Huawei CFO Detained in Canada to Face Fraud Charges in US
Sputnik – December 7, 2018
Canadian prosecutors said Friday that the US is seeking the extradition of Huawei Chief Financial Officer (CFO) Meng Wanzhou on suspicion of engaging in conspiracies to defraud multiple financial institutions and contravene US sanctions on Iran.
It isn’t clear how many charges she faces, but each one carries a maximum sentence of 30 years behind bars.
Meng, the Chinese telecommunication giant’s CFO and deputy board chair, was arrested in Vancouver on Saturday but the US Department of Justice did not announce the arrest until Wednesday. Canada’s Globe and Mail broke the story, based on law enforcement sources, that she had been arrested for violating US sanctions against Iran.
A gag order, or as it is called in Canada, a publication ban, was imposed on Meng’s case. Several media outlets have challenged the gag in court. That ban was eventually lifted by a judge in Vancouver, BBC reports.
The court is still considering whether it will grant Meng bail. The Canadian government prosecutor has told the judge Meng has substantial resources in China and is a flight risk.
The prosecutor alleged that Meng deceived American lawyers regarding the connection between the company SkyCom and Huawei. Using SkyCom as a secret proxy, Huawei sold products to Iran in breach of US sanctions between 2009 and 2014.
Huawei is the second-largest telecommunications equipment manufacturer in the world, Sputnik News reported.
The US has introduced a number of measures to curb the flow of technology from Huawei and another telecom manufacturer, ZTE Corp, believing that the Chinese government have could used the tech for surveillance in the past year. Huawei products have also been banned by the Pentagon from being sold on US military bases.
‘Arrogant jingoist policy’: Lavrov blasts Washington’s request to arrest Huawei CFO
RT | December 7, 2018
Washington’s “revolting” policy of stretching its own criminal laws to other countries’ territories has to end, Russia’s Foreign Minister Sergei Lavrov said as Huawei’s top executive faces extradition to the US.
Lavrov slammed America’s habit of applying its laws “extraterritorially” and dubbed it “revolting to the vast majority of normal states and normal people.”
The minister’s outrage follows the recent arrest of Huawei’s chief financial officer, Meng Wanzhou in Vancouver, Canada.The businesswoman, who is also the daughter of the company’s founder, was apprehended on Sunday at the request of the US, and is now facing extradition. The charges levied against Meng remain unknown, but it is believed they relate to possible violations of US sanctions placed on Iran.
Talking to reporters at an OSCE event in Milan, Lavrov said that Washington’s approach has no support in the world and alienates the US’ own partners.
Chinese diplomats protested Meng’s arrest, saying that she didn’t violate any US or Canadian laws.
The Foreign Ministry’s spokesperson, Geng Shuang, demanded that Washington and Ottawa clarify the reasons behind the executive’s detention and “immediately” release her. Chinese officials also said that the arrest itself “seriously harmed the human rights of the victim.”
Mixed US Midterms Results Offer Chance for Peace Agenda With Russia, China
Sputnik – 09.11.2018
WASHINGTON – The mixed results of the US midterm congressional elections resulting in a divided Congress give President Donald Trump the chance to revive the agenda for improving relations with Russia and pull out of foreign wars that he was elected on in 2016, analysts told Sputnik.
With several results not yet in, the Democrats looked likely to have a majority of around 13 to 15 seats in the House of Representatives while the Republicans extended their Senate majority from 51 out of 100 seats to 54 or 55.
Trump Faces Post-Election Foreign Policy Opportunity
Trump now had room for maneuver on his foreign policy agenda, but it remained to be seen whether he would take advantage of it, political commentator and professor John Walsh said.
“Let us see whether Trump can now return to his original agenda of ‘getting along’ with Russia and China: That is the big question,” Walsh said.
During his 2016 presidential election campaign, Trump challenged the foreign policy consensus of US hegemony, Walsh recalled.
“If you look at his agenda, he wishes to make the United States less the imperial nation and more a normal nation albeit the number one among them. Let us see how this goes,” Walsh said.
Even if Trump was blocked from achieving this goal, he had dramatically changed the issues and terms of debate on US foreign policy in national politics, Walsh pointed out.
“Whether he succeeds or not, Trump indicates a turn away from empire not out of humility, but out of the recognition of reality. Let us hope he can carry this as far as possible whether or not he succeeds completely… The farther he goes, the farther we are from war and even nuclear Holocaust,” Walsh said.
