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Economic sanctions against Iran ineffective: Experts

TEHRAN, Aug. 1 (Mehr News Agency) - Iran's economy is capable to stand economic sanctions and the UN Security Council's Monday resolution forcing the Islamic Republic to suspend its nuclear activities latest by August 31 or face economic sanctions will render itself ineffective, Iranian experts and senior officials commented on Tuesday.

Europe and the United States will lose more in this deal, for 27 years of U.S. economic ban on Iran has not amounted to much, the Minister of Economic Affairs and Finance, Davud Danesh-Jafari stated, adding, "Of course, the U.S. may resort to, as they have before, disruption of Iran trade exchange in dollars through their subordinate financial institutes, but this act would be more symbolic in nature than real threat to the country's economy.

The minister pointed to the sudden reduction in oil prices back in 1998, reminding that the nation still survived the $8-per-barrel storm and used her Oil Stabilization Fund (OSF) to maintain economic stability.

The oil minister, Kazem Vaziri-Hamaneh, voiced his views in the same breath, stipulating that the sanctions are not going to impede Iran's oil and gas projects and the foreign firms are here to stay. Any interruption will deal a blow to the West first and one may easily acknowledge our considerable growth rate in recent years despite the U.S. sanctions.

The United States has no other choice but to create disruption in our economy since military option is out of picture under current circumstances. Nevertheless, the sanctions will have negative impact on global economic growth down to fifty percent, the chairman of the Majlis Research Center, Ahmad Tavakkoli, noted, suggesting that loss of only 2.5 million bpd of oil to the world market will shoot the crude price to $120 per barrel in the first three months and the market has to get used to the $80 per barrel for the rest of the time.

"The Central Bank of Iran (CBI) has already adopted certain strategies to ward off any negative consequences of the sanctions," Ebrahim Sheibani, the head of the CBI, uttered.

The managing director of the Islamic Republic of Iran Shipping Lines (IRISL), Mohammad-Hassan Dajmar, called the sanctions unlikely but still announced the shipping lines readiness to deal with any intrusion to the nation's marine merchant business. The imposed war has definitely offered us enough experience to plan ahead for any challenge.

NIOC's International Affairs deputy, Nejad-Hosseinian, warned that the sanctions will increase oil prices substantially and no other country or international institute will set any embargo on Iran's oil industry or exports.

Other experts and officials shared the views of Expediency Council's secretary, Mohsen Rezaii, calling the sanctions of limited nature if they are to be imposed.

... Payvand News - 8/2/06 ... --

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