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Thursday, June 10, 2010

UN agrees on Iran sanctions, but it's as flimsy as a used tissue

Business of Politics in the Middle East:

The UN finally agreed to impose sanctions on Iran for their suspicious nuclear operations. Brazil and Turkey, both temporary members of the Security Council, voted against further sanctions. The penalties will halt some international financial transactions and seize cargo that aids in the flow of materials needed to operate their nuclear operations. Iran's president, Mahmoud Ahmadinejad stated that the sanctions are like a "used handkerchief that should be dumped in a garbage can"; meant to explain that UN actions will not disrupt Iran's international business relations.

The UN should heed well to Iran's lax response to what was supposed to be tough action. Iran will not open their nuclear facilities for observation, even though they claim it's peaceful and meant only for energy purposes. However, making such threats against other nations like hating America, and proposing that Israel be wiped off the map, raises international concern for various harmful motives in which nuclear weapons can be used to actually implement these threats.

An Iranian friend of mine stated that the UN should crack down on other countries like North Korea that clearly have illegal nuclear programs. I agree, but Kim Jong Il is very much the same as Ahmadinejad; they are both stubborn and are difficult to negotiate with. North Korea's operations should not be tolerated, and a tough approach to all will strengthen the UN's message.

Iran is big on energy trade. Their business ties with Russia and China have made it difficult for the UN to impose tough sanctions on Iran. China demands a large sum of energy from Iran. The Chinese state-run company Zhuhai Zhenrong Corporation has secured a 25 year contract to import 110 million metric tons of Liquified Natural Gas from Iran, and the trade deals are even greater throughout China. Iran also co-founded the Gas Exporting Countries Forum with Russia and Qatar. Russia has their eye placed on the middle east region because of their booming energy export business. They are not turning away, despite what the UN says. Business is stronger than international dignity. These countries will surely find ways to work around further sanctions, as Iran continues to lure international investors into their growing energy economy.

Surely, nuclear energy will add to Iran's new energy vision. If they open it up for inspection and pass, business will continue to flourish without sanctions and international suspicion. However, because of their reputation of hate talk, the nuclear program makes the world worry about safety. Their business allies like Turkey and Brazil are using their temporary position on the Security Council to lobby against any trade disruptions to protect their own financial interest in Iran. The US will not call out countries like Turkey for taking the opposing side for the sake of our own friendly relations. Diplomacy is all about business, and trade waits for no one.

Expect Iran's energy industry to rise as investors express their interest. In a few years, Iran will have greater authority which will allow them to utilize their energy exports. Just as Russia uses oil and gas supply as a weapon to solve disputes. Is it any wonder why Europe is trying to move away from reliance on Russia's supply of natural gas by building the Nord Stream pipeline, and partnering with nearby countries to tap their energy supplies?

Even though the UN reached an agreement, they are still at a gridlock on solutions. Iran will continue to brush off their silly sanctions. Countries like North Korea are getting off the hook, and we better not give up on Iran. What can the US do? Surely, a 30% reduction of nuclear forces in Obama's Strategic Arms Reduction Treaty is not the right response. We need to gear up for the sake of our own security. Sitting down with Ahmadinejad without preconditions is out of the question now. It's time to take a tough stand; if they don't want to talk, we'll act with preparedness.

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