20 Apr 2024
Monday 5 November 2018 - 10:54
Story Code : 325688

US sanctions on Iran to boost Russia's influence on oil market - Ex Obama aide



Sputnik - The US restrictions on Iran will increase Russia's influence on the oil market. Robert Malley, former US President Barack Obama's aide for the Middle East and Washington's chief negotiator in the Iran nuclear deal, told RIA Novosti in an interview.



"[The sanctions] will help oil producers because the prices will go up, and Russia will be one ofthe most significant oil producers. It will certainly increase its relative power inthe oil market. There is no doubt aboutit," Malley said.


According tothe former aide, the administration ofUS President Donald Trump is "maniacally" fixed onputting pressure onIran atany expense.
"So if the price topay forstrangulating and forsqueezing Iran is a benefit toa country likeRussia, I think they are prepared toswallow it," Malley added.


Consequences forthe US

The United States will have toface consequences ofwithdrawing fromthe Iran nuclear deal, asthe decision sets a precedent forother states tostep away fromtheir international commitments, Robert Malley stated.
"Whatever the goal towardsIran, this is not the way toachieve that walking away fromthe deal was not the way totreat any ofthe goals that the administration may have towardsIran. I think it was a profound mistake Therefore, the US will pay a price forwalking away froma deal thats more isolated internationally thanit was before," Malley, who is currently the CEO ofthe International Crisis Group, said.


According tothe former aide, bytaking the decision toleave the agreement, the administration has "set a precedent," giving other states a reason tobelieve that they can also quit any deal that was previously sealed.
"I think most ofthe administrations coming tooffice inthe US and other countries, even if they disagree witha decision that was entered bytheir predecessor or predecessors toreach some kind ofinternational deal, there are somewhat respect fora deal, because they understand that they set a precedent If [US President Donald] Trump tomorrow enters intoa deal withwhatever country, does this mean that their success could [be] treated just likean episode that they can quickly turn back?" Malley noted.


The expert said that the remaining parties tothe deal would not be able tocompensate Iran forthe losses it would suffer due tothe US withdrawal.
"Its not possible tocompensate entirely and I dont think its possible tocompensate inthe majority ofways. In other words, Iran is going tobe worse offbecause ofthe US withdrawal. Despite what Europe does, despitewhat Russia does, despitewhat China does, it will be worse offthan if the US had not withdrawn," Malley said.


Despite Tehran's claims that it wanted full compensations, the Iranian officials understood that it could not happen, the former aide said.
"The US is too powerful an actor, the threat ofsanctions is too great, too many companies are walking away," Malley said.


At the same time, the majority ofstates cannot cut imports ofIranian oil tozero, so the United States will have toprovide waivers fromthe sanctions, which apart fromTehran will also target third parties doing business withIranian companies, Malley said.
"I know India has told that we cant go downto zero. Its simply impossible. Some oftheir refineries are built toonly deal withIranian oil. The cheapest oil they get is fromIran. Is the United States prepared, or other countries prepared, tocompensate atthat rate, and how they are gonna do forthose refineries that only deal withIranian oil?" the former aide said, adding that China and Turkey were also not ready toeliminate imports ofIranian oil entirely, while Japan and South Korea would suffer big economic losses if granted no waivers.


According toMalley, there are indicators that Saudi Arabia, which has recently been underfire overits alleged role inthe murder ofjournalist Jamal Khashoggi inthe Saudi consulate inIstanbul, will be more cooperative and increase oil output tomake upfor the Iranian export shortages, thus helping the United States incracking downon Tehran.
"Because [the Saudi Arabian authorities] are undergreater pressure and because they feel more vulnerable asa result ofthe Khashoggi assassination, I think they are more likely totry tosatisfy US demand They are already somewhat cooperative. They are likely tobe more cooperative because the Saudi leadership just cant afford right now a fight withthe US," Malley explained.


Trump announced Washington's withdrawal fromthe JCPOA inMay.

The sanctions onIranian oil imports, re-imposed afterthe pullout, will enter intoeffect onNovember 5.

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