"New Sanctions on Iran May Paralyze Country" – Experts

Politics Materials 8 August 2008 13:17 (UTC +04:00)

Azerbaijan, Baku, 8 August / Trend corr. D.Khatinoglu / If Iran will not respond positively to the Six's proposals it will lose the support of Beijing and Moscow and will undergo more sever sanctions by the European Union and America.

"If Iran will be deprived of Russian's and China's support then sanctions may paralyze the economy of the country," Prof.Anushirvan Ehteshami, rector of the International Relations faculty in the British Durham University, told Trend .

According to the information released by BBC on 6 August, the Six (China, Russia, France, Britain, the United States and Germany) intend to impose new sanctions on Iran to suspend the uranium enrichment program. In June, the United States Congress has discussed another sanction against Iran. At the same time, Britain, France and Germany have frozen the accounts of Iranian National Bank on their own territories.

Ehshetami believes that the sanctions imposed by the UN Security Council on Iran, caused worsening of the relations with international community, as well as the direct sanctions by Europe and US against Teheran became more sever. "In August, the Iranian last oil companion the Total company has stopped investing into the country. Stat Oil, Shell and other oil companies turned its back on Iran. At present, the United States and Europe are being developed the first version of the next sanctions to submit to the UN Security Council. These sanctions will be used against the oil industry in Iran and it may paralyze the country's economy," the Iranian expert said via a telephone from London. 

According to the expert, Iranian officials will be limited to visit foreign countries. Furthermore, serious sanctions will also be imposed upon Iranian banking system and its economic activity abroad. Ehshetami stated that Iranian's economy would face crisis as the result of such sanctions, as China and Russia will not support the country anymore.

Prof.Kamran Dadkhah on Economy in the Boston University believes that Iranian economy fluctuated as a result of the unfaithful economical projects of the government. The sanctions imposed by the United States and Europe will face Iranian economy with crisis for a long period. "Until the oil prices are high the imposed sanctions have not been felt in Iran. However, time will show the results of such sever sanctions," Dadkhah said via a telephone from Washington.

Seid Jalili, the head of the negotiation group between Iran and West on the nuclear issues, met with representatives of Six in Geneva on 18 July. According to the information by the French Le Monde newspaper on 5 July, the British representative made warning against Jalili about new sanctions. Jalili stated that Iran knows how to evade from sanctions. 

Dadkhah believes that Iran may avoid sanctions partially. However, sanctions become so sever that it will "break the spine" of Iranian economy.

Iran can implement its economic relations and business through help of China, Russia and other countries. However, Teheran implements economic exchange by paying trice sum. In spite of the oil prices are high in world markets, inflation rate in Iran was by 26% more compared to the last year (official information by Iranian Central Bank)," Dadkhah said.

Ehteshami said that Iran could avoid sanctions by taking back capitals from European banks, but it does not solve the whole problem. "Iran received $70bln from European banks and has invested the funds into Asian banks. However, Asian banks are not reliable place to keep Iranian capital," Ehshetami said.

According to the both experts, increase in number of sanctions imposed upon Iranian oil industry and banking system, will have serious results for the country's economy.

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