Alena Douhan, the UN's special rapporteur, focused on the impact of sanctions on Iranian people at a press conference in Tehran. EPA
Alena Douhan, the UN's special rapporteur, focused on the impact of sanctions on Iranian people at a press conference in Tehran. EPA
Alena Douhan, the UN's special rapporteur, focused on the impact of sanctions on Iranian people at a press conference in Tehran. EPA
Alena Douhan, the UN's special rapporteur, focused on the impact of sanctions on Iranian people at a press conference in Tehran. EPA

UN envoy highlights Iran's humanitarian situation amid stalled talks over nuclear deal


Ahmed Maher
  • English
  • Arabic

Sweeping US sanctions imposed on Tehran have badly affected Iran’s economy and worsened the humanitarian situation in the country, a United Nations special envoy said on Wednesday.

According to Alena Douhan, the UN special rapporteur on unilateral coercive measures, the sanctions have affected Iran’s main export groups, banks, several companies and citizens, and pharmaceutical and food production.

Iranian opposition and human rights activists also blame poor governance and the use of the country's limited resources to support proxies in the region for deteriorating living conditions.

Former president Donald Trump pulled the US out of the nuclear deal between Iran and world powers in 2018, citing Iran's continued missile development and regional meddling. He re-imposed US sanctions lifted under the deal and introduced new, tougher measures against Tehran.

The nuclear deal had granted Tehran sanctions relief in exchange for strict curbs on its nuclear programme. Talks in Vienna to revive that deal — something the Biden administration is trying to do — have stalled.

Ms Douhan, a Belarusian who was appointed in 2020 and reports to the UN Human Rights Council, said the “sanctions have been substantially exacerbating the humanitarian situation in Iran”.

The measures have led to inflation and growing poverty, and depleted state resources for dealing with the basic needs of people with low incomes and other vulnerable groups, Ms Douhan told reporters at a press conference in Tehran.

She said people suffering from “severe diseases, disabled people, Afghan refugees, women-led households and children” were particularly affected by the sanctions.

She urged countries that imposed unilateral sanctions against Iran, especially the US, to remove them.

European negotiators said there is an agreement on the table to revive the nuclear deal and that the US and Iran need to endorse it. Washington and Tehran are reportedly at odds over the removal of the US terrorist designation of Iran's Islamic Revolutionary Guard Corps.

The negotiations neared agreement in March before Russia demanded that its trade with Iran be exempted from western sanctions over its war in Ukraine, which added another obstacle to a final announcement.

Despite the deadlock, officials say the urgency to close the deal has grown as Iran’s controversial nuclear programme has rapidly advanced.

  • Iranians chant slogans and hold a placard reading in Farsi "Your mistake was unintentional, your lie was intentional" during a demonstration outside Tehran's Amir Kabir University. AFP
    Iranians chant slogans and hold a placard reading in Farsi "Your mistake was unintentional, your lie was intentional" during a demonstration outside Tehran's Amir Kabir University. AFP
  • Iranian riot police stand guard as protesters gather in front of Tehran's Amir Kabir University. AFP
    Iranian riot police stand guard as protesters gather in front of Tehran's Amir Kabir University. AFP
  • Students walk around, instead of across, US and Israeli flags at the Shahid Beheshti University in Tehran, Iran. Reuters
    Students walk around, instead of across, US and Israeli flags at the Shahid Beheshti University in Tehran, Iran. Reuters
  • An Iranian woman holds a placard reading in Farsi "Your mistake was unintentional, your lie was intentional" during a demonstration outside Tehran's Amir Kabir University. AFP
    An Iranian woman holds a placard reading in Farsi "Your mistake was unintentional, your lie was intentional" during a demonstration outside Tehran's Amir Kabir University. AFP
  • An Iranian man confronts riot police during a demonstration outside Tehran's Amir Kabir University. AFP
    An Iranian man confronts riot police during a demonstration outside Tehran's Amir Kabir University. AFP
  • Iranian protesters hold flowers as riot police fire tear gas during a demonstration in front of Tehran's Amir Kabir University. AFP
    Iranian protesters hold flowers as riot police fire tear gas during a demonstration in front of Tehran's Amir Kabir University. AFP
  • Iranian riot police stand guard as protesters gather in front of Tehran's Amir Kabir University. AFP
    Iranian riot police stand guard as protesters gather in front of Tehran's Amir Kabir University. AFP
  • An Iranian man holds a picture of a victim of the Ukrainian Boeing 737-800 plane crash during a demonstration in front of Tehran's Amir Kabir University. AFP
    An Iranian man holds a picture of a victim of the Ukrainian Boeing 737-800 plane crash during a demonstration in front of Tehran's Amir Kabir University. AFP
  • Several people walk on US and Israeli flags while others avoid stepping on the flags by walking around them, at the Shahid Beheshti University in Tehran, Iran. Reuters
    Several people walk on US and Israeli flags while others avoid stepping on the flags by walking around them, at the Shahid Beheshti University in Tehran, Iran. Reuters
  • Several people walk on US and Israeli flags while others avoid stepping on the flags by walking around them, at the Shahid Beheshti University in Tehran, Iran. Reuters.
    Several people walk on US and Israeli flags while others avoid stepping on the flags by walking around them, at the Shahid Beheshti University in Tehran, Iran. Reuters.

