Pavliuk O. I.

Yuriy Fedkovych Chernivtsi National University, Ukraine

AMERICAN CONTAINMENT POLICY ACCORDING IRAN AND THE IMPOSITION OF INTERNATIONAL SANCTIONS AGAINST RUSSIA

At the time of apparent violations of fundamental norms and principles of international law by Russian Federation according Ukraine, which shook the foundations of international relations of the XXI century, the problem of  containment of the aggressor by the international community is particularly topical.

At the beginning of the Cold War John Kennan proposed a strategy of ”containment” of the enemy state [4]. The policy of containment was an alternative strategy that was used by the US to block political expansion, undermining the economy and prevent military aggression of the USSR until the regime collapsed from internal deficiencies in 1991.

After the success of the policy of containment according the Soviet Union, the United States have adapted it to a number of other external challenges, including Iran. The Islamic Republic is determined to become the world’s tenth nuclear power. To ensure regional security Tehran’s growing influence should be contained. As the US national strategy during the Cold War, deterrence is increasingly treated as the best option to deal with hostile states like Iran, where neither war nor peace were not attractive or viable alternative [5, 43].

Sanctions against Iran were first clearly aimed at weakening the Iranian energy sector by refusing to import oil, and then to ban the access to the international financial system, to the foreign exchange reserves of Iran. They also include visa restrictions for individuals associated with human rights violations, as well as a ban on trade and investment in Iran [6, 196].

Targeted imposition of sanctions by the US, UN, EU has reduced by 50% of revenues from the sale of Iranian oil in the budget, rising unemployment and a decline in the currency more than doubled. As a result, Iran held a democratic presidential election and November 24, 2013 signed an agreement, which was the result of nearly 10 years of discussions and negotiations and is called the “Joint Action Plan”. The government of the Islamic Republic agreed to limit its nuclear program, in response the international community recognize Iran’s right to use nuclear energy for peaceful purposes, and after the expiration will consider the possibility of cancelation of UN sanctions.

This scenario can be extrapolated to international relations with Russia, because its economy is also energy-dependent from developed countries like Iranian one. After an armed invasion of the Crimea in March 3, 2013 was a significant devaluation of the ruble, and the Central Bank had to spend 11.6 billion dollars for its maintenance. Immediately international sanctions against Russia began to apply, aimed at ending the aggression of Russia against Ukraine. Their goal is to stop the funding, arming and supplying terrorists by Russia to the East of Ukraine.

International community had been imposing sanctions in stages. The first stage –  limiting cooperation, was adopted March 16, 2014. Subsequently EU has moved to the second stage – restrictions on the supply of certain types of technology. July 16, 2014 the US imposed sanctions on the first key sectors of the Russian economy. The EU supported the third stage of sanctions July 29, 2014.

As a result, Western sanctions against Russia related to the Ukrainian crisis, stopped its economic growth, paralyzed the flow of investment and can lead to economic isolation of Russia, told the IMF in its report for 2014 [3].

Moreover, the sharp decline of the ruble according to other currencies during 2014 and the decline of the Russian economy led to a financial crisis. One of the factors contributing to the economic recession is that oil – Russian main export, has fallen in price by 50% [2]. Beside, specialists include to the basic causes of the crisis not only the Russian intervention in Ukraine, which led to Western sanctions against Russian industry that block refinancing in global financial markets, but also inefficient and unreformed state of the Russian economy and contra-sanctions by Russian government, such as measures to limit food imports from the US and the EU, introduced in August 2014 [1].

It is clear that sanctions imposed by the United States has more political consequences for Russia as US share in the structure of foreign trade and foreign investment in Russia is negligible. More effective are European sanctions, as the EU is a major foreign trade partner of Russia, consuming about 30% of gas and 50% of oil. In addition, the European Union is the main foreign investor in Russia. The share of its investment is 83%. Accordingly, if the EU limits trade with Russia, reduce investment and freeze Russian assets, it will have a significant negative impact on the economy.

As a result, such influential regional leaders like Russia and Iran will be held on the same trajectory of the global isolation and economic constraints that ultimately encourage them to respect the rules and principles of international law.

References:

1.     Doff N. Russian Stocks Drop 12 Percent [Åëåêòðîííèé ðåñóðñ] / Natasha Doff, Ksenia Galouchko  // Bloomberg. – Ðåæèì äîñòóïó: http://www.bloomberg.com/news/articles/ 2014-12-16/russia-stocks-sink-most-in-world-as-ruble-crisis-pummels-banks

2.     Friedman N. U.S. Oil Prices Snap Losing Streak [Åëåêòðîííèé ðåñóðñ] / Nicole Friedman // Wall Street Journal. – Ðåæèì äîñòóïó: http://www.wsj.com/articles/oil-prices-plunge-with-brent-crude-below-60-1418722523

3.     IMF downgraded its forecasts for the decline of the Russian economy [Åëåêòðîííèé ðåñóðñ] // Òèæäåíü . – Ðåæèì äîñòóïó: http://tyzhden.ua/News/127995

4.     Kennan G. The Sources of Soviet Conduct / George Kennan // Foreign Affairs. –  1946. –  July [Åëåêòðîííèé ðåñóðñ]. – Ðåæèì äîñòóïó: http://www.foreignaffairs.com/articles/23331/x/the-sources-of-soviet-conduct

5.     Lindsay J.  After Iran Gets the Bomb / James M. Lindsay, Ray Takeyh // Foreign Affairs. –  2010. –  March/April. – P. 43

6.     Pollack K. Which Path to Persia? Options for a New American Strategy toward Iran / Keneth Pollack, Daniel Byman, Martin Indyk, Suzanne Maloney, Michael E. O'Hanlon, and Bruce Riede. – Brookings Institution Press, 2009. – 196