Great Britain, Europe Intensifying Financial Sanctions Against Iran

Digg

StumbleUpon

Delicious

Great Britain, Europe Intensifying Financial Sanctions Against Iran

Whitehouse photo by Chris Greenberg

British Prime Minister Gordon Brown assured President Bush that Britain supports the U.S. policy of stronger sanctions against Iran. Brown expects the rest of the European Union to announce its sanctions later this week, possibly targeting Iran's oil and gas industry.

NUCLEAR SHOWDOWN: Great Britain announced its toughest sanctions yet against Iran and expects other European countries to follow its lead. Iran continues to refuse international inspections of its uranium enrichment program.

by Patricia McFadden
Informify Staff Writer
June 17, 2008

At his Monday meeting with U.S. President George Bush, British Prime Minister Gordon Brown said Britain would impose new sanctions on Iran and encourage the European Union to do the same. Iran says its uranium enrichment program is for peaceful purposes, namely nuclear power. But many fear the country may be developing nuclear weapons. If the EU decides to target Iran's oil and gas industry with sanctions, they will be the strictest punishments yet.

Iran's Uranium Enrichment: Peaceful or Aggressive?

Iran said it has the right to develop nuclear power without international oversight, and refuses to allow the inspections.

Last week the European Union offered incentives to encourage Iranian leaders' cooperation with the international inspections.

"When the Iranians say we have a sovereign right to have one [a civilian nuclear program], the answer is ‘You bet you have a sovereign right, absolutely,'" Bush said. "But you don't have the trust of those of us who have watched you carefully when it comes to enriching uranium, because you have declared that you want to destroy democracies in the neighborhood." (Associated Press, 6/16/08)

Increasing Sanctions Against Iran

The United Nations Security Council adopted four resolutions in the past two years concerning Iran:

Resolution 1696—July 31, 2006

Offered Iran diplomatic and economic incentives.
Demanded Iran suspends all uranium enrichment programs by August 2006.

Resolution 1737—December 23, 2006

Imposed sanctions on Iran's trade in nuclear materials and technology after Iran failed to comply with Resolution 1696.

Resolution 1747—March 24, 2007

Intensified previous sanctions in Resolution 1737.

Resolution 1803—March 3, 2008

Monitored Iranian finances in banks in Iran and branches abroad.
Inspected Iranian aircraft and vessels for nuclear-related cargo.
Restricted trade even further than previous resolutions.

UK Freezes Assets in Iranian Bank, Threatens Oil Sanctions

Yesterday Prime Minister Brown announced that the British government will freeze assets held in Bank Melli, Iran's largest bank.

Since the bank doesn't have many investments in Europe, Britain's move sends a message more than it actually punishes Iran.

However, if U.K. and EU sanctions target Iran's oil and gas industry, they could cripple Iran's economy:

The world's second-largest gas reserve is located in Iran.
Iran's oil exports generate more than 80% of the country's revenue.
Foreign countries develop and provide Iran with oil and gas field technology.

"If Iran continues to ignore united resolutions—to ignore our offers of partnership—we have no choice but to intensify sanctions," Brown said. "And so today Britain will urge Europe, and Europe will agree, to take further sanctions against Iran." (Voice of America, 6/16/08)

Question for Readers:

Do you believe the EU and United States should pressure Iran to allow inspectors in to their uranium enrichment facilities?

Iran’s uranium enhancement program—and its refusal to allow international inspection of its uranium facilities—makes its Middle Eastern neighbors uneasy.

China and six other world powers offered to help Iran develop a non-military nuclear program if Iran agreed to halt its uranium enrichment program. Saturday Iran said no to the offer.

George Schulte, U.S. Ambassador to the International Atomic Energy Agency (IAEA), met with Chinese Foreign Ministry officials to discuss China's contradictory dealings with Iran.

Although China agrees with the United Nations' approach with Iran, it responded to international pressures only in part:

Chinese companies continued their brisk business in Iranian oil
Chinese banks cut back their business with Iranian banks because of U.S. pressure

This sends a very mixed message to the leaders of Iran, said Schulte.

"Words need to be backed up by deeds," Schulte said. "I think it's very important they get this message consistently, both from what countries say and what countries do."

(Source: Reuters, 6/16/08)