US not solution but obstacle in way of resolving international issues: Iran
Press TV – July 19, 2024
Iran’s interim foreign minister says the United States’ unilateral approach to international issues has proven to be a failure, stressing that Washington is not part of the solution, but an obstacle in the path of peace.
Speaking to reporters in New York on Friday, Ali Bagheri Kani criticized the US’s withdrawal from the 2015 Iran nuclear deal, officially known as the Joint Comprehensive Plan of Action (JCPOA), and its export of weapons to Israel amid the regime’s genocidal war on the Gaza Strip.
“The Americans’ claims that unilateralism can bring about peace, stability and security to the world have failed,” he said.
“Practically, the American’s approaches to the Iran nuclear negotiations, as well as the Palestine issue and the Zionist’s aggression against Gaza, demonstrated that they cannot be part of the solution, but they are themselves the main obstacle.”
The top diplomat also noted that the US is not qualified to be a “neutral mediator” as it disrupted the JCPOA’s implementation and is even “encouraging” Israel to commit more crimes in Gaza by providing the regime with lethal arms.
Bagheri Kani made the remarks after he attended two United Nations Security Council meetings focusing on the developments in Palestine and multilateralism.
He said that in the meetings, he had underlined the need for an immediate end to the Gaza genocide and highlighted the consequences if the regime committed a “strategic mistake” by invading Lebanon.
“The Zionists are killing and injuring 20 oppressed Palestinians almost every hour. Thus, the world should not remain silent and passive in the face of these continued crimes that are being normalized,” he added.
The interim foreign minister further hailed resistance as an effective element in the region, saying it plays a major role in creating regional stability and prevents the Zionists from escalating their offensive and massacre in the region.
Israel unleashed its brutal Gaza onslaught on October 7, 2023, after the Hamas resistance group carried out its historic operation against the occupying entity in retaliation for the regime’s intensified atrocities against the Palestinian people.
The Tel Aviv regime has so far killed at least 38,848 Palestinians, mostly women, and children, in Gaza, and injured 89,456 others in the besieged Gaza Strip.
What Will Iran’s Foreign Policy Be Under New President Pezeshkian?
Sputnik – 06.07.2024
Masoud Pezeshkian has emerged as the winner of the presidential runoff in Iran this week, receiving 54 percent of the votes.
The newly elected President of Iran Masoud Pezeshkian spoke to Sputnik on the eve of the election about the main priorities of Iran’s foreign policy, which include: strengthening relations with Russia and China; Iran’s active presence in BRICS and the Shanghai Cooperation Organisation; restoration of the Joint Comprehensive Plan of Action (JCPOA) and the lifting of sanctions.
“Russia is a friend and partner of Iran, and I consider it a priority to deepen and expand relations with Russia and China, as well as intensify foreign policy activities in the Asian direction in general,” Pezeshkian said. “And we, of course, at all levels – bilateral, regional and international – will continue our efforts to expand interaction with the Russian Federation.”
According to him, Iran “opposes the policy of unidirectionality” and supports “the principle of multipolarity.”
“One of the priorities of my foreign policy program is regional cooperation, and for this purpose, Iran will expand its presence in BRICS and the SCO, as well as strive for more active cooperation with the Eurasian Economic Union to more fully realize the potential of trade and economic relations with the member countries of these organizations,” Pezeshkian explained.
Regarding the JCPOA, Pezeshkian pointed out that it is “an international agreement approved by the UN,” and that the United States’ unilateral withdrawal from this agreement “caused serious damage to Iran and the Iranian people.”
“As the Russian side has repeatedly emphasized, Iran has fulfilled its obligations, and we see our task as returning the other participants to this agreement as soon as possible and achieving the lifting of sanctions. I am confident that the friendly governments of Russia and China will support Iran and assist it in resolving this issue,” he added.