Whether Trump ultimately succeeds or fails, his success so far signals a recognition — whether profound or dim — that the US unipolar moment is over, Walsh emphasized. “Let us praise the passage of that ugly moment,” Walsh said.
The losses suffered by Trump’s Republican Party in the midterm elections were relatively minor and fell within the normal rhythms of US politics, Walsh observed.
“There was entirely too much drama about the midterms. An incumbent in his first term always suffers a loss in the House of Representatives. That is what we saw. And as predicted long ago, the Republicans held the Senate: Surprise,” Walsh said.
Trump was likely to face more plots to undermine him from the US security and political establishments, Walsh cautioned.
“Now let us see what the Deep State will do. They can impeach him in the House but not convict him in the Senate should they choose to go that route,” he said.
Trump Likely to Be Stalled on Domestic Front
On the domestic front, the best Trump could hope for was a deadlocked Congress, California State University Chico Professor Emeritus of Political Science Beau Grosscup said.
“[In] domestic dynamics, Trump will continue to be Trump but his ‘green light’ and enabling House committee system is no longer there,” Grosscup said. “Expect Trump to play the victim (aided by the House Republican Party) when Democrats even mention investigation or impeachment.”
On the legislative front, Republican efforts to cut social security in the name of debt that had been generated due to previous enormous concessions to Wall Street would be stalled, Grosscup predicted.
Trump would also carry reduced political influence or coattails to help candidates supporting him into the 2020 presidential elections, Grosscup said.
See also:
2018 US Midterms: Why Trump Says They Were a ‘Tremendous Success’
US Blocks $199Mln in Assets Belonging to Iran, Syria, N Korea in 2017 – Treasury
Sputnik – 07.11.2018
WASHINGTON – The United States blocked nearly $200 million in assets belonging to Syria, Iran, and North Korea in 2017 as a result of the sanctions imposed on the three countries, the Treasury Department said in its annual report to Congress released on Wednesday.
“Approximately $199 million in assets relating to the three designated state sponsors of terrorism in 2017 have been identified by OFAC as blocked pursuant to economic sanctions imposed by the United States,” the report said.
The statement comes days after the US fully reinstated sanctions against Iran, including measures that curb Tehran’s oil industry. At the same time, the United States temporarily exempted eight nations — China, Greece, India, Italy, Japan, South Korea, Taiwan and Turkey — from the sanctions on importing oil from Iran.
In May, US President Donald Trump announced that the United States would withdraw from the Iran nuclear agreement, officially known as the Joint Comprehensive Plan of Action, and reimpose sanctions against Tehran that were previously lifted under the accord, including secondary restrictions.
The first round of the US sanctions was reimposed in August, while the second round, targeting over 700 Iranian individuals, entities, banks, aircraft and vessels, came into force this week.
US Withdrawal from INF Treaty: Implications for Asia Pacific
By Arkady SAVITSKY | Strategic Culture Foundation | 23.10.2018
One of the motives behind the US withdrawal from the INF Treaty is its desire to acquire first-strike capability against Russia from Europe, while keeping intact its strategic nuclear arsenal. Another motivation is the need to keep China, America’s fiercest geopolitical challenger, in its crosshairs by forcing it to alter its foreign, defense, and trade policies in order to tip the balance in Washington’s favor. The capability to knock out key infrastructure sites with precision intermediate-range strikes deep inside China, not just in the coastal provinces, is one way to make Beijing more tractable on key issues and force a rollback of its global influence. In April, Adm. Harry Harris, the commander of US Pacific Command, told the Senate Armed Services Committee that the US should renegotiate the INF Treaty to better compete with China. The admiral knew what he was talking about.
China has developed the DF-26 “aircraft carrier-killer” ballistic missile that has now rendered the old US strategy ineffective. Zachary Keck of the National Interest believes the DF-26 intermediate-range ballistic missile could stop the US Navy in its tracks without firing a shot. That threat has to be countered and one way to do it is by knocking it out with land-based, highly accurate missiles. Such systems are cheaper than aircraft carriers and can do the job without exposing thousands of servicemen to the missile threat if used for a first strike. China has been testing a new nuclear-capable, air-launched ballistic missile constructed on the basis of the DF-21 that will help that country improve its warfighting capabilities. Beijing also boasts land-based mobile missile systems (LBMMS) with DF-10 cruise missiles that have a maximum range of 1,500 to 2,000 km. China has to defend itself, and fielding these systems is the only way that it can counteract America’s huge sea, space, and air advantages.
