US Sanctions Threats ‘Unexpectedly’ Led To Deeper Economic Ties Between Iran And Russia

Donate

US Sanctions Threats 'Unexpectedly' Led To Deeper Economic Ties Between Iran And Russia

FILE IMAGE

US sanctions are causing further global regionalization and have boosted Iranian-Russian relations.

According to a report by Israeli political analyst Dana Weiss, the Israeli Ministry of Foreign Affairs has a secret document that describes Russia’s plan to aid Iran in subverting the incoming US Sanctions on the Islamic Republic’s oil exports.

According to Weiss, Iran will transfer its crude oil to Russian refineries on the Caspian Sea. After that Russia would present and sell the oil as Russian and reimburse Iran on the sales. According to the secret document, the plan was made together by Turkey, Russia and Iran during their summit on September 7th. In the summit the leaders of the three countries discussed avoiding an escalation in Idlib.

The document also said that European parties may be complacent in allowing Iran to circumvent US sanctions in order to trade oil with Asia. This would make sense, since the EU signatories on the Iran Nuclear Deal are interested in keeping Iran in the deal and upholding it. After all, the EU has made steps towards assisting Iran deal with the sanctions.

According to Weiss, this is worrying for Israel because Iran would avoid an economic collapse, which will also be reinforced by this new way of circumventing US sanctions.

Furthermore, Hadashot news reported on the same document and said that the mechanism underlines the alliance of interests between Moscow and Tehran, and is therefore of relevance, as Israel seeks to prevent Iran deepening its military presence in Syria.

On October 14th, Iranian President Hassan Rouhani downplayed US sanctions and said that after being enforced on November 4th they “will have no effect.” The reasoning behind his claim is that “the US has already done what it wanted to do.”

Rouhani said the current U.S. administration is the “most hostile” ever toward Iran, but that his country will overcome the sanctions through “unity and integrity.” He said his administration has allocated some $15 billion to purchase basic goods in the current Iranian year, which ends next March.

Turkey also in August said that it would continue buying natural gas from Iran despite the sanctions. However, Turkey’s oil refiner, Tupras, already has begun decreasing its crude oil purchases from Iran in anticipation of the measures’ November effective date. Turkey’s Ziraat Bank also arranged for a currency swap with Iranian Bank Melli that will enable $1.4 billion worth of trade between the two countries. Even prior to the 2015 Iran Nuclear Deal, Turkey was assisting Iran in dealing with the sanctions.

The EU also initiated its blocking mechanism, prohibiting EU countries from adhering to US sanctions. Despite that many companies withdrew from the Iran, namely Total, which backed out of a $4.8 billion oil project. Total’s stake was purchased by a Chinese state-owned oil company.

On September 25th, EU Foreign Policy Chief Federica Mogherini announced that France, Britain, Germany, Russia and China have created a new mechanism to allow countries to transact with Iran and avoid US Sanctions. Called the “special purpose vehicle” (SPV), this mechanism would aim to “assist and reassure economic operators pursuing legitimate business with Iran,” according to the joint statement.

“This will mean that EU member states will set up a legal entity to facilitate legitimate financial transactions with Iran and this will allow European companies to continue to trade with Iran in accordance with European Union law and could be open to other partners in the world,” Mogherini said.

This is a development in what German Foreign Minister Heiko Maas called for in August 2018. He called for a system that would be separate from the US-dominated “neutral” SWIFT.

A way to circumvent the SWIFT system, which performs transfers in USD is to trade in national currencies. This has been seen in Chinese-Turkish, Russian-Turkish and Russian-Indian as well as Chinese-Iranian relations. This is a way of slowly, but surely establishing regional economic clusters that are invulnerable to US sanction pressure.

The outcome of US sanctions is that the global regionalization would continue. The US is undermining its global grip by itself and is being excluded from many of the matters it deems within its interest.

Donate

SouthFront

Do you like this content? Consider helping us!

  • occupybacon

    Go Iran!

  • Red Pilled ThoughtCrimes

    well duh… use a middleman. This is why EU decided to ‘create a vehicle’ . because like panama a middle man inflates the price, and EU dont want to lose that business

    • Daniel Castro

      Yet when you have no other choices the middleman comes to save you.

