Iran’s intransigence hindering settlement of deadlock with US

Noura Bendari

The Iranian regime struggles to overcome the economic crisis induced by the US sanctions imposed on Iran because of its failure to abide by the terms of the nuclear deal with world powers.

The Iranian government has recently had to cut off cash aid to 400,000 citizens, at a time the prices of food almost doubled since imposing the sanctions in May 2018.

This brings the number of citizens deprived of the cash aid to 24 million, out of Iran’s population of 80 million, according to an Iranian economic news site.

Japan decided, meanwhile, to join in a French initiative to offer $15 billion in financial aid to Iran, according to Japanese media.

Japan and France also suggested to Iran a loan package of $18.2 billion, in return for Iranian oil guarantees, provided that Iran demonstrates abidance by the nuclear deal.

If it obtains the loan, Iran is expected to use it in the purchase of foodstuffs and medical requirements for its people.

Japan is hopeful that the loan package will convince Iran to open up for dialogue with Washington on the nuclear deal.

European initiative

On September 3, France unveiled a European loan initiative for Iran to the tune of $15 billion. The loan will substitute a proposed commercial swap mechanism between Iran and European countries.

However, European states proposing the loan initiative make it necessary for Tehran to suspend its destabilizing activities in the region and bring the curtains down on its ballistic missile program.

A French diplomat has recently revealed information about the initiative. He said Iranian Deputy Foreign Minister Abbas Araghchi will lead a high level delegation from his country in Paris for talks on the initiative.

The US said, meanwhile, that France cannot give Iran a loan without American approval. It said it would not exempt Iran of any of the sanctions it imposed on it.

Iranian intransigence

Iran turned down the European offer, even as Tehran said earlier that it is optimistic about reaching a deal with Europe that averts its pledged reduction of nuclear deal commitments.

The Iranian Foreign Ministry said the views of both Tehran and Paris have become almost similar on the nuclear deal.

However, on September 4, Iranian President Hassan Rouhani ruled out the possibility of reaching a deal with the Europeans to rescue the nuclear deal.

Europe, he said, still has two months to honor its commitments to Iran.