Actually, the process of encircling China with intermediate missiles is going to kick off with the deployment of the Aegis Ashore ballistic missile-defense (BMD) systems Japan has decided to buy. The batteries will be installed in the prefectures of Akita and Yamaguchi. Using the MK-41 launcher, the Aegis Ashore can fire intermediate-range Tomahawk missiles. The deal is a blatant violation of the INF Treaty that Washington accuses Moscow of not complying with.
After a long period of indecision, the US approved the sale of military equipment to Taiwan in September, drawing China’s ire. Last summer, the State Department requested that US Marines be sent to Taiwan under the pretext of safeguarding America’s de facto embassy there. National Security Adviser John Bolton is known for his support of the idea of stationing US troops on Taiwanese soil. Bolton wants to see the China policy revisited. He argues that Taiwan is closer to the Chinese mainland and the disputed islands in the South China Sea than either Okinawa or Guam — giving US forces “greater flexibility for rapid deployment throughout the region should the need arise.” If the ongoing escalation continues, the US could wind up deploying intermediate-range missiles on that friendly island.
Other targets include North Korea and the Russian Far East, especially the Vilyuchinsk naval base on the Kamchatka Peninsula that is home to a fleet of ballistic missile submarines.
Locating and destroying mobile land-based missiles, either from the air or from the ground, is an extremely challenging mission. Fast-flying ballistic delivery technology and stealthy cruise missiles are effective against a wide variety of targets, even if sophisticated air defenses are in place to protect them. The states in the region that are unfriendly to the United States would see their biggest military advantage erode away.
Intermediate-range weapons can accomplish the same missions as strategic weapons. With the high-precision technology the US possesses today, even conventional missiles could inflict damage comparable to that of nuclear strikes. Its ground-based assets boast large magazines and can have numerous reloads at the ready. In theory, the US could impose an arms-control agreement with China on its own terms, using theater weapons as its negotiating leverage. All the countries unfriendly to the US, such as China and North Korea, as well as Russia’s Far East area, will be within the range of fast-hitting, hard to counter, intermediate-range missile systems.
Moreover, with the arms race escalating in the Asia Pacific region, the US could involve itself in some lucrative deals selling conventional intermediate-range missile systems to the countries in that area, such as Japan. A conventional version of some of these weapons will be in high demand, bringing in substantial profits and spurring US economic growth.
So, the US is encouraging an arms race in the Asia Pacific region. It has adopted a policy of encirclement with its potential enemies in the crosshairs of its intermediate-range weapons. It will have the option of destroying key sites with conventional warheads. This policy will inevitably force Russia and China closer together. The militarization of the region will further accelerate. Those targeted by the US will be incentivized to develop weapons systems that can reach the continental US. No one will win and everyone will lose. There is still time to reverse the US decision to leave the INF Treaty.
China says Washington canceled military talks, not Beijing
Press TV – October 4, 2018
China has rejected an allegation by the United States that Beijing has canceled security talks with Washington planned for this month, saying that US officials have “distorted the facts.”
An unnamed US official had told Reuters on Sunday that China had canceled the security meeting between American Secretary of Defense James Mattis and his Chinese counterpart, alleging that China had been unable to make its defense secretary available for the scheduled talks.
On Wednesday, Beijing effectively said that that assertion was a lie.
“Such an argument completely distorts the fact with ulterior motives and is extremely irresponsible,” said China’s Foreign Ministry spokeswoman Hua Chunying in a statement. “The Chinese side expresses strong dissatisfaction.”
Hua said Washington had recently told Beijing that it hoped to postpone the talks.
“The facts are that the United States a few days ago told China it hoped to postpone the second round of the China Diplomatic and Security Dialogue,” she said, adding, “We request [that] related parties stop this sort of behavior of making something out of nothing and spreading rumors.”
Earlier, on Tuesday, Hua said China and the US had previously agreed in principle to hold the dialogue in mid-October.
The security meeting’s first round was held in Washington last year, and its second round was scheduled to take place in Beijing.
Military tensions have surged between China and the US in recent weeks.
Washington often angers Beijing by sending warplanes and warships to territory claimed by China but disputed by other regional countries. The US says that with those deployments, it is practicing what it calls its right to freedom of navigation.
On Tuesday, China condemned that practice.
Additionally, the US has used its domestic laws to impose sanctions on China over Beijing’s decision to purchase military equipment from Russia, including advanced S-400 missile defense systems.
