B Y A K S H AY S U B R A M A N I A N ( W ’ 13)
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
An Iranian woman protesting in New
an annual economic report in three years.
Rising inflation, now at around 10%, has
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
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.
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Though Iran may not publicly admit it,
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
Fall edition of the IBR magazine at the Wharton School.