Page 4 - MEOG Week 14 2021

MEOG COMMENTARY MEOG

Iran sanctions

talks resume,

albeit indirectly

The US rejoined talks as it hopes to reach a
breakthrough to return to the deal it left in 2018.

IRAN JUST a week after Iran signed a 25-year strategic members of the UN Security Council – China,
agreement with China, the US has returned to France, Russia, the UK and the US – plus Ger-
talks that could pave the way towards an easing many (P5+1).
WHAT: of sanctions on the Islamic Republic. The EU said that following a virtual meeting
The P5+1 met in Vienna Discussions resumed in Vienna this week between the parties – except the US – talks would
this week in a move that between the European Union, Russia, China be held in Vienna to “clearly identify sanctions
may lead to an easing of and the US, with Tehran refusing to engage in lifting and nuclear implementation measures”.
sanctions on Iran. direct negotiations until Washington makes con- The timing of the US’ return to talks is some-
cessions on current sanctions. For its part, the what unexpected, particularly with Iran having
WHY: administration of Joe Biden has previously spo- doubled down on uranium enrichment – last
Joe Biden has previously ken of its willingness to explore a return to the week a fourth cascade of IR-2m machines com-
spoken of his intention Joint Comprehensive Plan of Action (JCPOA) menced enrichment at the country’s heavily pro-
to return to the deal, but but reiterated that this depends on Iran improv- tected underground Natanz facility in the latest
the timing following so ing compliance with the terms of the 2015 deal. breach of the JCPOA.
closely after a Sino- However, given that the growing economic
Iranian deal suggests Talks relationship with China is likely to bring sig-
that Washington does not Announcing on April 2 that it would return to nificant economic improvements for Iran, the
want China to hold all the talks with the other signatories, US State Depart- US perhaps feels it must make an effort to bring
cards. ment spokesman Ned Price said: “These remain Tehran closer to its sphere of influence. Energy
early days and we don’t anticipate an immediate is a key element in the Sino-Iranian pact and
WHAT NEXT: breakthrough, as there will be difficult discus- any removal of US sanctions would bring about
If a deal can be achieved, sions ahead. But we believe this is a healthy step another scramble for opportunities in the coun-
international players are forward.” try, which is home to the world’s fourth- and sec-
likely to find a variety of The US alluded to the challenging backdrop, ond-largest reserves of oil and gas respectively.
different challenges to saying it did not “anticipate” direct talks with
entering the Iranian oil Iran but expressed its openness to resuming Oil outlook
and gas sector from what direct negotiations with Tehran. The JCPOA With the aim of attracting international inves-
they found in 2015-2018/ was signed between Iran and the five permanent tors and developers, Iran launched its integrated

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