By applying its domestic laws to influence relations between China and Russia, the US is effectively in breach of their sovereignty.
The US has also initiated a trade war with China and has accused it of seeking to influence the US congressional mid-term elections, something that Beijing has strongly denied.
Russia, China nearing alliance conditions
By M K Bhadrakumar | Indian Punchline | August 10, 2018
The Chinese Communist Party Politburo member Yang Jiechi is visiting Moscow on August 14-17 at the invitation of the secretary of the Russian national security council, Nikolai Patrushev to participate in the 14th round of Russian-Chinese consultations on strategic stability. The forthcoming event in Moscow will be closely watched since the two countries are fast nearing a situation of confronting a common ‘enemy’. This is a new experience for both since the halcyon days of the Sino-Soviet alliance in the 1950s.
The mainstream opinion has been that the Sino-Russian comprehensive partnership and cooperation is more the stuff of geopolitical signaling than a strategic alliance. The Western opinion has also been notably skeptical whether such partnership between Russia and China will be sustainable over time due to the growing asymmetry in the two countries’ comprehensive national power. Both premises may be getting outdated by the sheer force of developments.
Curiously, another body of opinion is steadily forming lately whether Russia and China could be actually on the verge of reaching alliance conditions in the rapidly changing global situation characterized by growing tensions in their respective relations with the United States. An essay in the Financial Times this week titled ‘China and Russia’s dangerous liaison’ authored by the daily’s Asia editor (who used to be the Beijing bureau chief previously), Jamil Anderlini, forcefully makes this point.
The writer argues that it is an intelligence blunder of historic proportions that the West is making by “dismissing the anti-western, anti-US alliance that is now forming between Moscow and Beijing.” Anderlini writes:
- This idea that Russia and China can never really be friends is just as wrong and dangerous as the cold war dogma that portrayed global communism as an unshakeable monolith… Their tightening embrace is as much about antipathy towards the US and the US-dominated global order as their rapidly growing common interests… Thanks to its continued rise and obvious ambition to supplant the US, China is a far bigger long-term challenge for America than Russia. No less a figure than Henry Kissinger – the architect of that reconciliation with China in 1972 – has reportedly counselled Donald Trump to pursue a “reverse Nixon-China strategy” by seeking to befriend Moscow and isolate Beijing.
However, the chances of a “reverse Nixon-China strategy” by the US are virtually zero. Even if President Trump is inclined in that direction, the ‘Deep State’ simply won’t allow him a free hand. It is after much effort that NATO has cast Russia in an ‘enemy’ image and anchored a whole new purposive agenda on that platform. Unshackling it can lead to the unraveling of the western alliance system itself. The New York Times today reported that the Washington establishment connived with the US’ NATO allies to present a fait accompli at the recent summit meeting of the alliance in Brussels.
In fact, the Trump administration has just announced plans to create a new Space Force as the sixth branch of its military to prepare for “the next battlefield” to counter Russia and China, which are “aggressively” working to develop anti-satellite capabilities. Announcing this at the Pentagon on August 9, US Vice-President Mike Pence said,
- China and Russia have been conducting highly sophisticated on-orbit activities that could enable them to maneuver their satellites into close proximity of ours, posing unprecedented new dangers to our space systems… We must have American dominance in space, and so we will.
President Trump promptly tweeted, “Space Force all the way!” And this comes soon after the announcement by Washington that it would impose extensive new sanctions against Moscow by August 22, including bans on a wide range of exports, by the end of the month as punishment for the alleged nerve agent attack on former Russian agent Sergei Skripal and his daughter Yulia in Britain in March. The State Department has further threatened another wave of sanctions in 3 months’ time, including a lowering of the diplomatic relations with Russia. Without doubt, within a month of the Helsinki summit, US-Russia relations are in free fall once again.
Moscow has strongly reacted. PM Dmitry Medvedev warned on Friday that tightening up of economic sanctions against Russia may be treated as a declaration of economic war, to which Russia will respond with all economic, political and other means possible.
Similarly, China and the US are embroiled in an escalating trade war. On Wednesday, Beijing unveiled a list of US$16 billion worth of American goods it plans to hit with tariffs. This is response to Washington’s announcement the previous day that it would impose 25 per cent tariffs on an equivalent value of Chinese exports. An editorial in the government-owned China Daily on Thursday flagged that “the possibility that the two countries are heading for a prolonged trade conflict has to be faced.”
