Middle East
Iran: Which way to go?

The US withdrawal from the Joint Comprehensive Plan of Action (JCPOA), seriously hampered the chances for keeping the landmark accord in place.
The accord, signed in 2015 by the P5+1 group of countries — China, Germany, France, Russia, the United Kingdom and the United States — with Iran, requires Tehran to maintain a peaceful nuclear program in exchange for sanctions relief.
According to the IAEA, Iran strictly abides by the terms of the JCPOA, while the international community is unable to do the same, no matter how much politicians in the EU and other countries would like to stick to its provisions – all because of US pressure.
Sadly, the United States has financial and economic levers to punish not only Iran, but also foreign companies doing business with the Islamic Republic. Given the choice of either maintaining business relations with the US and the rest of the world or with Iran alone, there is little wonder which of the two options they will go for. This doesn’t necessarily mean that they will do this under US pressure. Business always goes where the money is and sticking with the US looks a more profitable way to go. This is exactly what business-savvy Donald Trump is staking on.
In 2018, some 100 foreign companies, including big ones as Shell, Volkswagen, Daimler, Peugeot, Airbus, Total, PSA, Siemens, and Russia’s LUKOIL and Zarubezhneft, started pulling out of Iran even before the US sanctions, announced by President Trump in May, actually took effect. However, although bending under Washington’s pressure, the authors of the 2015 Iran nuclear deal (Russia, China, Britain, France and Germany) as well as the European Union as a whole and many other countries around the world are still interested in keeping the nuclear accord alive. Why?
First, the JCPOA is a truly historic document which, possibly for the first time ever (not mentioning, of course, the Treaty on the Non-Proliferation of Nuclear Weapons – NPT) has curbed the nuclear ambitions of a particular country and put its nuclear program strictly in line with international laws and IAEA requirements. This is a vivid example of the world countries’ effective diplomatic work, which created a precedent of genuine confidence of the parties for the sake of preserving the nuclear non-proliferation regime.
Secondly, Iran a leading player in the volatile region of Western Asia, which incorporates the Middle and Near East, the Caucasus, the Caspian Sea zone, and Central Asia.
Thirdly, it should be borne in mind that Iran is a powerful source of hydrocarbons, and that its territory is an important transit route for oil, natural gas and other products to the world market. A well-educated population and a relatively developed industry and agriculture attract the attention of world business. In addition, the 70-million-strong Iran, which boasts one of the world’s biggest militaries, is an important factor in West Asian and world politics.
What needs to be done to resist US sanctions and, thereby, save the JCPOA?
To solve this complex task, Iran and all countries willing to preserve the accord, above all Britain, France, Germany and the EU as a whole, should work together. This is already being done now with the direct and active participation of Russia and China.
Today, the main priorities are:
Providing legal assistance to companies doing business with Iran. The practical implementation of the EU-declared blocking statute, which declares null and void US sanctions against Iran on its territory, prohibits European companies from observing them, as well as implementing any decisions by foreign stemming from these sanctions. The blocking statute also allows European organizations to take legal action to make up for the losses incurred as a result of the implementation of sanctions at the expense of persons who caused these losses (meaning the US government).
It is also necessary to establish an independent payment system that would safeguard European businesses against US sanctions on Tehran (a special purpose vehicle, SPV, to facilitate financial transactions with Iran) with the possible involvement, among others, of the French and German central banks.
The EU is creating a special legal entity to carry out transactions with Iran. Other participants will be able to join in, which will allow European companies to work with Iran in keeping with European legislation – something like the SWIFT banking system, only on a European scale and based on the euro.
This will be an extremely difficult task for Europeans, both from “political” (a real challenge to the US) and technical standpoints. EU foreign policy chief, Frederica Mogherini, said: “The involvement of the Finance Ministers of the E3 [France, Germany, UK] is of key importance at this stage. They are working hard to finalize it. I cannot tell you a date, but I can tell you that work is continuing and is progressing in a positive manner.”
In his turn, Russia’s Deputy Foreign Minister Sergei Ryabkov said that this was fraught with problems.
“We need to redouble our efforts here and this is what we are doing now with both Europeans and Iranians.”
Meanwhile, the Iranians, who have so far been strictly implementing the terms of the 2015 nuclear accord, are losing faith in the EU’s ability to resolve the problem. Therefore, it may take several months to see whether this plan is really working.
Speeding up the process of shifting to the use of national currency in trade with Iran (primarily by Russia, China, India, Turkey, which have done this before) would be of much help to Tehran.
