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Iran prepares for lifting of sanctions and the end of decade-long isolation Lifting of Iran sanctions is 'a good day for the world'
(about 3 hours later)
The US secretary of state, John Kerry, was expected to arrive in Vienna on Saturday for talks with his Iranian and European counterparts ahead of the so-called “implementation day” ending sanctions on Tehran. The lifting of nuclear-related sanctions on Iran will be “a good day for the world”, the foreign minister, Mohammad Javad Zarif, has said as leaders gather in Vienna to complete the agreement.
A state department spokesperson has confirmed that Kerry was travelling to the Austrian capital on Saturday to hold meetings with Iran’s foreign minister, Mohammad Javad Zarif, and the EU foreign policy chief, Federica ‎Mogherini. They were expected to announce an end to the sanctions regime as early as Saturday after the International Atomic Energy Agency (IAEA) formally verifies that Tehran has fulfilled all its obligations under the landmark nuclear accord between western powers and Iran. “It’s a good day for the people of Iran … and also a good day for the region. The sanctions will be lifted today,” he said on Saturday after arriving in Austria’s capital, according to the ISNA news agency. His comments came after diplomatic sources said the UN nuclear watchdog would likely say Iran had complied with last July’s landmark agreement with world powers on its atomic programme.
“As we’ve said, all parties have continued making steady progress towards implementation day of the JCPOA (joint comprehensive plan of action), which will ensure the exclusively peaceful nature of Iran’s nuclear programme,” deputy spokesman Mark Toner said in an email statement provided to the media. Zarif, who led Iran in nuclear talks with the US, Britain, China, France, Russia and Germany, said the deal had removed from the Middle East “the shadow of a baseless confrontation”.
“It proved that we can solve important problems through diplomacy, not threats and pressure, and thus today is definitely an important day,” he said.
The International Atomic Energy Agency report will allow Zarif and his US and EU counterparts, John Kerry and Federica Mogherini, to announce in Vienna that the deal can enter into force, the diplomatic sources said. Under the 14 July deal, Iran agreed to significantly scale down key areas of its nuclear activities in exchange for relief from crippling sanctions, notably on Tehran’s oil exports.
These steps, combined with tighter IAEA inspections, extended to at least one year the time Iran would need to make enough fissile material for one nuclear bomb. Previously it was just a few months. Iran has always denied seeking an atomic weapon, saying its activities are only for peaceful purposes, such as power generation and medical research.
Kerry was expected to arrive in Vienna on Saturday for the talks ahead of the “implementation day” ending sanctions.
In an email statement, a US state department spokesperson said: “All parties have continued making steady progress towards implementation day of the JCPOA (joint comprehensive plan of action), which will ensure the exclusively peaceful nature of Iran’s nuclear programme.”
The mood in Tehran is upbeat but many remain cautious as the US and the EU prepare to dismantle an intricate network of punitive measures against Iran, reconnecting it to the global economy after 10 years of isolation and unlocking billions of dollars worth of trade.The mood in Tehran is upbeat but many remain cautious as the US and the EU prepare to dismantle an intricate network of punitive measures against Iran, reconnecting it to the global economy after 10 years of isolation and unlocking billions of dollars worth of trade.
Related: 'We're desperate to see change': Tehran upbeat as sanctions near endRelated: 'We're desperate to see change': Tehran upbeat as sanctions near end
The west has already put in place the essential legislation for the lifting of sanctions. The announcement of the implementation day will bring that into effect. Iranian banks will soon re-establish connections with the European financial system and private firms will be able to pursue business opportunities without fear of western punishment. The west has already put in place the legislation for lifting sanctions. Iranian banks will re-establish connections with the European financial system and private firms will be able to pursue business opportunities without fear of western punishment.
Under an extensive web of financial restrictions, Iran was subject to economic isolation as well as an oil embargo. The lifting of sanctions will pave the way for Iran to add an extra half a million barrels per day to its crude exports, which will affect the global oil market currently already struck by oversupply. Iran is also expected to add another half a million barrels per day within six months, bringing its crude exports back to pre-sanctions level. Iran will also be able to add an extra 500,000 barrels a day to its crude exports, affecting the global oil market which is already oversupplied. Iran is expected to add the same amount again within six months, bringing its crude exports back to pre-sanctions level.