Clearly, a closer coordination between Russia and China in a concerted strategy to push back at the US will be a key topic at the consultations in Moscow next week. The point is, the quasi-alliance between Russia and China cannot be belittled as ‘geopolitical signaling’ anymore. Just short of a formal military alliance, the two countries are intensifying their cooperation and coordination. In an unusual gesture, Moscow announced well in advance that President Vladimir Putin will be receiving Yang, signaling the high importance that the Kremlin attaches to the strategic consultations with China.
The bottom line is, despite the attempts by American analysts to create dissension in the Sino-Russian relations – by propagating that China poses demographic threat to the Russian Far East; that China is conspiring to militarily seize the Siberian Lebensraum; that China is overshadowing Russia in the Central Asian region, etc. –the attraction of China is only increasing in Moscow’s strategic calculus, thanks to China’s formidable economic firepower (with its nominal GDP set to overtake the Eurozone’s by the end of this year) and China’s rapidly developing technological sophistication.
Of course, Moscow realizes that no significant improvement in the Russian-American relations can be expected either so long as Trump remains in power. To be sure, new directions of Russia-China cooperation will be identified at the talks in Moscow. Read a commentary, here, by a leading Chinese pundit who envisions the Northern Sea Route (which is a key template of Moscow’s Arctic strategies) as an “important component” of China’s Belt and Road initiative, and could be considered as “part of an ambitious strategy to change China’s land and sea connections to Europe and the world.”
The knife in Iran’s back: Trump opens door to chaos
By Vijay Prashad | Asia Times | August 9, 2018
On Tuesday night, Iranian President Hassan Rouhani went on television to talk about the reinstatement of sanctions by the United States against his country. He prepared the country for more privations as a result of the sanctions. Responding to US President Donald Trump’s offer of a meeting, Rouhani said pointedly, “If you stab someone with a knife and then say you want to talk, the first thing you have to do is to remove the knife.”
It is clear to everyone outside the US government that Iran has honored its side of the 2015 nuclear deal that it made with the governments of the five permanent members of the United Nations Security Council (the US, the UK, France, China and Russia) as well as the European Union. In fact, quite starkly, EU foreign-policy chief Federica Mogherini said, “We are encouraging small and medium enterprises in particular to increase business with and in Iran as part of something that for us is a security priority.”
In other words, Mogherini is asking companies to resist Trump’s policy direction. What she is saying, and what Rouhani said, is that it is the United States that has violated the nuclear deal, and so no one needs to honor the US sanctions that have been reinstated.
Mogherini pointed to “small and medium enterprises” because these would not be the kind of multinational corporations with interests in the United States. But it is more than small and medium-sized enterprises that are going to challenge the US sanctions. China, Russia and Turkey have already indicated that they will not buckle under US pressure.
China
“China’s lawful rights should be protected,” said the Chinese government. China has no incentive to follow the new US position.
First, China imports about US$15 billion worth of oil from Iran each year and expects to increase its purchases next year. State energy companies such as China National Petroleum Corporation (CNPC) and Sinopec have invested billions of dollars in Iran.
CNPC and Sinopec also have shares in Iran’s major oil and gas fields – CNPC has a 30% stake in the South Pars gas field and has investments in the North Azadegan oilfield, while Sinopec has invested $2 billion in the Yadavan oilfield.
China’s Export-Import Bank, meanwhile, has financed many large projects in Iran, including the electrification of the Tehran-Mashhad railway. Other Chinese investment projects include the Tehran metro and the Tehran-Isfahan train. These projects are worth tens of billions of dollars.
Second, China is in the midst of a nasty trade war with the United States. In late August, Trump’s government slapped 25% tariffs on $16 billion worth of Chinese imports into the United States. China responded with its own tariffs, with its Commerce Ministry saying that the US was “once again putting domestic law over international law,” which is a “very unreasonable practice.”
The “once again” is important. China is seized by the unfairness of the reinstatement of sanctions on Iran, not only for its own economic reasons but also because it sees this as a violation of international agreements and a threat to Iranian sovereignty – two principles that China takes very seriously.
Sinopec, knee-deep in Iran’s oil sector, has now said that it would delay buying US oil for September. Iran has now been drawn into the US “trade war” (on which, read more here).
The Chinese have been quite strong in their position. The Global Times, a Chinese government paper, wrote in an editorial, “China is prepared for protracted war. In the future, the US economy will depend more on the Chinese market than the other way around.” This fortitude is going to spill over into China’s defense of Iran’s economy.
