EU sanctions won't work: Iran

24 Jan 2012, 11:21 am   -   Source: AFP
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Iran says a decision by the European Union to impose an embargo on Iranian oil, which it buys 20 per cent of, would neither alter Tehran's nuclear policies nor affect its economy.

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Iran on Monday branded as "unfair" a decision by the European Union to impose an embargo on Iranian oil exports as its lawmakers vowed the ban would neither alter Tehran's nuclear policies nor affect its economy.
  
"The method of threat, pressure and unfair sanctions against a nation that has a strong reason for its approach is doomed to fail," Foreign Ministry spokesman Ramin Mehmanparast said, quoted by the state broadcaster's website.
  
The spokesman said the newly adopted punitive measures would not prevent Iran from achieving its "inalienable rights."
  
The term is frequently used by Iranian President Mahmoud Ahmadinejad and other officials to refer to Tehran's nuclear programme which they say is designed to master only civilian applications of the technology.
  
Western powers suspect Tehran is developing an atomic weapons programme.
  
The European Union on Monday slapped an embargo on Iranian oil exports as the West ramped up pressure on Tehran over its controversial nuclear drive and urged it to return to the negotiating table.
  
EU foreign ministers agreed on an immediate ban on oil imports and a phase-out of existing contracts up to July 1. They also froze the assets of Iran's central bank while ensuring legitimate trade under strict conditions.
  
Mehmanparast said that the EU decision was shaped "under the political pressure of the United States," and warned that Tehran would immediately replace any country that turned its back on Iran's vast energy reserves.
  
The EU sanctions are among some of the toughest actions so far aimed at reducing the Islamic republic's ability to fund its nuclear weapons programme.
  
Iran sells about 20 percent of its oil to EU nations, in large parts to Greece, Italy and Spain.
  
Iranian lawmakers also downplayed the EU ban.

IRAN CONFIDENT
  
Ali Adyani, a member of the Iranian parliament's energy commission, said the decision would "only serve some American and European politicians. It will not have any effect on Iran's economy," Fars news agency reported.
  
Another commission member, Hassan Shabanpour, rejected the sanctions as "propaganda", telling the parliament's website Saudi Arabia would not be able to compensate for Iran's oil exports to Europe.
  
The measures would cause a "drastic hike in oil prices" across the globe, he warned.
  
But the impacts of the new sanctions regime are becoming apparent as Iran's currency, the rial, continued a drastic weeks-long drop in value against the dollar on Monday.
  
The unofficial exchange rate in central Tehran was about 20,500 rials against the dollar during the day, the official IRNA news agency reported.
  
Although Iran's government insists there is no connection between the rial's slide and new sanctions, some officials have admitted a psychological effect as international sanctions spook ordinary Iranians.
  
The government has tried to shore up the rial by imposing a lower rate in banks and currency exchange bureaus, while also banning transactions outside of such outlets.
  
Last week, Iran's central bank banned possession and transactions in foreign currencies, including the dollar, without an official invoice, warning offenders would be prosecuted.
  
But many exchange bureaus have refused to buy or sell dollars at the imposed rates, thereby prompting along a black market despite police efforts to enforce the ban.
  
A sudden acceleration in the slide was seen after US President Barack Obama at the end of December signed into law more sanctions hitting the central bank and targeting foreign firms which do business with the Islamic republic.
  
The new EU sanctions meanwhile would make it even more difficult for Iran, OPEC's second largest producer, to be paid in foreign currency for its oil exports, worth more than 100 billion dollars in 2011.
  
The currency crisis has provoked a rush for gold and other non-currency assets, with the price of gold coins in Iran rising by 25 percent since January 18.




 

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Your Comments

Why hide

Clam - from brisbane, 4 months ago

If you have nothing to hide, why bury it in a bunker?

US bollocks

Mj - from WA, 4 months ago

I'm sceptical when it comes to the motives of the USA. The invasion of Iraq should be proof enough. If Iran claim this is a peaceful development - fine - im sure they wouldnt mind then operating under the watchful eye of the UN. Why then is the first option to make (if anything) Irans citizens suffer. Let them continue I say, what ever happened to innocent until proven guilty?

Iranian Heros

Ignatius - from Sydney, 4 months ago

I am a true blooded Australian and i seriously hope that Iran really gives it to the USA and its lapdogs when they invade make them pay dearly in casualties

Australian suckers

Harry - from Chatswood, 4 months ago

Lets all chip in and help the USA secure more oil for themselves in the future $5 a litre isnt unreasonable when the most Americans will ever pay is $3... a gallon

mr

cog - from wa, 4 months ago

I really think it is possibly better if you can live in one of them civilized countries....

Of course they have

Cat - from Adelaide, 4 months ago

Of course Iran has a nuclear weapons programme. The location of some of their nuclear sites is proof enough. It is worrying enough that Israel feels the need for such a programme but they at least are unlikely to launch an unprovoked nuclear attack. Iran may well do, especially with their current president at the helm!

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