Iran Nuclear NewsSupport growing for wider trade curbs on Iran

Support growing for wider trade curbs on Iran


Reuters: Support is growing in the United States and Russia for action that would require European companies to curb business in Iran as a means of pressuring Tehran to end its nuclear programs, U.S. and other diplomatic sources said on Thursday. By Carol Giacomo, Diplomatic Correspondent

WASHINGTON (Reuters) – Support is growing in the United States and Russia for action that would require European companies to curb business in Iran as a means of pressuring Tehran to end its nuclear programs, U.S. and other diplomatic sources said on Thursday.

U.S.-led efforts to discourage international banks from doing business with Iran have proven effective but many Iranian industrial sectors — including automotive, chemical, telecommunications and energy — benefit from the heavy involvement of European and other foreign companies, they said.

Major powers — including the United States, the European Union, Russia and China — are trying to draw Iran into negotiations about its nuclear program but the lack of progress has prompted renewed talk of a third U.N. sanctions resolution, following on two others passed in December and March.

One diplomatic official, who briefed reporters on condition of anonymity, said Russia has signaled it will not back a third U.N. Security Council resolution imposing new sanctions on Iran — like an arms sales embargo — unless Europeans bear more of the burden.

He said this is believed to mean European companies must restrict new oil and gas investment as well as other business activities and European governments would have to end export credits and loans.

Russia, which has long-standing ties with Iran, has argued that it has suffered more from sanctions on Iran than other countries. It built Iran’s nuclear complex at Bushehr but has delayed completing the project and providing fuel because of international concern over the nuclear issues.

The major powers have accused Iran of developing weapons but Tehran insists it only wants to produce electrical energy.


Many European governments have said they are reducing future export credits for business in Iran and the March U.N. resolution encourages countries to do this.

But while some countries are deeply conflicted about restricting business with Iran, one European diplomat noted that Europe has been inching toward a mandated cutoff of export credits and loans and that he expected such a sanction was inevitable.

Although U.S. law prohibits U.S. trade with Iran, European civilian trade with Iran is legal, so when the U.N. Security Council “moves into the civilian trade area, there’s a lot more at stake,” said Kenneth Katzman, Middle East expert at the Library of Congress’ Congressional Research Service.

Spokesmen for the U.S. State Department and Treasury Department, who are heavily involved in building economic and political pressure on Iran, said they had no statistics about the extent of European and other foreign business with Iran.

Companies actively involved in business with Iran include DaimlerChrysler and Fiat in the automotive field, and Royal Dutch Shell Plc and France’s Total in the energy sphere.

The U.S. Iran Sanctions Act mandates penalties on European and other foreign companies that invest more than $20 million in Iran’s energy sector. Washington seeking to work with rather than alienate its allies, has declined to impose those penalties but U.S. lawmakers are threatening to pass a new law that would require the administration to act.

Latest news

Iran’s New Generation Seeks Nothing but Regime Change

In a silly and desperate statement, the Iranian regime’s foreign minister Hossein Amir-Abdollahian claimed that nothing special is going...

Iran’s Youths Broke the Spell of Fear

One of the main characteristics of the recent protests in Iran is the courage and fearlessness of the people,...

Iran Is on the Brink of a Revolution

The wall of fear has been broken. In many cities across Iran, women are taking to the streets, leading...

Iran’s Regime Claims To Fill Global Energy Gap Despite Crippled Petroleum Sector

In recent weeks, the Iranian regime’s officials have been constantly exaggerating their huge capacity in oil and gas reserves...

What Is Happening in Iran?

Following the brutal killing of Masha Amini, the Iranian people have once again united to fight and defeat the...

Iran Regime’s Ministry of Culture’s Decision To Eliminate Children’s Intellectual Centers

With the so-called ‘Cultural Revolution’ which took place between 1980 and 1983, the Iranian regime tried to purge the...

Must read

Egypt summons Iranian diplomat over Sadat film

Reuters: Egypt summoned a senior Iranian diplomat in Cairo...

Over 500 nurses demonstrate in southern Iran

Iran Focus: Tehran, Jan. 04 - A demonstration was...

You might also likeRELATED
Recommended to you