Israel vs Hezbollah: Strategic stakes and regional implications
By Shivan Mahendrarajah | The Cradle | July 5, 2024
There are known knowns; there are things we know we know. We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown unknowns—the ones we don’t know we don’t know. — Former US secretary of defense, Donald Rumsfeld
As tensions escalate between Hezbollah and Israel, analysts are meticulously wargaming potential conflict scenarios. For Prime Minister Benjamin Netanyahu and his religious-nationalist coalition, a confrontation with the Lebanese resistance movement is more than speculation – it is a strategic consideration. This coalition views a potential war as a means to address longstanding security concerns and strengthen its political position.
A key part of Tel Aviv’s strategic thinking is the hope that the US might be forced into taking a more active role in confronting Israel’s adversaries – Hezbollah, Syria, and Iran – thereby neutralizing threats that have persisted for decades. This concept of “clearing the decks” of regional enemies remains a central theme in Israeli strategic discussions.
Historical roots of Israel’s strategic confidence
For the occupation state, this potential conflict is a “war of choice” driven by historical and ethnonationalist motivations. But it is also premised on past Israeli military advantages that are long gone in today’s missile-laden West Asia.
The Six-Day War of 1967 fostered a belief in the invincibility of the Israeli military, the superiority of Zionism, and the manifest destiny of its ‘chosen people.’ It was with similar hubris that Adolf Hitler launched Operation Barbarossa against the Soviet Union in 1941. Fast forward eight decades, and today, Israelis are informing US officials “that it can pull off a ‘blitzkrieg’” in Lebanon.
In 1967, the psychological impact on neighboring Arab states was profound due to the decisive defeat of their armies. This sentiment persisted until 2006, when Lebanon’s Hezbollah emerged politically victorious, shattering the perception of Israeli invulnerability and altering regional power dynamics.
Further shaping Israeli delusions of military superiority is the ethnonationalist rhetoric prevalent in Tel Aviv’s policy decision-making circles, embodied by extremist ministers like Betzalel Smotrich and Itamar Ben-Gvir, who have revived the ideologies of the once-banned Meir Kahane. While a few sober military voices in Israel advocate for a diplomatic solution to the northern border crisis, hubris and ethnonationalism currently dominate the discourse.
Strategic imperatives for Hezbollah and Iran
Conversely, for Hezbollah and Iran, this conflict is a “war of necessity,” something neither can publicly admit nor provoke directly. Both have been marginalized and sanctioned by the US on Israel’s behalf, causing untold domestic pressures and economic hardships – an untenable situation that demands a direct challenge of Israeli policies.
But reversing sanctions cannot happen at the negotiating table. Israelis are arrogant and obstinate; they will not negotiate in good faith. Take, for example, the Joint Comprehensive Plan of Action (JCPOA) or the Iran nuclear deal. When former US president Barack Obama finalized the agreement, Netanyahu whined that Israel needed “compensation.” Obama offered Israel a military package, but as soon as he left office, Netanyahu, Jared Kushner, and AIPAC manipulated the “very stable genius,” former president Donald Trump. JCPOA was annulled. The compensation package, by the by, was not returned to US taxpayers.
Iran–Hezbollah must drag Israel to the edge of the precipice. Tel Aviv must stare into the abyss and realize that with a gentle push by the region’s Resistance Axis, it will lie mangled at the bottom of the chasm. Iran–Hezbollah, however, cannot push it over the edge, as this could lead to a nuclear nightmare. Today, in its “war of choice,” Israel has already hinted at using “unprecedented” and “unspecified” weapons against Hezbollah, implying a possible nuclear threat.
The Axis must instead show Israel a path back from the edge: a treaty that settles outstanding concerns. Tehran offered Tel Aviv and Washington a “Grand Bargain” in 2003 but was rejected. A new grand bargain is indispensable for Israel and the Axis of Resistance, yet the conditio sine qua non for a lasting treaty is Israel’s military defeat by the Axis.
The threats and counter-threats are flying, each aiming to gain “leverage” and deterrence.
Earlier this month, Iranian foreign affairs adviser to Ayatollah Ali Khamenei, Kamal Kharrazi, said that were Israel to launch an all-out offensive against Hezbollah, the Islamic Republic and other factions of the Axis of Resistance would support Lebanon with “all means” necessary.
