Love of the Land: Europe's Trade with Iran's Butchers

Europe's Trade with Iran's Butchers

The European Union could be the key to unlocking democracy in Tehran by cutting its significant economic ties with the Islamic Republic.

Goli Ameri
Wall Street Journal
30 December 09

(The EU could be the key, but they are not. The member nations of the EU are the economic enablers whose investments assisted and assist Iran to this day, to reach nuclear weapon capability, to threaten Israel,their neighbors, as well as their own population. In the meantime the EU devotes a significant amount of it's energy, to lecture Israel on housing in Jerusalem. Y.)

The Obama Administration and its European allies are currently looking at a menu of "focused sanctions" on Iran and its leadership. A month ago they were obsessing over China and Russia's cooperation on indubitably innocuous U.N. Security Council sanctions. In both cases, they have the wrong target in mind. Security Council resolutions and focused sanctions serve as public relations window-dressing. Europe is the key to any meaningful behavior-modifying sanctions on Iran. The continued focus on Russia and China's intransigence is allowing Europe to stay under the radar.

Iran has been under three Security Council sanctions in the past decade, while the Iranian Revolutionary Guard Corps (IRGC) has prospered and the plight of the average Iranian has deteriorated. The IRGC, which in 2007 was designated by the U.S. Congress as a terrorist organization, planned and instigated a coup during the recent Iranian elections and bear responsibility for the murder, rape, and oppression of the Iranian people.

According to Mohsen Sazegara, one of the co-founders of the IRGC and current researcher and democracy activist residing in the U.S., the IRGC controls the fundamentals of Iran's economy, with over 800 companies involved in shipping and ship-building, banking, energy, chemicals, heavy construction and machinery, electricity, transport equipment, and import of tear gas for oppressing mass demonstrations. The IRCG's most recent foray into Iran's business activities was the purchase of a 51% share in the Iranian Telecommunications Company for $8 billion, effectively gaining control of all Iranian communications with the outside world.

Who is Iran's main business partner? In 2008 the EU was—in its own words—the "first trade partner of Iran," with imports and exports totalling €25.4 billion ($36.4 billion) followed by China, Japan, and South Korea. The €14.1 billion in European exports to Iran last year, up 1.5% from 2007, included mainly machinery and transport equipment, manufactured goods, chemicals and even dual-use telecommunications equipment responsible for tracking and imprisoning protesters. Of the €11.3 billion in European imports from Iran, 90% is energy-related. Germany, France and Italy top the list, the former two also members of the team involved in nuclear negotiations with Iran.

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Love of the Land: Europe's Trade with Iran's Butchers