Monday, June 22, 2020

US Sanctions versus Iran’s fight against COVID-19 pandemic

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Aditi Mohta

Article Title

US Sanctions versus Iran’s fight against COVID-19 pandemic

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Global Views 360

Publication Date

June 22, 2020

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Coronavirus patients at Imam Khomeini Hospital, Tehran

Coronavirus patients at Imam Khomeini Hospital, Tehran | Source: Mohsen Atayi via Wikimedia

Iran is the hardest-hit country by the coronavirus pandemic in the middle east. The contagion was first detected on 19 February 2020 in the holy city of Qom, and thereafter spread quickly across the country. As of 18th June 2020, it had over 9000 coronavirus related fatalities. The virus attacked all the 31 provinces of the country not discriminating between the common man and the people at high places including the members of the Parliament, religious leaders and senior ministers. The crisis touched most parts of the country, but it most severely impacted working and the poor class. 

The Iranian government has been criticized for its response towards the pandemic. The health care policy, which has been politicized, has preferred denial and misinformation as a response to the crisis the pandemic brought with it. Questions have also been raised about the role of US sanctions in crippling Iran’s economy, public health facilities and public health facilities. All these factors, when combined, have disabled Tehran (the capital of Iran) from providing the best response to the pandemic. 

What do the sanction laws say?

According to the Office of Foreign Assets Control, the US has “consistently maintained broad exceptions and authorizations to support humanitarian transactions with Iran.” The first significant sanctions were imposed in 1995 by Bill Clinton, and in 2001 exemptions for medical goods and medicine first came into effect. These sanctions have periodically widened the scope of products for exemption, and by 2012, the exclusions included agricultural products and most foods. After the world powers, including the US, reached a deal with Iran on its nuclear programme in 2015, the sanctions were lowered against Iran. This approach was abandoned after Trump withdrew the US from the deal and sought to force Iran’s leaders to change their anti-US policy. .

The US sanctions are enforced through a wide array of instruments. Financial sanctions prohibit US banks from transacting with Iran, which limits Iran’s access to dollar-denominated transactions. Secondary sanctions measures also target non-US entities that have dealings with Iran, thus at a risk of facing prosecution in the US. These sanctions make transactions with Iran lengthy and complicated, and even impossible in some cases

There are some exemptions from sanctions for humanitarian assistance (sale of agricultural commodities, food, medicine and agricultural services). Despite these exemptions, sanctions have severely impaired Iran’s ability to be able to finance humanitarian imports. Given the volume of complexity and due diligence involved, most banks are reluctant to deal with Iran. This makes it difficult to find a way to pay for purchases difficult for Iran. Also many items require additional authorization because the US considers them as “dual-use” (the things might also be used for defence- for example, the sort of oxygen generators that are needed in life support machines used to treat coronavirus cases). Lastly, the sanctions on Iran’s oil exports led to a decline in revenue, further weakening Iran’s currency, which has left the country vulnerable and with fewer resources to pay for non-sanctioned items as well. 

All these put together have directly caused shortages of medical equipment and impacted Iran’s health sector negatively. This has also impacted the capability of Iranian healthcare sector to effectively manage the COVID-19 situation.

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February 4, 2021 5:11 PM

Neom: The Futuristic town coming up in the Arabian desert

Ever since Mohammed bin Salman, popularly known as MBS, became the crown prince of Saudi Arabia in 2017 at a young age of 32 year, he has been working on twin objectives of liberalising the conservative laws of the country and diversifying its oil based economy.

In the last 2 to 3 years Saudi Arabia has done away with religious enforcers, allowed women to drive, loosened the strict clothing norms for women, reopened the cinema and other entertainment events by scaling down many of its ultra conservative rules and regulation.

File:Mohammad bin Salman (2018-06-14) 01.jpg
Mohammad Bin Salman | Source: Russian Presidential Executive Office via Wikimedia

On the economy front, MBS has started many projects to lessen the dependence on oil, of which Neom is the centerpiece. NEOM is a technologically advanced mega-city being built from scratch in the sands at the coast of the Red Sea and is considered to be the dream project of MBS. This magnificent city, will take about $500 billion to complete and be thirty three times the size of New York City. This project will make the country a technology hub, attract international tourists, and will reduce Saudi Arabian economy’s over-dependence on oil.

Neom will boost some of the features which are today seen only in some sci-fi movies. It will employ cloud seeding technology to bring rain in the desert town, display an artificial moon, and use flying taxis for intra city travel. The town will have some functional autonomy which include relaxed laws for women and tourists.

Three of the biggest consultancy firms of the world, Boston Consulting, Oliver Wyman and McKinsey & Co, were roped in by MBS in 2017, to bring his vision of Neom to life. “This is a challenge. The dream is easy but making it come true is very difficult” MBS said.

While the entire project is slated to be completed in 2025, the international airport is already constructed at Neom. Phase-1 of the project was supposed to be completed in 2020, however it was delayed due to the oil price crash and COVID-19 pandemic. “All of these projects will be delayed. It's not paused; it's continuing more slowly” said Ali Shihabi, a Washington-based analyst on the Neom advisory board.

Abdul-Rahim Al-Huwaiti, protestor who was shot dead | Source: MENA Rights

Saudi Arabia has done a wonderful job of letting the imaginations run wild to come up with an idea and start implementation, there are few downsides as well. The area where Neom is being built is home to the Huwaitat tribe who have to relocate elsewhere for the construction to take place. While most of the tribe members agreed to move on, few were not willing to do so. Abdul-Rahim Al-Huwaiti was one such member who actively resisted and criticized the government in videos posted on youtube. He was unfortunately shot dead by the government forces during an operation to clear his house in April, 2020 giving a blot to this wonderful project.

There are still some obstacles in the ‘perfect’ project of modernising Saudi Arabia. “The main project risk probably is the potential lack of large private investors. The local and international private sector will want to hear a lot more detail than what has been published to date” said Steffen Hertog, a leading scholar on Saudi Arabia, pointing out that a lot of clarifications and work is still required.

There is still time before this magnificent town rises to its full glory on the coast of the red sea in Arabian desert. We are eagerly waiting to see the flawless execution of a grand vision of Saudi Arabian crown prince Mohannad bin Salman in the form of the modern marvel, Neom.

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