The impact of economic sanctions against the IRGC

Tehran received a major blow following the blacklisting of Revolutionary Guards (IRGC) as a terrorist organization by the U.S. Treasury Department after President Donald Trump’s October 13th landmark Iran policy speech. This has senior Iranian officials extremely concerned as the regime in its entirety is desperately attempting to cope with the aftermath.
There are those heard struggling to downgrade the impact and save face.

“Sanctions against the IRGC are nothing new… The IRGC is not an economic entity for them to attempt to impact its future through sanctions. The IRGC is a military entity that will negotiate with no one regarding its duties,” said Hessam-edin Ashena, an advisor to Iranian President Hassan Rouhani to a state daily.

Understanding the importance of U.S. sanctions, Gholamreza Tajgardoon, chairman of the Budget & Planning Commission in Iran’s parliament resorted to similar remarks.

“Sanctioning the IRGC will have no impact on the country’s economy… U.S. sanctions are an issue of international relations. The IRGC has no role in international economic relations. The IRGC is, however, active in military affairs inside Iran and the region,” he also said to state media.

Despite these remarks, and the fact that the IRGC dominates the Iranian economy, merely two days later on October 17th the Vatan-e Emrooz daily, known to be linked to the faction loyal to Iranian Supreme Leader Ali Khamenei, made a major U-turn in a piece titled “Black hole!”

This article shed light on the “unprecedented economic impact and expenses expected through the mother of all sanctions” – a term used by Iranian experts – on the entire regime apparatus.

This piece very explicitly explains the crippling results of new U.S. sanctions for Tehran. The piece, under the subtitle of “The Impact of Economic Sanctions Against The IRGC” explains:

“Despite its initial goal of numerous security objectives across the Middle East and inside Iran, this section of the mother of all sanctions seeks to dysfunction Iran’s economy, or as U.S. senators have described, shut down and turn off Iran’s economic cycle. Based on the Countering America’s Adversaries Through Sanctions Act, first the IRGC and all branches and entities in any way related to the IRGC, alongside all companies cooperating with the IRGC will be designated in the SDN sanctions list.”

Furthermore, individuals and entities cooperating in any way with the IRGC must be designated and included in the SDN sanctions list under Executive Order 13224. The scope of these new sanctions will be extreme and far from any expectation under this executive order.

For example, more than 5,000 private companies are cooperating with the IRGC’s Khatam al-Anbiya construction company. Based on Trump’s new orders, all these companies are on the verge of being designated in the new list of sanctioned companies.

If Iran’s Central Bank or National Bank provides services and facilitations to these companies, and the U.S. State Department identifies this cooperation, these firms will be blacklisted in the SDN list of sanctions by the Treasury Department.

This major economic quagmire before the Iranian regime is the reason this bill is described as the “black hole” of sanctions.

What are we to believe?

Source » ncr-iran

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