Saturday, March 17, 2012

Will SWIFT ban on Iran strangle Spain?


With the upcoming EU electronic banking transactions ban on Iran, the Islamic Republic might face a crude economic pinch. However, in an attempt to pressure Tehran, technocrats in Brussels might actually be leading Spain to the scaffold.

­SWIFT, the world's biggest electronic banking system, is preparing to cut off Iranian financial firms, including the country's Central Bank, blacklisted by the EU. The move is part of the European plan to impose an embargo on Iranian oil this summer over Tehran’s nuclear program.

The EU and US are hoping to force Iran to the negotiating table by targeting its oil revenues.

But the measure is expected to backfire on average Europeans, particularly in Spain, which imports over 1.5 million barrels of oil from Iran daily.

“Even assuming that the case against Iran is strong, the sanctions right now, exercised by countries like Spain, Greece or Italy, will damage those countries more than it will damage Iran,” journalist Miguel-Anxo Murado told RT.

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