In recent weeks, public anger over worsening economic conditions has mounted in Iran following price hikes of food staples under a new policy to amend the food subsidy system. Scattered protests have erupted in several provinces, with Iranian state media acknowledging nearly two-dozen arrests.

Bus drivers in Tehran seeking a 10 per cent pay increase walked off the job on Monday, paralysing parts of the capital, and teachers have gone on strike in cities and towns across Iran in the past few months to demand more pay and better working conditions.

In July last year, mass protests were held in Khuzestan province against a severe water shortage. amid accusations the government was diverting water to drill for oil.

The government denied this and blamed the water scarcity problem on sanctions that blocked imports of water pumps, as well as climate change.

Oil workers at dozens of companies staged strikes last year in a protest over low pay and poor working conditions.

And in 2019 what began as scattered protests over a surprise increase in fuel prices quickly spread into some of the biggest demonstrations in the 40-year history of the republic.

Independent researchers and opposition activists accuse the Iranian regime of making economic and living conditions worse by allocating money from already cash-strapped state coffers to fund its proxies and allies in the region.

In the absence of official accounting, it is not clear exactly how much financial support Iran has given to the Syrian regime, the Houthis in Yemen and Hezbollah in Lebanon.

But in 2020, the former head of parliament's National Security and Foreign Policy Committee, Heshmatollah Falahatpisheh, told local media that Iran had probably paid between $20 billion and $30bn to Syria since the start of the civil war in 2011.

Syrian state media have also highlighted Iran’s reconstruction of some of Syria’s power plants, gas pipelines and communications networks, which could cost billions of dollars.

The US has accused Iran of giving the Houthi rebels in Yemen significant military support, mirroring a financial and military strategy that has been the mainstay of its Lebanese ally Hezbollah. Iran has rejected the accusations.

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India cancels school-leaving examinations
What is an FTO Designation?

FTO designations impose immigration restrictions on members of the organisation simply by virtue of their membership and triggers a criminal prohibition on knowingly providing material support or resources to the designated organisation as well as asset freezes. 

It is a crime for a person in the United States or subject to the jurisdiction of the United States to knowingly provide “material support or resources” to or receive military-type training from or on behalf of a designated FTO.

Representatives and members of a designated FTO, if they are aliens, are inadmissible to and, in certain circumstances removable from, the United States.

Except as authorised by the Secretary of the Treasury, any US financial institution that becomes aware that it has possession of or control over funds in which an FTO or its agent has an interest must retain possession of or control over the funds and report the funds to the Treasury Department.

Source: US Department of State

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Timeline

2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

October 2021

Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

December 2024

Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

May 2025

The High Court of England and Wales approves the company’s restructuring plan

July 2025

The Court of Appeal issues a judgment challenging parts of the restructuring plan

August 2025

Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

October 2025

Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

November 2025

180 Petrofac employees laid off in the UAE

SWEET%20TOOTH
%3Cp%3E%3Cstrong%3ECreated%20by%3A%3C%2Fstrong%3E%20Jim%20Mickle%2C%20Beth%20Schwartz%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Nonso%20Anozie%2C%20Christian%20Convery%2C%20Adeel%20Akhtar%2C%20Stefania%20LaVie%20Owen%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203.5%2F5%3C%2Fp%3E%0A
McLaren GT specs

Engine: 4-litre twin-turbo V8

Transmission: seven-speed

Power: 620bhp

Torque: 630Nm

Price: Dh875,000

On sale: now

MATCH INFO

Uefa Champions League semi-final, first leg

Barcelona v Liverpool, Wednesday, 11pm (UAE).

Second leg

Liverpool v Barcelona, Tuesday, May 7, 11pm

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if you go

The flights 

Etihad and Emirates fly direct to Kolkata from Dh1,504 and Dh1,450 return including taxes, respectively. The flight takes four hours 30 minutes outbound and 5 hours 30 minute returning. 

The trains

Numerous trains link Kolkata and Murshidabad but the daily early morning Hazarduari Express (3’ 52”) is the fastest and most convenient; this service also stops in Plassey. The return train departs Murshidabad late afternoon. Though just about feasible as a day trip, staying overnight is recommended.

The hotels

Mursidabad’s hotels are less than modest but Berhampore, 11km south, offers more accommodation and facilities (and the Hazarduari Express also pauses here). Try Hotel The Fame, with an array of rooms from doubles at Rs1,596/Dh90 to a ‘grand presidential suite’ at Rs7,854/Dh443.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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The biog

Born: Kuwait in 1986
Family: She is the youngest of seven siblings
Time in the UAE: 10 years
Hobbies: audiobooks and fitness: she works out every day, enjoying kickboxing and basketball

EXPATS
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Updated: May 19, 2022, 12:51 PM