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March 28, 2007

VOA Discusses Financial Ramifications for Iran of UN Resolution 1747

In a 27 March interview with Voice of America Persian Service Staffer Behruz Abbasi on the regular news feature "Under the Magnifying Glass," London-based journalist and political analyst Ali Reza Nourizadeh discussed the consequences of the 24 March UN Security Council Resolution 1747 against Iran. The full 27 March VOA Persian newcast can be heard with a RealPlayer plugin as a download from Nourizadeh's website here.

Abbasi began by observing that the US Treasury Department has
obtained the cooperation of many international banks in denying
banking services for exports to Iran. Nourizadeh noted that the
resolution formally targets individuals in Iran's Revolutionary Guard Corps (IRGC) in addition to Iran's nuclear program and individuals who work for Iranian industrial complexes, but actually goes beyond what is evident in the formal stipulations.

The financial aspects of the resolution apply to other issues as well. As an example Nourizadeh cited an announcement by the Bank of England that it will also apply the sanctions to Iran's financial institutions. The Washington Post has also published a report about other international banks participating in the financial squeeze on Iran, helping to broaden the dimensions of the resolution.

Nourizadeh mentioned President Ahmadinejad's statement that the resolution is nothing but worthless paper and suggested this ignores the effects of the sanctions inside Iran. While the resolution is not aimed directly at the lives of the Iranian people, its ramifications will be evident in the lives of the people, since much of the equipment Iranian factories produce has both military and industrial uses.

These things will affect the market. In recent months inflation has risen rapidly in Iran and unemployment has also increased. Many small industrial units, which are directly connected to the large factories being subjected to the sanctions, will stop operating, which will add to unemployment.

Iran's international credibility both as a trading partner and as an important economic and political center will be severely damaged. It must be realized that foreign investment has reached a low point in Iran under Mr. Ahmadinejad's government. Under the sanctions, even the nations who are inclined to invest in Iran's oil and other industries will be hesitant.

Nourizadeh said it may be one of the effects of the resolution that contracts such as the one with the Total Company are being examined closely in connection with the individuals who were paid bribes. These people are being investigated.

Nourizadeh told Abbasi he does not think the resolution is
worthless paper, contrary to what Mr. Ahmadinejad has said. Indeed, the resolution is so important that Iran's diplomacy, after months of trying to prevent its passage in the UN, has been decisively defeated. According to Nourizadeh, Iranian foreign minister Mottaki's remarks in the UN were not worthy of a foreign minister but were more in the character of the things Mr. Ahmadinejad has been saying.

Crossposted on Satellite News

Posted by John at March 28, 2007 8:47 AM

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