Yet a Chance to Bypass the Sanctions

IRD: The UK government has boycotted the Iranian Central Bank [ICB]. How can this measure affect the Iranian economy?

FK: The magnitude of the boycott against the ICB depends on its extent. If it is limited to the UK and other European countries refuse to impose such a sanction, the impact will not be that great. Meanwhile, the UK does not have significant financial transactions with Iran that need to be carried out via the ICB. Even if there are necessary transactions, they can be done through mediation of a third country; so Britain’s sanction is not that effective per se. However, if they become more extensive, Iran will find itself in a predicament. Therefore, we need to bypass the sanction through our interactions with those countries outside the pro-sanction team and devolve ICB’s tasks to them.

IRD: The US Senate has passed a similar bill. Isn’t that the type of extension you referred to?

FK: The Senate’s bill needs the ratification of the US Congress and the president’s approval. Obama is reluctant to take such a measure and Congress may also refuse to rubberstamp the proposal. But there is a possibility that they may pass an non-binding bill which gives the president the authority to boycott the ICB.

IRD: What if the US eventually adopts such a measure?

FK: Even if the US approves the sanction, it will be in the same situation as that of the UK, since our trade with the US is very limited. But the point is that the US may also set punishments for any other country having fiscal transactions with Iran. In that situation, only those countries that do not have significant transactions with the US can resist the White House and keep up normal relations with Iran. But if countries such as China, Japan, South Korea, India and Turkey-- with which we have considerable trade-- make a serious decision to boycott Iran, that’s when the situation gets complicated.

IRD: Do you see a UN-backed boycott of ICB in future?

FK: The UN has to enforce these types of sanctions via the Security Council, and that hinges upon Beijing’s and Moscow’s approval. However, approval of the sanction and its enforcement are two separate issues: so far, four declarations have been released by the Security Council regarding Iran's nuclear program, while other countries have preferred to sustain their economic relations with us. So even if the UNSC boycotts the Central Bank, there are still some ways out. But that depends on the quality of the sanction’s enforcement and the countries willing to support Iran.