Iran has previously warned that it may be compelled to revise its nuclear doctrine in response to Israeli aggression. It is suspected that Iran may have already crossed the nuclear threshold. Even without nuclear capabilities, Iran has the ballistic missile and warhead capabilities to destroy Tel Aviv, Haifa, and other major cities. Israel is a “one-bomb country”: it is minuscule, and its population is concentrated in a few central hubs. Iran and the Axis do not have any need for multiple nuclear warheads.
As General Hajizadah explained in a speech, the Khorramshahr missile can deliver 80 warheads. If the IRGC launched 100 missiles, that’s 8,000 warheads on major Israeli cities. Israel would be foolish to trust in its integrated air defense system after the IRGC’s successful strikes on 13 April.
2024 is not 2006
Comparing the potential 2024 conflict with the 2006 Israel–Hezbollah war is a popular frame of reference, but both sides have learned lessons since then. In particular, there have been significant advancements in military technology and tactics over the past 18 years.
Hezbollah has developed new tactics and weapons, such as the Almas Anti-Tank Guided Missile (ATGM), which has proven effective against Israeli military assets. Additionally, Hezbollah’s air defense capabilities have posed new challenges for Israeli drone offensives.
The Israeli air force ruled the skies in 2006, but whether it can do so in 2024 is unclear. Hezbollah has air defense capacity (such as the Sayyad-2 medium-range surface-to-air missile). It is not known if it has newer models, like Iran’s Khordad-3. This could be a surprise.
Israeli intelligence assessments of Hezbollah’s capabilities are likely to be imprecise. Past successes against groups like the PLO and Black September are no longer relevant. Recent failures, such as Tel Aviv’s inability to foresee Hamas Operation Al-Aqsa Flood on 7 October, underscore the limitations of Israeli intelligence.
US involvement
This has been Israel’s objective since 9/11: have Americans fight Israel’s wars. Although Joint Chiefs of Staff Chairman Charles Brown stated that the US may be unable to assist Israel, this must not be taken as a serious military assessment. It is a political statement on behalf of the Biden Administration, which does not want to join a major war until after the 5 November election. Netanyahu, however, knows that Israel controls Congress and American media. Congressman Thomas Massie is the exception, among 435 Representatives and 100 Senators, who AIPAC has not bought. Once war begins, Israel’s minions in the White House, media, and Congress will campaign for US military participation. As Netanyahu said, “I know what America is. America is a thing you can move very easily; move it in the right direction.” He is correct.
If the US intervenes – a high-probability event – Hezbollah and Iran will (reluctantly) welcome it. For the Axis to secure a “Grand Bargain,” it must inflict catastrophic damage on US land-based and sea-based assets in West Asia. Washington will only abandon Israel if ships, bases, and hundreds (or thousands) of American lives are destroyed because of Israel.
Russia
Russia is a wildcard, a “known unknown.” The US security apparatus warring against Russia and supporting Israel is top-heavy with Zionists/neo-cons. Iran’s enemies and Russia’s enemies are nearly congruent: Victoria Kagan née Nuland; Kagan family (Robert, Fred, Kim, their ISW); Antony Blinken (grandson of a founder of Israel); Avril Haines (Director of National Intelligence); deputy director CIA David Cohen, Alejandro Mayorkas (Secretary of DHS), and more. It behooves Russia to punish its tormentors by damaging the only country to which they are loyal: Israel.
Moscow has been chafing at US support for Ukraine. Elena Panina, Director of the Institute of International Political and Economic Strategies, wrote on her Telegram channel in December 2023, “The best option for Russia is to respond to America in a similar way: with a hybrid war far from its own borders. The most obvious at the moment is a proxy attack on American forces in the Middle East.” In May 2024, Putin said the same thing. Terror attacks in Belgorod and in Sevastopol on a religious holiday may tip the scales in favor of Iran, especially if the US jumps into the fray. Defeating the US will increase popular support for Russia among global Muslims and help eject the US from West Asia – a goal supported by Russia and China. Iran is “too big to fail”: Moscow has made military and economic investments and alliances with Tehran, particularly after the Ukraine War began, and is on the cusp of signing a new comprehensive cooperation agreement with Tehran. The Kremlin cannot allow Iran to be defeated and the republic to collapse. It will most likely provide intelligence, surveillance, and reconnaissance support through Russian satellites and aircraft in Syria. Russia allows IRGC to use its Humaymim/Khmeimim air base in Syria because IDF tries to prevent supplies from Iran from arriving at airports in Aleppo and Damascus. Russia could (if not already, given recent air traffic between Russia and the air base) deliver air defense batteries, missiles, and more for the Syrian Army and Hezbollah.
