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Can the US make Iran sanctions stick?

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Recent Iranian trade figures suggest that the United Arab Emirates, a strong backer of US efforts to squeeze Iran economically, could emerge alongside China as the Islamic republic’s foremost lifeline in seeking to blunt the impact of harsh sanctions. Russia and Oman rather than Europe are emerging as runners-up in possibly enabling Iran to circumvent sanctions.

Casting further doubt on Europe’s ability and will to stand-up to US secondary sanctions, despite its vocal support for the embattled 2015 international agreement that curbed Iran’s nuclear program, are new German financial rules scheduled to take effect this month. The rules could delay or prevent crisis-ridden Iran from repatriating Euros 300 million (US$347 million) deposited in an Iranian-controlled bank in Hamburg.

Figures for Iranian trade in the period from 21 March to 22 July of this year, compiled by Iranian energy and economics analyst Faezeh Foroutan, show China and the UAE jointly accounting for 39.8 percent of Iranian imports and 37.8 percent of its exports. By comparison, nine members of the European Union, including heavyweights Germany, France and Britain shouldered only 15.5 percent of imports and 7.93 percent of exports.

Iranian leaders have said that the future of the nuclear agreement, officially dubbed the Joint Comprehensive Plan of Action (JCPOA), in the wake of the US withdrawal would depend on the ability of Europe, China and Russia to ensure that the impact of US sanctions would be substantially blunted.

Iranian foreign minister Mohammad Javad Zarif insisted earlier this week that China’s role was key. “The role of China in the implementation of JCPOA, in achieving JCPOA, and now in sustaining JCPOA, will be pivotal,” Mr. Zarif said.

China, a signatory to the nuclear agreement alongside Europe, Russia and the United States that withdrew from the accord in May, has rejected US requests to cut Iranian oil exports even it reportedly promised not to increase them. China is Iran’s top energy export market.

China’s refusal to cut back on Iranian oil purchases threatens to render the Trump administration’s goal of reducing Iranian exports to zero unachievable and means that its November 4 deadline to do so is unrealistic.

Acting out of self-interest, China, moreover, appeared to be willing to strengthen the Islamic republic in other ways, including by supporting militarily the Iranian-backed regime of Syrian president Bashar al-Assad in its quest to gain control of Syria’s last major rebel stronghold in the northern region of Idlib.

Speaking to Syrian pro-government daily Al-Watan, China’s ambassador to Syria, Qi Qianjin, said that China was ‘following the situation in Syria, in particular after the victory in southern (Syria), and its military is willing to participate in some way alongside the Syrian army that is fighting the terrorists in Idlib and in any other part of Syria.” The ambassador was referring to recent Syrian victories against rebel forces in southern Syria and on the Golan Heights.

Chinese participation in a campaign in Idlib, the dumping ground for rebels evacuated from elsewhere in Syria, including Uyghur fighters from the north-western province of Xinjiang, would be China’s fist major engagement in foreign battle in decades. China worries that Uyghur fighters may want to return to Xinjiang.

The UAE’s potential role in helping Iran deflect US sanctions may not be surprising given the fact that Dubai has long functioned as a key transhipment point for Iran with trade in the year ending at the end of March topping US$16.8 billion but is notable given Emirati backing for the US sanctions.

Iran, nonetheless, in response to a series of UAE measures against Iranian financial networks, has sought to shift its export hubs to Qatar and Oman and strengthen economic ties  with Russia.

The UAE “has been Iran’s no. 1 trade partners for years. The point is the growing role of Russia and Oman,” Ms. Foroutan said, expressing doubt that Oman could replace the UAE in the short term.

Russia advised Iran during a meeting between President Vladimir Putin and Ali Akbar Velayati, a senior adviser to Iran’s supreme leader, Ayatollah Ali Khamenei, that his country was willing to invest US$ 50 billion in the Islamic republic’s oil and gas sector. The two men met days before Mr. Putin’s summit last month in Helsinki with president Donald J, Trump.

