U.S. Officials Hint at Reservations on Final Nuclear Deal
By Gareth Porter | IPS | November 26, 2013
WASHINGTON – The “first step” agreement between Iran and the United States that was sealed in Geneva over the weekend is supposed to lead to the negotiation of a “comprehensive settlement” of the nuclear issue over the next six months, though the latter has gotten little attention.
But within hours of the agreement, there are already indications from senior U.S. officials that the Barack Obama administration is not fully committed to the conclusion of a final pact, under which economic sanctions would be completely lifted.
The administration has apparently developed reservations about such an “end state” agreement despite concessions by the government of President Hassan Rouhani that were more far-reaching than could have been anticipated a few months ago.
In fact the Rouhani government’s moves to reassure the West may have spurred hopes on the part of senior officials of the Obama administration that the United States can achieve its minimum aims in reducing Iran’s breakout capacity without giving up its trump cards—the harsh sanctions on Iran’s oil expert and banking sectors.
The signs of uncertain U.S. commitment to the “end state” agreement came in a background press briefing by unidentified senior U.S. officials in Geneva via teleconference late Saturday night. The officials repeatedly suggested that it was a question of “whether” there could be an “end state” agreement rather than how it could be achieved.
“What we are going to explore with the Iranians and our P5+1 partners over the next six months,” said one of the officials, “is whether there can be an agreed upon comprehensive solution that assures us that the Iranian programme is peaceful.”
The same official prefaced that remark by stating, “In terms of the ‘end state’, we do not recognise a right for Iran to enrich uranium.”
Later in the briefing, a senior official repeated the same point in slightly different words. “What the next six months will determine is whether there can be an agreement that… gives us assurance that the Iranian programme is peaceful.”
Three more times during the briefing the unnamed officials referred to the negotiation of the “comprehensive solution” outlined in the deal agreed to Sunday morning as an open-ended question rather than an objective of U.S. policy.
“We’ll see whether we can achieve an end state that allows for Iran to have peaceful nuclear energy,” said one of the officials.
Those carefully formulated statements in the background briefing do not reflect difficulties in identifying what arrangements would provide the necessary assurances of a peaceful nuclear programme. Secretary of State John Kerry declared at a press appearance in Geneva, “Folks, it is not hard to prove peaceful intention if that’s what you want to do.”
The background briefing suggested that in next six months, Iran would have to “deal with” U.N. Security Council resolutions, which call for Iran to suspend all enrichment activities as well as all work on its heavy reactor in Arak.
Similarly, the unnamed officials said Iran “must come into compliance with its obligations under the NPT and its obligations to the IAEA [International Atomic Energy Agency].”
Those statements appeared to suggest that the administration would be insisting on a complete end to all enrichment, at least temporarily, and an end to all work on Arak.
The actual text of the agreement reached on Sunday states, however, that both the six powers of the P5+1 and Iran “will be responsible for conclusion and implementation of mutual near-term measures,” apparently referring to the measures necessary to bring Security Council consideration of the Iran nuclear issue to a conclusion.
The Obama administration has yet to release an official text of the “first step” agreement, although the official Iran Fars new agency released a text over the weekend.
Iran has demonstrated its determination to achieve such an agreement by effectively freezing and even partially reversing its nuclear programme while giving the IAEA daily access to Iran’s enrichment sites.
The Washington Post story on Sunday cited Western officials in Geneva as saying that the Iranian concessions “not only halt Iran’s nuclear advances but also make it virtually impossible for Tehran to build a nuclear weapon without being detected.”
But since the early secret contacts with Iran in August and September, the Obama administration has been revising its negotiating calculus in light of the apparent Iranian eagerness to get a deal.
In mid-October, Bloomberg’s Jeffrey Goldberg reported that the White House and State and Treasury departments were interested in an idea first proposed in early October by Mark Dubowitz, the executive director of the Foundation for the Defense of Democracies, who had lobbied the Obama administration successfully for the sanctions aimed at cutting Iranian oil export revenues.
