Tuesday, 02 January 2024 12:17 GMT

Iran Signals Economic Storm Brewing With Return Of 'Snapback' Mechanism


(MENAFN- Trend News Agency) BAKU, Azerbaijan, September 27. The activation of the 'snapback' mechanism, envisaging the restoration of UN Security Council sanctions against Iran, will increase the risk of Iran's trade turnover and economic exchanges, Iranian Minister of Roads and Urban Development, Farzaneh Sadegh told local media, Trend reports.

According to her, this logically can lead to negative consequences for the country's cargo transportation and transport sector.

Sadegh stated that the six UN Security Council resolutions against Iran do not impose new sanctions specifically on the Iranian economy and companies.

''These sanctions are the restoration of sanctions imposed against Iran.

One of these sanctions clearly refers to Iran's shipping sector.

The minister added that the Iranian Ministry of Roads and Urban Development is prepared in the field of cargo transportation and road and transport in the face of the pressures of the six UN Security Council resolutions.

Despite these resolutions' negative effects on Iran, the country has continued its activities under sanctions for years,'' she noted.

Last night, the United Nations (UN) Security Council convened to discuss the draft resolution submitted by Russia and China, which aimed to extend the mandate of Resolution 2231 and block the activation of the“Snapback” mechanism. The draft received four votes in favor, nine against, and two abstentions. As a result, starting September 27, UN Security Council sanctions against Iran have been reinstated.

Iran has stated that it will respond to the reactivation of the “Snapback” mechanism.

On July 20, 2015, the UN Security Council adopted Resolution 2231, which annulled six previous resolutions against Iran and lifted wide-ranging sanctions connected to its nuclear program.

Under Articles 36 and 37 of the Joint Comprehensive Plan of Action (JCPOA), if a member state files a complaint over another party's violation of the deal, a review process begins. If the issue is not resolved, the complainant can escalate it to the UN Security Council. Should the Council accept the complaint against Iran, international sanctions may be reactivated, and the Council may even authorize military action against Iran.

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