Mr. Velayati said a Russian oil company had already signed a US$4 billion deal with Iran that “will be implemented soon” and that “two other major Russian oil companies, Rosneft and Gazprom, have started talks with Iran’s oil ministry to sign contracts worth up to US$10 billion.”

Iran and Russia signed preliminary agreements for up to US$30 billion in investments in Iran’s oil industry months before the Trump administration said it would re-impose sanctions.

Europe’s ability and willingness to play its part in salvaging the nuclear deal was called into question by the new German financial rules and could depend on whether the Brussels-based Society for Worldwide Interbank Financial Telecommunication (SWIFT) bows to US threats if it fails to exclude by November Iranian banks from its global financial transfer system.

European officials suggest that a SWIFT concurrence with US sanctions would put to bed any hope of salvaging the nuclear deal. Europe appears, however, to be banking on the fact that the US may not follow through on its threats, at least not against the society as such, because that would undermine the global financial system that empowers it.

However, the new German central bank rules that create additional powers to block transactions if their execution could threaten “to end important relationships with central banks and financial institutions of third countries” appear to constitute a nod towards the US sanctions.

Coming into effect on August 25, the rules could allow the bank to reject an Iranian request that it authorize the withdrawal of U$S300 million from the Europäisch-Iranische Handelsbank AG, a Hamburg-based financial institution owned by Iranian banks, including state-owned Bank of Industry and Mine. Iran wants to physically ship the money to Tehran to evade potential US efforts to block a transfer.

Iranian officials told the German government that the foreign currency was needed to enable Iranians who travel abroad but don’t have acceptable credit cards because of sanctions to be able to pay their travel expenses.

US and Israeli officials pressured Germany to block the withdrawal, arguing that Iran might use the funds to finance operations in Syria, Yemen, Iraq or Afghanistan. Said controversial US ambassador to Germany Richard A. Grenell: “We are very concerned about the reports that the Iranian regime is trying to move hundreds of millions of euros to Iran from a German bank.”

It’s a concern Germany seemingly shares. A German decision to block the transfer of the funds would however influence Iranian perceptions of Europe’s resolve. That in turn would focus attention on Iran’s major trading partners. China and Russia have been relatively clear where they stand while the UAE may find it more difficult to evade measures that would severely curb what has long been a lucrative business.

An oped in the Khaleej Times, the UAE’s oldest English-language newspaper that was co-founded the UAE government, published days before the US withdrawal from the nuclear agreement argued nonetheless that the UAE would gain whether or not sanctions were re-imposed

“The UAE could gain from sanctions because it has previously served as a valuable intermediary during similar periods. Goods that could not be sold to Iran directly due to sanctions were routed through the UAE,” the oped said.

Dr. James M. Dorsey is a senior fellow at the S. Rajaratnam School of International Studies, co-director of the University of Würzburg’s Institute for Fan Culture, and the author of The Turbulent World of Middle East Soccer blog, a book with the same title, Comparative Political Transitions between Southeast Asia and the Middle East and North Africa, co-authored with Dr. Teresita Cruz-Del Rosario and three forthcoming books, Shifting Sands, Essays on Sports and Politics in the Middle East and North Africaas well as Creating Frankenstein: The Saudi Export of Ultra-conservatism and China and the Middle East: Venturing into the Maelstrom.

Middle East

Syria: 10 years of war has left at least 350,000 dead

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A decade of war in Syria has left more 350,200 people dead, High Commissioner Michelle Bachelet told the Human Rights Council on Friday, noting that this total was an “under-count of the actual number of killings”.

These are a result of a war that spiralled out of the 2011 uprising against President Bashar al-Assad’s rule.

Based on the “rigorous work” of the UN Office for the Coordination of Humanitarian Affairs (OCHA), she said that the tally, which includes civilians and combatants, is based on “strict methodology” requiring the deceased’s full name, the date of death, and location of the body.

