Ali Shamkhani, secretary of the National Security Council of Iran, has voiced his belief that the recent bilateral cooperation initiatives between his homeland and Russia are making it increasingly difficult for U.S.-imposed sanctions to be enforced on a global scale. The official noted that other countries have also joined in this endeavor to move away from the American dollar.

Iran Top Security Official Claims De-Dollarization to Undermine ‘Illegal’ U.S. Sanctions

Ali Shamkhani, secretary of the National Security Council of Iran, declared his opinion in relation to the international de-dollarization efforts and their potential to thwart the efficacy of U.S. sanctions. According to Xinhua, Shamkhani revealed during a meeting with Russian officials that the recent bilateral advancements between Iran and Russia, covering monetary and banking areas, were crucial for rendering the “illegal Western sanctions” ineffective.

Shamkhani also noted that many other countries have set out on the same path, abandoning the hegemony of the U.S. dollar. Iran has been subject to U.S. sanctions since 1979, with a brief period of relief from 1981-1987, before the sanctions were reintroduced and maintained ever since.

The weaponization of the U.S. dollar and the effects of economic sanctions have been the focus of much discussion lately, with famous economist Jeffrey Sachs pointing out that other nations fear the confiscation of their dollars in the event of policy disagreements with the U.S. Jim Rickards, an economist and author of “Currency Wars,” has also criticized the U.S. Treasury’s actions, citing them as the greatest enemy of the dollar’s status as a reserve currency.

Sanctions Fueling Closer Ties

Analysts remark that the ongoing imposition of sanctions, as well as the need to find ways to obtain goods that cannot be imported directly due to restrictions, has brought Iran and Russia into much closer contact. Very few companies or entities are willing to take the risk of facing secondary economic sanctions, and so many choose to avoid doing business with Iran and Russia, even if the deals are very attractive.

In fact, the most recent round of sanctions imposed on Iran on March 2, targeted various international companies that are allegedly involved in the transportation or sale of Iranian oil and petrochemicals.

The two nations are now working to establish the International North-South Transport Corridor, a multi-mode transport route that would span over 7,200 km of roads, rail and sea lanes, in order to facilitate trade between Russia, Azerbaijan, Iran, and India, as well as providing access to Central Europe.

What do you think about the de-dollarization efforts and the Iran-Russia agreement to avoid sanctions? Let us know in the comments.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He entered the cryptosphere late, during the price boom of December 2017. With a computer engineering background, and having experienced the cryptocurrency boom first-hand in his home country, he offers a unique viewpoint on the success of crypto, and how it helps the unbanked and underserved.

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