Abstract
From the early months Iran came under US sanctions, the country had to find creative ways to go around those restrictions and limitations. As time went by and the Middle Eastern country became a target of unprecedented international sanctions and punitive measures, the crucial mission of sanctions-busting emerged as a large empire which extended its tentacles virtually into every important business in every part of the world. Internationally, many foreign businesses and ambitious individuals were prepared to cooperate with their Iranian counterparts to bypass economic and technological restrictions in exchange for gaining significant pecuniary rewards. Internally, almost all active players in public and private sectors were mobilized to play a role in the crucial task of sanctions circumvention, though a number of hand-picked stakeholders with close ties to the core political and security establishment of the Islamic Republic were given more power as well as more economic and financial rewards to participate in myriad sanctions-busting measures at home and abroad.
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Notes
- 1.
Carswell; and Christopher C. Joyner, “United Nations Sanctions after Iraq: Looking Back to See Ahead,” Chicago Journal of International Law, Vol. 4, No. 2 (2003), pp. 329–332.
- 2.
“Mohammad Javad Zarif: Doctorai dourzadan tahrimha ra darim” [Mohammad Javad Zarif: We Have Doctorate in Bypassing Sanctions], Ebtekar News, April 27, 2019, p. 1.
- 3.
David S. Cohen and Zachary K. Goldman, “Like it or Not, Unilateral Sanctions Are Here to Stay,” AJIL Unbound, Vol. 113 (April 2019), pp. 146–151.
- 4.
“Yek rah khoob baray doorzadan tahrim!” [A Good Way for Bypassing Sanctions!], 7 Sobh, February 15, 2020, p. 1.
- 5.
“Rais bank markazi elam kard: 15 darsad hazineh tejarat khareji dar jib kaseban tahrim” [Governor of Central Bank Announced: 15 Percent of the Cost of Foreign Trade Go to the Pocket of Sanctions Middlemen], Iran, September 14, 2016, p. 5.
- 6.
“Abbas Akhondi: 400 milyard dollar kharj ‘doorzadan tahrimha’ kardim” [Abbas Akhondi: We Spent $400 Billion on ‘Bypassing Sanctions’], Asr Iran, April 22, 2021.
- 7.
“Geroukeshi baray feroosh naft Iran” [Blackmailing for Selling Iran Oil], Shargh Daily, August 9, 2018, p. 5.
- 8.
“Swift ra kheili geran dourmizadim” [We were Bypassing Swift at a High Cost], Taadol Newspaper, December 5, 2015, p. 1.
- 9.
“Fasad be yeki az elzamat faaliyat tejari tabdil shod east: Iran; dargir ebtezal eghtesadi!” [Corruption Has Become an Imperative of Trading Activity: Iran; Stuck in Economic Sleaze!], Abrar-e Eghtesadi, July 12, 2018, p. 1; “Tahrimha behtarin bahane baray ekhtelas va rant” [Sanctions Best Excuse for Embezzlement and Rent], Aftab-e Eghtesadi, March 12, 2019, p. 1; and “Rant va fesad be esme dourzadan tahrimha” [Rent and Corruption in the Name of Bypassing Sanctions], Eghtesad-e Pooya, April 4, 2021, p. 2.
- 10.
“Rais jomhoor: Be bahane tahrim gharat kardand” [President: They Plundered by Excusing Sanctions], Shargh Daily, February 14, 2016.
- 11.
Bruce Cumings, “Rapprochement in Postwar History: Implications for North Korea,” in Kyung-Ae Park, ed., New Challenges of North Korean Foreign Policy (New York: Palgrave Macmillan, 2010), pp. 205–222.
- 12.
“Naftkeshhay irani tahrim ra dour mizanand” [Iranian Oil Tankers Bypass Sanctions], Forsat Emrooz, October 13, 2018, p. 3.
- 13.
Richard L. Kilpatrick, Jr., “North Korea’s Sanctions-Busting Maritime Practices: Implications for Commercial Shipping,” Chinese (Taiwan) Yearbook of International Law and Affairs, Vol. 37 (2019), pp. 199–220.
