International Sanctions Intertwined In Foreign Policy

International economic sanctions have become virtually a permanent feature of foreign policy.

Whether imposed by the United Nations-or unilaterally by the U.S. on countries such as Iran and Libya-the effect on markets has both short-term and long-term consequences.

These viewpoints were expressed at the 9th international symposium in Paris, sponsored by the Franco-Arab Chamber of Commerce in Paris and the Arab Petroleum Research Centre.

Opposing views

Opposing views were presented by U.S. and Iranian speakers.

Gregg Rickman, a legislative aide to U.S. Sen. Alfonse d'Amato (R-N.Y.), and Javad Yarjani, adviser and director for National Iranian Oil Co.'s International Affairs, voiced their differing views on the legitimacy and actual efficiency of international sanctions. Rickman said sanctions were justified because some nations "pose a threat to our (U.S.) national security."

He had pointed remarks for Total over "deals with Iran, and I might add other rogue states, such as Libya, Iraq, and Burma."

Yarjani said U.S. sanctions had not hurt Iran as much as intended. "In the last 2 years, Iran has enjoyed healthy economic growth, made timely payments of international financial obligations, has had no problem with replacing her U.S. oil customers, and has benefited from a high level of oil revenues and hard currency."

But, he said, "There is no doubt that U.S. sanctions aimed at Iran's oil and gas industries have distorted the free flow of international capital and free operation of the market forces with respect to the development of Iran's enormous oil and gas resources and those of her neighbors in the Caucasus, Caspian Sea, and central Asia regions."

Other views

Jean-Pierre Pauwels, manager of Banque Nationale de Belgique and president of Ducroire Belgique (the official credit insurance company) said sanctions "are hurting" Iran, although for oil projects credit insurance is still guaranteed.

Victor Vachier, executive vice-president of France's oil service and equipment industry, fears that sanctions would boost local initiatives. "Sanctions will help build up competitors rather than clients," he said. "The place will be taken by companies that have no scruples about breaking the embargo."

He added, "Things will never be the same after the lifting of sanctions," concluding that "each company must look to its own interests."

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