Can US sanctions against Iran be lifted? Understand

The United States has already begun to lift some sanctions against Iran under the interim agreement to end the war. However, completely unraveling the complex web of restrictions imposed on the country's activities and trade in a more comprehensive agreement will be a much more difficult task.

As a result, any effort to eliminate sanctions against Iran could take years, and the return of foreign investment to the country could also take a long time.

Will sanctions against Iran be lifted?
Sanctions, trade embargoes and asset freezes have been imposed by the United States, the United Nations, the European Union and other countries for decades over Iran's nuclear program, its human rights record and its support for armed groups in the region.

Iran now hopes to gain additional sanctions relief through negotiations over its nuclear program as the next phase of the interim deal moves forward.

Achieving lasting sanctions relief is critical to the prospects of the ruling regime, which has faced repeated episodes of instability in recent years, including mass protests over the economic situation that were violently suppressed in January.

In the nuclear agreement signed in 2015, most sanctions against Iran were suspended. However, that understanding took years to negotiate and, after a war with no conclusive outcome, it may be much more difficult for the parties to overcome their differences again.

What are the UN sanctions?
The United Nations sanctions are linked to the Iranian nuclear program and the violations attributed to the country in relation to its obligations under the NPT (Nuclear Non-Proliferation Treaty).

The UN Security Council passed resolutions imposing sanctions on Iran in 2006, 2007, 2008 and 2010.

The measures included an arms embargo, bans on the supply of certain nuclear-related materials and technologies, and the freezing of assets of some companies and individuals.

The resolutions also prohibited Iran from carrying out activities aimed at developing ballistic missiles capable of carrying nuclear weapons.

Although the resolutions frozen resources and assets of the Islamic Revolutionary Guard Corps and the state-owned shipping company, they did not ban Iranian oil exports.

Following the signing of the nuclear agreement known as the Joint Comprehensive Plan of Action (JCPOA) in 2015, the Security Council established a timeline for lifting its sanctions against Iran.

However, United States President Donald Trump withdrew the country from the agreement in 2018, and Iran failed to comply with part of its demands.

As a consequence, UN sanctions were reinstated last year through a mechanism known as "snapback", which allows penalties to be automatically reimposed.

How difficult will it be for Trump to lift sanctions against Iran?
Washington imposed its first sanctions on Iran in 1979, when student revolutionaries occupied the US embassy in Tehran and held American diplomats hostage.

Since then, several additional sanctions have been adopted, including broad restrictions on Iranian oil and gas exports, due to the country's support for groups that the US considers terrorist organizations and also because of its nuclear program.

A major complication is that the IRGC (Islamic Revolutionary Guard Corps), the most influential entity in the country and deeply integrated into the Iranian economy, is classified by Washington as a terrorist organization.

Sanctions are administered by the United States Department of the Treasury, but as they were established under different legal bases and through different mechanisms, there is no quick and simple way to lift them all at once.

The authority to impose sanctions stems from two laws passed in the 1970s that grant emergency powers to the president and must be renewed annually, as well as legislation from 1996 and 2017 specifically aimed at Iran and other countries.

Sanctions imposed by the president through executive decrees can be reversed by Donald Trump with relative ease. These include freezing billions of dollars in Iranian assets, an arms embargo, a ban on trade or investment in Iran, and a ban on the purchase of Iranian oil.

More difficult to remove are sanctions approved by the US Congress, which do not provide for waivers or exceptions related to Iran's conduct on human rights issues or Tehran's support for groups that Washington considers terrorist organizations.

In addition, many companies, individuals, and government bodies are specifically listed in the sanctions, and removing all of these designations could take a long time.

Is Iran also sanctioned by Europe?
The European Union imposed embargoes on Iran's oil exports, froze assets held by Iran's Central Bank, and halted trade in precious metals and petrochemicals with the country in 2012.

Restrictions were also established on foreign trade, financial services and the energy and technology sectors.

In addition, some Iranian banks were disconnected from the international Swift payments system in 2012, in compliance with European Union directives, which practically isolated a large part of the Iranian financial system from the rest of the world.

Although some sanctions were lifted under the nuclear deal known as the JCPOA, they were later reinstated. New sanctions also began to target specific individuals and certain components used in the manufacture of missiles and drones.

The European Union also sanctioned the Islamic Revolutionary Guard Corps and imposed new restrictive measures this year in response to Iran's blockade of the Strait of Hormuz.

Would foreign companies return to Iran if sanctions were lifted?
The complexity of the sanctions regime imposed on Iran means that many companies fear they will face legal risks if they decide to resume operations in the Islamic Republic without a broad and comprehensive lifting of these restrictions.

Because a large number of Iranian companies and individuals are subject to targeted sanctions, it can be difficult for foreign companies to ensure they are not inadvertently violating rules when doing business in the country.

In addition, these companies may face lawsuits from victims of attacks, which could accuse investors and companies of providing indirect support to groups included on lists of sanctioned organizations.

Where does Iran have frozen assets?
Iran has tens of billions of dollars deposited in foreign banks, mainly from oil and gas exports, but is unable to access these resources due to the various sanctions imposed on its banking and oil sectors.

Among the countries where billions of dollars obtained from the sale of Iranian oil remain blocked in financial institutions are South Korea, China, Japan, Luxembourg and Iraq.

Source: CNN