Pros and cons of Iran sanctions removal

Pros and cons of Iran sanctions removal

Baku, Azerbaijan, Jan. 19

By Khalid Kazimov - Trend:

The removal of International sanctions on Iran's financial and oil sectors have created a chance to boom the country's economy, however, if the Islamic Republic fails to use the chance properly it may become extremely harmful, an Iranian broker said.

Due to their low quality and high costs a group of Iranian industries will not be capable of competing with foreign companies, Amir Hossein Mohammadi, an official with Tamin Sarmayeh Novin Brokerage Company, told Trend Jan. 18.

Meanwhile, the implementation of the Joint Comprehensive Plan of Action (JCPOA aka nuclear deal) and consequently the removal of sanctions offer Iran considerable advantages.

Mohammadi believes that unblocking frozen assets, boosting exports, decreasing the costs of exports and production, creating new job opportunities as well as regaining share of oil market are considered among major advantages that Iran would gain from the removal of international sanctions.

Through a joint statement on Jan. 16, EU High Representative Federica Mogherini and Foreign Minister Mohammad Javad Zarif announced the implementation of the JCPOA and the removal of Iran's economic sanctions.

According to the statement, EU has confirmed that legal framework providing for lifting of its nuclear-related economic and financial sanctions is effective.

Iran's revenues from oil sales which were frozen in several international banks during the sanctions-era will be unblocked.

Given the decline in oil prices and the decline in the government's revenues, the unblocked assets would be considered as a suitable source to provide the government with funds to launch and complete development projects in the country, he said.

However the procedure of releasing the unblocked assets would have a significant impact on the issue, Mohammadi added.

According to him with the removal of sanctions on Iran's shipping lines and insurance companies the costs of exports will drop. Meanwhile given the capability of the country in exporting petrochemicals and oil products the removal of sanctions on the shipping lines and insurance sector will contribute to boosting the amount of exports.

Following the removal of sanctions on oil sector, Iran will have a chance to regain its market share which will lead to creating new job opportunities, he said.

He estimated that the removal of banking sanctions will decrease the cost of production as Iranian producers faced restrictions for importing raw materials and they had to buy the raw products through a third individual or company at higher prices.

Saying that Iran seems a good market for investment as the country enjoys high security and suitable profit margin in a number of industries, he concluded that foreign investments will lead to boosting the quality and quantity of the products in the Islamic Republic.

