Amid crippling sanctions, Iran traders seek lifeline in Iraq

Piles of plush Iranian-made carpets line the floors of a shopping center  in the city of Dohuk in northern Iraq, hosting traders from neighbouring Iran. (AP)
Piles of plush Iranian-made carpets line the floors of a shopping center in the city of Dohuk in northern Iraq, hosting traders from neighbouring Iran. (AP)
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Updated 22 January 2021

Amid crippling sanctions, Iran traders seek lifeline in Iraq

Amid crippling sanctions, Iran traders seek lifeline in Iraq
  • 24 businesses from 15 Iranian cities set shop away from country’s economy hit by crippling sanctions

DOHUK, Iraq: Piles of plush carpets line the floors of a northern Iraq shopping center hosting traders from neighboring Iran who hope the spangle of their ornate handicrafts might offer a lifeline out of poverty.
In their own country, the economy is in tatters amid crippling US sanctions.
“Our money is so devalued, so when we come to this side — apart from the cultural exchange that we share — from a financial perspective it’s more profitable for us,” said Iranian Ramiyar Parwiz, the organizer of the exhibition who is originally from Sanandaj. “The money we receive … whether in dollars or dinars has a higher value on our side and it’s worth a lot.”
At least 24 businesses from 15 Iranian cities set up shop this week in the city of Dohuk in the Kurdish-run northern region of Iraq. From Sanandaj to Bijar, they brought luxurious carpets. From Isfahan, Yazd and Hamadan, precious gems, copper and pottery.
Iran is among Iraq’s largest trading partners and this cooperation has deepened since 2018 amid the Trump administration’s maximalist policy on Iran that has seen the US pull out of Tehran’s 2015 nuclear deal with world powers and levy punishing sanctions on the country.
Tens of thousands of Iranian pilgrims visit sites in Najaf and Karbala every year, boosting Iraq’s fledgling tourism sector. Over 100 trucks ferry construction materials, food, medicine and appliances into Iraq every day.
The dependence on Iraqi markets has only deepened as economic conditions worsen in Iran. US sanctions bar American companies and foreign firms from dealing with Iran affecting Iran’s energy, shipping and financial sectors, causing foreign investment to dry up.

HIGHLIGHT

This is the first year the traders have ventured to Dohuk, which shares closer economic ties to neighboring Turkey, in hopes of enticing new customers and creating greater demand for Iranian goods.

Oil exports have been hardest hit and Iran’s economy contracted with dreary forecasts for the future. Unemployment rose and rural populations were disproportionately affected.
The exhibition of Iranian businesses is typically held every year in the city of Sulimaniyah, which borders Iran. This is the first year the traders have ventured to Dohuk, which shares closer economic ties to neighboring Turkey, in hopes of enticing new customers and creating greater demand for Iranian goods.
Parwiz said the Dohuk venture was the result of desperation.
“There is huge pressure on people (in Iran), and the cost of living is unimaginably high,” he said. “We can’t afford to buy anything, we cannot even afford to buy medicine.”
For Iranian businessmen experiencing difficult times, Iraq has always offered hope for respite.
Hajji Tousi, a businessman from Mashhad, sells his fine carpets at a lower price than local Iraqi traders. He knows the dollars he takes back home to Iran will keep him afloat.
“The type of carpet we are selling here is $200, whereas the same carpet in the market here is sold for $300-350,” he said.
But, to the dismay of many Iranian traders, the impact of Iraq’s own economic troubles was in plain sight: The exhibition attracts crowds of visitors but many can’t afford the marked-down items.
“There are many visitors who have warmly welcomed this expo but economic problems have kept them from (purchasing),” said Maryam Mradi, a businesswoman from Sanadaj.
Iraq is grappling with an unprecedented liquidity crisis brought on by low oil prices. That has slashed state coffers in half and led the government to borrow from the central bank’s foreign currency reserves to make salary payments.
Some of the Iranian vendors were skeptical their goods would be well received in Dohuk and other areas of Iraq, where Turkish brands dominate shopping isles.
“The people’s demand is mainly for Turkish goods,” said Shireen Mohammed, a local resident.


