Monday, June 22, 2020

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

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Aditi Mohta

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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 22, 2021 11:14 PM

Iran, Turkey, Qatar Alliance: Will this mark a shift in MENA's Balance of power?

Qatar, Iran and Turkey have been forming an alliance—which impacts several countries—especially in the MENA (Middle East and North Africa) region. The move comes after Israel recently established its diplomatic relations with four Arab league countries, namely, United Arab Emirates (UAE), Bahrain, Morocco and Sudan. The article covers how this move can have an impact on the balance of power in the region.

Support for the Palestinian Cause

The three countries are critical of the Israel-Arab ties and support the Palestinian cause. Various Palestinian factions, including Hamas and Fatah as well, are shoring up ties with Turkey and other countries in the region that stand against normalization with Israel.

During his speech in the 75th United Nations General Assembly, Erdogan called out on Israel and proclaimed, “The occupation of Palestine is a bleeding wound.”

Since the Gaza attack, which killed 10 Turkish social activists aboard a ship by the Israeli commandos in international waters, the relationship between the two has only soured. After this incident, Turkey recalled its ambassador from Israel, downgrading the diplomatic status. Yet in 2016—after a few meetings—the relationship was restored. However, after another attack in Gaza in 2018, Turkey called back its ambassadors again and expelled the Israeli ambassador to Turkey. Since then they do not have full diplomatic status.

Following the attacks Erdogan—the president of Turkey—even called Israeli PM Benjamin Netanyahu “a terrorist.” The country has been openly supportive of the Palestinian cause, and has also sent aid for humanitarian relief to the Palestinians. Several Hamas leaders have been visiting, taking refuge, and even meeting with Erdogan.

On August 22, 2020, Hamas leader Ismail Haniyeh met Erdogan in Istanbul. Jibril Rajoub, secretary of Fatah’s Central Committee, as well arrived in Turkey on September 21, 2020 to meet with Haniyeh and his deputy Saleh al-Arouri and discuss ways to end the internal Palestinian division.

On the same day, Palestinian President Mahmoud Abbas phoned Erdogan and thanked him for his support for the Palestinian cause. The two have shared several calls since—discussing political developments and US pressure on the region to normalize ties with Israel and ways to face such pressure.

Turkey has tried to balance its relations with both Saudi Arabia and Iran, who happen to be arch rivals. But after the recent growing closeness with two of Saudi Arabia’s rival countries, Iran and Qatar, Turkey might end up straining its relations with Saudi Arabia.

Qatar-Saudi Arabia conflict

This diplomatic conflict is also known as the Second Arab Cold War (the first one being the Iran-Saudi Arabia Cold War). There is an ongoing struggle between the two countries to gain influence in the Gulf. Their relations strained especially after the emergence of Arab Spring. During that time, Qatar became in favour of the revolutionary wave, whereas Saudi Arabia was against it. Both the States are allies of the United States, but have a tussle in their ideologies. Both have avoided direct conflict with each other.

There are other issues between them which leads to further tussle-

1. Qatar broadcasts a news channel, Al Jazeera, which favours the Arab Spring.

2. Qatar has good relations with Iran, Saudi Arabia's rival.

3. Qatar also allegedly supported Muslim Brotherhood in the past. Which it denies.

The Qatar diplomatic crisis became worse in 2017. Saudi Arabia, the UAE, Bahrain and Egypt severed diplomatic relations and trade ties with Doha, and imposed a sea, land and air blockade on Qatar, claiming it supported “terrorism” and was too close to Iran. Yemen, the Maldives and Libya's eastern-based government also followed later. Qatar rejected the claims and said there was “no legitimate justification” for the severance of the relations.

How does this new alliance affect the other countries in the region?

The new alliance seems to lead into formations of two alliance groups or blocs in the region, with some countries siding with Iran, Qatar and Turkey and others with the Saudis and their allies. Another point to keep in mind is that Saudi Arabia is supported by the US, while two countries from the former alliance—Turkey and Iran—are supported by Russia. This will lead to further division among the Middle Eastern countries.

President Trump, Minister of Foreign Affairs of Bahrain, Israeli Prime Minister, and Minister of Foreign Affairs for the UAE Signing the Abraham Accords | Source: Trump White House Archives

This alliance can also affect the trade among these countries, and can severe the ties of many Middle Eastern countries. The biggest beneficiary is going to be Israel, which doesn’t have good relations with most of the Muslim world, except the ones which established diplomatic ties recently by signing the Abraham Accords.

In North Africa countries like Egypt and Morocco recognise Israel. However, most of the North African countries also supported the Arab Springs, which is against the ideas of Saudi Arabia. The Islamic holy land seriously seems to have less Arab allies when it comes to opposing the Arab Springs.

In fact, there can be impacts on trade and diplomatic ties with other countries outside the Middle East and North African region as well. Countries will have to balance their relations with both these groups.

How does it affect the Balance of power in the region?

In international relations, balance of power refers to the posture and policy of a nation or group of nations protecting itself against another nation or group of nations by matching its power with the power of the other side.

There has been a Cold War situation between Iran and Saudi Arabia as they are very (perhaps most) influential powers in the region. But Saudi Arabia is still more influential as a business as well as a soft power—it has a richer economy, oil exports, and most importantly, being the holy land where every Muslim comes for Hajj pilgrimage—it has Mecca and Medina. It is the land where the Prophet Muhammad first delivered his messages and teachings. Iran may try to compete in the economic part, but isn't equally as challenging in the religious part—although it is an important country for the Shia Muslims.

There have been arms embargo on Iran by the UN for arms race. Russia and China have been eager to supply Iran with advanced jets, tanks and missiles, which is quite alarming for its Gulf Arab neighbours, especially its primary adversaries like Saudi Arabia and the UAE.

On 14 September 2019, drones were used to attack the state-owned Saudi Aramco oil processing facilities at Abqaiq and Khurais in eastern Saudi Arabia. The Houthi movement in Yemen claimed responsibility, joining it to events surrounding the Saudi Arabian intervention in the Yemeni Civil War and stating that they used ten drones in the attack from Yemen. Saudi Arabian officials said that many more drones and cruise missiles were used for the attack and these originated from the north and east, and that they were of Iranian manufacture. The United States and Saudi Arabia have stated that Iran was behind the attack while France, Germany, and the United Kingdom jointly stated Iran bears responsibility for it. Iran has denied any involvement. The situation has only exacerbated the Persian Gulf crisis.

By forming this new alliance, supporting the Palestinian cause—with Qatar—even supporting the idea of Arab Springs; the Iran-Turkey-Qatar alliance has a new power with them. What remains to be seen is the other Middle Eastern country’s decision—whether they support this new alliance and the Palestinian cause or go for yet another fragile “peace-building” initiative in the already disturbed region.

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