Unknown unknowns
The factors outlined above, along with China and North Korea’s investments in and relationships with Iran, complicate any predictions about the looming war between Israel and the Lebanese resistance. While their direct military participation is unlikely, these nuclear powers could supply Iran with essential weapons and ammunition. The “known unknowns,” a few of which are noted, are enough to complicate wargaming, but the “unknown unknowns” may render such scenarios moot.
Turkey resumed oil imports from Iran in March after 4 years: data shows
Press TV – June 30, 2024
Figures by the European Union’s statistics agency, Eurostat, show that Turkey resumed importing oil from Iran in March this year nearly four years after it cut shipments to zero to comply with US sanctions on Tehran.
Eurostat data cited in a Sunday report by Iran’s official IRNA news agency showed that Turkey had imported 576 metric tons (mt) of oil from Iran in March and another 485 mt in April.
Turkey’s last oil shipment from Iran had been reported in August 2020 when the country bowed to US pressure and stopped the imports.
The figures are yet another sign that more countries have stopped complying with US sanctions on Iran and are taking delivery of oil shipments from the country.
Eurostat figures showed that Bulgaria and Poland were the two EU members that had imported oil from Iran this year.
Bulgaria raised its oil imports from Iran in the quarter to March by 113% compared to the same period last year to 314 mt.
Poland’s oil imports from Iran, a first reported in the past two years, was a 19 mt shipment that took place in March.
Georgia, an EU candidate country, imported 544 mt of oil from Iran in the March quarter, down from 974 mt reported in the same quarter last year.
Reports suggest more European countries are willing to ignore US sanctions on Iran and import oil from country now that Tehran is selling record volumes of oil to Asian markets.
Iran’s oil exports reached more than 1.6 million barrels per day (bpd) in some months of this year and in 2023, up from records lows of 0.3 million bpd reported in 2019 when the US toughened its sanctions Tehran.
Malaysia Defies Western Sanctions on Iran
Malaysia only recognizes sanctions imposed by the United Nations and not by any individual country, Home Minister Datuk Seri Saifuddin Nasution says.
By Nguyen Kien Van – New Eastern Outlook – 25.06.2024
On May 16, a US delegation led by Brian Nelson, the Under Secretary of the Treasury for Terrorism and Financial Intelligence, visited Kuala Lumpur to discuss sanctions against Iran. The US accuses Iran of using Malaysian companies to finance militants in the Middle East.
What do we know about US accusations against Iran?
The US claims that trade between Malaysia and Iran has skyrocketed since the outbreak of the armed conflict between Israel and Hamas. Western nations allege that Iran financially supports Hamas and Hezbollah, opponents of Israel. The US highlighted the death of over 3,000 Israelis since October 7, 2023, in the ongoing conflict. 30,000 Palestinians killed in the Gaza Strip, however, do not seem to bother the US at all. Instead, the focus remains on Iran and its proxies, including Hamas, allegedly receiving funds through the Malaysian financial system.
The US is concerned that Iran can continue selling oil by transferring it from ship-to-ship in international waters to disguise its origin. Countries that do not adhere to US sanctions, or choose to ignore them, facilitate this process. Brian Nelson identified Malaysia as one such country, allegedly involved in transporting Iranian oil and raising funds for groups the US deems terrorist organizations.
What do Malaysian officials think in this regard?
Following the meeting with the US delegation, Malaysian officials reiterated that they would not comply with sanctions imposed by any country other than those from the UN Security Council. Home Minister Datuk Seri Saifuddin Nasution Ismail emphasized Malaysia’s commitment to combating terrorism financing. He acknowledged the US concerns about “illegal supplies” of Iranian oil through Malaysia, but reiterated Malaysia’s stance on adhering only to UN-imposed sanctions. The US delegation respectfully accepted Malaysia’s position.
