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The analysis of trade regimes of Iran and economic ties with key global players (PART 2)

Rosoboron The most contentious issue surrounding the Russian-Iranian relations is imminent delivery of air defense missiles to Iran, provided by a 2005 agreement between Tehran and the state agency, Russian exports are the property signed. The agreement was to ridicule the Western leaders, that Russia welcomes Iran an incentive for the safety net is necessary to continue the enrichment of uranium support it. He also worried about the stock market regarding Russia and Iran is clearly led to the expression of scientific knowledge. For years, Iran has Russian and Ukrainian scientists for free entry into the country through what political experts call “tunnel” on suspicion of visa policy. Unlike other commodities across the borders of Russia and Iran, which is virtually impossible to measure the true value of this knowledge exchange traded, despite a 2009 report that the CIA has found the support of Russian experts’ has helped the decision of ‘Iran self-sufficient in the production of ballistic missiles. ”

The Chinese puzzle, While the EU is the main trading partner of Iran, which provides over $ 35000000000 in total trade, China in 2008 to overcome the Europeans, if not already done. According to a February article in the Financial Times, China could only officially 29000000000 U.S. dollars in 2008, Iran accounted for the trade, but the actual number is probably much higher, since a significant share of trade with China and Iran channeled through the United Arab Emirates United. If these elements are taken into account, experts estimate that the total value of trade flows, usually at least $ 36.5 billion ° A large part of Iranian imports from China are consumer goods and machinery, while Iran, in turn, provides about 12% of the energy needs of China, as evidenced by 23 million tons of crude oil exported to the People’s Republic in 2009. The latest forecast by the China National Petroleum Corporation, China’s imports of Iranian oil up to 9.1 percent next year could. Iran has paralyzed by inadequate infrastructure refinery has started to import more refined fuel in China. According to a report in the Financial Times of September, somewhere from 30,000 to 40,000 barrels of oil from China to Iran are on a daily basis, usually through third party intermediaries.

Russia has become the center outside of China, Iran, often perpendicular to its economic and commercial activities. Even if China supported the last three games of sanctions in recent years only to promote economic cooperation with Iran has intensified. Several Chinese companies have helped Iran develop the capacity of energy, including years spent $ 1760000000 in the North Azadegan oil field contract to develop, and a $ 3390000000 for liquefied natural gas in South Pars field to produce the agreement in March 2009. Further criticism of the diplomatic negotiations, however, sales of Chinese missile technology in the Islamic Republic of voices. China, like Russia, has a long history of arms trade with Iran, the Islamic Revolution of 1979. Chinese scientists have the ability to reverse engineer, military technology has allowed them to play the old Soviet rocket technology, and funnel the final products in Iran. Last year a research report from the AP bureau in Taipei found that Chinese traders had successfully delivered over 100 pressure sensors to Iran, delivered through a processing line, the final destination of the material covered. According to nuclear experts, the only logical explanation for the purchase of a country that many sensors would be at the same time, to enrich uranium. The Chinese government says it knew nothing of commercial confidentiality, but many have avoided his defense as a veiled attempt by diplomats to read Iran’s ruffled feathers.

For the moment, then, the fate of a new round of economic sanctions, with some irony that on the support of two trading partner depends increasingly important. In addition, while the range of sanctions is being considered not directly involved in Iran’s energy sector, it is clear that the complexity of economic policy goes far beyond oil. Be explained in a diplomatic environment in which the words with actions to be invalid, and in which economic data, by themselves, tell only part of the story, the political division of the profits looking to have an almost impossible task.
It ‘too early to say whether the policy or the economy will ultimately decide the actions of the international community with Iran. But the assessment held by the established trade relations with the Islamic Republic of enormous importance both worlds, reaching a global consensus can only be a part of the equation. At the end of the day the celebration of the trading partner over their words can be even more difficult.

The analysis of trade regimes of Iran and economic ties with key global players (PART 1)

While Iran continues its nuclear program, and attempts at diplomacy towards a more aggressive rhetoric has given the specter of economic sanctions, again on the main stage of international theater. Unlike previous sanctions, but the current U.S. proposal among the members of the Security Council of the United Nations reported that the prohibition of certain transactions between the countries of the United Nations and the Islamic Republic of export demand, in an attempt to determine more precisely the banks, insurance and shipping under the control of the Islamic Revolutionary Guards Corps (IRCG).

The debate continues, but on the effectiveness of a new list of sanctions is to stop or even discourage efforts to enrich uranium. Although most of the Western powers have ruled in favor of the proposed sanctions, the support of Russia and China, remains critical. Not surprisingly, the two unstable countries, with the right to veto major economic interests within the borders of Iran.
The discussion may be involved in political discourse, but it is certainly driven by the economy. And while experts and policy makers may not yet have the ability to sanctions of real political change, to reach the only way to perform cost-benefit analysis of possible economic sanctions from the bottom along with an Iranian excavation business climate detailed and regulated trade relations.
Iran Commerce Landscape, With 10% of known global oil reserves in its vast territory, Iran’s economy is centered, not surprisingly, energy. In 2007, the Iranian government has withdrawn $ 57 billion in oil export revenues, about half of government revenue. Oil is currently about 80% of all Iranian exports together. Under the government of President Mahmoud Ahmadinejad, however, with the domestic economy staggered under the weight of huge government subsidies, rising unemployment and double digit inflation rates. Without adequate infrastructure to improve its offer massive oil, the country has to import gasoline. According to a recent report by Reuters, Iran imported 23% more gasoline in February 2010, in the same month last year.

While many agree that the penalties for IRCG to exert a negative effect on the economy should Iran, others believe that sanctions could actually benefit from some partners. Arang Keshavarzian Ph.D., associate professor in the Department of Middle Eastern and Islamic Studies at the University of New York, says that “the tightening of sanctions, three groups of entrepreneurs who benefit on the basis of free trade areas in the Gulf region (especially in Dubai), business interests in countries that resist or skirt sanctions 9especially in East and Southeast Asia) can, and the large semi-governmental organizations in Iran. ” Since 1996, when the U.S. government a thing of the past, Iran and Libya Sanctions Act (ISLA) has expanded its relationship with Iran with some partners. Although the European Union and the People’s Republic of China led the list of the most important trade partner of Iran in recent years an increase of trade between Iran and other developing countries such as Syria, Venezuela, Cuba and India have seen. With the prospect of multilateral economic sanctions, once again hanging over Iran, two of the Islamic Republic of trading partners are Russia and China in every important political role in particular by ensuring a closer look at intensifying economic relations with Tehran.
The uncertainty in Russia, Russia-Iran trade was mainly due to a similar abundance of natural gas. The two countries have the two largest natural gas reserves in the world and have strong economic ties to benefit from the budget. In October 2008, Russia, Iran and Qatar, account for 40% of world reserves of natural gas, has signed a formal agreement, its economic power to strengthen ties. In addition to the efforts of energy, Russia and Iran, since 2008, the expansion of trade in agriculture, telecommunications and aviation. Although the Russian government officially supports the three previous rounds of sanctions imposed by UN Security Council against Iran, which has helped develop open to the Islamic Republic’s nuclear facilities at Bushehr, which will probably be completed in 2011. After arguing vehemently against the economic sanctions of the Security Council debate in 2005, Russia voted for the fast action in 2006. Again, dissatisfaction with the current proposals Russian diplomats of expression, while recognizing the danger that a nuclear-armed Iran could pose.

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