Biden: Strikes in Syria sent warning to Iran to ‘be careful’

Biden: Strikes in Syria sent warning to Iran to ‘be careful’
Updated 50 min 36 sec ago

Biden: Strikes in Syria sent warning to Iran to ‘be careful’

Biden: Strikes in Syria sent warning to Iran to ‘be careful’
  • Psaki told reporters Friday that Biden used his constitutional authority to defend US personnel
  • Kirby said the facilities hit in the attack were near Boukamal, on the Syrian side of the Iraq border, along the Euphrates River

WASHINGTON: President Joe Biden said Friday that Iran should view his decision to authorize US airstrikes in Syria as a warning that it can expect consequences for its support of militia groups that threaten US interests or personnel.
“You can't act with impunity. Be careful,” Biden said when a reporter asked what message he had intended to send with the airstrikes, which the Pentagon said destroyed several buildings in eastern Syria but were not intended to eradicate the militia groups that used them to facilitate attacks inside Iraq.
Administration officials defended the Thursday night airstrikes as legal and appropriate, saying they took out facilities that housed valuable “capabilities” used by Iranian-backed militia groups to attack American and allied forces in Iraq.
John Kirby, the Pentagon’s chief spokesperson, said members of Congress were notified before the strikes as two Air Force F-15E aircraft launched seven missiles, destroying nine facilities and heavily damaging two others, rendering both “functionally destroyed.” He said the facilities, at “entry control points” on the border, had been used by militia groups the US deems responsible for recent attacks against US interests in Iraq.
In a political twist for the new Democratic administration, several leading Congress members in Biden's own party denounced the strikes, which were the first military actions he authorized. Democrats said the airstrikes were done without authorization from lawmakers, while Republicans were more supportive.
“Offensive military action without congressional approval is not constitutional absent extraordinary circumstances,” said Sen. Tim Kaine, D-Va. And Sen. Chris Murphy, D-Conn., said lawmakers must hold the current administration to the same standards as any other. “Retaliatory strikes not necessary to prevent an imminent threat,” he said, must get congressional authorization.
But Sen. Jim Inhofe of Oklahoma, the ranking Republican on the Senate Armed Services Committee, backed the decision as “the correct, proportionate response to protect American lives.”
White House press secretary Jen Psaki told reporters Friday that Biden used his constitutional authority to defend US personnel.
"The targets were chosen to correspond to the recent attacks on facilities and to deter the risk of additional attacks over the coming weeks,” she said.
Among the recent attacks cited was a Feb. 15 rocket attack in northern Iraq that killed one civilian contractor and wounded a US service member and other coalition troops.
At the Pentagon, Kirby said the operation was “a defensive strike” on a waystation used by militants to move weapons and materials for attacks into Iraq. But he noted that while it sent a message of deterrence and eroded their ability to strike from that compound, the militias have other sites and capabilities. He said the strikes resulted in “casualties” but declined to provide further details on how many were killed or injured and what was inside the buildings pending the completion of a broader assessment of damage inflicted.
An Iraqi militia official said Friday that the strikes killed one fighter and wounded several others.
Kirby said the facilities hit in the attack were near Boukamal, on the Syrian side of the Iraq border, along the Euphrates River.
“This location is known to facilitate Iranian-aligned militia group activity,” he said. He described the site as a “compound” that previously had been used by the Islamic State group when it held sway in the area.
The Iraqi militia official told The Associated Press that the strikes against the Kataeb Hezbollah, or Hezbollah Brigades, hit an area along the border between the Syrian site of Boukamal facing Qaim on the Iraqi side. The official was not authorized to speak publicly of the attack and spoke on condition of anonymity.
Speaking to reporters Thursday evening shortly after the airstrikes were carried out, Defense Secretary Lloyd Austin said, “I’m confident in the target that we went after. We know what we hit.”
Biden’s decision to attack in Syria did not appear to signal an intention to widen US military involvement in the region but rather to demonstrate a will to defend US troops in Iraq and send a message to Iran. The Biden administration in its first weeks has emphasized its intent to put more focus on the challenges posed by China, even as Mideast threats persist.
The US has previously targeted facilities in Syria belonging to Kataeb Hezbollah, which it has blamed for numerous attacks targeting US personnel and interests in Iraq. The Iraqi Kataeb is separate from the Lebanese Hezbollah movement.
The Syrian Observatory for Human Rights, a Britain-based group that monitors the war in Syria, said the strikes targeted a shipment of weapons that were being taken by trucks entering Syrian territories from Iraq. The group said 22 fighters from the Popular Mobilization Forces, an Iraqi umbrella group of mostly Shiite paramilitaries that includes Kataeb Hezbollah, were killed. The report could not be independently verified.
In a statement, the group confirmed one of its fighters was killed and said it reserved the right to retaliate, without elaborating. Kataeb Hezbollah, like other Iranian-backed factions, maintains fighters in Syria to both fight against Daesh and assist Syrian President Bashar Assad's forces in that country's civil war.
Austin said he was confident the US had hit back at “the same Shia militants” that carried out the Feb.1 5 rocket attack in northern Iraq.
Kirby credited Iraqis with providing valuable intelligence that allowed the US to identify the groups responsible for attacks earlier this year. The US, he said, then determined the appropriate target for the retaliatory strike. He said the US also notified Russia shortly before the strike as part of the ongoing deconfliction process of military activities in Syria.
“The operation sends an unambiguous message: President Biden will act to protect American and coalition personnel,” Kirby said.
Syria condemned the US strike, calling it “a cowardly and systematic American aggression,” warning that the attack will lead to consequences.
US forces have been significantly reduced in Iraq to 2,500 personnel and no longer partake in combat missions with Iraqi forces in ongoing operations against Daesh.