The Dubowitz proposal was to allow Iran access to some of its own money that was sitting in frozen accounts abroad in return for “verified concessions” that would reduce Iranian nuclear capabilities.
Meanwhile the United States and other powers would maintain the entire structure of the sanctions regime, at least in the interim period, without any change, Goldberg reported, “barring something like total capitulation” by Iran.
The scheme would give greater rewards for dismantling all but a limited number of safeguards than for lesser concessions, according to Goldberg’s report, based on information from “several officials”.
And if Iran refused, the plan would call for even more punishing sanctions against Iran’s natural gas sector.
That was essentially the policy that the Obama administration adopted in the negotiations in Geneva. In the first step agreement, Iran agreed to stop all enrichment to 20 percent, reduce the existing 20 percent-enriched stockpile to zero, convert all low enriched uranium to a form that cannot be enriched to higher level and allow IAEA inspectors daily access to enrichment sites.
In return for concessions representing many of its key negotiating chips, Iran got no relief from sanctions and less than seven billion dollars in benefits, according to the official U.S. estimate.
But the Iranian concessions will hold only for six months, and Iran has made such far-reaching concessions before in negotiations on a preliminary that anticipated a later comprehensive agreement and then resumed the activities it had suspended.
In the Paris Agreement of Nov. 15, 2004 with the foreign ministers of the UK, Germany, France, Iran agreed “on a voluntary basis, to continue and extend an existing suspension of enrichment to include all enrichment related and reprocessing activities”.
That meant that Iran was giving up all work on the manufacture, assembly, installation and testing of centrifuges or their components. Supreme Leader Ayatollah Ali Khamenei was under the impression it was an open-ended suspension and initially opposed it.
Khamenei relented only after Hassan Rouhani, then the chief nuclear policy coordinator and now president, and other officials, assured him that it was a temporary measure that would endure only until an agreement was reached that legitimised Iran’s enrichment or the determination that the Europeans were not serious, according to Ambassador Hossein Mousavian’s nuclear memoirs.
After the Europeans refused to negotiate on an Iranian proposal for a comprehensive settlement in March 2005 that would have provided assurances against enrichment to weapons grade, Khamenei pulled the plug on the talks, and Iran ended its suspension of enrichment-related activities.
The United States had long depended on its dominant military power to wage “coercive diplomacy” with Tehran, with threat of an attack on Iran as its trump card. But during the George W. Bush administration, that threat begn to lose its credibility as it became clear that the U.S. military was opposed to war with Iran over its nuclear programme.
Obama administration officials are now acting as though they believe the sanctions represent a diplomatic trump card that is far more effective than the “military option” that had been lost.
Some news stories on the “first step” agreement have referred to the possibility that the negotiations on the final settlement could stall, and the status quo might continue. But the remarks by senior U.S. officials suggest the administration may be hoping for precisely such an outcome.
Gareth Porter, an investigative historian and journalist specialising in U.S. national security policy, received the UK-based Gellhorn Prize for journalism for 2011 for articles on the U.S. war in Afghanistan.
Iran to leave talks if Congress OK’s sanctions: MP
Press TV – November 18, 2013
A Senior Iranian lawmaker says the Islamic Republic will leave the negotiating table if the US Congress approves additional sanctions against Tehran.
“The US Congress has recently been seeking to approve a bill to increase sanctions against Iran. It has been decided that the negotiations be suspended if the bill gets through the US Congress,” said Mohammad Hassan Asafari who sits on the National Security and Foreign Policy Committee of Majlis.
The Iranian lawmaker made the remarks after a meeting in which Iran’s nuclear negotiating team briefed the parliamentary committee on two rounds of nuclear talks with the five permanent members of the UN Security Council – Britain, China, France, Russia and the US – plus Germany.
The US Senate Banking Committee is mulling over whether to move ahead with a new anti-Iran sanctions bill it had delayed before the latest round of talks between Iran and the group of six world powers which was held in the Swiss city of Geneva on November 7-10.
The new round of sanctions against Iran, which the Senate Banking Committee has been asked to “mark up,” were passed by the Republican-controlled House of Representatives in July. The House bill seeks to cut Iran’s oil exports by one million barrels a day for the next year and includes threats of military force against Iran.