- 14.
“Iran doesn’t Expect Oil Customers—Including Japan—to Get Sanctions Waivers,” The Japan Times, June 23, 2018; and “Froosh makhfi naft” [Secret Sale of Oil], Shargh Daily, May 25, 2019, p. 1.
- 15.
“China Sweats Iran Trade Ties,” Global Times, September 30, 2009; “China Supplying Gasoline to Iran: Report,” Global Times, September 24, 2009; and “Hajm bisabeghei az naft Iran be Dalian chin raft” [Unprecedented Volume of Iran Oil Went to China’s Dalian], Mostaghel Newspaper, October 21, 2018, p. 5.
- 16.
“Washington Warns Hong Kong to Watch for Vessel Carrying Iranian Oil,” CNBC, May 29, 2019; “Tokyo; dariche mozakere va goshayesh eghtesadi” [Tokyo; Window to Negotiation and Economic Breath], Hamshahri, December 14, 2019, pp. 1, 4; and “Vietnam Laments U.S. Decision to Sanction Firm over Iran Trade,” Tehran Times, December 18, 2020.
- 17.
“Chin 8 million boshke naft Iran ra bedoon sabt dar gomrok kharid” [China Purchased 8 Million Barrels of Iran Oil without Customs Registration], Servat News, August 5, 2020, p. 5.
- 18.
“Safir kore: Pool sefarat r aba ghachagh be Iran miavarim” [Korean Ambassador: We Bring to Iran Our Embassy Money through Smuggling], Tabnak, July 11, 2016.
- 19.
“Mahane 2 milyard dollar kala va arz ghachagh mishavd” [$2 Billion Goods and Currency Smuggled Every Month], Javan, September 10, 2016, p. 12; and “Ghabl of barjam dollarha ba ghaterhay 25 milyoni vared keshvar mishod!” [Before JCPOA Dollars were Entered the Country by Mules Valued 25 Million Toomans], Aftab-e Yazd, February 5, 2017, p. 1.
- 20.
“Jabye syah bank markazi Ahmadinejad: Ba ghayegh dollar miavardam” [Ahmadinejad’s Black Box of Central Bank: I Was Bringing Dollar with Motor Ferry], Arman Daily, September 23, 2017, p. 1; and “Ba ghayegh motori az khalij fars pool miavardim!” [We Brought Money from the Persian Gulf by Motor Ferry!], Aftab-e Yazd, September 23, 2017, p. 15.
- 21.
Salisbury and Lowrie; and Taylor.
- 22.
Shehadi.
- 23.
“Sanctions-busting is in Dubai’s DNA,” The Guardian, April 20, 2010.
- 24.
“Iran Smuggles $1 Billion in Cash through Dubai, Turkey to Dodge Sanctions,” The Japan Times, February 26, 2015; and “Moaven avval raisjomhoor: Dolat ghabl 23 milyard dollar be Dubai va Istanbul bord” [First Vice-President: Previous Government Took $23 billion to Dubai and Istanbul], Arman Daily, August 31, 2016, p. 1.
- 25.
“Sony: Sanctioned Iran Firms Got Gear It Sold Via Dubai,” The Japan Times, June 29, 2013.
- 26.
A foreign company could export its products to Iraq, and then those goods were to be re-exported to Iran. But Iraqis had to pay for those goods first before shipping them to Iran for their debts to Iranians incurred for importing electricity and other goods from Iran. This bartering system was a relatively convenient method to evade sanctions, while the two neighboring countries could settle some of their financial matters caused by the impossibility of doing international financial transactions between Iran and other nations. “Chin va torkye tahrimhay Iran ra ejra nemikonand” [China and Turkey not Implementing Iran Sanctions], Javan, July 30, 2018, p. 15; “Varedat vasetei kala az aragh” [Importing Intermediary Goods from Iraq], Aftab-e Yazd, September 16, 2020, p. 5; and “US Regulators Accuse Singapore Energy Trader of Iran Sanctions Breach,” Global Trade Review (GTR), November 4, 2020.
