How the world reacted to Europe’s new financial channel for Iran?

Tabnak – After the three European parties of the 2015 nuclear deal with Iran formally announced the establishment of a new financial channel to facilitate trade with Tehran, the non-European parties of the deal also welcomed the move as a positive step toward saving the landmark accord. However, the United States continues to warn companies working with the Islamic Republic.

In this vein, China has praised the European Union's "determination" to keep a historic 2015 nuclear agreement with Iran alive by establishing a mechanism to facilitate trade with the country despite the "toughest ever" sanctions imposed by the United States against the Islamic Republic.

On Friday, China's Foreign Ministry spokesman Geng Shuang highly appreciated the efforts made by European countries to uphold the JCPOA after the US withdrawal from the agreement.

"It (INSTEX) fully demonstrated the EU's determination to uphold multilateralism. China firmly supports the continued cooperation between the EU and Iran to put the mechanism into operation as soon as possible and open it to third parties so as to promote normal economic and trade cooperation between the international community and Iran," he said.

The Chinese spokesperson also threw his country's weight behind the 28-member EU's "political and diplomatic efforts" to safeguard the Iran nuclear deal.

Geng said the JCPOA is an important outcome of multilateralism and an international agreement approved by the United Nations Security Council Resolution 2231.

He stressed the importance of "fully and effectively" implementing the JCPOA, which is conducive to peace and stability in the Middle East, the global nuclear non-proliferation, and is also in the common interests of the international community.

As another signatory to the JCPOA, Russian Ambassador to the EU Vladimir Chizhov welcomed establishment of the Instrument in Support of Trade Exchanges, hoping that the vehicle would be able to help maintain nuclear deal.

He further noted that the function of the special instrument will be discussed during the upcoming meeting of the JCPOA Commission. Russian envoy also hoped that despite the US exit from Iran nuclear deal, the special vehicle would be able to remove obstacles in the way of trade with Iran.

Meanwhile, the US State Department also reacted to the creation INSTEX, saying it was "closely following" reports on the European mechanism.

"As the president has made clear, entities that continue to engage in sanctionable activity involving Iran risk severe consequences that could include losing access to the US financial system and the ability to do business with the United States or US companies," the State Department added in its Thursday statement, according to its official website.

Late on Thursday, Britain, France and Germany on Thursday issued a joint statement on the creation of the new trading system and said, "INSTEX will support legitimate European trade with Iran, focusing initially on the sectors most essential to the Iranian population -- such as pharmaceutical, medical devices and agri-food goods”.

Iranian Foreign Minister Mohammad Javad Zarif also hailed the new measure and said Iran remained “ready for constructive engagement with Europe on equal footing and with mutual respect.”