      • Red Pilled ThoughtCrimes

        hey, am not knocking middlemen, am mocking sanctions

        • Villainess

          I think it’s hilarious that all those Israeli/Zionist dual US citizen administration officials and cabinet members advising Trump didn’t foresee this! Lol

          • Merijn

            The ZioNazis want to suck America Bonedry…and Leave it behind like a Third World Country….they are Vampires & Leeches…so everything is going according Plan…

          • Feudalism Victory

            All too true

          • Red Pilled ThoughtCrimes

            After MidTerms trump can start sacking a lot more people hopefully. he had to let deep state have free reign to some extent, called their bluff and the things they tried to do all failed spectacularly. Trump is a good salesman, he has done it very smoothly. He couldnt sack incompetence without that incompetence being proven, After november his admin turns another corner. More Republicans or some of the ‘few’ MAGA democrats will be on board to get things done. Then in 2020 he will be on his second term and not as worried about re election, so that will be the next big turning point. The blue wave seems to be waving goodbye to democrats lol

          • NWOD

            Trumptards will Trumptard. What is it, 666D chess? lol. How ’bout a fraud from day 1?

          • Feudalism Victory

            TRUMP 2020!

          • Red Pilled ThoughtCrimes

            look for a cure for your TDS

          • Feudalism Victory

            TRUMP 2020

          • Matt Lazarus

            Dream on. Trump’s gone far beyond what neo-cons could ever have hoped for. Trump’s about to sack Secretary of Defense Matthis because Matthis has not been willing to prepare US military for war with Iran.

          • Red Pilled ThoughtCrimes

            lol Still Winning. sort your TDS out mate

  • RichardD

    I’m sure that there are secret agreements between the US and Israel on a whole range of issues, including Iran. That are detrimental to the US and humanity. Which is why dejudifying the US isn’t just in the best interest of the American people, but humanity as well.

  • Merijn

    Boycot the United States of America, IsraHell, the United Kingdom, Wahhabistan & France…and you will Isolate Evil…. the World can do without these Fucktards….who do they think they are?

  • Justin

    The world is going crazy!
    Europe disagrees with USA on sanctions of iran!
    Israel turning against Turkey!
    Turkey turning against Saudi arabia and USA!
    Saudi Arabia turning against USA!
    Turkey aligning with russia
    Europe starting to align with Russia!
    Europe starting to resist USA!
    What the FFFFFF is going on!!

    • John Whitehot

      in a world of blinds, the shortsighted are king.

  • TiredOfBsToo

    “The outcome of US sanctions is that the global regionalization would continue. The US is undermining its global grip by itself and is being excluded from many of the matters it deems within its interest.”

    And with the fall of the reserve currency, the psychopathic Empire will have to take all of it’s war toys home…….. if it can afford to.

  • John Whitehot

    wonder what’s the point of secret documents if someone can get to release their contents.

    actually, it’s much more likely that there is no secret document altogether and that the israeli analyst has just been paid to stir the pot.

    all these talkers should at some point ask themselves how much of their credibility remains out of the total, after they sold most of it.

    • H Eccles

      The purpose of framing the agreements withing the context of a secret document is to make it sound sinister, as if some nefarious activity is being played out. But of course what the Russian and Iranians decide about their natural resources is neither the business of the US nor the business of that nation of illegal sqatters.

      • John

        Hello Eccles. I agree. What is striking, is the way it seems so phony. Israel has way over played it’s hand for a longtime and now they seem to be on a very long road to paying for it. Overtime one of their officials comes out with the latest ‘uncovered secrets’, is that it just comes off like a used car advertisement from the 1950’s.

        • H Eccles

          re…’.. is that it just comes off like a used car advertisement from the 1950’s’

          That’s a very colourful way of putting it…

          Nothing is going Israel’s way at the moment (unless you count murdering unarmed protesters and getting away).. they must be depressed…

          • John

            Agreed. Israeli leadership is beyond despondent, over how their plans went up in smoke without them perceiving how it came about.

        • d’Artagnan

          Russia and Iran have the world’s largest gas and oil reserves and if they cooperate closely they can dominate the global markets in the peak oil era. The Saudi headchopping brutality is already increasing oil prices and the trailer trash that voted for Trump is not happy. The average American idiot is in far worse shape than ever, with 50% headed for poverty in retirement. The Zionist parasites have increased the US debt by ONE TRILLION DOLLARS since the moron Trump conned his way into the White House.

          • Sinbad2

            All true, now watch how the idiots reelect Trump in 2 years.

          • Concrete Mike

            I feel bad for the americans….republicans are dicks no question there….but the democratic party isjust as bad if not worst.

            Its like having to choose between putting you hand in a jar of scorpions or a jar of africanized wasps… un ski doo on laisse tu sa dans la cour???

          • John

            Hello ‘d. President Trump got into office because the alternative was Hillary. The US voter is in the long process of house cleaning and the deck is heavily stacked against them. I know, I was born and lived through it there for a very long time. My family can trace back roots to a minimum of 130 years or more, maybe as far back as the 1840’s or earlier, so I know what I am talking about.

