Why ‘US Will Shoot Itself in the Foot’ in Case of New Sanctions Against Iran
AFP 2017/ ATTA KENAREBusiness17:33 14.09.2017(updated 20:20 14.09.2017) Get short URL41553250
Despite Washington’s persistent anti-Iranian policy, foreign investors will not turn away from the Iranian market, Iranian economic expert and journalist Ahmad Hadem Al-Melle told Sputnik. According to him, if there are new American sanctions against Iran they are unlikely to be supported by US allies.
After the final agreement on the Iranian nuclear program was signed and sanctions against Tehran were subsequently lifted, the country has been enjoying unprecedented investment flow into different parts of its economy. Western companies such as Siemens, Total, Volkswagen, Renault and Airbus are already running major projects in Iran.
In an interview with Sputnik Iran, Al-Melle, an adviser at the Industrial Development & Renovation Organization of Iran (IDRO) and the editor-in-chief of the Iranian business newspaper Eghtesad-е Bartar, said that foreign investors benefit from the current economic environment in Iran.
The oil and gas industry as well as the transport sector are believed to be the most promising, with a total of 20 megaprojects for foreign investors already being implemented. According to the expert, the number of new deals is steadily growing.
“Over the last two months, we have signed at least four major projects, including two deals with French oil giant Total and carmaker Renault. There is also a deal with Russia’s company Transmashholding on the manufacturing of railway cars. Finally, there is a railway construction project with a Chinese company. And more new projects are coming,” Al-Melle said.
As Washington is reportedly considering a new round of economic sanctions against Tehran, the expert underscored that European and Russian companies already cooperating with Iran are “not scared to take on the US.”
He also suggested that the possible new sanctions would have an insignificant effect on the Iranian economy and are likely to backfire on the US economy.
“The matter of sanctions has two sides. Of course, the US wants to punish Iran with additional restrictions, but if it does it will also shoot itself in the foot,” Al-Melle pointed out.
Moreover, there is another problem for the US concerning the possible introduction of new sanctions against Iran. According to the expert, US allies in Europe would be very unlikely to support such a move.
“The US needs solidarity from its allies to efficiently exert pressure over Iran. However, many of Washington’s partners now believe that new sanctions would be a violation of international law. Moreover, they don’t want to face economic losses due to Washington’s political ambitions. … Even if there are some new sanctions they will not generate the desired effect for the American establishment,” Al-Melle concluded.
Earlier this week, Reuters reported, citing US officials, that US President Donald Trump wants a more hard-line policy towards Iran. In particular, the White House is allegedly discussing a new stance on the 2015 final deal on Tehran’s nuclear program, including tougher economic sanctions if Iran violates the deal.