European companies will be able to resume business with Iran but American companies are still hampered by the existing terrorism, human rights and ballistic missiles-related sanctions that will remain in place. Foreign companies dealing with Iran will no longer be punished by the US.European companies will be able to resume business with Iran but American companies are still hampered by the existing terrorism, human rights and ballistic missiles-related sanctions that will remain in place. Foreign companies dealing with Iran will no longer be punished by the US.
Meanwhile, Iran’s banking sector, previously cut off from the outside world, will gain access to Swift services, which facilitate international transactions. Around $30bn of a total of $100bn in frozen assets will be released to Iran. Iran’s banking sector, previously cut off from the outside world, will gain access to Swift services, which facilitate international transactions. Around $30bn (£21bn) of a total of $100bn in frozen assets will be released to Iran.
“Implementation day is demonstration of how persistent, high-level engagement is a critical ingredient for successful policies between Iran and the international community,” said Reza Marashi of the National Iranian American Council (NIAC), who closely followed the nuclear talks. “Implementation day is demonstration of how persistent, high-level engagement is a critical ingredient for successful policies between Iran and the international community,” said Reza Marashi, of the National Iranian American Council, who followed the nuclear talks closely.
“Direct diplomacy between secretary of state John Kerry and foreign minister Javad Zarif was the linchpin of this peaceful outcome,” he said. “In the absence of US-Iran dialogue, accidents like [the recent capture of US sailors] could have quickly escalated. Thanks to the Iran nuclear deal, a sustained diplomatic channel now exists to de-escalate. The entire Middle East will benefit if this is the new normal.” He said direct diplomacy between Kerry and Zarif “was the linchpin of this peaceful outcome. In the absence of US-Iran dialogue, accidents like [the recent capture of US sailors] could have quickly escalated. Thanks to the Iran nuclear deal, a sustained diplomatic channel now exists to de-escalate. The entire Middle East will benefit if this is the new normal.”
Hossein Rassam, a London-based Iranian analyst, said the lifting of sanctions would bring two years of intensive diplomacy to fruition. “Significance of the post-implemenation day period is that sectors of the Iranian economy such as trade and oil can, after many years, experience relative normalcy,” he said. Hossein Rassam, a London-based Iranian analyst, said the lifting of sanctions would bring two years of intensive diplomacy to fruition. “Significance of the post-implemenation day period is that sectors of the Iranian economy, such as trade and oil, can, after many years, experience relative normalcy,” he said.
John Forrest, head of international trade in London at law firm DLA Piper, said “as a significant and diverse emerging market, Iran presents substantial opportunities for European businesses, especially those engaged in the oil and gas and wider energy sector, manufacturing companies, retail and consumer goods suppliers and the food and drink and sector, and financial institutions and wider financial services companies”. John Forrest, head of international trade in London at the law firm DLA Piper, said “as a significant and diverse emerging market, Iran presents substantial opportunities for European businesses”, particularly those in the energy sector, manufacturing, retail, consumer goods, food and drink, and financial institutions and services.
But he said while all nuclear-related sanctions on Iran will be lifted, other sanctions such as those related to human rights and terrorism will remain in place, most notably in the US, meaning that companies would still have to comply with those restrictions.
“From a practical perspective, it remains to be seen whether EU sanctions relief will be held back should banks continue to take a cautious approach to processing Iranian payment transactions,” he said.“From a practical perspective, it remains to be seen whether EU sanctions relief will be held back should banks continue to take a cautious approach to processing Iranian payment transactions,” he said.
“Whilst the EU piece of the puzzle is clear, as it has already published relevant legislation amending existing sanctions measures to pave the way for early EU termination, there remains a lack of clarity with regards to the US.” Forrest also said ongoing human rights and terrorism related sanctions in the US would have an effect. “Whilst the EU piece of the puzzle is clear, as it has already published relevant legislation amending existing sanctions measures to pave the way for early EU termination, there remains a lack of clarity with regards to the US.”