The White House, however, is resisting growing pressure from Congress over Iran sanctions, trying to convince US lawmakers not to impose what they call further “punitive” measures.
“Our hope is now that no new sanctions would be put in place for the simple reason that if they are, it could be viewed as bad faith by the people we’re negotiating with, [and] it could destroy the ability to be able to get agreement,” US Secretary of State John Kerry said before a closed-door briefing with the Senate Banking Committee on November 13.
During Sunday’s meeting, Iran’s negotiating team also briefed the country’s lawmakers on the agenda of the forthcoming round of negotiations slated to be held on November 20 in Geneva.
“The negotiating team and the members of the Majlis National Security [and Foreign Policy] Committee reiterated in the meeting that the suspension of enrichment as well as the closure of the Fordow facility and the Arak heavy water [reactor] or any other [nuclear] sites is not on our agenda,” Asafari noted.
Meanwhile, Israel has been trying to force the US administration into imposing additional sanctions to stop an agreement between Iran and the five permanent members of the UN Security Council plus Germany.
Israel’s Economy and Trade Minister Naftali Bennett has recently met with a number of congressmen in Washington in order to persuade them to oppose a diplomatic deal with Iran.
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Kerry: US ‘100 percent’ with Israel
Press TV – November 16, 2013
US Secretary of State John Kerry has said that the United States is “100 percent” allied with Israel, especially when it comes to negotiations over Iran’s nuclear energy program.
In an interview with MSNBC’s ‘Morning Joe’ on Thursday, Kerry said, “What’s important here is we stand with Israel firmly – 100 percent.”
He made the comments one day after Republican members of the Senate Banking Committee stormed out of a classified meeting with Kerry, saying the briefing session was “anti-Israeli.”
Kerry held a closed-door briefing with the Senate Banking Committee on Wednesday to convince Congress that any new sanctions against Iran would be viewed as “bad faith” and can “destroy the ability to” reach an agreement over Tehran’s nuclear energy program.
Sen. Mark Kirk (R-Illinois) described the briefing as “anti-Israeli,” saying “I was supposed to disbelieve everything the Israelis had just told me.”
Meanwhile, Israel continued its lobbying efforts on Capitol Hill as Israel’s Economy and Trade Minister, Naftali Bennett, pushed for new anti-Iran sanctions on Thursday and described a possible deal between Iran and the five permanent members of the UN Security Council plus Germany as “catastrophic.”
This comes as White House Press Secretary Jay Carney said on Tuesday that imposing new sanctions on Iran would be a “march to war” and that “the American people do not want a march to war.”
Speaking with reporters during a White House briefing on Thursday, US President Barack Obama also called on Congress not to impose any new sanctions on Iran.
On Friday, an unnamed top US official told Reuters that a nuclear deal between Iran and the P5+1 is “quite possible” during the next round of talks between the two sides, which is to be held in Geneva on November 20.
Sen. Graham: Israel ‘apoplectic’ about US approach on Iran
Press TV – November 11, 2013
US Senator Lindsey Graham has warned about a possible easing of economic sanctions against Iran, saying Israel is “apoplectic” about the Obama administration’s approach.
Graham, a hawkish Republican from South Carolina who has repeatedly called for military strikes on Iran, said Sunday that lifting sanctions would send the wrong message to Israel and other US allies in the region.
“The Israelis are apoplectic about what we’re doing,” he said on CNN’s “State of the Union.” “I’ve never been more worried about the Obama administration’s approach to the Middle East than I am now.”
The White House offered a “very modest sanctions relief” as Iran and the six major world powers– the US, Britain France, China, Russia and Germany– engaged in talks over Iran’s nuclear energy program in Geneva, Switzerland over the weekend.
The talks ended inconclusively on Sunday when France rejected a list of demands on Iran, saying they were too generous to result in an easing of sanctions. More negotiating sessions are scheduled for November 20.
Sen. Graham said the sanctions should be kept in place, and coupled with the threat of military force, to compel Iran to stop its uranium enrichment activities.
“If it ends with anything less, the world will regret this,” Graham said. “My fear is that we’re going to end up creating a North Korea kind of situation in the Middle East.”
Senate leaders showed bipartisan support Sunday for tougher sanctions on Iran.
Senator Robert Menendez, chairman of the Senate Foreign Relations Committee and a key architect of anti-Iran sanctions, called on Congress to consider new economic sanctions against Iran.
“I think that the possibility of moving ahead with new sanctions, including wording it in such a way that if there is a deal that is acceptable that those sanctions could cease upon such a deal, is possible,” Menendez said Sunday on ABC’s “This Week.”
The US lawmakers’ outburst happened after Israeli Prime Minister Benjamin Netanyahu denounced a possible agreement with Iran as a “historic blunder.”
Time to Ignore Netanyahu the Rejectionist
By Ludwig Watzal | Palestine Chronicle | November 10, 2013
Benyamin Netanyahu’s hyperventilated fury didn’t surprise anybody. Even before the first outlines of a possible long-term agreement between Iran and the West on Iran’s nuclear program were publicized, Israel’s Prime Minister categorically rejected any such agreement. This irrational behavior disqualifies him as a serious partner to other heads of state. His extremism goes even so far as to promote further sanctions against Iran. Netanyahu wants Iran to capitulate and abolish its entire nuclear industry. He announced that Israel does not feel bound by the agreement. Netanyahu arrogates Israel the right to override decisions by UN Security Council members.
That Western leaders should consult the leader of a tiny country before they act shows the imagined power they attribute to Netanyahu. To seek advice from Netanyahu shows how intimidated Western politicians are. By now, they should be aware of his hostility to peace, be it with Iran or the Palestinians. How submissively the United States acts, is shown by the phone call between Obama and Netanyahu and by Secretary of State Kerry’s visit to Jerusalem, as if they needed Netanyahu’s blessing for the negotiations with Iran. The best political strategy would be to ignore him.
What infuriated Netanyahu and made him go wild was John Kerry’s statement made in Bethlehem: “We consider now and have always considered the settlements to be illegitimate.” The US has finally returned to its erstwhile stance that all Israeli settlements are contrary to international law, after they have gone astray under Bill Clinton and George W. Bush junior. Netanyahu appears increasingly isolated with regard to the Iran deal. He appears willing to do anything to derail a possible agreement between the US and Iran. His last weapons are the political bull terriers of the American Israeli Public Affairs Committee, better known as AIPAC, and their supporters in the US Congress. But Netanyahu is increasingly a political nuisance, not only for the Obama administration but also for other powers. For the last 25 years it has been his mantra to warn that a nuclear armed Iran is just around the corner.
Netanyahu and the war party in the US will do everything in their power to prevent an agreement between Iran and the West. Netanyahu exerts not only great influence on the US Congress via AIPAC, but does so personally, as his last speech before both Houses in May 2012 has shown, during which US lawmakers outdid themselves in celebrating his reactionary speech. AIPAC could try to arrange again another such ridiculous circus. That doesn’t mean that Netanyahu would make it this time, knowing that he would jeopardize the recently improved relations with the Obama administration.
The political charade, which Netanyahu performs, has nothing to do with the imaginary Iranian nuclear threat. The Israeli political establishment knows this and fears that it would lose its hegemony over the entire Middle East and Northern Africa if Iran would go nuclear. The late Israel Shahak has pointed out in his book “Open Secrets. Israeli Nuclear and Foreign Policies”, that Israel’s main goal is to maintain its hegemony from India to Mauritania.
The political interests of the Western powers and Israel are not the same. The West has suffered heavy economic losses by bowing to Israeli interests; especially US soldier had to pay a high price in Iraq. Netanyahu can perhaps bamboozle the U.S. government again, but Israel’s relationship with Europe is on a downward slide. Europe, and especially Germany, can look back on an enduring friendship with Iran. This friendship should not be damaged by unregenerate politicians. Germany would do well to normalize its relations and reestablish its traditionally excellent relations with Iran, regardless of the outcome of the US-Iran negotiations.
