Sanctions on Iran over its nuclear and ballistic missile-related activities will be incorporated into the domestic laws of the UK, France and Germany. Reuters
Sanctions on Iran over its nuclear and ballistic missile-related activities will be incorporated into the domestic laws of the UK, France and Germany. Reuters
Sanctions on Iran over its nuclear and ballistic missile-related activities will be incorporated into the domestic laws of the UK, France and Germany. Reuters
Sanctions on Iran over its nuclear and ballistic missile-related activities will be incorporated into the domestic laws of the UK, France and Germany. Reuters

Iran plays for time as nuclear sanctions slip off UN books


Tim Stickings
  • English
  • Arabic

A two-year clock is ticking until Iran achieves its goal of ending UN scrutiny of its nuclear activities, after European governments moved to bring sanctions in-house.

Britain, France and Germany announced that UN sanctions set to expire on October 18 would be maintained in domestic law because of Iran's “consistent and severe non-compliance” with nuclear limits.

But they stopped short of invoking a “snapback” that would tear up negotiations with Tehran by reinstating old UN sanctions. The option to do that expires in October 2025, as agreed to in the 2015 Iran nuclear deal.

On the same date the UN Security Council “will have concluded its consideration of the Iranian nuclear issue” unless a snapback is triggered before then.

This “de-securitisation” matters to Iran because expired UN sanctions are unlikely to be reinstated given Russia and China's veto power in the council, said Hamidreza Azizi, an expert on Iran at the German Institute for International and Security Affairs.

Iranian diplomats “think that time is on their side”, he told The National.

“Once the snapback is gone, that’s a point of no return so there won’t be any securitisation possible. That’s why this is very important to Iran. It’s beyond symbolic, there’s an actual concrete element to it.”

Under the rules in place until 2025, the snapback can be invoked unilaterally by parties to the nuclear deal, who include Britain, France and Russia.

However, European powers are likely to hold fire unless Iran enriches uranium to a weapons-grade 90 per cent, said Jason Brodsky, policy director of the United Against Nuclear Iran lobby group.

Iran wants the UN Security Council's consideration of its nuclear programme to lapse in 2025. AFP
Iran wants the UN Security Council's consideration of its nuclear programme to lapse in 2025. AFP

The US could also attempt to use the snapback, although there are doubts about whether this is valid given its withdrawal from the nuclear deal under Donald Trump's presidency in 2018.

A US snapback would also set back tentative diplomatic efforts with Iran which have recently brought home American prisoners – meaning it is unlikely to be considered until at least after the 2024 presidential election, said Dr Azizi.

Deal hopes dashed

The hope under the original deal was that by 2025, Tehran would have complied with limits on its uranium enrichment and inspectors could verify that a nuclear-armed Iran was a distant prospect.

Iran was granted sanctions relief as an incentive to comply.

However, the US withdrawal prompted Iran to retaliate by enriching uranium to 60 per cent, a level which western powers say has no credible civilian purpose and is only a short step from a bomb.

The rebadged sanctions on Iran's nuclear, missile and weapons programmes came in a week when the UN made clear its disappointment that Iran has failed to explain mysterious atomic traces at two sites.

The UN’s International Atomic Energy Agency says it cannot verify whether Iran’s intentions are peaceful until the presence of uranium is cleared up.

Efforts to revive the original deal – formally known as the Joint Comprehensive Plan of Action – have stalled amid tension over Russia's invasion of Ukraine, Iran's links to the conflict and its repression of domestic protest after the death of 22-year-old Mahsa Amini a year ago on Saturday.

The UK, US, Canada and Australia announced new sanctions related to Iranian domestic repression on Friday, targeting the mayor of Tehran and others allegedly involved in enforcing strict dress codes on women. The EU's top diplomat Josep Borrell said on Friday the human rights situation in Iran “continues to be critical”.

Iran hit back at the announcement on rehoming UN sanctions by saying it “creates tension and is accompanied by malicious intentions”.

On the nuclear front, however, European powers say they remain open to talks even as they accuse Iran of “refusing opportunities” to return to the deal.

Iran's uranium stockpile is now 18 times greater than what was envisaged under the deal, according to the three European countries, and western diplomats are concerned that its scientists have made irreversible gains in nuclear know-how.

The 2015 nuclear deal offered Iran relief from sanctions that have affected its economy. EPA
The 2015 nuclear deal offered Iran relief from sanctions that have affected its economy. EPA

With prospects apparently gloomy of restoring the full deal, Dr Azizi said diplomats could turn to informal or “less-for-less” arrangements in which they seek partial limits on Iran in return for certain concessions.