Tunisia’s main party holds huge rally as government row grows

Tunisia’s main party holds huge rally as government row grows
Updated 27 February 2021

Tunisia’s main party holds huge rally as government row grows

Tunisia’s main party holds huge rally as government row grows
  • In one of the biggest demonstrations since Tunisia’s revolution, thousands of Ennahda supporters marched in Tunis
  • The dispute has played out against a grim backdrop of economic anxiety and disillusionment with democracy

TUNIS: Tunisia’s biggest political party assembled an immense crowd of supporters in the capital on Saturday in a show of strength that could fuel a dispute between the president and the prime minister.
In one of the biggest demonstrations since Tunisia’s 2011 revolution, tens of thousands of Ennahda supporters marched through central Tunis chanting “The people want to protect institutions!” and “The people want national unity!.”
The dispute has played out against a grim backdrop of economic anxiety, disillusionment with democracy and competing reform demands from foreign lenders and the UGTT, the powerful main labor union, as debt repayments loom.
Ennahda, a moderate Islamist party led by Parliament Speaker Rached Ghannouchi, has backed Prime Minister Hichem Mechichi in a standoff with President Kais Saied over a cabinet reshuffle.
Banned before the revolution, it has been a member of most governing coalitions since then and, although its share of the vote has fallen in recent years, it still holds the most seats in parliament.
“Nationalists, Islamists, democrats and communists,” Ghannouchi told the crowd, “we were gathered together during the dictatorship ... and we must unite again.”
The most recent election, in 2019, delivered a fragmented parliament while propelling Saied, an independent, to the presidency.
When the government collapsed after only five months in office, Saied nominated Mechichi as prime minister.
But they soon fell out, and Mechichi turned for support to the two biggest parties — Ennahda and jailed media mogul Nabil Karoui’s Heart of Tunisia.
Last month, Mechichi changed 11 ministers in a reshuffle seen as replacing Saied’s allies with those of Ennahda and Heart of Tunisia. The president has refused to swear four of them in, however.
Meanwhile, demonstrators protesting last month against inequality and police abuses focused most of their anger on Mechichi and Ennahda.
Ennahda billed Saturday’s march as “in support of democracy,” but it was widely seen as an effort to mobilize popular opposition to Saied — raising the spectre of competing protest movements.
“This is a strong message that all the people want dialogue and national unity,” Fethi Ayadi, a senior Ennahda official, told Reuters.
To add to the tensions, demands by foreign lenders for spending cuts, which could lead to unpopular reductions in state programs, are opposed by the UGTT.
Tunisia’s 2021 budget forecasts borrowing needs of 19.5 billion Tunisian dinars ($7.2 billion), including about $5 billion in foreign loans.
But Tunisia’s credit rating has fallen since the coronavirus pandemic began, and market concerns about its ability to raise funds are reflected in sharp price rises for Tunisian credit default swaps — insurance against default on its debt. ($1 = 2.7 Tunisian dinars)


Libya speaker flags March 8 for government confidence vote

Libya speaker flags March 8 for government confidence vote
Updated 27 February 2021

Libya speaker flags March 8 for government confidence vote

Libya speaker flags March 8 for government confidence vote
  • It was unclear whether the vote itself would take place on March 8 or whether the meeting would be limited to talks
  • Interim PM Abdul Hamid Dbeibah on Thursday said he faced a Friday deadline to form his government according to a UN road map