By now, the US and the other Western countries should have understood that Netanyahu as well as former Israeli governments have been torpedoing every chance for a peace agreement with the Palestinians, because their colonial hunger for land has not yet been satisfied. The so-called peace negotiations, which are once again taking place, is likely to go nowhere because the Netanyahu government is not willing to make any real concessions that fall short of total surrender by the Palestinians.
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US won’t ignore Israeli interest at N-talks: Sherman
Press TV – November 3, 2013
US Undersecretary of State Wendy Sherman says Washington will take into consideration Israel’s security interests at the upcoming talks between Iran and the group of six major world powers.
According to a report published by the Israeli daily Jerusalem Post, Sherman said the US will not ignore Israel’s security interests at the forthcoming nuclear talks, which are slated to be held in the Swiss city of Geneva on November 7-8.
Sherman made the remarks in an interview with Channel 10, which is set to be broadcast later on Sunday.
Iran and the five permanent members of the UN Security Council – Britain, China, France, Russia and the US – plus Germany held two days of talks over the Islamic Republic’s nuclear energy program in Geneva, Switzerland, on October 15-16.
During the talks, Iranian Foreign Minister Mohammad Javad Zarif presented Tehran’s proposal titled, “Closing an Unnecessary Crisis, Opening a New Horizon” to the six countries.
Sherman also rejected reports about Washington offering Iran relief from unilateral sanctions imposed over the country’s nuclear energy program.
“We have not offered any sanctions relief on Iran, and we have not removed any sanctions,” the US official added.
Under pressures by the American Israel Public Affairs Committee (AIPAC), the US Senate is ratcheting up pressure on the White House to tighten the sanctions against Iran in line with Israeli Prime Minister Benjamin Netanyahu’s demand for more pressure against Tehran.
In a statement on Saturday, the AIPAC said there would be “no pause, delay or moratorium in our efforts” to seek new sanctions on Iran.
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US may free up frozen Iranian assets: Official
Press TV – October 18, 2013
The US is considering a proposal to unfreeze billions of dollars of Iranian assets to reciprocate Iran’s confidence-building measures over its nuclear energy program, a senior administration official says.
The administration of US President Barack Obama is weighing the possibility of easing sanctions against Iran in the wake of the recent promising talks between Tehran and six major world powers in Geneva, The New York Times website on Thursday quoted an unnamed source as saying.
The official said the proposed plan, under which Washington could free up Iran’s frozen overseas assets in installments, would “avoid the political and diplomatic risks” of repealing the international sanctions on Tehran over its nuclear energy program.
The move, still under discussion by the White House and the State Department, would also give President Obama the flexibility to respond to Iran’s proposals made during the recent Geneva talks without unraveling the sanctions, the official added.
Iran and the five permanent members of the UN Security Council – the United States, China, Russia, France and Britain – plus Germany held two days of negotiations over Tehran’s nuclear energy program behind closed doors in the Swiss city of Geneva on October 15-16.
Both sides sounded an upbeat mood following the meetings, where Iran tabled its proposals to end the nuclear standoff, and agreed to meet again in Geneva on November 7-8.
The United States, Israel and some of their allies claim that Iran is pursuing non-civilian objectives in its nuclear energy program, with the US and the European Union using the allegation as a pretext to impose illegal sanctions on Iran.
Iran categorically rejects the allegation, arguing that as a signatory to the Non-Proliferation Treaty and a member of the International Atomic Energy Agency (IAEA), it has the right to use nuclear technology for peaceful purposes.
European companies likely to be losers in US-Iran rapprochement
RT | October 9, 2013
If the sanctions against Iran are lifted, the Iranians will look mainly towards American firms in the oil and automobile sector to fill the gap, George Malbrunot, a journalist for French newspaper Le Figaro, told RT.
RT: Both Iran and the US are signaling a thaw in their political relations – what effect will it this have on economic ties and business? Does it look like the US is attempting to force out other companies from the Iranian market?
