Josep Borrell, the EU’s foreign affairs chief, arrives for a meeting in Brussels on Monday. The bloc is to impose fresh sanctions in Iran. EPA
Josep Borrell, the EU’s foreign affairs chief, arrives for a meeting in Brussels on Monday. The bloc is to impose fresh sanctions in Iran. EPA
Josep Borrell, the EU’s foreign affairs chief, arrives for a meeting in Brussels on Monday. The bloc is to impose fresh sanctions in Iran. EPA
Josep Borrell, the EU’s foreign affairs chief, arrives for a meeting in Brussels on Monday. The bloc is to impose fresh sanctions in Iran. EPA

EU expands sanctions on Iran over repression of protests


Sunniva Rose
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  • Arabic

The European Union's 27 foreign ministers on Monday approved a second round of sanctions in less than a month against Iranian officials involved in the brutal repression of protesters.

The sanctions are targeted "against the people responsible for the repression of the demonstrators", said the EU's Josep Borrell ahead of the announcement.

"Foreign ministers adopted further sanctions against 29 individuals & 3 entities in #Iran due to their role in the death of #MahsaAmini and the violent response to ongoing demonstrations," tweeted the Czech presidency of the EU.

The identity of those targeted is expected be made public on publication in the EU's official journal later on Monday.

Meanwhile, French President Emmanuel Macron said on Monday the West should step up sanctions against Iran by targeting government officials who are part of the violent crackdown.

Tens of thousands of people across France and Europe have marched in solidarity protests with rebelling Iranians, demanding freedom for women and an end to the compulsory headscarf. French music and film stars, including two Oscar-winning actors, Marion Cotillard and Juliette Binoche, filmed themselves chopping off locks of their hair in support of protesters in Iran.

“Women in Iran fight this fight with exceptional courage under the threat to their lives and the lives of their loved ones,” Mr Macron told public radio FranceInter in a broadcast on Monday.

Their rebellion against the cleric-led state has “burst the ideological bubble” that Tehran has been sending to the world, Mr Macron said, namely that women there “were somehow happy to live in this constant state of obstruction”.

The ongoing protests of young Iranians born after the 1979 toppling of the monarchy who have only lived in the Shiite cleric-led state has proven them wrong, Mr Macron said.

“The grandchildren of the (Islamic) revolution are leading a revolution against that revolution,” he said.

He added that the West needs to support them in their struggle, including by toughening European sanctions targeting the Islamic Revolutionary Guard Corps.

“I am in favour of a strong diplomatic reaction and sanctions on the regime’s personalities who are responsible for the repression of this revolution,” Mr Macron said.

So far, 336 demonstrators have been killed in the unrest and nearly 15,100 detained, the activist HRANA news agency says.

Public outrage over the death of Mahsa Amini, 22, who was in custody of Iran's morality police for allegedly not wearing the hijab properly, has transformed into demands for an end of the hardline interpretation of Sharia under supreme leader Ayatollah Ali Khamenei.

On October 17, Brussels imposed a first round of sanctions on 15 Iranian officials and state entities, including Information Minister Issa Zarepour, for restricting access to the internet, as well as Iran’s law enforcement forces for their involvement in deadly clashes with protesters.

Tehran reacted with counter-measures and sanctioned MEPs as well as journalists, human rights defenders and institutions.

The EU's top diplomat Mr Borrell on Monday said such retaliatory action was to be expected. “I think it’s a mistake, in particular to sanction parliamentarians for doing their job,” he said.

Mr Borrell said he had spoken on Sunday to his Iranian counterpart Hossein Amirabdollahian.

The two diplomats discussed the ongoing protests, Iran's military support to Russia, and the Joint Comprehensive Plan of Action, the nuclear deal struck in 2015 between Iran and world powers that eased sanctions on Tehran in return for curbs on its nuclear programme.

“We discussed JCPOA, we discussed the military support of Iran to Russia," Mr Borrell said. "That has to stop.

“JCPOA is about Iran becoming nuclear and the best way for Iran to not become nuclear is to continue work on the JCPOA.”

Mr Borrell is co-ordinating talks aimed at reviving the deal.

Iran said it had agreed to a visit by the UN’s nuclear watchdog this month. The group suspects Iran is expanding its production of enriched uranium above levels prohibited under the abandoned 2015 deal.

In a separate move, the EU imposed sanctions on Iran on October 20 over its supplying of drones to Russia to use in its war against Ukraine. Media reports also claim that Iran is sending ballistic missiles to Russia.

Questioned by The National, Mr Borrell said there was “no evidence about missiles but clear evidence about drones”. A senior EU official said last week that Brussels was working on independently verifying such reports.

Estonian Foreign Affairs Minister Urmas Reinsalu said that Ukraine had told EU officials that Iran had transferred ballistic missiles to Russia.

"We have to take seriously Ukrainian warning and take all capabilities EU countries have to share information and make [an] intelligence assessment in that matter," he said.

Should such missiles transfers be true, Brussels should sanction Iran again with a "far more damaging sanctions mechanism" than the "symbolic sanctions" adopted on October 20 over drones, said Mr Reinsalu.

French business

France has organised a delegation of leading businesses to travel to Syria. The group was led by French shipping giant CMA CGM, which struck a 30-year contract in May with the Syrian government to develop and run Latakia port. Also present were water and waste management company Suez, defence multinational Thales, and Ellipse Group, which is currently looking into rehabilitating Syrian hospitals.

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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.”

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

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Updated: November 14, 2022, 2:14 PM