- 27.
“Naghsh asiaiha dar kahesh asarbakhshi tahrim nafti” [Role of Asians in Cooling the Effectiveness of Oil Sanctions], Tejarat News, June 3, 2018, p. 1.
- 28.
“China ‘a Conduit’ for Iran’s Nuclear Programme,” South China Morning Post, February 16, 2013; and Simon Shen, “Hong Kong–Middle East Relations: Chinese Diplomacy and Urban Development,” Israel Journal of Foreign Affairs, Vol. 9, No. 2 (2015), pp. 253–266.
- 29.
“Various Hong Kong Companies Caught Up in Iran Sanctions,” Hong Kong Trade Development Council (HKTDC), October 27, 2020.
- 30.
“Nesf eghtesad keshvar dar ekhtiyar yazdah ghoul eghtesadi ast” [11 Economic Giants Control Half of the Country’s Economy], Tabnak, May 8, 2019.
- 31.
“Baradaran ghachaghchi” [Smuggling Brothers], Radio Farda, July 7, 2011.
- 32.
“Dadsetan kol keshvar: Barkhi maghamat dar ghachagh sahm darand” [Iran Chief Prosecutor: Some Officials are Involved in Smuggling], Jame-e Farda, December 19, 2017, p. 1; and “Dadsetan kol keshvar: Barkhi maghamat va aghazadeha dar ghachagh sahimand” [Top Prosecutor: Some Officials and Children of Officials are Involved in Smuggling], Bahar Daily, December 19, 2017, p. 2.
- 33.
“Iran’s Foreign Minister, in Leaked Tape, Says Revolutionary Guards Set Policies,” The New York Times, April 25, 2021; and “In Leaked Recording, Iran’s Zarif Criticises Guards’ Influence in Diplomacy,” Reuters, April 26, 2021.
- 34.
“Sakht 10 farvand keshti: Khodeman mitavanim, be koreiha nadahid” [Building 10 Ships: We Ourselves can Make it, Do not Give it to Koreans], Kayhan, December 12, 2016, p. 1; and “Rais jomhoor gharardad kharid kashti az kore ra laghvkonad” [President Should Cancel the Deal for Purchasing Ships from Korea], Javan, December 12, 2016, p. 12.
- 35.
“‘Hyundai’ baray Iran 10 keshti va 6 tanker misazad: Gharardad bisabeghe ba ghool kashtisazi jahan” [‘Hyundai’ Builds 10 Ships and 6 Tankers for Iran: Unprecedented Contract with the World’s Shipbuilding Giant], Iran, December 10, 2016, p. 1; and “Posht pardeh gharardad Iran ba kashtisaz korei” [Background of Iran’s Deal with Korean Shipbuilder], Hamshahri, December 13, 2016, pp. 1, 4.
- 36.
“Gharardad kharid 10 keshti korei hezar milyard tooman pool beitolmal ra bebaddad” [Contract for Buying 10 Korean Ships Squandered 1,000 Billion Toomans of Public Funds], Resalat, January 28, 2017, p. 4.
- 37.
“Chin hamkari mali ba sepah Quds ra takzib kard” [China Denied Financial Cooperation with Quds Force], Tabnak, November 18, 2014.
- 38.
“In yek jang tejari ast” [This is a Trade War], Etemad Daily, July 8, 2018, p. 1.
- 39.
“Ebraz rezayat majlis az moravedat miyan Iran va kore shomali” [Parliament Pleased with Iran–North Korea Interactions], Aftab-e Yazd, September 9, 2020, p. 5.
- 40.
Jones, p. 45.
- 41.
For more details on this case, see: “Iran’s Turkish Gold Rush,” Foreign Policy, December 26, 2013.
- 42.