Solidarity Among Muslim Countries
Malaysia, a Muslim-majority country, has consistently supported a two-state solution to the Israel-Palestine conflict and condemned Israel’s actions, which have resulted in numerous Palestinian casualties. Malaysia backed Iran’s use of drones and missiles against Israel on April 13, with Prime Minister Anwar Ibrahim calling it a legitimate response to Israel’s “barbaric attack” on the Iranian consulate in Damascus.
Back to Kuala Lumpur Airport
By the end of the meeting, the US delegation appeared to recognize their failure to sway Malaysia. Saifuddin Nasution Ismail reaffirmed Malaysia’s commitment to counter-terrorism financing at both ASEAN and global levels, stressing Malaysia’s adherence to the rule of law and expressing hope that the US would acknowledge this.
Once again, US efforts to intimidate Malaysia with sanctions over its economic relations with Iran have faltered, highlighting Washington’s persistent hegemonic ambitions. If other Southeast Asian nations were to similarly defy US pressure, ASEAN could emerge as a robust and independent force in the region.
West hindering nuclear deal’s revival, blaming Iran for failure: Russia
Press TV – June 17, 2024
A senior Russian diplomat says the three European signatories to the Iran nuclear deal have failed to fulfill their commitments and are now blocking the negotiations to revive the US-abandoned agreement.
Russian Permanent Representative to International Organizations in Vienna Mikhail Ulyanov made the remarks in an interview with Russia’s daily broadsheet newspaper Izvestia.
He said the talks to revive the nuclear deal – officially known as the Joint Comprehensive Plan of Action (JCPOA) – have so far failed to yield any outcome due to insufficient efforts on the part of the European troika (France, Germany and Britain) as well as the United States.
It is not the Iranians who are blocking the negotiations now as they are ready to resume the talks, he maintained.
The top Russian negotiator added that the three European countries – also known as E3 – are playing a “strange game” but demand full compliance from Iran.
At the same time, the trio blames Russia and Iran for the failure of the JCPOA revival talks, Ulyanov said.
The negotiations to restore the JCPOA began in April 2021, three years after the US unilaterally withdrew from the UNSC-endorsed agreement and began to target Iran’s economy with tough economic sanctions.
Iran has criticized the lack of will on the side of the US and the E3 to revive the deal and has ramped up its nuclear activities in response to their non-compliance.
In a statement issued on Saturday, the foreign ministers of Britain, France and Germany condemned what they called “the latest steps” taken by Iran “to further expand its nuclear program.”
They also accused Iran of taking “further steps in hollowing out the JCPOA, by operating dozens of additional advanced centrifuges at the Natanz enrichment site as well as announcing it will install thousands more centrifuges at both its Fordow and Natanz sites.”
Iran on Sunday strongly condemned the E3 statement as absurd and based on false allegations, saying the country’s nuclear program has a completely peaceful nature and nuclear weapons have no place in the country’s military and defense doctrine.
Iran strongly rejects IAEA allegations in new resolution
Press TV – June 6, 2024
Iran’s permanent ambassador to the United Nations has firmly rejected allegations by the IAEA against the Islamic Republic’s peaceful nuclear program.
In a letter to UN Secretary-General Antonio Guterres and the rotating president of the UN Security Council Joonkook Hwang on Thursday, Amir Saeed Iravani said Tehran’s decision to take remedial measures is in full compliance with its inherent right under Iran’s 2015 nuclear deal known as the Joint Comprehensive Plan of Action (JCPOA).
The resolution was issued by the International Atomic Energy Agency’s Board of Governors on Wednesday.
The Iranian diplomat also lambasted Britain, France and Germany – known as the E3 – for spearheading the anti-Iran resolution at the UN’s nuclear agency.
Tehran, he said, “rejects all the allegations” in the E3’s letter and “reiterates its position concerning its peaceful nuclear program and the JCPOA.”
