Iran to the next round of U.S. sanctions, especially the Oil sector of the country. The EU wants to help in principle, but concrete steps are not yet foreseeable.
The second round of sanctions from the 5. November to meet with Iran on its economically most vulnerable point: the Oil-exporting. The President, Donald Trump announced the “toughest sanctions ever” to bind the oil Exports largely. Also, the connection of Iran to the international payment traffic, as well as his shipping company business will be restricted by the sanctions.
The reasoning of the US President: The government in Tehran in support of the terrorism and verb of violence and Chaos, ride in the Middle East. The aim of the sanctions was, therefore, “maximum pressure” on the Iranian government, which is to change their behavior.
“We have no fear of US sanctions,” said Iranian President Hassan Rouhani (article image) in October. The United States wanted to “with a psychological and then a economic war, the legitimacy of the Iranian system”.
The Iranian government has established a number of working groups, the consequences of the U.S. to mitigate the sanctions. Rouhani acknowledged in a Cabinet meeting on Wednesday: “The situation was tough for the people in the past few months, and you could also remain in the coming months.”
As a result of the currency decay: Iranian farmers tomato export rather than domestic markets. In the shops there is therefore often no tomato paste, a major component of Iranian cuisine.
Economic crisis and no end
The country has been stuck for months in an economic crisis. The Iranian currency is only worth half as much as in April. A Dollar is currently traded for 170,000 Rial. A year ago there were still to 32,000. The prices for basic foodstuffs have skyrocketed. The impending decline in oil exports to the 5. November threatens to strangle the country economically. Nearly 40 percent of the Iranian economy depends on Oil revenues. Eight countries, respectively, “administrative units” (the”jurisdictions”) will receive, according to a statement from U.S. Secretary of state Mike Pompeo from Friday limited-time and quantity limited exemption permits for the import of Iranian Oil. The EU as a whole should not be one of them.
Also Iran’s car industry, the second largest after the Oil and petrochemical industry, is massively affected. After the entry into force of the first round of U.S. sanctions against Iran on 6. August is gone, the production of 40 per cent. “We had to rely on our European partners”, says Mohammadreza Najafimanesh, the Chairman of the Association of the automotive supplier in an interview with Deutsche Welle. European partners such as VW, Peugeot and Daimler have withdrawn after a short spring of cooperation from Iran.
“We had not expected that Europe gives up so easily his cooperation and his business with us. You know how much Potential is here. And Iran adheres to the nuclear agreement. This Situation hurts us very much, said Najafimanesh.
Can convince the EU to Iran, despite US sanctions by Holding on to the nuclear Deal?
Nothing New from the EU
The EU wants to hold on to the nuclear agreement, as well as the co-signatories China and Russia. In order to give Iran a reason to hold itself to the agreement, will Brussels deal by the United States unilaterally imposed sanctions by means of a new financial institution. It is a special purpose entity – a so – called Special Purpose Vehicle (SPV) to be established for “legitimate, financial transactions” with Iran. This should allow European companies to grow their business with the country to continue. The company could also stand for “other partners”.
But when it begins operations, it is unclear. So far, it is not even clear where the Institution is to be located. The member countries fear the wrath of the USA and are very cautious. At the request of the Deutsche Welle, a spokesperson for the EU foreign policy representative, Federica Mogherini, which had been presented at the end of September the Plan of the EU for the SPV stated that: “Until now, we have to inform any additional Details. But we have consistently made it clear that the ability of Iran to conduct financial transactions, as well as the continuation of the export of Oil and gas condensate, petroleum products and petrochemicals by Iran.”
In several Iranian cities pensioners protested against the inflation
Supply of drugs at risk
But time is of the essence. In mid-October, Washington imposed sanctions against 20 Iranian companies and banks because of their ties to the Islamic revolutionary guards, who control a far-flung economic Empire in Iran. Of the new sanctions-affected banks, Bank Parsian, which until now had a key function in the handling of importing of medicines and agricultural products. “The USA want to show that you are watching all the financial activities of the revolutionary guards,” says the Iranian Journalist Reza Haghighatnejad. “You want to make it clear how high the cost can also be an indirect cooperation with the IRGC.”
The measure hits mainly the most vulnerable Iranians. Medical products do not fall under the sanctions, however, the import of raw materials for the pharmaceutical industry and for the manufacture of special drugs by the financial sanctions is very difficult. The New York-based NGO “Center for Human Rights in Iran”, and therefore calls on the International community to establish mechanisms for the delivery of humanitarian goods to Iran. The organization feared dire consequences for the economic and social situation of millions of Iranians “because of the ongoing mismanagement of the Iranian leadership, in Association with the upcoming sanctions”.