In order to move around the financial and banking hurdles erected by the United States, it would be advisable to enlist the help, whenever possible, of Islamic banks in Muslim countries for cash transactions to and from Iran. The Islamic banking system has its specific features that are hard to destroy from the outside, even by a financial superpower like the United States.
The same is true about small and medium-sized companies in Muslim countries used as intermediaries in financial transactions with Tehran. Moreover, it is small and medium businesses, and not necessarily in Muslim countries alone, that can play the main role in maintaining trade and other economic relations with Iran.
Therefore, it would be equally desirable for the EU to provide legal and financial assistance to small and medium-sized companies in Europe, which are willing to do business with Iran, and to shift the main load from big companies to medium and small firms for financial transactions with Iran in Euros. Even though they will hardly be able to completely replace the giant companies, small and medium-sized firms have all they need to offset at least part of the losses. According to Iranian estimates, Tehran hopes to establish business relations with many of the 23 million or so small and medium-scale enterprises in Europe in order to circumvent US sanctions. Moreover, Iran has good experience in getting around tough sanctions between 2012 and 2016.
What can Tehran do under these circumstances? First and foremost, it should establish a business triangle of Iran-EU, Islamic banks and Islamic small and medium-sized businesses, build close trade and economic partnership with European and other small and medium-sized businesses. This is quite feasible because the Americans will find it hard to keep an eye on a huge number of enterprises, much less trace their transactions in Euros, especially if the European Union contributes to such cooperation with Iran.
Iran’s Supreme Economic Coordination Council recently allowed the country’s private sector to sell crude oil abroad as a way of circumventing US sanctions. This is the first time the Iranian private companies have been granted permission to trade in oil. Tehran should avail itself of this opportunity as soon as possible.
As for Iran’s time-tested methods of tackling sanctions like, for example, the use of “ghost” oil tankers, which switch off their automatic identification system (AIS) transmitters not to disclose their route and destination, as well as selling “unrecorded” oil at reduced prices, I can assume that these methods have been used before and are being used today.
It seems that, in view of the situation at hand, Tehran should also recall its oil-for-goods project with Russia, prepared back in 2014, whereby Iran supplies oil to Russia (at least 100,000 barrels per day – about 5 million tons a year) in exchange for industrial equipment and machinery. Four years ago, the plan was never implemented in full because Iran, already withdrawing from the sanctions regime in keeping with the JCPOA, was no longer interested in it.
There was only one shipment made in November 2017, to the tune of 1 million tons. The project could be revived now. Russia’s Promsyryeimport, which is part of the Russian Energy Ministry and was created expressly with this project in mind, will implement the Russian side of the deal.
A program of developing two Iranian oil fields, Aban and Peydar, by Promsyryeimport (which replaced Zarubezhneft) and Iran’s Dana Energy Company, could also be considered.
Overall, the across-the-board cooperation between Russia and Iran against US sanctions could contribute very significantly to minimizing their impact.
Tehran will certainly put to maximum use the great potential of the Islamic Revolutionary Guard Corps (IRGC), which proved so effective during the period of hard-hitting sanctions of 2012-2016 and which controls between 25% and 35% of the country’s economy and 25% of all its capital.
In 2012-2016, the IRGC set up a large-scale system of circumventing the sanctions by controlling considerable “gray” financial flows to, through and out of Iran. IRGC intelligence was gathering information abroad about the “weak” spots in the sanctions system, about the most effective ways of circumventing sanctions, and was also obtaining data on new technologies Iran was not allowed to buy.
Iran and countries opposed to US sanctions against it are looking for ways to ease their impact. Even though completely neutralizing the negative effect of these sanctions will hardly be possible, a certain let-up is quite possible.
Well, the Iranian response to the US sanctions could at times be controversial, but Washington’s exit from the JCPOA and the US sanctions themselves are by no means legal either.
In October, President Hassan Rouhani warned that the previous four months had been a difficult time for the Iranians and that the coming few months would be equally hard. He said that the government would make every effort possible to tackle the situation. Meanwhile, Tehran says it will stick to the terms of the JCPOA as long as its other signatories (save for the US, of course) do the same. Can they do this?
The situation is complex and unpredictable. For Iran, much will depend on whether the JCPOA is kept alive without the US, if Tehran is able to maintain, albeit limited, financial and economic cooperation with foreign countries, primarily with small and medium-sized businesses, and whether it is satisfied with the results of this cooperation.
How will the sanctions, and especially the fall in oil production and exports, affect the national economy and the life of ordinary Iranians? A good question, given the impact the internal political situation can have on the alignment of political forces in the country.