Iravani said the E3 continues to level unfounded allegations against Iran for non-compliance with JCPOA commitments.
“Iran’s decision to take remedial measures was in full accordance with its inherent right under paragraphs 26 and 36 of the JCPOA, in reaction to the United States’ unlawful unilateral withdrawal from the agreement on 8 May 2018, and the subsequent failure of the E3 to uphold their commitments. The objective behind Iran’s decision, which was made a full year after the US’s unlawful withdrawal and the E3/EU’s failure to fulfill their sanctions-lifting obligations, was crystal clear: to restore a balance in reciprocal commitments and benefits under the JCPOA,” Iran’s ambassador to the UN said.
“The claim that the E3 has consistently upheld its JCPOA commitments is simply untrue. On the contrary, the E3 has constantly failed to honor its obligations under paragraph 20 of Annex V of the JCPOA. This significant non-compliance is still ongoing. The E3’s failure to implement its sanctions-lifting commitments specified in paragraph 20 of Annex V of the JCPOA on Transition Day (18 October 2023) as an unjustifiable unilateral is a clear example of substantial non-performance of their obligations, thereby violating both the JCPOA and UNSC Resolution 2231 (2015),” Iravani stated.
He said Tehran has persistently complied with its obligations under the Comprehensive Safeguard Agreements (CSA), including through maximum cooperation with the UN nuclear agency to implement its verification activities in Iran, emphasizing that Iran has so far been under the most “robust verification and monitoring activities” of the IAEA.
“Iran’s decision to enrich uranium in Fordow was a remedial measure in response to non-compliance of the United States and E3/EU with their legally binding obligations under Resolution 2231 (2025) and their significant non-performance under the JCPOA commitments. That decision was also made in exercising Iran’s rights expressly stated in paragraphs 26 and 36 of the JCPOA and in full accordance with its inherent rights under the NPT and the commitment under CSA. However, all such activities have been and continue to be under the supervision of the IAEA,” Iravani further wrote in the letter.
Iran’s UN envoy also stated that Iran’s commitment to its obligations under the NPT remains steadfast.
“States parties to the Non-Proliferation Treaty (NPT) shall not be prevented from exercising their inalienable rights under the Treaty to develop research, production, and use of nuclear energy for peaceful purposes without discrimination and in full conformity with articles I and II of the Treaty. Any allegation to the contrary is baseless and categorically rejected. The claim that Iran’s nuclear program has reached a critical and irreversible point, coupled with assertions that Iran’s peaceful nuclear activities pose a threat to international peace and security, are entirely false and unfounded,” he said.
In conclusion, Iravani said Iran “reaffirms its unwavering commitment to diplomacy. It has repeatedly shown its willingness to resume talks with the aim of full implementation of the JCPOA by all participants. The JCPOA is a hard-won multilateral diplomatic achievement that remains the best option with no alternatives. It exemplified successful dialogue and diplomacy, effectively averting an undue crisis. Its revival is indeed in the interest of all participants.”
Iran asserts that it runs one of the most transparent peaceful nuclear energy programs among the IAEA’s members.
The Islamic Republic has also repeatedly voiced its readiness to resolve differences with the IAEA within a framework of constructive and mutual interaction and technical cooperation.
The failure of Western financial sanctions
By Mauricio Metri | Strategic Culture Foundation | May 21, 2024
On March 24, 2024, some newspapers reported the 25th anniversary of the plane’s U-Turn over the Atlantic, with the then-Russian foreign minister, Yevgeny Primakov, due to the kick-off NATO bombings over Serbia, without approval from the UN Security Council. Amid the onslaught against Belgrade, NATO forces deliberately struck the Chinese embassy. Beijing hasn’t forgotten the date, and on May 7, 2024, President Xi Jinping was in the capital of Serbia to pay his respects to the dead and pass a message to the West. These events determined the beginning of Russia’s reconstruction, the acceleration of the Chinese rise process, and the deepening of Sino-Russian partnerships (1).
