USA: Sanctions Have Reversed Iran's Economy by Seven Years

Adam Zubin, the Deputy Secretary of the Treasury of the United States, stated that international sanctions against Iran have caused a seven-year setback in the Iranian economy. Mr. Zubin, who appeared alongside Wendy Sherman at a Senate Banking Committee meeting on Wednesday, August 5, to answer questions from the committee, responded to a question about the actual and precise amount of assets that Iran would acquire after the lifting of sanctions and how it would spend them in Iran, saying: "Iran's central bank reserves abroad are about $100 billion, but Iran can only access about $50 billion of that because part of its money has already been spent and part of it is not accessible." According to him, Iran will not even spend all of this $50 billion, as all countries keep part of their foreign reserves in financial centers outside their country, and Iran will do the same. The U.S. Deputy Treasury Secretary for Terrorism further explained that Iran needs $500 billion to rebuild its economy. He added: "Iran's oil industries, which are the main source of income for the country, need $200 billion to return to their pre-sanction status, and the Iranian economy needs at least seven years to reach a condition that it should have been in today; because sanctions have caused a seven-year economic setback for Iran." Some members of Congress, including senators on the Banking Committee and critics of the nuclear deal with Iran, are concerned that Iran will acquire substantial foreign reserves after the lifting of sanctions and will spend them on developing its nuclear program. One of the questions that Senate members expected a clear answer from the U.S. Deputy Treasury Secretary was whether the United States could reinstate the same sanctions system if Congress rejects the nuclear deal with Iran. Adam Zubin's answer was clearly negative. The U.S. Deputy Treasury Secretary explained to senators that the U.S. had, over a long process, convinced major governments and companies in countries including South Korea, China, etc., to join tough economic sanctions against Iran due to concerns about Iran's nuclear program, but now that Iran is willing to reach an agreement with the international community regarding its nuclear program, it is difficult to ask other countries to make economic sacrifices and continue sanctions due to the rejection of this agreement in the U.S. Congress. This U.S. official also reminded that the U.S., as a global power, can unilaterally reimpose its sanctions against Iran, but it will not be as impactful as before. He said that if the agreement is rejected, the coalition that the U.S. has created against Iran will fail, and the 90 countries that cooperated with the U.S. in sanctioning Iran will not support us in this regard again. In part of this session, the U.S. Deputy Secretaries of State and Treasury explained to the Senate Banking Committee that despite the nuclear agreement, other U.S. and Security Council sanctions regarding Iran's missile program will remain, and individuals who assist Iran in this area will still be subject to sanctions. Adam Zubin stated regarding the status of the Islamic Revolutionary Guard Corps after the lifting of nuclear program sanctions that senior officers of the IRGC and its affiliated companies, including Khatam al-Anbia Headquarters, will remain under U.S. sanctions. He even emphasized that companies that suffer losses due to the IRGC sanctions and the prohibition of working with it will receive assistance from the U.S. According to Mr. Zubin, no foreign bank or company wants to face sanctions and penalties due to violating U.S. sanctions imposed due to Iran's nuclear activities. Wendy Sherman also stated that the nuclear agreement does not prevent our actions to stop Iran's missile program, and both the U.S. and its allies, as well as the Security Council, have sufficient tools to continue sanctions against Iran's missile program. The Deputy Secretaries of State and Treasury emphasized that if Iran commits a significant and serious violation of the nuclear agreement, the U.S. and its allies will have the ability to restore sanctions. Wendy Sherman explained the possibility of cooperation from other countries in reinstating sanctions, stating that she has spoken with some European officials and will continue her negotiations in this regard, but noted that the British ambassador in an email to her and Senator Bob Corker emphasized that the UK is committed to reinstating sanctions in the event of an Iranian violation. One senator criticized that Iran could withdraw from the agreement after a few years after gaining sufficient revenue from oil sales, in which case what benefit would reinstating sanctions against Iran have? Mr. Zubin responded that even if Iran increases its foreign reserves from oil sales, a significant portion of it will be kept in banks and financial centers abroad, and there is a possibility of it being blocked in the event of sanctions. This U.S. Treasury official further explained that if a company signs a long-term contract with Iran and invests in that country, and then sanctions are reinstated due to Iran's nuclear violations, those activities will also be subject to sanctions, and if that company defies, it will be subject to severe U.S. sanctions. He emphasized that it has become clear to all countries that if sanctions are reinstated, any transactions that were previously made will also be sanctioned. According to Mr. Zubin, this is why the framework of sanctions has been maintained so that if there is a violation, sanctions will revert to the state of 2012. The Senate Banking Committee meeting is part of a series of meetings that the Senate and the House of Representatives of the U.S. are holding to review the nuclear agreement between Iran and global powers. The U.S. Congress, including members of the Senate and the House of Representatives, is set to vote in September on whether to reject or approve the nuclear agreement with Iran.