George Malbrunot: I think already there have been some secret contacts between US firms and Iranian counterparts in order to prepare, to anticipate the political deal between Iran and the United States. Mainly these contacts have occurred in the automobile sector. For the last year or more there have been some emissaries from General Motors, for example, going to Tehran to see their Iranian counterparts from Iran Khodro, in order to prepare the ground for the [return] of General Motors to Iran, which was very important before 1979.
So there are these kind of contacts with not only GM but other big US companies, also in the oil and gas sectors, which are very important in Iran, and it has been encouraged recently by the executive order that Barack Obama signed on June, 3, which prevents subcontractors dealing with Iranian firms in the automobile sector. And in fact this executive order was deeply targeting the French who are the only one now in the automobile sector in Iran, especially Renault, and the French contractors are very upset about that. And they interpret it as an attempt to clean the Iranian market before the return of US companies in Iran.RT: In your article, you say American companies are securing their positions on the Iranian market – how is this happening?
GM: For the last six months, we’ve heard from Iran’s supreme leader, Ayatollah Khomenei, that we are not any more opposed to direct contacts with the US. The businessmen are always more active in anticipating political deals and to anticipate change. During all these years of bad relations between Iran and the US there have always been some kind of secret contacts between US firms and Iranian firms. And mainly these contacts have been accelerated after the election of President Rouhani in Iran. And we’ve all seen at the last UN General Assembly in New York last month that now the Iranians are talking to the Americans. So there are preparations on the ground in order to go to Iran which is a huge market, 80 million consumers, with huge oil and gas resources, so it’s natural that US businessmen are watching very carefully the developments which happen between Iran and the US.
And not only US businessmen are very [eager] to go to Iran, but you have also the German businessmen, who have always been active, with Siemens for example, and even the British who have no diplomatic relations with Iran are now starting to [study] this market carefully. The Japanese are also very active. And unfortunately for us in France, we are perhaps the last in Europe to try to go to Iran, because for the last [few] years France was extremely active in fighting against Iran. France was exerting the pressure on Iran in order to implement the sanctions. So the French businessmen are very upset with what’s going on now, because for the last 20 years the US was [not in] Iran, and French businessmen had quite a good position in Iran – Total, Peugeot, Renault – and now they are afraid that all these years of efforts will be [wiped away] by the new deal which will happen between the US and Iran.
RT: Do you think we will be seeing an easing of sanctions against Iran soon?
GM: I think so, and the Iranians are a very proud nation and they have been always having very strange relations with Americans, love and hate, and once the sanctions will be lifted I’m quite sure the Iranians will look mainly toward American firms in the oil sector, in the automobile sector to fill the gap. So for sure European companies will be more probably losers in this kind of agreement.
I think that GM and even Chevrolet will go extremely quickly to Iran if there is a political agreement between the US and Iran, if the sanctions are lifted. I’m not sure that the Iranians will give a lot of pieces of the cake to French companies or others on this issue. And this is the reason why French companies are very worried about what’s going on in the shadow of this rapprochement between the US and Iran.
EU court verdict on Iran sanctions angers US
Press TV – September 7, 2013
A new EU court ruling that rejected sanctions on a number of Iranian entities has drawn the ire of the United States, prompting Washington to extend its illegal embargoes against more individuals and businesses.
The EU’s General Court in Luxembourg lifted the bloc’s sanctions against seven Iranian companies on Friday, ruling that there wasn’t sufficient evidence to justify the embargoes.
The top EU court ruled that the bloc wrongly blocked the accounts of Post Bank of Iran, the Iran Insurance Company, Good Luck Shipping and the Export Development Bank of Iran, from 2008 to 2011.
“We are very disappointed by the [EU] court’s decision today,” a spokesman for the US Treasury Department said in a statement on Friday.
The US Treasury later announced that it blacklisted six individuals and four businesses over their alleged links to Iranian oil sales.
At the beginning of 2012, the US and the European Union imposed new sanctions on Iran’s oil and financial sectors aimed at preventing other countries from purchasing Iranian oil and conducting transactions with the Central Bank of Iran.