People behind the numbers

In the first official update on the death toll since 2014, Ms. Bachelet informed the Council that more than one in 13 of those who died due to conflict, was a woman – 26,727 in all – and almost one in 13 was a child – a grim total of 27,126 young lives lost.

The Governorate of Aleppo saw the greatest number of documented killings, with 51,731 named individuals.

Other heavy death tolls were recorded in Rural Damascus, 47,483; Homs, 40,986; Idlib, 33,271; Hama, 31,993; and Tartus, 31,369.

Behind each recorded death was a human being, born free and equal, in dignity and rights”, reminded the High Commissioner.

“We must always make victims’ stories visible, both individually and collectively, because the injustice and horror of each of these deaths should compel us to action.”

More accountability needed

Her office, OHCHR, is processing information on alleged perpetrators, recording victims civilian or combatant status and the type of weapons used, Ms. Bachelet said.

To provide a more complete picture of the scale and impact of the conflict, the UN agency has also established statistical estimation techniques to account for missing data.  

The High Commissioner explained that documenting deaths complements efforts to account for missing people and that her office has been helping the families of the missing, to engage with international human rights mechanisms.

Given the vast number of those missing in Syria, Ms. Bachelet echoed her call for an independent mechanism, with a strong international mandate, to “clarify the fate and whereabouts of missing people; identify human remains; and provide support to relatives”.

No end to the violence

Today, the daily lives of the Syrian people remain “scarred by unimaginable suffering”, the UN human rights chief said, adding that they have endured a decade of conflict, face deepening economic crisis and struggle with the impacts of COVID-19.

Extensive destruction of infrastructure has significantly affected the realization of essential economic and social rights, and there is still no end to the violence.

It is incumbent upon us all to listen to the voices of Syria’s survivors and victims, and to the stories of those who have now fallen silent for ever”, the High Commissioner concluded.

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Lessons Learned: US Seek to Salvage their Relations with the Syrian Kurds

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The hasty retreat of the US troops from Afghanistan has left a sizeable dent in the reputation of the White House among the American public, in the Middle East and the world in general. Washington was criticised heavily for the betrayal of the Afghan government, which paved the way for Taliban to storm to power.

It’s only natural that such events created a breeding ground for uncertainty among US allies in the region. Some of them started to reevaluate their relationship with the White House after the Afghan fiasco; others were having doubts about the US’ commitment beforehand. Current situation forces Washington to take firm actions to validate their status as a powerhouse in the region. There are indicators that US leadership has found a way to regain trust from its allies starting with Kurdish armed units in Syria.

The Kurds became a key ally to the US in their quest to defeat ISIS in Syria. Washington helped to create the predominantly Kurdish Syrian Democratic Forces (SDF), who consequently established control over oil-rich regions in the north-eastern Syria. However the rapid rise of Kurdish influence triggered discontent from other parties of the Syrian conflict: the Assad government and Turkey, who considers SDF an offshoot of the PKK, designated as a terror group by the Turkish authorities. Under this pretext Ankara conducted three full-scale military operations against the Kurds in spite of its membership in the US led coalition.

Turkey remains a major headache for the US in northern Syria as it obstructs the development of a Kurdish autonomy. US failure to act during the Turkish offensive on Al-Bab and then Afrin is still considered one of the most agonizing experiences in the recent history of American-Kurdish partnership. On the flip side, this relationship had its bright moments. US forces were persistent in their cooperation with the Kurds despite Donald Trump’s efforts to withdraw US military presence from Syria. Furthermore, former Pentagon’s chief James Mattis increased funding of SDF in 2019 to a record high of $300 million.