Russia
Russia and Iran do not share the kind of economic linkages that Iran has with China. After the 2015 sanctions deal, Iran did not turn to Russian oil and gas companies for investment. It went to France’s Total – which signed a $5 billion deal. Russia and Iran did sign various massive energy deals ($20 billion in 2014), but these did not seem to go anywhere.
Russia’s Gazprom and Lukoil have toyed with entry to Iran. In May, Lukoil directly said that it would be hesitant to enter Iran because of the proposed US reinstatement of sanctions. Lukoil’s hesitancy came alongside that of European companies such as Peugeot, Siemens and even Total, which decided to hold off on expansion or cut ties with Iran. Daimler has now officially halted any work in Iran.
It was a surprise this year when the Iranian Dana Energy company signed a deal with the Russian Zarubezhneft company to develop the Aban and West Paydar oilfields. The contract is for $740 million, which in the oil and gas business is significant but not eye-opening.
In July, senior Iranian politician Ali Akbar Velayati met with Russian President Vladimir Putin in Moscow. He left the meeting saying, “Russia is ready to invest $50 billion Iran’s oil and gas sectors.” Velayati specifically mentioned Rosneft and Gazprom as potential investors – “up to $10 billion,” he said.
When Putin was in Tehran last November, Russian companies signed preliminary deals worth $30 billion. Whether these deals will go forward is not clear. But after Trump’s reinstatement of sanctions, Russia’s Foreign Ministry said it would “take appropriate measures on a national level to protect trade and economic cooperation with Iran.” In other words, it would see that trade ties were not broken.
Turkey
Both Iran and Turkey face great economic challenges. Neither can afford to break ties. Turkish Foreign Minister Mevlut Cavusoglu has said that his government will only honor international agreements, and that the US reinstatement of sanctions is not part of an international framework. Turkey, therefore, will continue to trade with Iran.
Iranian oil and gas are crucial for Turkey, whose refineries are calibrated to Iran’s oil and would not be able to adjust easily and cheaply to imports from Saudi Arabia. Almost half of Turkey’s oil comes from Iran.
Turkish-US relations are at a low. Conflict over the detention of an American pastor, Andrew Brunson, has led to the US sanctioning two Turkish cabinet ministers, Justice Minister Abdulhamit Gul and Minister of Interior Suleyman Soylu. Gul is a leader of the ruling Justice and Development Party (AKP), while Soylu came to the party at the personal invitation of President Recep Tayyip Erdoğan. These are not men to be intimidated by US pressure.
A US mission led by Marshall Billingslea, assistant secretary of the US Treasury, went to Turkey to persuade the government to join the US sanctions. Meanwhile, the US has begun to put pressure on Turkey’s Halkbank, one of whose senior officials was found guilty of violation of the US sanctions on Iran by a court in the United States this year. This kind of pressure is not sitting well with the Turkish government.
Inside Iran
Pressure is mounting inside Iran. Protests have begun across the country, a reflection of the distress felt by the population as the country’s currency, the rial, slides and as fears of inflation mount.
Last week, the Iranian government fired the head of the central bank, Valiollah Seif, and replaced him with Abdolnasser Hemati. It reversed the foreign-exchange rules, including the failed attempt to fix the value of the rial that was put in place in April.
Hemati had been the head of Iran’s state insurance firm and before that of Sina Bank and Bank Melli. He is highly trusted by the government, which had already appointed him as ambassador to China before hastily rescinding that offer and moving him to the central bank. Whether Hemati will be able to balance the stress inside the Iranian economy is yet to be seen. Faith in the currency will need to be strengthened.
As part of that, Iran’s government has cracked down harshly against financial fraud, particularly scandals over foreign exchange. The man who signed the 2015 nuclear deal, Deputy Foreign Minister Abbas Araghchi, had to watch as his nephew Ahmad Araghchi, the central bank’s vice-governor in charge of foreign exchange, was arrested along with five other people as part of an inquiry over fraud. The message: No one, not even the Araghchi family, is immune from the long arm of the law.
Trump’s belligerence, the refusal of key countries to abide by Trump’s sanctions (including the European Union, but mainly Russia and China), as well as the internal pressure in Iran could very likely create the conditions for a military clash in the waters around Iran. This is a very dangerous situation. Sober minds need to push against the reinstatement of these sanctions – which the Iranians see as economic warfare – as well as escalation into military war.
This article was produced by Globetrotter, a project of the Independent Media Institute.