The illegal US-engineered sanctions were imposed based on the unfounded accusation that Iran is pursuing non-civilian objectives in its nuclear energy program.
Iran rejects the allegation, arguing that as a committed signatory to the nuclear Non-Proliferation Treaty (NPT) and a member of the International Atomic Energy Agency (IAEA), it has the right to use nuclear technology for peaceful purposes.
In addition, the IAEA has conducted numerous inspections of Iran’s nuclear facilities but has never found any evidence showing that Iran’s nuclear activities have non-civilian purposes.
Fallouts of Iran Sanctions
By Ali Fathollah-Nejad | World Policy Blog | July 31, 2013
Iran’s President-elect Hassan Rohani has promised to ease the tensions surrounding the international relations of his country. In line with the will of the majority of Iranians, the issue of economic sanctions – weighing heavily on the latter’s day-to-day life – will be a key to that end.
In general, the purpose of sanctions is to force a political opponent to do what she would not do otherwise. In the case of the sanctions imposed on Iran – during the course of what is commonly but simplistically referred to as the “nuclear crisis” – the stated goal has been to force a reversal of Tehran’s nuclear calculus toward slowing down or even halting its nuclear program. This goal has clearly not been met. Instead this period has witnessed ever more crippling sanctions – a form of “structural violence” exerted upon an entire country and its people.
Economic sanctions are one of the most preferred instruments of Western foreign policy. The immediate Western reaction to the Syrian crisis is the most recent evidence of this. In the Iranian case, sanctions have been an integral part of the transatlantic strategy pursued against Tehran, code-named “coercive diplomacy” in Diplomatic Studies. There, sanctions are usually presented as a quasi-peaceful means and as such inherently part of a purely diplomatic approach geared towards avoiding a military confrontation. However, as the Iraqi case demonstrates, sanctions are the last step before military action. In other words, “smart sanctions” are likely to be succeeded by “smart bombs.”
Apart from this worst-case scenario, sanctions have not proven to facilitate the resolution of conflicts; on the contrary, they rather tend to harden the opposing fronts. Frequently, opposing sides view sanctions through fundamentally different prisms. In this case, while the West conceives of sanctions in a cost–benefit framework – the heavier the costs imposed on the targeted country by way of sanctions, the more willing the sanctioned state will be to offer concessions. Iran on its part sees them as a means of illegitimate pressure against which she ought to resist. This explains why in the last couple of years the escalation of sanctions was accompanied by that of the nuclear program. For example, in 2006 – before the Iran sanctions were elevated to an undoubtedly crippling dimension by the United States and the European Union – Iran had a thousand centrifuges; the number today is much more than tenfold. This reality of the nuclear dynamics in the wake of sanctions remains largely ignored in Western capitals.
Moreover, it should be stressed that policymakers in the West have so far devoted much more time and energy to identifying which new set of sanctions to impose rather than to committedly and creatively finding a diplomatic solution of the decade-old stalemate.
The popular rhetoric of sanctions incorrectly characterizes the nature of the socio-economic effects imposed on the target country. Contrary to what is commonly claimed, sanctions actually weaken the lower and middle classes, particularly affecting the most vulnerable in society – workers, women and the youth. As a result, the power gap between the state and society widens. All this, as a matter of fact, actually dampens the prospect of popular uprising. A person struggling for economic survival barely has the luxury of engaging as a citoyen in the struggle for democracy. This explains the firm renunciation of sanctions by Iran’s civil society – voices that the West has largely chosen to ignore.
In political-economic terms, sanctions have largely paralyzed Iran’s civilian economy while state and semi-state economic entities – especially those associated with the Revolutionary Guards – have been able to benefit inter alia by monopolizing imports of various goods via “black channels.” State resources have buoyed those companies that have access to them, leaving others to drown in the tide of rising costs. Sanctions have also prompted enormous growth in the volume of bilateral trade between Iran and China (still about $ 40 billion according to the Iran–China Chamber of Commerce and Industries which is closely related to the regime) – to the detriment of producers and jobs in Iran. The reality of sanctions is that they have cemented the politico-economic power configuration in Iran.