The outcome of this struggle may not take too long coming. Maybe six months, when a European mechanism against Washington’s unlawful withdrawal from the JCPOA and the resumption of its sanctions on Iran is already in place and the deadline set by President Trump for the eight importers of Iranian oil has expired.
First published in our partner International Affairs
Middle East
Can Erdogan repay the people’s trust?

The Turkiye nation has concluded the most important election in the country’s modern history. The people of modern Turkey came to determine their destiny at a time when their national economic condition is at a very deplorable level. The depreciation of the lira against the dollar has made the cost of goods and the cost of living more expensive. Inflation is now rampant in the country. Economists say inflation reached 85 percent last year.
The country’s currency, the lira, has fallen to a tenth of its value against the dollar over the past decade. Abnormal inflation causes the prices of goods to rise. Imports cost more as the lira depreciates. On the other hand, 11 provinces in Turkey are struggling to deal with the shock of two earthquakes recently. More than 50 thousand people died in this earthquake.
Despite this severe national crisis and economic instability, the majority of the Turkish people have not lost faith in Erdogan. This is an amazing event. Turkey’s 2023 national election reinstated Recep Tayyip Erdoğan, the sultan in power for the past 20 years, as president. On the other hand, the main challenger, the presidential candidate of the Nations Alliance and the leader of the secular Republican People’s Party (CHP), Kemal Kilizdarglu, was defeated.
Erdoğan was elected the first mayor of Istanbul in 1994. At that time, he took the initiative to solve various problems that arose in Istanbul due to rapid population growth, such as air pollution, waste collection, and a shortage of clean water. However, after four years, he had to stand in court for reciting a controversial poem. Erdogan was sentenced to four months in prison for spreading religious hatred. Basically, this event was the unforgettable beginning of the significant public opinion formation behind his rise.
Recep Tayyip Erdogan took power as the country’s prime minister in 2003. The people of Turkey trusted him in the 2018 elections as well. Recep Tayyip Erdogan has been elected President of Turkey for the third consecutive term. He will lead the country in the international arena for the next five years. Turkey will create a new equation in geopolitics. An experienced Erdogan will negotiate well with international actors.
Erdogan comes from the conservative political camp. He entered politics with the Salvation Party of political guru Nazimuddin Erbakan. In 1976, he was elected head of the Beyoglu region of the youth wing. The National Salvation Party was headed by Nazimuddin Erbakan. He later served as Prime Minister of Turkey in 1996–97.
Modern Turkey emerged as a secular state under Mustafa Kemal Atatürk in the 1920s. Erdogan created a new national manifesto with a lot of new energy, new plans, and a new national manifesto in that country. The first decade of his AK Party rule saw democratic reforms in Turkey. It had to be done because of the country’s desire to join the European Union. During this time, Erdogan was praised by liberals at home and abroad for reducing the authority of the army in the country and working to protect the rights of women and minority ethnic groups. However, Erdogan was criticized for becoming more authoritarian over the next decade. According to many, Erdogan has exacerbated divisions in Turkey.
Basically, he became popular in the Muslim world by expressing his anti-US and especially anti-European attitude in the polls, winning the hearts of the voters, and developing relations with Muslim countries. He converted Turkey from a parliamentary system to a presidential system in 2014. According to the opposition, Erdogan made such changes in the regime to enjoy sole power. Erdogan’s supporters regard him as ‘fatherly’, but opponents consider him an ‘authoritarian’ ruler. Its reflection can be seen in the international environment. During Erdogan’s regime, on the one hand, the distance between Turkey, an important member of NATO, and its allies, the United States and Europe, increased. At the same time, the closeness is increasing with anti-Western Russia and China.
Jeffrey Mankoff, an analyst at the Washington, DC-based Center for Strategic and International Studies, said, “Many officials and political leaders in Western countries are upset with Turkey’s Erdogan. They expressed disappointment in him. They believe that Erdogan is the main reason for Turkey’s growing distance from the West. He took everything personally and walked the path of cheap popularity.’
Therefore, with Erdogan ruling Turkey for the past 20 years, there has been a major change in Turkey’s foreign policy as well as socio-economic development. As a result of his long rule, he made many enemies and allies at home and abroad. Now it’s time to just watch, as Turkey’s economy is also seen as a big factor in this election. Will Erdogan be able to restore Turkey’s conventional economy, and how will he repay the public’s trust? These questions have become important.
