BRUSSELS/VIENNA: With talks between world powers and Iran over a broad nuclear accord at an impasse, Western governments are considering offering a significant easing of sanctions early on in the process to try to wring concessions from Tehran, diplomats say.
To be effective, such a plan would have to involve clear guidance to companies made wary by US fines for sanctions-busting, be reversible and not go too far, or skeptical US lawmakers would simply reimpose restrictions.
The Opec oil producer has seen its economy devastated by years of sanctions imposed over its contested nuclear programme, which Western states say appears to be aimed at producing a nuclear bomb and Tehran says is peaceful.
The prospects for an immediate accord scaling back that programme in return for sanctions relief appeared tenuous yesterday. Diplomats said the six world powers negotiating with Iran — the United States, Russia, China, France, Britain and Germany — were working out terms for an extension of talks, beyond their self-imposed July 20 deadline, instead of seeking a deal now.
If there is an agreement in the coming weeks or months, Western diplomats have said, Iran might still have to wait years, or as long as two decades, to see the complex web of sanctions permanently removed.
Instead, they said, Western states may opt for a patchwork of steps suspending sanctions in various industries that can be easily reinstated if Tehran reneges on its nuclear commitments. The extent of these steps would match Iranian concessions.
“When Iran does something, then we can respond with sanctions relief,” one said, speaking on condition of anonymity. “The whole process will take years.”
The timing of any easing of oil sanctions, which now prohibit US and European importers from buying Iranian crude and impose severe restrictions on third country purchases, will depend on what Iran offers to do from its side and when.
But some diplomats said restrictions on banking with Iran might have to be eased in step with other industries, such as shipping for example, to make sure companies can finance any newly re-established trade.
“We can be flexible,” a senior western diplomat said.
Without access to finance, relief might not materialise, raising questions about the world powers’ credibility and endangering the implementation of the accord, they said.
Western companies are eager to enter Iran, a market of nearly 80 million people and vast oil reserves. But banks have been reluctant to process cash when it became admissible to a certain extent under an interim accord struck between Iran and the world powers last November.
REUTERS