He suggested this could include Iran respecting a 20 per cent enrichment limit, rather than the 3.67 per cent in the original deal. In return, the US could tolerate some Iranian oil sales to countries such as China.

The recent prisoner exchange – criticised by some former detainees in Iran – could be seen as a sign of “testing the waters”, he said.

Some bilateral restrictions such as those now being introduced in Europe would likely remain even if the UN regime collapsed, but Iran “has started to care less and less, I think, about the western sanctions”, Dr Azizi said.

“The main restrictions against Iran’s development and transfer of missiles, drones and so on are those related to the US and Europe, and they are going to remain in place.

“But it’s a matter of legitimacy first, and secondly, more importantly, it relates to Iran’s desire to gradually bring its case out of the consideration of the UN Security Council.”

The Buckingham Murders

Starring: Kareena Kapoor Khan, Ash Tandon, Prabhleen Sandhu

Director: Hansal Mehta

Rating: 4 / 5

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Wenger's Arsenal reign in numbers

1,228 - games at the helm, ahead of Sunday's Premier League fixture against West Ham United.
704 - wins to date as Arsenal manager.
3 - Premier League title wins, the last during an unbeaten Invincibles campaign of 2003/04.
1,549 - goals scored in Premier League matches by Wenger's teams.
10 - major trophies won.
473 - Premier League victories.
7 - FA Cup triumphs, with three of those having come the last four seasons.
151 - Premier League losses.
21 - full seasons in charge.
49 - games unbeaten in the Premier League from May 2003 to October 2004.

Benefits of first-time home buyers' scheme
  • Priority access to new homes from participating developers
  • Discounts on sales price of off-plan units
  • Flexible payment plans from developers
  • Mortgages with better interest rates, faster approval times and reduced fees
  • DLD registration fee can be paid through banks or credit cards at zero interest rates
Know before you go
  • Jebel Akhdar is a two-hour drive from Muscat airport or a six-hour drive from Dubai. It’s impossible to visit by car unless you have a 4x4. Phone ahead to the hotel to arrange a transfer.
  • If you’re driving, make sure your insurance covers Oman.
  • By air: Budget airlines Air Arabia, Flydubai and SalamAir offer direct routes to Muscat from the UAE.
  • Tourists from the Emirates (UAE nationals not included) must apply for an Omani visa online before arrival at evisa.rop.gov.om. The process typically takes several days.
  • Flash floods are probable due to the terrain and a lack of drainage. Always check the weather before venturing into any canyons or other remote areas and identify a plan of escape that includes high ground, shelter and parking where your car won’t be overtaken by sudden downpours.

 

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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.”

Abu Dhabi Equestrian Club race card

5pm: Abu Dhabi Fillies Classic (PA) Prestige; Dh110,000; 1,400m
5.30pm: Abu Dhabi Colts Classic (PA) Prestige; Dh110,000; 1,400m
6pm: Maiden (PA); Dh80,000; 1,600m
6.30pm: Abu Dhabi Championship (PA) Listed; Dh180,000; 1,600m
7pm: Wathba Stallions Cup (PA) Handicap; Dh70,000; 2,200m
7.30pm: Handicap (PA); Dh100,000; 2,400m

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Starring: Tom Cruise, Hayley Atwell, Simon Pegg

Rating: 4/5

UAE currency: the story behind the money in your pockets
Avatar: Fire and Ash

Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

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Ziina users can donate to relief efforts in Beirut

Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”

Test squad: Azhar Ali (captain), Abid Ali, Asad Shafiq, Babar Azam, Haris Sohail, Imam-ul-Haq, Imran Khan, Iftikhar Ahmed, Kashif Bhatti, Mohammad Abbas, Mohammad Rizwan(wicketkeeper), Musa Khan, Naseem Shah, Shaheen Afridi, Shan Masood, Yasir Shah

Twenty20 squad: Babar Azam (captain), Asif Ali, Fakhar Zaman, Haris Sohail, Iftikhar Ahmed, Imad Wasim, Imam-ul-Haq, Khushdil Shah, Mohammad Amir, Mohammad Hasnain, Mohammad Irfan, Mohammad Rizwan (wicketkeeper), Musa Khan, Shadab Khan, Usman Qadir, Wahab Riaz 

Updated: September 15, 2023, 2:37 PM