Middle East
The 32nd Arab League meeting will have a far-reaching impact

The Arab League is an alliance of states that currently has 22 member states in Northern Africa and on the Arabian Peninsula, which belongs geographically to Asia. All member countries together cover an area of 13.15 million km² (8.7% of the world’s inhabitable area). Significant parts are desert regions such as the Sahara and the Rub al-Khali sand desert. With about 456.52 million inhabitants, the area is home to about 5.8 percent of the world’s population.
On October 7, 1944, a “Protocol of Alexandria” was signed as a loose union. After elaborating on the ideas, the Arab League was founded the following year on 11 May 1945. The first member states were the kingdoms of Egypt, Iraq, Saudi Arabia, and Yemen, as well as Lebanon, Syria, and the then Emirate of Transjordan.
The history of the Arab League since then has been marked by numerous political and military conflicts in the region. In the immediate post-war period, the growing Jewish population in Palestine played a major role. This led to the division of Palestine into a Jewish and an Arab state in 1949. With the withdrawal of the British Allies, there was also a lack of an overarching protective power and serious and recurrent conflicts with Israel arose.
The recent 32nd Arab League Meeting held in the magnificent city of Jeddah, Saudi Arabia, has drawn to a successful close, leaving a profound impact on regional politics. High-ranking officials and diplomats from Arab nations gathered to discuss pressing issues and forge a path toward greater cooperation and unity. The meeting, which took place against a backdrop of evolving geopolitical dynamics, produced key decisions that are poised to shape the future of the Arab world.
Hosted by the Kingdom of Saudi Arabia, a staunch advocate of Arab solidarity and stability, the summit aimed to bolster inter-Arab relations and address the region’s most pressing challenges. Under the gracious patronage of His Majesty King Salman bin Abdulaziz Al Saud, leaders and representatives from across the Arab League engaged in constructive dialogue, fostering an atmosphere of camaraderie and shared vision.
One of the major highlights of the meeting was the unanimous agreement on establishing a joint counterterrorism center. This significant step underscores the Arab League’s commitment to combating terrorism and maintaining regional security. The center will serve as a platform for intelligence sharing, coordinated efforts, and capacity building among member states, further enhancing the collective response to the ever-present threat of extremism.
In addition to counterterrorism initiatives, the Arab League delegates focused on revitalizing the Arab Peace Initiative, which has been instrumental in pursuing a just and lasting resolution to the Israeli-Palestinian conflict. The participants expressed their unwavering support for the rights of the Palestinian people and called for renewed international efforts to resume meaningful negotiations. The Arab League’s stance sends a clear message that a comprehensive and equitable solution is imperative for sustainable peace in the region.
Moreover, discussions during the summit centered on the ongoing crises in Libya, Syria, and Yemen. Arab League members pledged increased support and cooperation in finding political solutions and bringing stability to these war-torn nations. The delegates affirmed their commitment to the principles of sovereignty, territorial integrity, and non-interference, emphasizing the need for inclusive dialogue to end conflicts and restore peace.
The political impact of the Arab League Meeting cannot be understated. It signifies a renewed commitment to Arab unity and cooperation amid a rapidly changing regional landscape. The decisions made in Jeddah hold the potential to shape the political dynamics of the Arab world, ensuring stability, security, and prosperity for its nations and peoples.
The meeting also provided an opportunity for member states to strengthen bilateral relations and engage in fruitful discussions on areas of mutual interest. In the spirit of constructive diplomacy, numerous side meetings and cultural exchanges took place, fostering greater understanding and cooperation among Arab nations.
As the Arab League Meeting drew to a close, the host nation, Saudi Arabia, expressed gratitude to all participating countries for their valuable contributions and emphasized its commitment to further collaboration in the future. The outcomes of the meeting will be diligently pursued and implemented, underlining the shared determination of Arab nations to overcome challenges and seize opportunities for progress.
This time the participation of Syria was a milestone, it happened after 12 years of absence. Another important aspect was the attendance of Ukrainian President Zelenskyy. These two important aspects will have far-reaching impacts on regional politics and global peace, stability, and security.
Middle East
Regional Connectivity in the Gulf Cooperation Council

The Gulf Cooperation Council consists of a region of some of the most formidable economies in the world that enjoy vast oil and gas reserves which have brought them immense wealth. The GCC have combined oil reserves of about 497 billion barrels which is 34% of the world’s supply, according to King Abdullah Petroleum Studies and Research Center. However, these countries also share similar problems, which have become increasingly apparent with the fluctuation and gradual decline in global oil prices as well as the impacts of climate change. Since gulf countries share similar economic issues, it means that they should take collaborative efforts to curb these problems as well. Enhancing regional connectivity is one way to achieve this. It will help improve the economies of all GCC member states in the future and allow them to connect with larger markets.