Subscribe to Trend in Google News! Subscribe
Georgia’s revenues from tourism to surge in 2022 – Galt & Taggart
Georgia’s revenues from tourism to surge in 2022 – Galt & Taggart
Georgia sees notable recovery in number of international visitors – Galt & Taggart
Georgia sees notable recovery in number of international visitors – Galt & Taggart
Georgia shares data on visitor inflow from Iran
Georgia shares data on visitor inflow from Iran
Loading Bars
Latest
MFA of Kazakhstan issues statement on European Parliament resolution on situation in country
Japan approves Pfizer's COVID-19 vaccine for children aged 5-11
2022 can be called the year of investments in Karabakh - Country Managing Partner of PwC (Interview) (PHOTO/VIDEO)
16,284 more COVID-19 cases reported in Kazakhstan
China, Russia delay U.S. bid to sanction North Koreans at U.N.
Turkey confirms 71,843 daily COVID-19 cases
New vaccine passport rules in France to come into power from next week
U.S. FAA approves 78% of planes for low-visibility landings near 5G airports
Gloomy Netflix forecast erases much of stock's pandemic gains
Turkey, El Salvador sign 6 agreements during Bukele visit
Austria becomes first country in Europe to mandate COVID-19 vaccination for all adults
Google launches fresh appeal to overturn $2.8 bln fine at top EU court
Russian, Iranian top diplomats confirm commitment to Vienna talks to restore JCPOA - MFA
Gas prices in Europe above $900 per 1,000 cubic meters
Tehran offers swap of Russian gas from Azerbaijan to southern Iran
Czech Development Agency eyes launching new projects in Georgia in 2022
Sudan military chief Burhan announces ministerial appointments: Sovereign council
Azerbaijani FM discusses issues of bilateral cooperation with Austrian minister
Azerbaijani FM meets with OPEC Secretary General (PHOTO)
UN General Assembly adopts resolution condemning Holocaust denial
Cavushoglu and Israel's Lapid hold phone call
Iran, Russia reach agreements in oil and gas sector, says minister
Children over 5 years old allowed to be vaccinated against coronavirus in Uzbekistan
Ankara expects to host Putin-Zelensky meeting - Erdogan
Turkey, Qatar agree on ensuring security at Kabul airport
Turkish Parliament speaker pays tribute to memory of martyrs of Azerbaijan's January 20 tragedy
Georgia slightly decreases imports of petroleum gases from Azerbaijan
US will keep probing diplomats’ health incidents: Blinken
Georgia shares data on cement imports from Azerbaijan
Kazakhstan Railways opens tender to buy spare parts
Azerbaijan's metallurgical production increases
Cost of manufactured computers up in Azerbaijan
Central Bank of Turkey makes decision on key rate
President Ilham Aliyev receives Advisor to French President's Cabinet and EU Special Representative for South Caucasus (VIDEO)
January 20 tragedy laid foundation for Azerbaijanis' struggle to restore their statehood and independence
Azerbaijan shares data on number of vaccinated citizens
Price indexes of industrial, trade sectors at Uzbek stock exchange rise
Azerbaijan confirms 1,186 more COVID-19 cases, 582 recoveries
Turkish VP tweets about anniversary of Azerbaijan's January 20 tragedy
Kazakhstan talks persons not eligible for support on loan deferrals, write-offs
Uzbekistan’s Bukhara oil refinery discloses volume of its production in 2021
Turkmen enterprise releases its first tablets and smartphones
Azerbaijan is beneficiary of recovery trend in hydrocarbon market - Gazprombank
Technical specifications of Azerbaijan’s Khizi-Absheron power plant revealed
Uzbek Central Bank makes decision on its main rate
Azerbaijan boosts oil exports to Georgia
State Statistics Committee discloses cost of machinery, equipment produced in Azerbaijan
Cars re-export from Georgia to Azerbaijan increases
Uzbekistan’s gas chemical complex reveals volume of its products for 2021
Kazakhstan unveils value of vehicles insurance over 11M2021
Kazakhstan reports increase in monetary base value
Kazakhstan's first president to retain right to speak at parliament and government
Azerbaijani Executive Power in Baku opens tender for purchase of truck spare parts
Tesla Berlin factory to elect works council on Feb 28
Kazakhstan to introduce two alternative ways to repay deferred payments
Introducing hydrogen as energy carrier can raise energy security risks
Impact of large-scale protests in Kazakhstan yet to play out - WoodMac
Azerbaijan's State Agency for Use of Mineral Resources opens tender on survey services
India’s cumulative COVID-19 vaccination coverage exceeds 158.88 Cr
PM Modi to host first ever India-Central Asia Summit in virtual format on Jan 27
Indian NSE world’s largest derivatives exchange for 3rd straight year
Artel launches Innovative Educational Center in Tashkent
Uzbekistan shares data on industrial production in 2021
Events held in Azerbaijani army, dedicated to January 20 tragedy (PHOTO)
Guides to accompany passengers of bus trips to Azerbaijan’s liberated Aghdam, Shusha cities
Can hydrogen market be cartelized?
Azerbaijani NBCO eyes boosting car loan portfolio
Memory of January 20 tragedy victims honored in Azerbaijan's Shusha (VIDEO)
Indian economic recovery yet to attain durability: Icra
Russia records another 38,850 coronavirus cases, highest daily number since Nov 13
PM to launch India-assisted projects with Mauritius counterpart Jugnauth today
Rapid growth of hydrogen to underpin rising demand for nickel, zirconium
Azerbaijani State Border Service to purchase building materials via tender
Iran’s CBI discloses data on balance of bank loans
Uzbek Statistics Committee reveals amount of construction work done in 2021
Azerbaijan's minister of health talks quarantine regime
Turkmen garment factory ramps up production
Iran reveals COVID-19 data for January 20
IEA expects Azerbaijan to increase oil output in 2022
Turkish MoD shares publication on anniversary of January 20 tragedy in Azerbaijan
Work related to Armenia's environmental crimes in Azerbaijan's Karabakh in progress - ministry
Iran’s Bahar Azadi gold coin price continues to rise
Turkish, Armenian special reps to discuss confidence-building measures - FM
IEA evaluates Azerbaijan’s OPEC+ compliance
Kazakhstan crude and condensate production estimated to go up in 2022
European Hydrogen Backbone joined by six more companies
Swiss Expo inks solar power purchase agreement in Poland
Кazakh Electricity Grid Operating Company opens tender to buy spares for vehicles
Turkmenbashi refinery opens tender to purchase necessary equipment
EBRD to allocate loan for Turkey’s renewable energy sector
Azerbaijan develops action plan to provide liberated areas with internet
Georgia shares data on trade turnover with Azerbaijan
Russian MFA talks about expansion of transport corridors within GUAM
Recognise ‘Hinduphobia’ and violence against Buddhists, Sikhs too: Indian envoy to U.N.
Work related to Armenian crimes against Azerbaijanis continues - Prosecutor General
Momentum in India's favour, need to prevail over COVID-19: Deloitte CEO on economic development
Central Bank of Iran shares data on exchange of bank checks countrywide
Proud to hold TEKNOFEST int'l aviation, space, technology festival in Azerbaijan - Turkish Baykar Makina
EU special rep for South Caucasus to visit Azerbaijan
Iran boasts potential to vastly increase exports to Russia
All news