During this period, starting from economic fragility and a military delay position concerning the USA, Russia established a strategic advantage in weapons in 2018 by developing hypersonic weapons. It also rebuilt its national economy, circumventing unprecedented economic sanctions against it. Despite the sanctions, Russia’s economy expanded significantly in 2023 compared to other North Atlantic countries. This year, the IMF corrected its forecasts for Russia, doubling its estimates upward.
The financial sanctions policy is one of the expressions of the monetary power of the dollar in the international system, especially after the Bush Doctrine of 2002 (2). However, the effectiveness of Washington’s economic sanctions regarding its foreign policy objectives has been very low, not to say null. For example, despite the severe sanctions introduced in 2007, Iran has acquired the ability to resist and develop an adequate offensive military capacity, allowing it to change the balance of forces in Southwest Asia. A month ago, on April 12, 2024, Tehran abandoned its “policy of strategic patience” and revealed to the world, through the missile attack, its ability to pierce the Israeli anti-aircraft defense system.
The main targets of U.S. sanctions (Russia, Iran, North Korea, Venezuela, and Cuba) have generally succeeded in withstanding this kind of violence, and one of the most relevant reasons for this is China’s rise to the status of the largest economy, surpassing the U.S. one. In 2023, China’s share of world GDP based on purchasing power parity reached 18.73%, while that of the USA was 15.56%. Due to its dynamism, size, and sophistication, the Chinese economy made bypassing the payment systems controlled by Washington possible. For instance, after the start of Russian military intervention in Ukraine, when one imposed unprecedented sanctions, Sino-Russian trade grew 64%, reaching a record U.S. $240 billion in 2023.
Not for any other reason, on April 8, 2024, U.S. Treasury Secretary Janet Yellen, visiting Beijing, threatened Chinese companies, stating, “There will be significant consequences for companies that provide material support to Russia. Those who do not comply will face the consequences”.
The Chinese response came a few days later when Russian Foreign Minister Sergey Lavrov visited Beijing. Both countries committed to maintaining the stability of the industrial supply chain, including Chinese material support for Russia’s war against Ukraine and the Russian defense industrial base. According to the Chinese Ministry of Foreign Affairs, Moscow and Beijing “reinforced calls for their two countries to work more closely together against ‘hegemonism.’”
A few weeks later, once again in Chinese territory, a U.S. authority reiterated Washington’s threats. The U.S. Secretary of State, Antony Blinken, in a statement during his official visit to China, stated, “The United States is ready to take new measures and impose sanctions against China and the background of the situation in Ukraine. (…) If China does not take measures to solve this problem, the U.S. will do it.”
Washington’s persistent threats reveal a well-established consensus in the North Atlantic that, on the one hand, the dollar’s power as an instrument of economic sanctions has been eroding continuously. On the other hand, China is the main reason for this. One talks openly about the topic. On April 29, 2024, the chair of the House of Commons Treasury Select Committee of the United Kingdom and member of the NATO Parliamentary Assembly, Harriet Baldwin, stated, “There is a consensus that sanctions are not working in terms of their stated intent – causing real trouble for the Russian economy.” A few days later, in the same way, Italy’s defense minister, Guido Crosetto, expressed that “economic sanctions against Russia had failed and called on the West to try harder to negotiate a diplomatic solution with President Vladimir Putin to end the war in Ukraine. (…) the West had wrongly believed its sanctions could stop Russia’s aggression, but it had overestimated its economic influence in the world.” A few days ago, on May 6, 2024, after meeting with the Chinese president at the French capital, the president of the European Commission, Ursula von der Leyen, returned to the topic. She stated, “We have also discussed China’s commitment not to provide any lethal equipment to Russia. More effort is needed to curtail the delivery of dual-use goods to Russia that find their way to the battlefield. And given the existential nature of the threats stemming from this war for both Ukraine and Europe, this does affect the EU-China relations.”
Therefore, in the North Atlantic power structures, the perception has already been consolidated that a kind of “debasement” of the dollar as an instrument of violence via financial sanctions exists. However, another understanding continues to prevail in Washington concerning the privilege to command the global reference currency: the enlargement of its spending capacity without apparent limits and the imposition on the world of the financial burden of its global wars. This privilege, unlike sanctions, goes on operating at full strength, as in the case of the U.S.$95 billion aid package for Ukraine, Israel, and the Indo-Pacific recently approved by the U.S. House of Representatives.
