Sanction structure collapsing

Tehran, Aug 16, IRNA – Iran’s English-language newspaper on Sunday commented on the collapse of sanctions structure.

It said that “Although Iran and the P5+1 have not yet fully enforced the nuclear deal of July 14 and Western sanctions have not been legally lifted, foreign economic and political delegations rushing to Iran to foster ties with the country.”

Point out that “in the most recent move, the Swiss government lifted a number of economic sanctions against Iran on August 13”, it believed “Switzerland’s move indicates that the structure of the sanctions has crumpled thus stimulating a competition to enter Iran’s market.”

The article stressed that “Berne’s decision will definitely encourage others, particularly European nations, to fully lift the sanctions on Iran.”

The article said that “Apparently, European states have suffered far more from the international restrictions than Iran. They did not seek to impose any embargoes on Iran but were forced to abide by the sanctions regime under mounting pressures from the US.

The lifting of the sanctions ahead of schedule indicates Iran’s immense importance in regional and international equations. The intense competition among European states to expand presence in Iran’s market will undoubtedly encourage regional countries to boost ties with Tehran.”

The daily also noted that “Due to the sanctions, Iran has not been able to equip domestic upstream industries with modern technologies in the past few years. This is while, in light of the nuclear agreement, currently, Tehran has more elbow room to improve domestic production sector by importing modern technical know-how.

In addition, growing interest among foreign investors will certainly tempt domestic investors to channel latent funds into the production sector. Although the sanctions on Iran’s banking sector had undermined the efficiency and productivity of domestic private sector, they can expand activities in post-sanctions era. The enthusiasm of foreign companies to invest in Iran’s high-potential economic sectors can further develop trust among domestic private companies. The high frequency of visits by foreign delegations to Iran proves that at present the ground is prepared for expanding bilateral and multilateral relations.

Foreign firms do not find it plausible to lag behind rivals in increasing participation in Iranian projects and, therefore, irrespective of the sanctions, have already entered talks with Iranian companies. They are going through the preliminary stages so that following the lifting of the embargos they can begin cooperation at the earliest.

This avid interest also demonstrates that they are confident about the validity of the deal otherwise they would not take the risk in the first place.

They miss the lucrative market they have been deprived of due to the unjust sanctions.”