Treasury Warns Europe That INSTEX Could Lead to Sanctions, Report Says
The Trump administration warned Europe that anyone associated with the creation of the Instrument for Supporting Trade Exchanges, or INSTEX, could face U.S. sanctions, according to a May 29 report from Bloomberg. The report cites a May 7 letter from Treasury Department official Sigal Mandelker to INSTEX President Per Fischer. “I urge you to carefully consider the potential sanctions exposure of Instex,” Mandelker, the undersecretary for terrorism and financial intelligence, wrote in the letter, according to Bloomberg. “Engaging in activities that run afoul of U.S. sanctions can result in severe consequences, including a loss of access to the U.S. financial system.”
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Reached May 30, a Treasury spokesperson declined to confirm or deny the report but said the department intends to “aggressively” enforce sanction authorities on those who trade with Iran. “Entities that transact in trade with the Iranian regime through any means may expose themselves to considerable sanctions risk,” the spokesman said.
The United Kingdom, France and Germany announced the creation of INSTEX in January as a way to allow European countries to trade with Iran despite U.S. sanctions. Mandelker sent the letter, Bloomberg reported, after “concluding” that European officials “were far more serious about” the use of INSTEX “than they had initially let on.” The letter was designed to “serve as a warning” that the U.S. will sanction anyone associated with INSTEX, Bloomberg said, citing a senior U.S. official who asked not to be identified.