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    Middle East
     Jan 20, 2012


SPEAKING FREELY
US meets resistance to Iranian sanctions
By Ardeshir Ommani

Speaking Freely is an Asia Times Online feature that allows guest writers to have their say. Please click here if you are interested in contributing.

If this article were written to advise non-existing rational leaders of the White House and the US Congress, my strong recommendation to them, at risk of being called naive, would be that they should immediately announce that the US has no plan of going to war against Iran and declare all sanctions are halted and negotiations over Iran's nuclear program would begin.

The reason for such advice is that the present sanctions regime

 

and further aggravation and possible war with Iran are utterly going against US interests and credibility.

The ongoing presidential and congressional campaign to pressure the European Union, Turkey, Japan, China and India to halt importing Iranian oil and related financial transactions is facing resistance by the importing companies and countries.

For the United States to insist and pressure the Iran-oil importing countries would increasingly turn into a greater liability for the US among what it frequently calls the "international community".

Last week, Timothy Geithner, US Treasury Secretary, began visiting capitals around the world to deliver the US's ultimatum to the governments of Spain and Italy that unless they immediately put a halt to Iranian oil imports, they would be risking US trade and financial reprisals. Not uniformly, but mostly, the countries have been rejecting the implementation of an immediate halt.

According to Mure Dickies's article in the January 13 issue of the Financial Times, "Turkey has said it is not bound by new oil sanctions against Iran." Taner Yildiz, Turkey's energy minister, told reporters that his country did not consider itself covered by the latest EU and US sanctions. He continued that, "At the moment our imports continue and as of today there is no change in our road map."

Even Turkey, a long-time member of the North Atlantic Treaty Organization (NATO) military alliance, which not too long ago was doing the US bidding in the US-NATO destruction and "regime change" in Libya and Washington's plot of de-stabilizing Syria is not prepared in the case of Iran, a much larger and stronger country, to toe the line which may end up plunging this area into a regional war.

This may force Turkey into the firing line between US-Israeli long- and medium-range missiles and Iran's million-man para-military Basij, regular army and the Islamic Revolutionary Guards Corps, joined by Hezbollah of Lebanon, the Shi'ite Mahdi Army of Iraq and Hamas in Palestine, to say nothing about the Kurds.

In his visit with Chinese leaders, Geithner was even less successful. In a news briefing with reporters, Cui Tiankai, the vice foreign minister for US relations, said that China supported global non-proliferation efforts, but trade was separate from the Iranian nuclear program.

"The normal trade relations and energy cooperation between China and Iran have nothing to do with the nuclear issue. We should not mix issues of different nature, and China's legitimate concerns and demands should be respected."

The minister at one point noted that some people had tried to convince the international community that any normal business dealing with Iran provided financial support to that country and by extension helped its nuclear program. In rejecting that reasoning, he said, "This argument does not hold water. According to this logic, if the Iranians have enough money to feed their population, then they have the ability to develop a nuclear program. If this is the case, should we also deny Iran the opportunity to feed its people?"

He added that Iran had the right to develop peaceful nuclear power. "This issue cannot be resolved by sanctions alone. It must fundamentally be solved through negotiation."

As if rejection by Turkey and China was not enough, the Treasury Secretary then tried Japan, where the US, 67 years after World War II, still keeps 50,000 American troops for which the Japanese people are forced to provide bases, financial and material support to their own occupiers.

Geithner arrived in Tokyo on Thursday, January 13 with a lobbying mission to inform his Japanese counterpart that the US Congress was planning to penalize financial institutions that deal with Iran's central bank, which clears oil payments. Japan imports 10% of its crude oil consumption from Iran and is the third-largest buyer of Iranian oil after China and India.

A spokesperson of Japan's Trade Ministry asserted that considering the large volume of oil imported from Iran, Japan's ability to manage a sharp reduction was highly limited since urging companies to switch from Iranian crude oil had no legal foundation. In other words, the US Congress can pass legislations but must not expect the people of Japan, at their own liability, to carry them out.

For Geithner, the situation in Italy and Spain was not more hospitable. In an interview with Le Figaro, Mario Monti, Italy's prime minister, emphasized the significance of any reduction in the imports of Iranian oil on the Italian economy, and pointed out that 13% of Italy's total annual imports of crude oil come from Iran, leaving it highly vulnerable to any supply shock.

The prime minister demanded that any oil deliveries from Iran that were aimed at reimbursing billions of euros of debt which Iran owes to Italy's national oil company be excluded from the ban, otherwise agreeing to by from the European Union instead.

According to Ikuko Kurahone and Dmitry Zhdannikov of the International Business Times, Italian, Spanish and Greek companies have strangely extended most of their oil supply deals with Iran for the current year, which means the greater bulk of Iran's supply to the European Union would reasonably be exempted from sanctions for at least the entire 2012.

The financial market sources revealed that Italy's Saras (SRS.MI), ERG (ERG.MI) Iplom, Greece's Hellenic (HEPr.AT) as well as Spain's Repsol (REP.MC) had either extended or have not canceled exiting contracts with Iran for 2012. Some stock market traders told Reuters reporters that they have kept their two-year deals with Iran. A trader working with an Italian company stated: "At the moment, it is business as usual."

Given the fact that profit-making is the main reason and motivation for exchange, it is not impossible to avoid and by-pass the imperialist's road blocks.

Apparently, US congressmen and women and top officials of the Barack Obama administration who worked overtime on Section 1235 to slip the punitive sanctions resolution into the National Defense Authorization Act (NDAA), patting themselves on the back that they would soon tighten the noose around the neck of Iran and deny Iran the revenue from its natural resources and force them to either join the imperialist camp or collapse, was more hallucination than a picture of reality.

Their belief in idealism and its embedded imperial arrogance prevents them from rational and scientific thinking, ignoring that their intended prey may be able to muster forces well beyond the imaginations of the masters sitting in Washington, Tel Aviv, Paris and London. That real force is the strength and willingness of the Iranian people to fight for their dignity and national sovereignty, and they are not alone in the world.

Ardeshir Ommani is a writer on issues of war, peace, US foreign policy and economic issues. He has two Masters Degrees in the fields of Political Economy and Mathematics Education.

Speaking Freely is an Asia Times Online feature that allows guest writers to have their say. Please click here if you are interested in contributing. Articles submitted for this section allow our readers to express their opinions and do not necessarily meet the same editorial standards of Asia Times Online's regular contributors.

(Copyright 2012 Ardeshir Ommani.)


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