Although the US cut back its support for the Kurds after proclaiming victory over ISIS, it’s still sufficient for SDF to stay among the most combat-capable forces in Syria. US provide machinery, equipment and ammunition, but most importantly teach the Kurds the skills to profit from their resources. Besides training SDF rank soldiers, the American troops prepare their special forces HAT (Hêzên Antî Teror, Anti-Terror Forces) primarily tasked with establishing security on oil facilities as well as detection and elimination of terrorists. In terms of their equipment they practically hold their own even against US troops. During their operations HAT fighters use standardized weaponry, night goggles and other modern resources.

Regardless of all the US aid military capabilities of SDF have one critical vulnerability, namely the lack of air defense. This weakness is successfully exploited by Turkey who uses their drones to bomb Kurdish positions. For the last couple of months the number of air strikes has significantly increased, which brought SDF to find new methods of deflecting air attacks.

There are good grounds to believe that Washington accommodated their partner’s troubles. Thus a source from an US air-base in Middle-East who asked to keep his name and position anonymous told us that on the 18th of September three combat-capable trainer aircraft T-6 Texan have been deployed to Tell Beydar air-base in Hasakah province, Syria. According to the source American instructors have begun a crash course in air pilotage with the candidates picked form the SDF ranks long before the airplanes arrived to their destination. This is implicitly confirmed by the large shipment of US weaponry, machinery and ammunition to Tell Beydar delivered on the 17th of September that included missiles compatible with Texan aircraft.

The sole presence of airplanes, even trainer aircraft, prompts a change in the already existing power balance. T-6 Texan can be used not only for air cover but also as a counter tool to Turkish “Bayraktar” UAVs especially if US grant Kurds access to intel from the radars situated on US air bases. Ultimately, from Turkey’s standpoint it must look like an attempt from the US military to create PKK’s own air force.

This being said the US are better off using political means rather than military if the goal is to handicap Turkish interests in Syria. The groundwork for this has been laid thanks to a reshuffle in the White House under Biden administration. First came the resignation of former US Special Representative for Syria Engagement James F. Jeffrey infamous for his soft spot for Turkey, who has been openly promoting pro-Turkish views in the White House during his tenure. In addition to the loss of their man in Washington, Turkey has gained a powerful adversary represented by the new National Security Council coordinator for the Middle-East and North Africa Brett McGurk. McGurk is a polar opposite to Jeffrey and has sided with the Kurds on numerous occasions. He is well respected among the leaders of SDF because of his work as Special Presidential Envoy for the Global Coalition to counter ISIS.

The only yet the most important question that is yet to be answered is the position of US president Joe Biden. So far Biden’s administration has been avoiding radical shifts regarding its Syria policy. Development of cooperation with the Kurds considering they have proven their reliability might come as a logical solution that will also allow the White House to show their teeth. Washington cannot endure another Afghanistan-like fiasco that will destroy their reputation figuratively and their allies literally. Even with all possible negative outcomes taken into account the enhancement of cooperation with the Kurds outweighs the drawbacks and remains the optimal route for the US.

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Turkish Geopolitics and the Kabul Airport Saga

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Image credit: Hurriyet daily news

The Taliban’s ultimate agreement to a prominent Turkish security presence at Afghanistan’s only airport completes an important power-play for the latter. Ankara wishes to establish itself as a dominant player in the post-U.S. withdrawal Afghan affairs, ensuring that the U.S. looks to it as an ideal partner for its future policies in Afghanistan. It is in this context that Turkey having overcome the formerly heated rejections by the Taliban of its proposed role at the airport is highly significant as it portends the closer integration of Afghanistan into familiar Turkish geopolitical agendas.

Turkey’s Afghan power-play and the U.S.

Turkey’s announcement in June of plans to militarily manage the security at Kabul’s Hamid Karzai International Airport with U.S. financial support incensed the Taliban.

