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Iranians rich and poor caught in sanctions net imposed by West, U.N.
Reuters

TEHRAN: Sanctions on Iran are aimed at hampering its nuclear program, but ordinary people both rich and poor are getting caught in their tightening net.

“Each time my son wants to wire money for me from abroad, I have to check with my Iranian bank about international banks that interact with Iran,” said retired police officer Asghar Hesami. “The list is getting shorter each month.”

The West and United Nations have been steadily increasing sanctions to deter Tehran from pursuing a nuclear program, despite Iran’s denial that it is seeking to develop weapons.

The energy and banking sectors have been targeted but in late June the U.S. also blacklisted Iran’s main port operator, which it suspects is run by the Revolutionary Guards – a move potentially disrupting key food imports.

In response to sanctions, several foreign oil companies have cut business with the Islamic Republic, some of them stopping sales of jet fuel. Most European countries now refuse to refuel Iranian passenger planes.

“Three times a week, I pray to God to help me fly [my] passengers,” said Davoud, 45, whose Tehran travel agency runs trips to Europe and other tourist destinations. “Each time I go to the edge of losing my business as I don’t know whether refueling authorization will be granted.”

The U.S. also blacklisted Iran Air and a subsidiary in June, saying the national airline had carried missiles, rockets and other military gear for the state.

But Iranian authorities dismiss sanctions as ineffective and useless and Mahmoud Ahmadinejad, president since 2005, has remained defiant.

Some Iranians back his tough stance but many worry about international isolation, economic stagnation and the unrest that a possible spread of the “Arab Spring” uprisings into the country might bring.

“We do not want another revolution … I am tired of our leaders’ fights over gaining more power … I am tired of the growing economic pressure,” said retired teacher Reza Akbari, 68.

Richer Iranians have found ways around some of the restrictions, merely importing their favorite luxury Western goods indirectly, from the Gulf states and other countries.

“Such limitations cannot stop other countries from trading with Iran. Money talks,” said a government official, who asked not to be identified.

But away from the flashier stores, people say they are struggling to cope, squeezed by soaring rents and grocery bills on the one hand and stagnant salaries on the other.

Sanctions have a strong psychological impact on ordinary people, who blame them for higher inflation.

Hamid Ghabadi, owner of a tile factory, said he cannot pay his workers any more. “I had to lay off at least 200 employees because of the increasing costs,” he added.

Sanctions on banks have made it more difficult for businessmen to finance deals and get letters of credit.

“My business is not going well because of sanctions. Trade transactions in foreign currencies have become very difficult if not impossible,” said Reza Mirzai, head of an export company.

A growing number of trading houses and other international firms have stopped business with Iran. Many banks refuse to open accounts for Iranians and have frozen accounts belonging to dozens of Iran-linked firms.

In 2008, a French bank closed housewife Mitra Sami’s account of 20 years, saying it was “suspending business with Iran and parties in the country.”

“They gave me one month notice before closing the account,” she said. “I have no credit cards now.”

Many conservatives who backed Ahmadinejad’s disputed 2009 re-election are nevertheless blaming sanctions on his harsh anti-Western rhetoric and also criticize his economic policies.

Media have carried reports of workers walking out of government-owned factories because they have not been paid for months. Unemployment is officially around 10 percent, but critics put it closer to 15 percent.

The sanctions are also having an impact on Iran’s riyal currency which has fluctuated in value in recent months. In a bid to maintain foreign currency reserves, Iranian banks have imposed limitations on selling dollars and euros.

Some politicians and influential clerics have warned the government over economic hardship and the specter of further sanctions, which they fear could revive anti-government protests that jolted the country in 2009.

A version of this article appeared in the print edition of The Daily Star on July 07, 2011, on page 8.
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Comments  
Junmar February 18, 2012 04:26 PM

Persian Gulf: Are you sayng that all the Iranian students throughout the world have abandoned ship (so to speak) and will not go back? When Korean and Chinese students are in diverse universities one thinks of this as a good thing.

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