Neither East Nor West: How Iran’s Economy Copes With Sanctions. Report Presentation
On September 9, the Valdai Club hosted the presentation of its report, titled “Neither East, Nor West: How Iran’s Economy Copes With Sanctions”. After February 24, 2022, the Western countries imposed an unprecedentedly broad set of economic restrictions on Russia. The measures affected the country’s financial sector, extractive industries, transport network and industry. The initiators of the economic war used almost all existing types of pressure. Russia is not the first country to face such a range of sanctions, but the speed with which they were imposed has been unprecedented. In just a few months, Russia has received a set of restrictions that, for instance, Iran has faced over the past 43 years. Russia can learn from Iran's experience in adapting to and overcoming such restrictions. Iran has had to endure a wide set of restrictions. The financial sector there continues to suffer. Iran’s ability to export oil and import essential industrial goods and equipment is limited. Sanctions were imposed over several political issues at once. In addition to the nuclear program, alleged human rights violations, and Middle East policy, the activities of the IRGC and other organisations have been targeted. Despite the punitive economic measures, the Islamic Republic was able to successfully advance in a number of industrial and technologically intensive sectors, creating industrial niches, which were important for the country’s security. The problems that arise in the Iranian economy under sanctions are also important. These include difficulties in settlements with foreign counterparties, the stability of the national currency, and access to foreign equipment. What financial mechanisms does Iran use for mutual settlements? How does Iran compensate for the lack of technology? How has the role of sanctions changed in the Iranian economy? What lessons can Russia learn from the Iranian experience? What are the prospects for cooperation in countering sanctions pressure? The participants in the discussion tried to answer these and other questions. Speakers: Maxim Baranov, Acting Director of the Second Asian Department of the Russian Foreign Ministry Sumbula Sultanova, Executive Secretary of the Russian-Iranian Business Council Kayhan Barzegar, Senior Academic Advisor at the Institute for Political and International Studies (IPIS) Lana Ravandi-Fadai, Senior Researcher and Head of the Eastern Cultural Centre at the Institute of Oriental Studies of the Russian Academy of Sciences Adlan Margoev, Researcher at the Institute of International Studies at MGIMO Moderator: Ivan Timofeev, Programme Director of the Valdai Discussion Club
On September 9, the Valdai Club hosted the presentation of its report, titled “Neither East, Nor West: How Iran’s Economy Copes With Sanctions”. After February 24, 2022, the Western countries imposed an unprecedentedly broad set of economic restrictions on Russia. The measures affected the country’s financial sector, extractive industries, transport network and industry. The initiators of the economic war used almost all existing types of pressure. Russia is not the first country to face such a range of sanctions, but the speed with which they were imposed has been unprecedented. In just a few months, Russia has received a set of restrictions that, for instance, Iran has faced over the past 43 years. Russia can learn from Iran's experience in adapting to and overcoming such restrictions. Iran has had to endure a wide set of restrictions. The financial sector there continues to suffer. Iran’s ability to export oil and import essential industrial goods and equipment is limited. Sanctions were imposed over several political issues at once. In addition to the nuclear program, alleged human rights violations, and Middle East policy, the activities of the IRGC and other organisations have been targeted. Despite the punitive economic measures, the Islamic Republic was able to successfully advance in a number of industrial and technologically intensive sectors, creating industrial niches, which were important for the country’s security. The problems that arise in the Iranian economy under sanctions are also important. These include difficulties in settlements with foreign counterparties, the stability of the national currency, and access to foreign equipment. What financial mechanisms does Iran use for mutual settlements? How does Iran compensate for the lack of technology? How has the role of sanctions changed in the Iranian economy? What lessons can Russia learn from the Iranian experience? What are the prospects for cooperation in countering sanctions pressure? The participants in the discussion tried to answer these and other questions. Speakers: Maxim Baranov, Acting Director of the Second Asian Department of the Russian Foreign Ministry Sumbula Sultanova, Executive Secretary of the Russian-Iranian Business Council Kayhan Barzegar, Senior Academic Advisor at the Institute for Political and International Studies (IPIS) Lana Ravandi-Fadai, Senior Researcher and Head of the Eastern Cultural Centre at the Institute of Oriental Studies of the Russian Academy of Sciences Adlan Margoev, Researcher at the Institute of International Studies at MGIMO Moderator: Ivan Timofeev, Programme Director of the Valdai Discussion Club