republic's actions in other regional countries.