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 4:49 PM

Bashar Al Assad going after his cousin: A rare split in tightly knit ruling Alawite clan of Syria

Syria is ruled by the Al Assad family since 1971 till date. Hafez Al-Assad, the father of the current ruler of Syria, Bashar al-Assad assumed power through a coup in 1970 and remained in power till he died on 10th June 2000. He was succeeded by his son Bashar al-Assad. The Al Assad family belongs to a minority Shia sect called Alawite which constitutes about 10 to 15 percent of the total population of Syria.

The Alawites had traditionally held most of the officer class positions in the military under the French Mandate Syria during the 1930s and 1940s. However it was the regime of Hafez that gave Alawites a disproportionate share in the country’s financial and economic structure as well as the military due to ultra-loyalty to the regime.

It was, however, the death of Hafez, which brought to light the complex equation between the strongly knit Alawite minority influence in Syria’s financial and military interests and the ruling Assad family. Mohammad Makhlouf, father of Rami Makhlouf, Syria’s richest man, and his sister Anissa, widow of Hafiz Al Assad had at that time ensured that the transfer of power to Bashar al-Assad went on smoothly.

Bashar al-Assad had to grapple with the mass movement dubbed Arab Spring in 2011 when people rose against the authoritarian rule of Bashar Al Assad and the preferential treatment received by the Alawites in the regime. The Arab spring later took the form of a civil war which is still raging in parts of Syria. Throughout this difficult period Alawite community stood solidly behind Bashar Al Assad. There was no bigger backer of Bashar Al Assad during all the ups and down, than his cousin and the richest man of Syria Rami Makhlouf.

However for the first time the absolute support for Bashar Al Assad in the tightly knit Alawite community seems to be shaking. In a recent Facebook video, Rami Makhlouf, is seen making allegations that the Syrian regime of Bashar has been going after him and his company assets because he raised voice for Alawite families which lost members while serving the regime, but were left to fend for themselves. There have been unconfirmed reports that Rami has been under house arrest since last summer.

Multiple reasons have been cited for the Assad governments’ sudden outburst against Rami. Some experts suggest it is because of Rami’s immense wealth, which in turn makes him a possible rival to Bashar, or the lavish lifestyle of the Makhlouf’s, as evidenced by Rami’s son Mohammad who was seen boasting about their wealth and showing off pictures of his private jet to multiple newspapers around the world. Whatever be the reason behind the regime going after Rami, it is quite evident that they are under severe pressure to churn out cash to revive the dwindling currency. While his son might have dented his family’s rather away from limelight public image with his public show-off stunts, it appears that Rami himself has not been up to the mark in rolling out enough credit for the Assad regime.

The ongoing saga of Rami Makhlouf brings to light the complex relationship between the Assad regime and the dominant Alawite minority, indicating a clear rift between them. A former Syrian diplomat who defected from the Syrian Embassy in Washington in 2012 said “It’s very big. Rami was in the inner circle from day one of Bashar’s rule. He’s built into the regime. To take him out would be like a divorce.”

It will be interesting to see whether the Alawite community will continue to back Bashar Al Assad or Rami Makhlouf will be able to sway a significant section of the community to take a stand against Bashar Al Assad. Watch this space for further updates

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