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"Smart" Sanctions Have Broader Effects on Iran's Economy

[Financial Times-UK] Daniel Dombey - Inside the U.S. Treasury, an appointee of George W. Bush continues his campaign against Iran's nuclear program in the age of President Barack Obama. Stuart Levey, Treasury undersecretary for terrorism and financial intelligence, who has been singularly effective in piling financial sanctions on Iran, has retained his post in the new administration. Levey has toured the world telling America's partners that UN sanctions are reason to steer clear of all contacts with Tehran, as no outside company can ever be sure with whom inside Iran it is really doing business. The campaign of dissuasion has borne fruit. International banks have pulled away from Iran and so have energy groups, most notably France's Total last year. As a result, what were originally intended to be targeted or "smart" sanctions have had much broader effects on Iran's financial system and economy as a whole. Levey has also used powers to ban American nationals from doing business with groups designated under anti-terrorism and nuclear anti-proliferation rules to act against a number of Iranian banks, industrial companies and the country's shipping line. "Back in September 2006, I could count on one hand the major banks that had cut off or dramatically reduced their business with Iran," he said. "Now there are only a few that have not done so."
2009-04-17 06:00:00
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