By not consulting or informing the powerful Islamist group on such a major issue in a post-withdrawal Afghanistan, Turkey signaled its view of the Taliban as inimical non-state actors lacking the stature to act upon the pretext of Afghan sovereignty. Indeed, President Tayyip Erdogan accused the Taliban of the ‘occupation’ of the Afghan territory in response to their warnings that Turkey’s airport plan violated the Doha Accords in terms of the exit of all foreign forces from Afghanistan and that they would harshly react to it.

The Taliban’s near-effortless takeover of Kabul in mid-August seemed to close the chapter on the airport saga, but deadly ISIS bombings near the airport two weeks later forced the new regime to consider external help in filling the Afghan security vacuum.

Consequently, Turkey gained not only an acquiescence from Afghanistan’s strongest faction to its desired role at the airport but also an affirmation of its capacity to face down and override local actors as a foreign power seeking to guide its Afghan initiatives to fruition.

This may appeal strongly to the U.S., which has increased its geoeconomic interests in Afghanistan in parallel with the process of its military disengagement from the country. These interests take the form of large infrastructure trade projects of a regional scale and would benefit if shielded from the whims of domestic Afghan factions that tend to cripple governance and policy implementation. Ankara’s assertive posture during the airport tussle with the Taliban helps it pitch itself to Washington as capable of doing precisely this.

The Central Asia factor

These trade infrastructure projects in Afghanistan aim to develop it as a transit hub for Central Asian trade to extra-regional markets as outlined in the U.S. ‘Strategy for Central Asia 2019-25’. The U.S. affords considerable importance to this strategy both as a means of rebuilding Afghanistan and providing the Central Asian states with new trade routes that do not need to transit the territory of Russia, their former Soviet patron and America’s great-power rival.

Turkey shares the goal of increasing Central Asia’s global connectivity, whilst envisioning itself the natural leader and conduit for the Turkic Central Asian states’ growing socio-economic bonds with the outside world. By acting as a lead-from-the-front partner for the U.S. in the post-withdrawal Afghanistan, Turkey can persuade the U.S. to entrust it with the Afghan leg of the Strategy for Central Asia.

Turkey could then inculcate the progress of its own connectivity projects for Central Asia into the U.S. priorities as a premium of sorts for its services tackling Afghanistan-based risks and hazards to the U.S. Strategy for Central Asia. These Turkish-led projects include the East West Trans-Caspian Middle Corridor (connecting Turkmenistan-Kyrgyzstan-Uzbekistan or Kazakhstan to Europe via the Caspian Sea-South Caucasus-Turkey route) and its Eastern spur for Afghanistan, the Lapis Lazuli Corridor (connecting northwest Afghanistan via Turkmenistan to the same Caspian Sea-South Caucasus-Turkey route to Europe).

The text of the US Strategy for Central Asia does mention and pledge favourable visa and customs policies for the Lapis Lazuli Corridor, but does not mention the Middle Corridor or Turkey at all. The absence of the latter two key names indicates that U.S. backing for the Lapis Lazuli Corridor likely owed to the simple fact that it directly includes Afghanistan and has already been functional since December 2018. Thus, the U.S. does not formally endorse the East-West connectivity for Central Asia—which Turkey specializes at—under the rubric of its Strategy for Central Asia.

“Senior [Trump] administration officials have expressed support for specific infrastructure projects—such as, notably, Georgia’s deep-water port project in Anaklia—but without having cast them as part of a broader regional agenda,” commented Middle East Institute scholar Dr John Calabrese on the erstwhile Donald Trump administration’s position on the Middle Corridor months before the Strategy on Central Asia’s release.

All this greatly limits the pool of U.S. financial and political support that Turkey could tap into for developing and expanding the Middle Corridor, which is the lynchpin for its push for pan-Turkic leadership. Ankara’s remedy for this problem, however, may lie in gaining the mentioned lead-from-the-front ally status vis-a-vis the U.S. in Afghanistan.

