August 7, 2018

Iran: the Sanctions Regime Resumed

August 6, 2018, US President D. Trump signed an order to resume the regime of sanctions against Iran. It should be understood that these are not new sanctions, but the ones that were lifted in 2015 after the signing of the “nuclear deal” (JCPOA).

The European Union, Great Britain, Germany and France have already issued a joint statement to protect the interests of their companies in Iran. China and Russia have officially stated that they will not comply with Washington's oil sanctions against Iran. At this, China has promised the United States not to increase the volume of import of Iranian oil.

In May 2018, we already mentioned that Washington intended to impose sanctions against anyone who would continue to cooperate with Iran and “violate” the USA's sanctions. Some European companies have already left the Iranian market to prevent economic and political risks, and this, in turn, has significantly worsened the IRI's economic situation.

Note:

Inflation and prices for basic foodstuffs, goods of everyday demand are growing.

Over the last few weeks, there has been a significant increase in prices for dairy and meat products, chicken eggs. According to the Iranian news agency Mehr News, prices of eggs have risen by 55 %, prices of meat — by 23 %, and fruits prices — by 45 %, as compared with last year.

The housing rent has increased by 10 to 40 %. Thousands of workers have lost their jobs, and wages are decreasing at enterprises.

It is clear that the deterioration of the economic situation is causing public dissatisfaction and mass protests that have taken place in Iran over the past few months. The latest example: the strike of the sellers at the Tehran market which is considered a barometer of business life of the country.

Tehran has repeatedly appealed to the EU to take appropriate measures to protect its interests. Thus, on August 5, 2018 in his interview with Tasnim News, Deputy Chief of Staff of the President for Political Affairs Majid Takht-Ravanchi said that the first package of sanctions being resumed on August 7 included a ban:

  • on purchasing US dollars;
  • on trade in gold and precious metals;
  • on direct or indirect sale (transfer) to Iran of aluminum, steel, coal, graphite.

Sanctions against the car industry in Iran are also being resumed.

The second package of sanctions, resuming of which is scheduled for November 4, 2018 includes an oil embargo.

M. Ravanchi stressed that Iran would not negotiate with Europeans or with anyone else “for the sake of negotiations”. “We want our talks to be focused and effective”, he said.

According to the Mehr News' data (which is confirmed by other information agencies, with reference to anonymous sources), a meeting of the Presidents of the United States and Iran “without preconditions” may take place on the sidelines of the UN General Assembly in New-York in September 2018.

Thus, the attempts by the EU and Western European countries to “rescue the nuclear deal” have failed and today's realities show that Iran is slowly slipping into a new economic and political crisis.