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 4:42 PM

COVID-19 in Iran: Fighting pandemic while facing US sanctions

After backing out of the nuclear deal with Iran in 2018, the United States had toughened the sanctions on petrochemical trade and other vital sectors of Iranian economy. The Iranian government is claiming that those sanctions are heavily affecting their ability to act against COVID-19.

These sanctions forced the Iranian government to significantly change infocus from curbing the spread of infections to stabilizing the economy.  There have been some restrictions but no lockdown imposed on the movement of people as the lockdown would further weaken the economy. Also, a lot of pharmaceutical companies aren’t willing to trade with Iran because of the fear of getting caught up in secondary sanctions, even though the US governments deny any restriction of the same. 

All of this has led to a global outcry against the sanctions. The United Kingdom is pushing the US to ease the sanctions because they believe that the hospitals in Iran are badly overstretched. The UK tried to provide direct support to the country via WHO, but Iran refused any help that didn't come with the lifting of the sanctions. The United Nations High Commissioner for Human rights, Michelle Bachelet, has urged the global community to rethink the existing sanctions on countries like Iran in the light of the current pandemic. The United States also offered humanitarian assistance to the state but was rejected by the Supreme Leader Khamanei, who declared the US as being charlatans and liars, and said that a wise man should not accept medicines from a country alleged of creating the virus. Russia, China and some other medical and rights groups have been urging the Trump administration to lift the sanctions. Over 21,000 lawyers and legal experts in Iran have signed a statement declaring that the US sanctions on Iran are anti-human. On the 26th of March, the US imposed even more sanctions, on more than 17 entities. The sanctions were announced a day after the family of a retired FBI agent claimed that the agent had died while in custody in Iran; two days after Ms. Bachelet made her statement on rethinking sanctions.

The crisis has touched most corners of the country, but it is most severely impacting the poor and working class. While it is older men who are dying in the highest numbers, the economic impact especially hurts women, who are most liable to lose work, and shoulder increased duties, looking after sick relatives and children staying home from school. Iranians’ purchasing power has plummeted in the past two years, as the mismanaged economy shuddered through Donald Trump’s withdrawal from the nuclear deal and the re-imposition of US sanctions. As Nahid, a women’s rights activist put it: “When people met this virus, their nutrition was already poorer, their immune systems were weakened, and many were already unable to afford health care.” Charities and private sector groups are joining together to raise funds for importing equipment and other medical supplies from China to set up facilities of COVID-19. However due to the sanctions it is becoming difficult to move money from Iran to any other country.

Arshi Tirkey, a Junior Fellow with Observer Research Foundation has put quite aptly: “It is true that political instability, corruption and economic mismanagement in Tehran have aggravated the issue; and likewise, this calls for governance reforms and financial transparency initiatives in Iran. But this is not the sole reason for the scarcity of medical equipment and the condition of health infrastructure in the country today. Sanctions remain a central impediment to improving Iran’s capacity to respond to the pandemic.”

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