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Page 54

B Y A K S H AY S U B R A M A N I A N ( W ’ 13)

MIDDLE EAST:

IRAN’S TRYST WITH SANCTIONS I ran’s nuclear program dominates most discussions

these moves have crippled its economy.

potential weapons of mass destruction,

The Iranian Central Bank has not issued

international

An Iranian woman protesting in New

despite

York City.

negotiations,

their

nuclear

security

importance economic

threats. in

aspects

Yet

an annual economic report in three years.

ongoing

Rising inflation, now at around 10%, has

of

the

posed major problems for Iranian traders

conflict are not discussed with the same

and consumers. The Iranian Rial experienced

frequency. Sanctions on Iran, often criticized

heavy

as toothless due to the united opposition of

foreign currency exchange was cut off.

China and Russia, have begun to flash teeth

The decision of four major European oil

sharp enough to take a sizeable bite of the

companies (Shell, Total, Eni and StatOil)

Iranian economy. Iran’s trade partners are

to cease all investment in Iran, combined

finding it increasingly difficult to maintain

with reports of the Stuxnet computer virus

healthy relations with the Islamic Republic

at the proposed nuclear site in Bushehr,

without drawing the ire of the permanent

completes a very black picture.

members of the UN Security Council.

54

111210 hq.indd 54

Though Iran may not publicly admit it,

proliferation,

and

on

volatility

in

late

September

as

The greatest sign that the sanctions are

The first effect of the sanctions was to

having the desired eff ect are the actions

extend the arms embargo on Iran to include

of one of Iran’s largest trading partner,

most military equipment. However, the sanctions

the United Arab Emirates. The passing of

did not stop there, targeting the central

sanctions sprung the UAE into taking tangible

operations of the Iranian Revolutionary Guard

measures to distance itself from Iran. Under

Corps, Iranian financial institutions, and shipping

heavy US pressure, the UAE announced that

units. Increased inspections were approved for

it had complied with the UN’s sanctions. 17

all vessels suspected of supporting the nuclear

blacklisted Iranian banks have had their

program. Prominent Iranian financial institutions

UAE ties severed. 40 organizations tied to

like Bank Saderat Iran, Bank Mellat, and Bank

the nuclear program have been shut down,

Sepah have been blacklisted by the United

with the money laundering unit of the UAE’s

Nations, cutting their ability to provide financial

Central Bank closing their fi nancial accounts

services and insurance. Iran and its proxy

and increasing its vigilance of all Iran-UAE

companies have effectively been shut down.

cash fl ows.

I N T E R N AT I O N A L B U S I N E S S R E V I E W

FA L L 2 0 1 0

11/27/2010 3:13:19 PM

Profile for Daniel Hellwig

International Business Review - Fall 2015  

Fall edition of the IBR magazine at the Wharton School.

International Business Review - Fall 2015  

Fall edition of the IBR magazine at the Wharton School.

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