Page 11 - MEOG Week 39 2021

MEOG POLICY & SECURITY MEOG

Biden reviewing waiver for

Iranian fuel sales to Afghanistan

IRAN THE Biden administration is reportedly review- the global financial system by the “maximum
ing a 2018 sanctions waiver that okays Afghan- pressure” campaign brought in by the former
istan’s purchases of Iranian fuel. The review Trump White House.
started following the takeover of the country by Howard Shatz, a senior economist at the
the Taliban. Rand Corporation, told MEE: “These transac-
A US State Department spokesperson told tions are not insignificant. If they are cut off, the
Middle East Eye (MEE) that the waiver policy effect would be felt in Tehran.”
put in place by the former Trump administration However, Shatz also noted that even if Wash-
“remains under active review”. A threat to with- ington wanted to enforce sanctions on Iranian
draw the waiver could add to the leverage the US fuel sales to the Taliban, it could prove difficult.
has as it seeks to pressure Tehran to set a date for “We don’t have a lot of leverage with Iran and
a resumption of the Vienna talks aimed at find- Afghanistan,” he said.
ing a path to reviving the 2015 nuclear deal. Shatz was also cited as saying that if the Biden
Afghanistan is heavily reliant on Iranian fuel administration decided to end the waiver, one
to meet its energy needs. effect would be to cut off third parties involved
Since the Taliban seized power in August, in the purchase or sale of the fuel from the US
cross-border trade with Iran in petroleum prod- financial system.
ucts has boomed to roughly $5m a day, accord- “It would likely discourage businesspeople
ing to The Wall Street Journal. in the Gulf from facilitating any transactions,”
That makes fuel sales to Afghanistan a sig- he added, observing also that individuals from
nificant source of US dollars for Iran’s economy, countries like China or Russia could step in to
battered as it is by US sanctions and cut off from fill the void.™

Week 39 29•September•2021 www. NEWSBASE .com P11