Sanctions produce far-reaching effects at the geopolitical and geo-economic levels. Corresponding with the implicit geopolitical rationale for sanctions – that if you cannot control or influence a country, you will resort to weakening it – these restrictions have indeed stunted Iran’s development trajectory. This inflicted damage has not, however, produced the ultimate goal of reversing Iran’s nuclear and regional policies and has in fact damaged Western interests by boosting the clout of countries like China, Russia, and other regional states.
In the wake of the U.S.-pressured withdrawal of the Europeans from the Iranian market, Iran was virtually handed over to China on a silver plate – something Beijing is indeed quite appreciative of. China’s economic presence in Iran can be witnessed all across the board: from the construction of the Tehran Metro to the exploration of Persian Gulf oil and gas fields.
Iran’s technocrats – a prime victim of the sanctions – observe this development with great concern. Among other things, they have seen that a healthy competition between different foreign competitors is sorely missing, and that the lack of high-tech (formerly delivered by the West) has reduced the quality of domestic production. All of this has a negative impact (mid- and long-term) on Iran’s economic and technological development. If the situation remains unchanged, such damage can hardly be compensated. As another case in point, the sale of Iranian oil to large customers such as China or India has turned into barter – a de facto “junk for oil” program has emerged. In addition, during the past couple of years China has been given preferential rates by Iran for its oil imports.
Finally, some of Iran’s neighboring countries also benefit from the sanctions. Most significantly, due to the energy sanctions against Iran, Russia can safeguard its quasi-monopoly on Europe’s energy supply – a strategic interest held by Moscow which is unlikely to be reversed easily. To a much lesser degree but still noteworthy, Turkey – which has turned into the sole land trade corridor reaching Iran from the West – has seen its profits in its dealings with Iran risen sharply. Not surprisingly, its business press has been cheering the Iran sanctions as providing Ankara with a competitive trade advantage. Also off the radar, Qatar which in the Persian Gulf is sharing the world’s largest gas field with Iran, has been able to exploit South Pars much more rapidly than Iran given the latter’s lack of access to advanced technologies. This has resulted in a tremendous gap of revenues between the two countries of many several billion dollars.
Ultimately, the policy of sanctions is counter-productive on multiple levels, most sensitively on diplomatic and socio-economic grounds. The sanctions – whether called “crippling” or “targeted” – disproportionately affect the civilian population. “Smart sanctions” are very much an oxymoron as “smart bombs” which allegedly function in surgical precision. And like their military counterparts, “targeted sanctions” inflict extensive “collateral damage.”
Despite the political need to seriously reconsider sanctions as a tool for a judicious and solution-oriented foreign policy, there are many political and institutional barriers to overcome before the extremely dense web of Iran sanctions can be dissolved – which remains not only a huge political challenge but also a moral one. The first step in this direction will be the sober realization among policymakers that while sanctions do have effects, these are not the ones officially proclaimed or desired – neither in socio-economic terms nor in the sphere of Realpolitik when it comes to altering Tehran’s nuclear calculation. Leaving the sanctions against Iran in place advances the specter of an Iraqization of Iran – with all its adverse effects internally (destruction of society) as well as externally (war and destabilization of an already too fragile regional balance).
To pave the way for a new chapter in Iran’s relations with the West, Rohani has already proved his wisdom by his choice of foreign minister. Mohammad-Javad Zarif, Iran’s former ambassador to the UN, has already been labeled as “Tehran’s leading connoisseur of the U.S. political elite”. All this undoubtedly presents the most suited prerequisite towards the aim of alleviating the multi-level liability that sanctions constitute. But at the end, it is the responsibility of those who have imposed the sanctions to initiate the process of their removal. The ball is now in the West’s court. It would truly be the “height of irresponsibility” if one missed this opportunity offered by the Iranian people who have already paid dearly for an utterly miscalculated transatlantic “coercive diplomacy.”
*****
Ali Fathollah-Nejad is an Iranian-German political scientist educated at universities in France, Germany, the Netherlands, and the UK. His website is at fathollah-nejad.com.