Over the years, several steps have been taken by gulf countries to improve regional connectivity. For instance, since 1980s, there have been plans and several attempts to create a common GCC currency termed as Khaleeji or Dinar. The currency is expected to be valued at around 1 USD = 1.984 KHJ. Although since then, Oman and the UAE have withdrawn from the plans until further notice, this idea still enjoys popularity and GCC governments are still considering it. The region already meets many of the necessary criteria for a common currency as all seven of the countries have very similar economies, values, cultures, and histories. A common currency would bolster trade flows between the countries by removing border barriers, which will result in cheaper goods and services, particularly of healthcare, tourism, and education, and economic well-being of all the countries involved as a result of increased regional connectivity. A common gulf currency would also reduce exchange-rate uncertainties. Tourists and citizens would not need to constantly exchange currencies when visiting different countries in the region. A common currency will also reduce barriers for the transfer of people between gulf countries which will make it easy to exchange skilled labour, thus decreasing unemployment overall and also producing more opportunities for highly educated domestic workers being produced every year. It will also lead to greater economic integration in the GCC as regional connectivity grows stronger.
GCC countries have also begun to seriously explore strengthening transport links. After careful thought and deliberation, gulf countries have agreed to build a 2177km GCC railway in 2009 stretching from Kuwait, entering Saudi Arabia, connecting Bahrain as well as Qatar, then moving through the UAE and ending in Oman. The railway will also connect vast networks of existing and planned railway networks in Saudi Arabia, the UAE, Qatar, and Oman, further improving regional connectivity in the gulf. The project is expected to be completed by 2025 and is expected to drastically improve trade costs, travel times, and connectivity between ports and cities. It will boost trade flows across the bloc and attract foreign direct investment. The GCC also aims to establish a common market and joint Customs union to further strengthen regional connectivity, which will result in greater economic growth and integration. The Saudis have already started expanding their already vast network of railway tracks. They have completed the al-Qurayyat station which connects Riyadh to Jordan and the rest of northern Saudi Arabia, stretching across 1215km. Moreover, the kingdom completed the Haramain speed train at Rabigh Station which connects the Holy cities of Makkah and Madinah through a 450 km track. The UAE has also expanded its existing railway infrastructure, especially with a national rail network connecting 11 cities with trains travelling 200km per hour. Moreover, the Qataris have also built an extensive railway network as part of their efforts to organize the FIFA World Cup last year which consists of 26 projects. These railway lines will be connected with the GCC railway and they will boost regional connectivity in the region, facilitating the transport of people, information, and goods.
Other measures that the GCC could take to enhance regional connectivity would be to take steps to incorporate long term strategies of each member. All GCC member states have similar long-term goals as outlined by Saudi Vision 2030, Bahrain Vision 2030, Kuwait Vision 2035, UAE Vision 2030, Qatar Vision 2030, and Oman Vision 2040. The crux of these plans is to rid GCC states of oil dependence, combat climate change, and increase tourism and entertainment for more economic diversification. Integrating these efforts will increase collaboration, which will duly increase regional connectivity, resulting in more efficient execution of these plans. Moreover, other approaches include easing or eliminating border restrictions to enable free movement between GCC states for citizens and tourists. A major factor limiting trade is border restrictions as trade is less likely to happen if there is a border in between, even if the distance is negligible. If border restrictions are eliminated, then trade will become more frequent and there will be greater regional connectivity between adjacent countries. Furthermore, tourists will also be able to easily access other GCC member states and hence spend more money, cross border competition between markets would also increase, leading to more competitive prices, and finally, it will also reduce price differentials for people who live in areas that are near borders.
For this to happen, GCC countries need to improve diplomatic relations among themselves. This is particularly true after the diplomatic tensions between Qatar and Saudi Arabia between 2017 and 2021 which had forced the GCC nation to seek reroute flights and vessels. Such diplomatic crises will harm prospects for regional connectivity in the GCC and therefore need to be avoided. Moreover, the GCC’s economic growth is expected only at 3.2%, which is much lower than the 7.3% figure estimated in 2022. The figure is also a decline from the 5.8% growth in 2022. Furthermore, oil prices had been declining since many years, which poses a danger to the economies of the GCC. Although a cut in output by OPEC+ member states will boost oil prices in the short-run (they already helped oil prices cross $80 per barrel), this is not sustainable for the GCC economies. Therefore, GCC countries face a range of serious challenges when it comes to regional connectivity. However, the opportunities far outweigh the challenges and the GCC enjoys potential to become an economic powerhouse in the region.
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