            Donald Trump is a reaction. Right now, through discussing things with my family ( I moved out of the US ), I have a feel for why and how ‘The Donald’ has support. There is a lot of justification for it. Wounds look their most nasty when the process of healing begins.

            It will take a lot of time to get the US out of the hands of Neocon types and the lot. But, it has begun the process of moving back into it’s own corner of the world and minding it’s own business. That may seem hard to fathom at this point but, I know where my countrymen of all types are at and this process has begun. It is an early stage and major movement, among major powers, proceed at glacial pace.

            My take, I wish well to you ‘d.

    • d’Artagnan

      The fact is that the Zionist criminals are getting concerned as their efforts to damage Iran and Russia ties have failed. Iran and Russia are big resource rich nations with a large pool of educated people. Iran and Russia graduate more engineers than US and their increasing collaboration is good for both countries and the world in general. US is a destructive paper tiger which the Zionist parasites are manipulating for their own ends. After the Zionist killing of 15 Russians on the ill-fated IL-20, there is growing anger in Russia. The criminal Nutter Yahoo has not been able to grovel at Putin’s feet so far as the Russian military is pushing a tough position. Iran and Russia have a combined population of close to 250 million and that is a huge market for cooperation in the rising multi-polar world.

    • Zionism = EVIL

      hahaha US morons should put sanctions on the Saudi headchoppers who fund the orange buffoon and pay off his tranny son in law Kushner.

    • Concrete Mike

      John, from the quality of reporting in the last decade or so( i didnt pay attention before i was too young..didnt give a fuck), I going out on a limb to say they dont care about credibility. The simple reason is credibility can now be manufactured, a good example is that 40 years old virgin elliot higgins from bellingcat. No credibility there except the manufactured credibility from msm and social media.

      We could call them sheep, but sheep are slow…id approximate them to a flock of little birds, flying all over the place taking 180 degree turns for nothing repetedly…

      Im glad some of us can see the BS from a mile away, keep your stick on the ice ;))

  • Feudalism Victory

    So theres now possibilities of russian and saudi oil being sanctioned?(through the khashoggi gambit)

    ….weird times.

  • Kelli Hernandez

    Well,this explains Zionists hatred toward Russia and military build up on Russias border.
    The Neocons living in the past, their citizens sick of war.

    • H Eccles

      I think you’ll find they have a hatred for all of humanity.. not just the Russians.

      • Sinbad2

        You took the words right out of my mouth.

  • Abramo Putra

    Actually, Israel has to destroy peaceful neighboring countries, cause wars with millions of deaths, millions of migrants in Europe, international terrorism and a serious economic crisis. Do not you first destroy Israel, make a single state of Palestine for Arabs and non-Zionist Jews and the remaining Jews send them back to the US or Russia?

    • Harvey Swinestein

      Russia doesn’t want them. They already wrested control of the Soviet Union from them once and they don’t want them back again, especially after episodes like the Natan Sharansky debacle . .

  • John

    Pronouncements by Israeli government officials seems so cornball these days.

    • Sinbad2

      Actually the plan she described sounds an awful lot like the way Israel sold oil for ISIS.

  • Drogba

    None of israhells business what Iran or Russia do in their dealings.The real world is just beginning to emerge,and its not a fake Jew controlled one.

  • Carol Davidek-Waller

    It’s only unexpected if you are one of the tiny minds crafting US foreign policy, you haven’t been paying attention and you think signed agreements are just a suggestion.

    • Villainess

      Of course ”signed agreements’ are just a suggestion. Our US treaty signatures are constantly being ignored, reinterpreted or formally walked away from. The ones we hold best are the ones we get far more from than we gave up.

      Having a bigger military than the rest of the world makes us the bully of the world, and bullies don’t keep many pledges or promises not to be a bully.

      • Carol Davidek-Waller

        Bigger perhaps. But is it effective?

        • Villainess

          I always want to ask “effective for what?”. I generally assume that our governments are all lying most of the time. Stated goals are seldom the same as true goals.

          When Libya was attacked, just like with Iraq, the stated goal was ‘democracy’ while the true goal seemed to be massively destructive punishment, theft of great wealth, and a reworking of all sectarian, racial and social systems under a weak and fractious new leadership that would prostrate itself to our bullying threats. This was MORE effective in Libya than in Iraq.

          In Afghanistan, the actual goal was unending war that would keep their rare elements under our (not China’s) control. Success!

          The US is very effective at breaking things!