Monday, June 22, 2020

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

This article is by

Share this article

Article Contributor(s)

Aditi Mohta

Article Title

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

Publisher

Global Views 360

Publication Date

June 22, 2020

URL

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.

Support us to bring the world closer

To keep our content accessible we don't charge anything from our readers and rely on donations to continue working. Your support is critical in keeping Global Views 360 independent and helps us to present a well-rounded world view on different international issues for you. Every contribution, however big or small, is valuable for us to keep on delivering in future as well.

Support Us

Share this article

Read More

February 4, 2021 4:45 PM

China's attempt to curtail Hong Kong's autonomy: Will it force the people to leave Hong Kong?

The sovereignty of Hong Kong was reverted to China by Britain in 1997. Although it became part of China but enjoyed some autonomy and internal democracy due to the “one country, two systems” arrangement between Britain and with China at the time of handover. This arrangement of autonomy and democratic rights were supposed to last until 2047. However, the Communist Party of China had been pushing for a new security law which would curb the voices of the residents significantly, criminalizing acts of secession, subversion, terrorism or collusion with foreign forces. “This law means that China will have the power to impose its own laws on any criminal suspect it chooses,” says Joshua Rosenzweig, the head of Amnesty’s China team.

This is a part of the agitation that is faced by the Hong Kong residents; the economy is shrinking, the government is more focused on linking the city to the mainland than investing in education and affordable housing, peaceful protests have turned violent and are facing police brutality. This has caused changes in international relations with respect to economy and immigration, and a flurry of Hong Kong residents exploring options to leave the city. Skilled workers are seeking to move out of the city, renewing documents which will provide a pathway to residency in Britain, or ways to emigrate to Taiwan, Canada or Australia.

Britain, which had colonised Hong Kong until 1997, announced that it would extend visa rights for all the people eligible to apply for British National Overseas passport, which includes 3 million people, if China went through with the law. The Chinese foreign ministry said that this move violated international law, and that China reserves the right to take measures they see as necessary.

Taiwan has announced that it will set up an office for those who are planning to leave Hong Kong. Chinese government has said that there has been no stifling of freedoms and providing shelter for “rioters and elements who bring chaos” to Hong Kong would bring harm to Taiwan’s people. The island country had housed Hong Kong’s protesters who feared harsh treatment by the law and enforcement since 2019, with its own history of dissension with mainland China.

USA, on a similar vein, has taken away the special economic status Hong Kong had with them, and that the Chinese plans are a “tragedy.”

Many pro-democracy protesters who were on the radar of Chinese government have started  escaping the country to protect themselves and continue the protests from their adopted countries. The excessive use of brutal force against peaceful protesters led many people to fear for the future of their families for which they started to consider leaving the city . The same fear is also driving more than half of the people within the age group of 18 to 24 towards exploring the option of moving out of Hong Kong..

Even after worldwide criticism, mainland China remains adamant on violating the freedoms of the people of Hong Kong. Amidst a collapsing economy which just lost its preference from a world superpower and living under the constant threat of oppressive actions are driving the well healed parsons to look for greener pastures away from Hong Kong.

Read More