How Iraq will benefit from the lifting of economic sanctions on Iran?

01/18/2016 14:21

BAGHDAD / Obelisk: Stephen Mofsson a political and economic analyst in "The Washington Post and Bloomberg News Service," wrote, that Iran is about to add a new market volatile oil and graduated from the context of economic sanctions. After tightening of other US and international sanctions on Iran in 2012 lost nearly 700 thousand barrels of Iranian oil per day from the global market. And then the average price of a barrel of oil OPEC (Organization of Petroleum Exporting Countries) of $ 109.45.

With the lifting of these sanctions is currently scheduled to Iran strengthen its sales of oil in the midst of a state of enormous glut of the OPEC oil price of $ 25 a barrel, less than a quarter of the price in 2012.

The result will be significantly less revenue for Iran, which its leaders predicted two years ago when he began to negotiate an end to sanctions related to the nuclear program. The country may have to pump less oil in the market pace than they were intended to, and this may make the international oil companies more cautious and meanest in investment in the country.

The lifting of the sanctions, Iran will be able to conduct banking transactions. There are nearly 100 billion dollars in frozen bank accounts will be released despite the fact that about half of which will go to pay debts and other obligations. And the US Treasury will raise under the nuclear deal with Iran sanctions that restricted foreign companies from carrying out economic activities in the finance, banking, insurance, energy, petrochemicals, shipping, shipbuilding, gold, precious metals and other sectors. Many of these companies have started communicating with Iran.

For example, the company "Lloyd said is not" which monitors shipping activity that Midetyrnjan Chipping company resumed direct services with Iran after a lapse of three years. The "Lloyd is not" also that the oil department in Maersk Group is in talks with Iran on the development of the oil fields of the country.

Many US companies and banks are forbidden to carry out economic activities with Iran under the sanctions and other laws and regulations related to human rights and ballistic missiles and terrorism.

Last Friday, the Treasury Department completed regulations relating to on the application of these sanctions. And one of the items regards the possibility of foreign branches of US companies dealing with Iran, a clause awaited by corporate managers.

On Saturday, the Treasury Department announced that it will issue permits on a case by case basis. The ministry also provided guidance on the deals that can be entered into abroad in dollars and must be approved by US financial institutions.

But it is likely that some uncertainty remains regarding the definition of activities with Iran that are in line with the nuclear deal. In addition to this, Iran suffers from inflation and support the high-rise rates and the difficulty in obtaining licenses and loans unable to repay. The words of Mofsson

New opportunities for Iraq ..

Concerning Iraq, the lifting of sanctions on Iran contributes to the strengthening of the pace of economic cooperation and trade exchange between the two countries and to increase

Banking exchanges and pay the value of imports, and would end the lifting of sanctions, impediments to trade and investment between the two countries, especially on the banks and the energy sector.

Iran is an important neighbor of Iraq shares a long border with him, which would raise the momentum of trade to more than $ 14 billion annually.

And Iraq can compensate for economic losses as a result of lower oil prices, through the promotion of religious tourism and investments in agriculture and industry with Iran.

The closest opportunities for Iraq after the lifting of sanctions on Iran, to take advantage of mutual religious tourism momentum between the two sides, particularly since Iraq, according to the Ministry of Tourism and the Iraqi Antiquities topped the list of countries he visited Iranian during 2014, which contributes to the doubling of the economic resources of the tourism sector.

Lifting sanctions on Iran opens doors open to the Iranian companies to invest in air and maritime transport, railways and Iranian companies to enter the Iraqi cities and to benefit from their expertise areas.

In the area of ​​energy, it will be a significant economic benefit to the two countries to invest in the common fields and investment in the field of gas production and transportation.