As observed by the Central Asia-Caucasus Institute’s Chairman and Director Frederick Starr and Svante Cornell, the present U.S. approach represents important shifts in the American conceptualization of Afghanistan and Central Asia relative to each other. These are a departure from the long-standing tendency to ‘view Central Asia as an appendix to Afghanistan policy’ and an embrace of Central Asia as a bloc. Both these shifts laid the basis for the U.S. Afghan policy to take its cue from Central Asia’s development. Officially mandating the development of an East-West transport corridor from Central Asia to Europe—in short, Turkey’s Middle Corridor—is the next logical step in this paradigm.

Starr and Cornell, leading proponents in the U.S. policy advocacy community for treating Afghanistan as part of Central Asia, identify the East-West transport corridor as crucial to the Strategy for Central Asia and criticize the document for not mentioning it.

Thus, from its position in Afghanistan, Turkey can orient the inputs it feeds back to its diplomatic and military partners in Washington around the case for the merger of the U.S. Afghanistan and Central Asia policies that Starr and Cornel advocate. The U.S. will expect actionable suggestions from its top consultative partner for Afghanistan to actualize this merger, paving the way for Turkey to impactfully pitch the Middle Corridor as the solution.

This could well become an elusive opening that Turkey has long needed to bridge the chasm between the Middle Corridor’s innate appeal to the U.S. great-power sensitivities underpinning its Central Asia posture and the U.S. seeming disinterest in the corridor. After all, the Middle Corridor bypasses Russia, challenging its monopoly over Central Asia’s trade routes. It also acts as what Starr describes as a ‘Land Suez’ for China to connect to Europe—reducing China’s reliance on transiting Russia for this purpose and offsetting, from Washington’s perspective, the prospect of its two great-power rivals’ geoeconomic priorities aligning too closely.

Subsequent U.S. endorsement of the Middle Corridor would stimulate greater U.S. investment in the mega-project, hitherto limited by the Strategy for Central Asia’s non-mention of East-West connectivity as explored prior.

In addition to this, the Middle Corridor could become an agenda item in multilateral platforms for Central Asia, such as the C5+1, set up by the U.S. with a focus on the Afghan-Central Asian connectivity. This would prop up advocates in Turkic Central Asia for a formal embrace of an Ankara-led Turkic bloc by enabling them to present this as part of the institutionalization of Central Asian affairs as opposed to a pro-Turkish tilt which might alarm Russia, who has a past record of reacting forcefully to external powers engaging in bloc-building in its former Soviet backyard in Eurasia. This will greatly benefit Turkey.

Restoring balance with the West

Afghanistan can arguably bring Turkey’s ideologically-driven desire to carve a Turkic bloc from Central Asia and its more general desire to mitigate the strains in bilateral ties with the U.S. closer together than any other foreign policy file in Ankara.

Linked to Central Asia or not, Afghanistan stands out as a vacuum left by American strategic miscalculations at the regional doorstep of several U.S. rivals. Turkish initiatives, such as the Kabul airport project, clearly designed to preserve U.S. stakes in Afghanistan—at a time when Russia, Iran and China appear poised to capitalize on the U.S. shrinking presence there—can inject fresh credibility into Turkey’s historical image as the West’s Eurasian vanguard.

This will help President Erdogan as he tries to stabilize relations with the U.S. against their list of disputes, from Turkey’s purchase of Russian air defense systems to the U.S. support for Kurdish groups near the Turkish-Syrian border and beyond. Additionally, President Joe Biden faces mounting public and political pressure at home over the rapid collapse of the former U.S.-backed Kabul government in the Taliban’s wake; in this context, Turkey volunteering itself as a new and coherent vehicle for U.S. interests in Afghanistan may prove the very ice-breaker Erdogan needs for his notably bleak relationship with Biden.

However much progress Ankara makes in these endeavours, its headstrong approach and eventual success in securing a role at Kabul’s airport points to strategic clarity and an expectation of Afghanistan’s seamless integration into Turkish geopolitics.

From our partner RIAC

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