TRIPOLI: The Libyan parliament will discuss holding a vote of confidence on a new unified government for the divided country on March 8, its powerful speaker Aguila Saleh said.
Oil-rich Libya has been mired in chaos since dictator Muammar Qaddafi was ousted and killed in a popular uprising backed by a NATO air campaign a decade ago.
Its Government of National Accord (GNA) is based in Tripoli, while eastern strongman Khalifa Haftar supports a parallel administration based in the east.
“Parliament will convene to discuss a vote of confidence on the government on Monday, March 8, at 11 am in Sirte if the 5+5 Joint Military Commission guarantees the security of the meeting,” Saleh said in a statement late Friday, referring to a city halfway between east and west.
The military commission is a forum bringing together five representatives from each side.
“If that proves impossible, the session will be held in the temporary seat of parliament in Tobruk at the same date and time,” he said, adding that the military committee would need to advise the parliament in advance.
It was unclear whether the vote itself would take place on March 8 or whether the meeting would be limited to talks.
Interim prime minister Abdul Hamid Dbeibah on Thursday said he faced a Friday deadline to form his government according to a UN road map.
He said he had submitted to Saleh a “vision” for a cabinet line-up that would help steer Libya to elections in December, and that the names of proposed ministers would be disclosed in parliament during the confidence vote.
Parliament has 21 days to vote on the line-up, according to the road map.
Dbeibah was selected early this month in a UN-sponsored inter-Libyan dialogue, the latest internationally backed bid to salvage the country from a decade of conflict and fragmented political fiefdoms.
Saleh said Friday that Dbeibah should choose “competent people with integrity, from across the country, in order to achieve (national) consensus” for his government.
“Everyone should be represented so that (Libya) can emerge from the tunnel,” Saleh said.
If approved, a new cabinet would replace the Tripoli-based GNA, headed by Fayez Al-Sarraj, and the parallel administration in the east.
The premier will then face the giant task of unifying Libya’s proliferating institutions and leading the transition up to December 24 polls.


Iraqi interpreters face death threats from Iranian-backed militias

Iraqi interpreters face death threats from Iranian-backed militias
Updated 27 February 2021

Iraqi interpreters face death threats from Iranian-backed militias

Iraqi interpreters face death threats from Iranian-backed militias
  • Seven of the interpreters have gone into hiding as they believe their identities have been exposed
  • Militia groups responsible for attacking bases targeted one of the interpreters and posted bullets through his door

LONDON: Eight Iraqi interpreters who worked with British forces fighting Daesh have said they fear for their lives after receiving threats from Iranian-backed militias.
Seven of the interpreters have gone into hiding as they believe their identities have been exposed to anti-coalition groups targeting bases used by US and UK troops, The Times reported.
The interpreters stopped translating for British forces at the Camp Taji military base in March 2020 after troops who were training Iraqi forces began to leave the country.
Two interpreters told the British newspaper that their full names, identification numbers and vehicle registrations were handed over to Iraqi Security Forces and the information was handed over to checkpoints in Baghdad. This meant that the data ended up being accessed by Iranian-backed militias.
Militia groups responsible for attacking bases where coalition troops were stationed targeted one of the interpreters and posted bullets through his door. They had told Iraqis working with coalition forces to work with them instead.
The interpreters have moved, except for one who could not afford to do so. Some have left their families amid concerns that they would be found and killed.
The UK’s Ministry of Defense said it was investigating the allegations. It is understood that the British military believes there were no data breaches and that standard security was followed.
Another interpreter said that Iranian-backed militias increased their targeting of coalition bases after the death of Iranian military commander Qassem Soleimani in January 2020.
He said that tougher security requirements after the attacks meant that interpreters had to supply their full documentation, including vehicle details, to the coalition.
“They told us they would not pass this information to the Iraqi government, but it was then circulated for all the checkpoints throughout Baghdad. Many of these checkpoints are joint with the Popular Mobilization Forces — the legal name of these militias, of which many of them have loyalty to Iran,” he told The Times.
He is appealing to Britain to give him and his family sanctuary. “We are not a huge number, there are only eight of us with our families.”
The Ministry of Defense said: “While we do not employ interpreters in Iraq directly, we take any breach of personal security extremely seriously. We hold our contractors to the highest standards and are investigating.”


Bahrain announces extension of Covishield-AstraZeneca dosing intervals

Bahrain announces extension of Covishield-AstraZeneca dosing intervals
Updated 27 February 2021

Bahrain announces extension of Covishield-AstraZeneca dosing intervals

Bahrain announces extension of Covishield-AstraZeneca dosing intervals
  • The vaccine was approved for emergency use for vulnerable groups in the Kingdom starting Jan. 21
  • The vaccine was produced by AstraZeneca in cooperation with the University of Oxford

DUBAI: Bahrain has announced it is increasing the number of weeks between the first and second dose of the Covishield-AstraZeneca vaccine from four to eight weeks, state news agency BNA reported.
The World Health Organization (WHO) said the longer dose durations between eight to 12 weeks are related to greater vaccine effectiveness, the Ministry of Health’s Undersecretary for Public Health Dr. Mariam Al-Hajeri said.
The vaccine was approved for emergency use for vulnerable groups in the Kingdom starting Jan. 21. The groups include the elderly and those with immune complications, she said.
The vaccine was produced by AstraZeneca in cooperation with the University of Oxford and is manufactured by the Serum Institute of India under the name ‘Covishield’.