Nahavandian: $100 Billion Additional Costs Imposed Due to Sanctions

The head of the Iranian President's Office, Mohammad Nahavandian, stated that "the creation of corruption and increased costs" are among the impacts of Western sanctions against Iran, announcing that over the past eight years, sanctions have imposed "$100 billion in additional transactional costs" on the country. According to the House of Representatives-affiliated news agency, on Tuesday, September 24, in a meeting of the commission reviewing the "JCPOA," Nahavandian said that due to sanctions, Iran's economy has incurred an additional transactional cost of $15 billion annually and $130 million daily. He noted that "by a rough estimate," imports to Iran during the sanctions have been 15% more expensive. He added, "Ask Mr. Zangeneh why we had to buy some sensitive goods three times because two times they got stuck, which means an increase in transactional costs." Previously, multiple reports have been published regarding the increased costs of imports in Iran during the sanctions and also financial abuses in circumventing Western sanctions against Iran during the presidency of Mahmoud Ahmadinejad. One recent case involves the "disappearance" of an $87 million oil rig for which the money was reportedly paid but did not enter Iran. Babak Zanjani, an Iranian businessman currently in prison, is among those who claimed to have played a significant role in circumventing Iran's sanctions. Meanwhile, Mohammad Reza Khabaz, a member of the Iranian Presidential Office's parliamentary assistance, reported on June 3, 2014, the "disappearance" of funds for the purchase of 1.6 million tons of wheat during the sanctions and during Ahmadinejad's presidency. Yahya Al-Es’hagh, head of the Tehran Chamber of Commerce, previously stated that sanctions "put $25 billion into the pockets of abusers at specific times." Meanwhile, Iranian President Hassan Rouhani stated on June 24 that due to sanctions, every foreign item in Iran is "at least 10 to 15%" more expensive. On that day, Rouhani also mentioned to the commanders of the IRGC regarding the sanctions that "we consider the sanctions of the great powers to be unjust and have not accepted them, but unfortunately, others, even our friendly countries, have complied with these sanctions." In another part of his speech, the head of the Iranian President's Office stated that after the Vienna nuclear agreement and the lifting of sanctions, the Iranian economy has "emerged from being a hostage." According to Nahavandian, due to the reduction in Iran's oil sales in recent years, "$75 million a day has been inflicted on the country as damage." Mohsen Rezaei, secretary of the Expediency Discernment Council of Iran, also reported on January 21, 2015, a reduction of "$100 billion" from Iran's oil revenues over the three years prior due to sanctions. Before international sanctions due to its nuclear activities, Iran exported 2.5 million barrels of oil daily, but this figure was halved after Western sanctions. The head of the Iranian President's Office also announced that after the implementation of the Vienna nuclear agreement, 800 Iranian individuals and entities will be removed from the "economic and nuclear" sanctions list. Nahavandian emphasized that some of the U.S. sanctions against Iran were imposed since 1979, and if negotiations were to take place regarding this, political and bilateral negotiations between Iran and the U.S. should have occurred. He added, "The other side was eager to enter into bilateral negotiations with Iran, but Iran was not willing to engage in such negotiations at this time." Previously, some critics of the Vienna nuclear agreement have stated that even after the agreement, the structure of Western sanctions against Iran will remain intact. Among them, Saeed Jalili, the head of Iran's former nuclear negotiation team, stated in a special commission meeting on September 22 that after the implementation of the Vienna nuclear agreement, some sanctions, such as the SWIFT sanctions, fuel supply sanctions to ships and cargo planes, and the asset sanctions against 224 individuals and entities, including some universities, banks, organizations, companies, economic entities, and industrial groups, "will not even be suspended for another eight years, let alone lifted." In response to these statements, Mohammad Javad Zarif, Iran's foreign minister, emphasized on September 22 that all economic, financial, and monetary sanctions of the European Union, aviation sanctions, and all U.S. sanctions that "apply to non-American individuals" will be "lifted" from the day the Vienna nuclear agreement is implemented.