Unfreezing Assets Will Sanction-Proof Iran

   < < Go Back
from NCPA,

The main concern about the Iran nuclear deal is that un-freezed assets and oil revenues after lifting the sanctions will find their way to Iranian-sponsored terrorist organizations and will energize Iran’s economic aggression, says senior research fellow David A. Grantham of the National Center for Policy Analysis.

The world is self-correcting, or so the Obama administration believes. The Iran nuclear deal reflects one of his national security themes of the last seven years; a belief that the world would naturally reorient itself toward global good, if not for U.S. power. The agreement of the P5+1 (the U.N. Security Council’s permanent members plus Germany), which requires very little of Iran and erases virtually any leverage the U.S. had over the Islamic state, underscores this truth. And releasing $100 billion housed in foreign bank accounts stands as the U.S. government’s most alarming concession.

This deal was based on two faulty assumptions: first that the sanctions can be reapplied and second that other nations are interested in seeking Iran’s compliance. Before the deal and despite the sanctions Iran was already carrying out actions that undermine U.S. interests in the area, such as purchasing gold to trade with India and China.

Lifting the sanctions will also allow Iran to become more interconnected with other economies and to trade with those that desire to weaken America.

The Iranian government will sanction-proof its economy through several measures.

– Smuggle embargoed good through places like Dubai.
– Channel finances through covert investment partnerships with Russia.
– Mask oil revenue.
– Become intertwined with other economies so that sanctions are harder to apply.

The more revenues Iran obtains, the greater its power will be. Instead of opting for a plan by which assets were released in small amounts, the federal government decided to allow full access to the frozen financial resources. Therefore, Congress must reject this deal.

More From NCPA: