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THE SANCTIONS AGAINST IRAN
Iran, officially known as the Islamic Republic of Iran, is second only to North Korea among
countries that infamously suffer the highest number of sanctions globally. For the purpose of this
piece, we define sanctions as political and economic tools which are employed by the United
Nations and other continental unions, as well as individual countries to elicit a desired course of
action or response from an individual, country or group of countries. North Korea, Iran, Russia,
Ukraine, and Central African Republic are some of the other countries under heavy sanctions by
one or more of the United Nations, European Union and one or more countries of the world.
Sanctions in the past have proven to be effective in enforcing international laws and maintaining
global peace and order, hence, they are still very much in use today. Finland in 1958 changed some
of its policies in order to have sanctions imposed on it by the old Soviet Union lifted-off. The strict
international sanctions imposed on South Africa during its apartheid regime effectively brought
an end to the racial discriminations which largely characterized the era. While the various sanctions
on Iran have helped bring it to the negotiation table, we consider the long history and series of
sanctions Iran currently suffers.
Iran has over time been subjected to quite a number of sanctions for reasons ranging from nuclear
weapon development programs, arms proliferation, and other activities which undermine global
peace. In December 2006, the United Nations’ Security Council adopted a “Resolution 1737”,
calling on all member states to intercept all dealings in materials considered part of its nuclear
activities. This first round of sanction also involved member states freezing the financial accounts
and assets of countries or entities involved with Iran in its nuclear enrichment activities.
With the first sanction in place and Iran appearing unyielding, the Council decided to harden
sanctions on the Western Asian country, placing an outright ban on its exportation of arms. It took
this a step further by imposing travel restrictions on people involved in Iran’s nuclear activities,
this round of sanctions was known as the “Resolution 1747”. An additional “Resolution 1803”
adopted in March 2008 necessitated close monitoring of the dealings of Iranian national banks. It
also approved the inspection of cargo carriers of Iranian origin, if there was enough evidence to
believe they are carrying items prohibited by earlier sanctions.
In mid-2010, fresh sanctions were initiated and imposed on Tehran, prohibiting the purchase of
heavy weaponry such as attack helicopters and missiles. Dealing with Iranian banks and entities
were more carefully scrutinized, and travel restrictions on Iranian individuals was also toughened.
This final round of sanctions does not include economic sanctions such as commodity trade
restrictions and oil embargo and hence bear no economically crippling consequences.
The European Union (EU) first imposed sanctions on Iran in 2007, in connection with its nuclear
development activities and reports of human rights violations. Iran has been continuously
subjected to sanctions not merely because of its nuclear-enrichment activities, but its refusal to
fully submit-to and comply with the International Atomic Energy Agency (IAEA). The IAEA has
always sought to ensure that these activities are towards developing positively impactful nuclear
capacity, such as electric power generation and in the field of medicine. Iran’s continued refusal
continue to stoke fears that it is undergoing learning the know-how of nuclear weaponry
development. The European Union therefore has fully enacted all of the United Nation’s sanctions,
as well as other additional measures in a bid to force Iran to comply.
Apart from concerns about the development of a nuclear arsenal, the human rights situation in Iran
which has continued to deteriorate since the 2009 presidential election. A crackdown which
followed the election has further led the European Union (EU) to impose sanctions on about 60
individuals believed to be the masterminds and directly involved by way of giving the order.
In 1979, the West-friendly Sharh political structure was toppled in the aftermath of the Iranian
revolution and a theocratic government was subsequently put in its place. The hostile events that
followed, particularly the Iranian hostage situation where a group of radical students invaded the
United States Embassy in Tehran and held hostages, raised global concerns. The United States as
a result, imposed a trade embargo and a first round of sanctions on Iran, freezing assets, bank
deposits, golds and other valuables domiciled in the US. The sanctions and embargo were lifted in
1980 under an agreement known as the Algiers Accord which also necessitated the release of
hostages.
Another round of sanctions was imposed on Iran by the US for its activities in the Iraq-Iran war of
the 1980s, prohibiting weapon sales to the Middle Eastern country. This came after Iran was
deemed to have instigated attacks on vessels belonging to the United States and other countries in
the Persian Gulf. The allegation that Iran was secretly aiding and funding activities of terror groups
such as Hezbollah, Hamaz, and the Palestine Islamic Jihad also came to the fore. On March 15
1995, the ban was expanded to prohibit investment in the Iran energy sector, and a further ban
restricting outright trade and investment in Iran was implemented in May of the same year.
Worthy of mention is the fact that that although Iran has refused to totally suspend its nuclear
enrichment activities, these sanctions have effectively censured the country and kept it at bay. Iran
has been unable to acquire the highly sophisticated and specialized materials and inputs necessary
to further its nuclear programs. The Iranian oil sector has also suffered by being kept at a
production volume that is well below its capacity. This is because it has been unable to further
develop the sector as a result of its inability to procure improved production machineries which
would have improved production and efficiency.
Overall, the effect of international sanctions on Iran has been both economically and politically
devastating. The sanctions and embargos on international trade by the global community, freezing
of national bank assets, and disconnection from the SWIFT (Society for Worldwide Interbank
Financial Telecommunications) framework have hindered economic growth. Since 2011 when the
sanctions thickened, the Iranian economy has fallen in global competitiveness, recorded about 40%
inflation rate, and witnessed a real contraction of around 10%.