US forms action group to increase pressure on Iran
August 17, 2018
The US has formed a special action group to review and coordinate all Iran-related activity. German rail operator Deutsche Bahn and Deutsche Telekom are among companies ending business in Iran in light of US sanctions.
Image: picture-alliance/AP Images/C. Owen
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US Secretary of State Mike Pompeo on Thursday announced the formation of a so-called Iran Action Group aimed at increasing efforts to put additional diplomatic and economic pressure on Iran.
The group will push Washington's "maximum pressure" strategy to change Tehran's behavior.
"The Iran Action Group will be responsible for directing, reviewing and coordinating all aspects of the State Department's Iran-related activity, and will report directly to me," Pompeo said.
It will be headed by current Director of Policy Planning Brian Hook as the State Department's special representative for Iran.
Hook was in charge of the failed attempts earlier this year to gain the support of US allies for Washington's decision to pull out of the Iran nuclear deal. The deal was regarded as a diplomatic success when it was reached in 2015 and called on Iran to give up its nuclear weapons program and agree to a strict monitoring program in exchange for the lifting of crippling international sanctions.
The new US body's formation comes after Washington reimposed sanctions of Iran in an effort to force Tehran to end its nuclear weapons program, halt support for militant groups in the Middle East and free detained American citizens.
The US has said it would only end the sanctions if Iran agreed to negotiate a new deal, but Iran and other signatories to the agreement, Britain, France, Germany, Russia and China, have been working to find a way to save the acord, despite the actions of the United States.
US sanctions and who they target
The US serves as a cornerstone of global trade and sometimes uses this position to punish rival nations. DW looks into key restrictions that Washington currently imposes on Iran, Cuba, Russia, North Korea and Syria.
Image: Imago
Iran
US sanctions on Iran target Tehran's trade in gold and precious metals, block the sales of passenger jets and restrict Iran's purchase of US dollars, among other punitive measures. The US has also blocked Iran's key oil sales in a further tranche of sanctions, which came into force in November 2018.
Impoverished North Korea is under a UN-backed embargo, but Washington also maintains an extensive regime of sanctions of its own. For example, the US strictly bans exporting weapons to the pariah state. Washington also uses its global clout to penalize non-US banks and companies that do business with Pyongyang.
Image: AFP/Getty Images/S. Marai
Syria
Washington trade restrictions prevent the regime of President Bashar Assad from exporting Syrian oil to the US. All property and assets of the Syrian government in the US have been frozen. Americans, wherever in the world they might be, are banned from "new investment" in the war-torn country, according to the US Treasury.
Image: picture-alliance/dpa/G. Esiri
Russia
The US blacklisted scores of high-ranking Russian officials and businessmen after the 2014 Crimea crisis, stopping them from traveling to the US and freezing their assets. The comprehensive sanctions list includes goods from the Russian-annexed region, such as wine. New sanctions imposed in the aftermath of the Skripal poisoning in March 2018 target sensitive national security and defense goods.
Image: Imago
Cuba
American tourists began flocking to Cuba immediately after the Obama administration initiated a thaw in relations in 2016. Under Donald Trump, however, the White House reimposed travel restrictions for US citizens, making it much harder for Americans to travel to the island. At least one Obama-era concession is still in place, however: it is still legal to bring Cuban cigars and rum to the US.
Image: picture-alliance/dpa/A. Ernesto
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German businesses exit Iran
Following the US decision to impose further sanctions on Iran, German rail operator Deutsche Bahn and Deutsche Telekom announced they would be ending projects in the country.
Washington has said firms doing business with Iran would be blocked from doing business with the US.
A number of European companies have paused plans to invest in Iran due to the US sanctions, including oil giant Total as well as carmakers PSA, Renault and Daimler.
State-owned Deutsche Bahn is involved in two projects in Iran through its subsidiary DB Engineering&Consulting, a spokeswoman said on Thursday.
"Both projects will be ended in August and September 2018," she said. "Due to the altered banking environment, we have sought to bring the contract to an amicable and timely conclusion."
Deutsche Bahn signed a memorandum of understanding with Iranian rail operator Bonyad Eastern Railways (BonRail) in May 2017 for the first project, which was to identify potential areas where the Iranian firm could improve it services.
The second project, which began around 18 months ago, was a consulting contract for Iranian state railway RAI, whch included restructuring the company, the spokeswoman said.
Detecon, a subsidiary of T-Systems — Deutsche Telekom's IT services arm — has also ended its business in Iran, a spokesman said.
Detecon is a consultancy that works with companies in the telecommunications industry.
"Until the decision to stop operations was made, sales in Iran in 2018 amounted to around €300,000, ($340,000)" he said.
"Given the sensitivity in relations with Iran worldwide, Detecon ended its business in Iran with immediate effect in mid-May 2018."
The first phase of US sanctions against Iran went back into effect in early August. Here's a breakdown of what the sanctions are targeting and how Iran has reacted to the measures.
Image: Reuters/TIMA/N. T. Yazdi
Sanctions signed off
US President Trump signed an executive order on August 5 aimed at piling financial pressure on Tehran to force a "comprehensive and lasting solution" to Iranian threats, including its development of missiles and regional "malign" activities. Trump warned that those who don't wind down their economic ties to Iran "risk severe consequences."
Image: Shealah Craighead
Where's the money?
The first phase, which took effect on August 7, targets the Islamic Republic's access to US banknotes, making transactions in a US-dollar dominated financial world difficult. A ban on Iran purchasing precious metals including gold further serves as an attempt to cut the country off from global markets.
Image: Getty Images/AFP/A. Kenare
Planes, cars and carpets
Phase one also hits key industries including the purchase of commercial planes, cars and carpets. Iranian imports of graphite, aluminum, steel, coal, gold and some software are also affected. German automaker Daimler called off the production and sale of Mercedes-Benz trucks in Iran indefinitely after the sanctions came into force.
Image: picture alliance/AP Photo
Fuel to the fire
A second phase of sanctions — which is due to take effect on November 5 and will block Iran's oil sales — is due to cause more damage. Several countries, however, including China, India and Turkey have indicated they are not willing to entirely cut their Iranian energy purchases.
Image: Reuters/R. Homavandi
'Psychological warfare'
Iranian President Hassan Rouhani said that the United States had launched "psychological warfare" against Iran to create division amongst its people. But he insisted that Iran still can rely on its allies China and Russia to keep its oil and banking sectors afloat. He has also demanded compensation for decades of American "intervention" in the Islamic Republic.
European Union foreign policy chief Federica Mogherini said the bloc is encouraging small and medium enterprises to increase their business with Iran. She said Tehran has been compliant with their nuclear-related commitments. The EU issued a "blocking statute" to protect European businesses from the impact of the sanctions.