In March 2021, Vice-President Eshaq Jahangiri boasted that the government of Hasan Rouhani, unlike his predecessor, could also sell oil under American sanctions “without creating people like Babak Zanjani.” “Bedoon dorostkardan Babak Zanjaniha va hadardadan yek dollar, naft ham frookhtim” [We also Sold Oil without Creating People like Babak Zanjani and Wasting a Single Dollar], Iran, March 7, 2021, p. 6.
- 43.
“To This Tycoon, Iran Sanctions Were Like Gold,” The New York Times, October 4, 2013.
- 44.
“Eddeai jadid Babak Zanjani: Poolha dar Tokyo bank ast!” [Babak Zanjani’s New Claim: Money are in Tokyo Bank!], Kelid Newspaper, June 19, 2017, p. 1.
- 45.
“27.6 darsad eghtesad Iran gheirrasmi ast” [27.6 Percent of Iran Economy is Informal], Tabnak, November 8, 2015; “Eghtesad keshvar gereftar kalay ghachagh” [Iran Economy Grappling with Smuggled Goods], Hemayat, February 8, 2017, p. 16; and “60 darsad eghtesad Iran zirzamini edare mishavad” [60 Percent of Iran Economy Managed Underground], Arman Daily, May 28, 2018, p. 1.
- 46.
“Hich keshvari be andaze Iran dargir ghachagh kala nist” [No Country Engaged in Smuggling More than Iran], Shahrvand, December 11, 2016, p. 1.
- 47.
“Saderat peste dar dast mafia” [Pistachio Exports in the Hands of Mafia], Jahan-e Sanat, October 17, 2017, pp. 1, 12.
- 48.
“Khak Iran hamchenan ghachagh mishavad” [Smuggling of Iran Soil Continues], Jahan-e Sanat, December 16, 2018, p. 12; and “Ghachagh khak” [Smuggling Soil], Akhbar-e Sanat, December 18, 2018, p. 1.
- 49.
“Manategh azad behtarin makan baray ghachagh kala va varedat biraviyeh ast” [Free Trade Zones Best Place for Smuggling Goods and Unwarranted Imports], Kayhan, October 31, 2017, p. 1; and “Chera afrad khassi emzai talai varedat darand?” [Why Certain Individuals Got Golden Signature of Imports?], Farhikhtegan Daily, April 19, 2018, p. 10.
- 50.
“Mikhastand 75 keshti ‘khodro va kalay lux’ ra be esm daroo vared konand” [They Wanted to Enter 75 Ships of ‘Cars and Luxurious Goods’ in the Name of Drugs], Tasnim News Agency, August 3, 2013; and “Joziat jadid az varedat khodro ba arz daroo” [New Details about Importing Cars with Drugs Money], Tabnak, October 13, 2015.
- 51.
“Tahrimha mafiay eghtesadi ra gostaresh dad” [Sanctions Expanded the Economic Mafia], Tabnak, April 6, 2015; and “Lobby ghavi ghachaghchian” [The Strong Lobby of Smugglers], Jahan-e Sanat, July 25, 2016, p. 12.
- 52.
“Bazaar shesh milyard dollari” [The $6 Billion Dollar Market], 7 Sobh, June 19, 2016, p. 1; and “5 miliard dollar ghachagh kala dar tahlenjiha” [$5 Billion Smuggled Goods in Vessels], Kasbokar News, December 26, 2016, pp. 1, 8.
- 53.
“Payan empratoori mobilhay ghachagh dar Iran” [The Empire of Smuggled Mobiles in Iran Over], Kar va Kargar, July 24, 2016, p. 16; “Faaliyat koolbaran ghanooni mishavad” [Activity of Porters to be Legalized], Iran, December 22, 2019, p. 1; and “Payan froosh lavazem khanegi ghachagh va taghallobi” [Sale of Selling Smuggled and Fake Home Appliances Over], Iran, February 16, 2020, p. 8.
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Azad, S. (2022). The Empire Strikes Back: Circumventing Sanctions. In: East Asia and Iran Sanctions. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-97427-5_12
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