Club of countries under sanctions. ‘They don’t like each other’ |
Under international economic sanctions that are becoming more and more severe Russia and Iran trade punitive measures with each other and with countries facing sanctions like themselves compensation they are looking for ways to do it.
International bank These countries, cut off from the system, export markets, and international resources and technologies, are trying to strengthen their trade relations and establish economic relations with isolated countries such as North Korea, Belarus, Venezuela, and Burma.
But experts say that even if such countries want to reach an agreement to counter the West, long-standing rivalries, logistical difficulties and the similarity of their products prevent any bloc from forming.
“They are not geographically close to each other. They do not have products that they want to buy and sell from each other. Moreover, they do not like each other. This is a club you don’t want to be in.” – USA Former Treasury Department employee, currently Chief Executive Officer (CEO) of Castellum.AI consulting company Peter Pyatetsky (Peter Piatetsky) says.
Iran at the beginning of the year when he expected the sanctions to be lifted USA and Europe He faced new sanctions of the European Union (EU). These sanctions are primarily related to Tehran’s support for Russia in its attack on Ukraine and brutal suppression of anti-government protests in the country.
However, even before the war in Ukraine, Tehran and Moscow were thinking about trade deals to avoid sanctions.
“Also Iranalso Russia is the target of sanctions and they can take advantage of this opportunity”, – Iran’s Oil Ministry wrote in a tweet shared in January. Officials at that time in Moscow they met and discussed the strengthening of economic cooperation.
November in Tehran Russia President of Iran Ibrahim, who received the delegation Chief He promised to raise relations with Moscow to a “strategic” level. He called it “USA and the most decisive response to the policy of sanctions and destabilization of its allies.
Russia supports its aggression against Ukraine and 2020– Belarus, which was subject to sanctions for suppressing anti-government protests in the country in 2021, considered it useful to sign trade agreements with Moscow and Tehran this year.
Venezuela, which was subjected to US and EU sanctions for suppressing protests inside the country in 2014, this year with Tehran 20 signed an annual cooperation agreement.
A former intelligence officer of the US government, who currently holds a leading position at TD International, a risk intelligence company Benjamin Tsay (Benjamin Tsai) says that in addition to Belarus and Venezuela, North Korea, Syria and Myanmar (Burma) also have trade relations with Russia and Iran.
According to him, China “benefits from importing energy from Russia and Iran”, but “while supporting Russia and Iran in diplomatic and ideological channels, it plays a delicate balance game without violating sanctions.” Tsai explains that cutting ties with the West will cost China dearly.
It is interesting that Russia to export more oil to China prices lowering it hinders Iran’s market.
China and Russia agreed in September to accept Iran as a permanent member of the Shanghai Cooperation Organization, which they lead. This step also aims to expand trade relations.
Countries under sanctions cannot benefit from international freight and financial services. Therefore, they resort to different methods of trading among themselves.
“They can resort to barter or trades that do not require US dollars. For example, Western sanctions have increased Russia’s use of Chinese currency in bilateral trade. At the same time, Russian institutions are trying to avoid sanctions with cryptocurrencies. – says Tsai.
Russia and Iran have long been trying to create an alternative currency to avoid trading with the US dollar.
Since Russia was hit with sanctions following its annexation of the Ukrainian peninsula of Crimea in 2014, SWIFT has been replaced by its own bank tried to use the system.
This year, Russia and Iran started bilateral trade for the purpose of de-dollarization national carry currencies and their electronic bank took steps to integrate payment systems – “Mir” and “Shetab”.
When Iran and Russia do not trade directly with countries under sanctions military they began to exchange products, technology and know-how.
USA, North Korea, Russia military accuses him of supplying ammunition. Iran has sold combat and kamikaze drones to Russia for use in Ukraine. Britain Instead of giving Russia to Iran “modern military parts”.
But such deals aside, Pyatetsky says, Iran, Russia and other countries under sanctions have no products of commercial value that they do not import themselves.
“…Yes, you can do business with each other. But you don’t have what the other side needs.” – says Pyatetsky.
Russia, Iran and Belarus are all three energy producers. Russia’s oil sales to India and China hinder Iran’s exports. Both Russia and Belarus are leading fertilizer exporters. This creates an obstacle to the sale of potash (potassium minerals), which is the main export product of Belarus. Inside Russia car industry is facing serious problems. Tehran to this country car and even if it tries to sell parts, Iran’s reputation for cars not meeting safety standards casts doubt on the deal.
Last year, Moscow agreed on the export of aircraft to Tehran. But this deal is also in question.
“People in Russia don’t want to drive an Iranian car, and people in Iran don’t want to fly on a Russian plane.” – says Pyatetsky.
“Such sanctions evasion measures … may help the regime stay afloat, but will not lead to economic growth. It is inconceivable that this “bloc” of countries under sanctions can compete economically with the West in any way. – says Tsai.