(1) For more details, see: Metri, M. “História e Diplomacia Monetária”. Ed. Dialética, São Paulo, 2023. (cap. 15).
(2) For more details, see: Nascimento, Maria A. W. V. do. “A Doutrina Bush e a Institucionalização do Poder Coercitivo do Dólar”. Dissertação de Mestrado. PEPI, IE-UFRJ, 2024
Iran, India move forward with port deal in face of US sanctions
The Cradle | May 13, 2024
India expects to secure a “long-term arrangement” with Iran to manage the Iranian port of Chabahar, Reuters reported on 13 May, as India seeks to expand exports to central Asia and Europe.
India has been developing part of the port in Chabahar on Iran’s southeastern coast to export goods to Iran, Afghanistan, and central Asian countries while bypassing Pakistani ports in Karachi and Gwadar. India and Pakistan have been enemies since the partition of British-occupied India created the Muslim state of Pakistan in 1947.
Thus far, India has managed the Chabahar port under short-term contracts, which must be renewed regularly. The uncertainty about future operations this has caused, and the complications of engaging in trade with Iran due to US sanctions, has discouraged significant investment in the port.
“As and when a long-term arrangement is concluded, it will clear the pathway for bigger investments to be made in the port,” Indian Foreign Minister S Jaishankar told reporters in Mumbai.
A source speaking with Reuters said Indian Shipping Minister Sarbananda Sonowal is traveling to Iran to witness the signing of a “crucial contract” that would ensure a long-term lease of the port to India.
The contract is expected to last ten years and will give India management control over a part of the port.
Expanded trade via the Chabahar port will help India expand trade to both central Asia and Europe.
Business Standard reports that Chabahar is also part of the proposed International North–South Transport Corridor (INSTC), a mixed sea and land transport route linking the Indian Ocean and the Persian Gulf to the Caspian Sea via Iran and onward to northern Europe via Saint Petersburg in Russia.
Exporting goods through the INSTC via Chabahar Port is expected to reduce transit times between India and Europe by 15 days compared to the Suez Canal route.
Chabahar will also allow Iran to bypass US sanctions and allow Afghanistan better access to the Indian Ocean.
US sanctions on Iran have similarly delayed construction of a pipeline to transport Iranian natural gas to energy-stricken Pakistan.
The stalled pipeline deal, signed in 2010, envisaged the supply of 750 million to a billion cubic feet per day of natural gas from Iran’s South Pars gas field to Pakistan for 25 years.
Last month, Islamabad said it would seek a US sanctions waiver to proceed with the pipeline. However, US officials publicly said they did not support the project and warned Pakistan about the risk of sanctions in doing business with Tehran.
Malaysia tells US it doesn’t recognise sanctions imposed unilaterally
MEMO | May 9, 2024
Malaysia has told the US that it does not recognise sanctions imposed unilaterally by individual states, Interior Minister Saifuddin Nasution Ismail said today.
“I emphasised that we will only recognise sanctions if they are imposed by the UN Security Council,” added Ismail at an event after meeting with Brian Nelson, the top sanctions official of the US Treasury Department, Free Malaysia Today has reported. “The delegation from the US respected our stance.”
Nelson is in Malaysia reportedly to discuss issues related to funds being moved to Iran and its proxies, and funding for the Palestinian resistance movement Hamas from within the Malaysian financial sector.
The minister pointed out that Kuala Lumpur is committed to combating terrorist financing with a “clear strategic plan in place to tackle illicit funding and money laundering.” Moreover, he said that Malaysia’s policies and strategies “comply with international standards.”
The meeting came as the US said it was trying to prevent Malaysia from becoming a jurisdiction where Hamas could both fundraise and then move money. Washington also said that Iran’s capacity to move its oil was due to service providers based in Malaysia.
The minister, however, described his meeting with Nelson as “productive” and said that Malaysia was “always open to engaging with the US.”
