Israel Matzav

Cabinet ministers over the top, but even Americans violating Iran sanctions

Two Israeli Cabinet Ministers have had over the top reactions to the SWIFT electronic banking consortium excluding Iranian banks.

Deputy Prime Minister Sylvan Shalom, who was a complete failure as Finance Minister during Ariel Sharon's first government, believes that SWIFT's action will lead Iran to give up its nuclear program.

Shalom, in an interview with Army Radio, said that the decision is likely to prove decisive in the struggle against Iran's [nuclear] arms race. “Iran is progressing with its nuclear weapons program in order to safeguard the regime's rule. But the moment that the sanctions become this severe, first with oil and now with [money] transfers, perhaps we will get to a point where they will understand that only abandoning the [nuclear weapons] program will allow the regime to survive,” said Shalom.

He added that in today's world, “We already don't do transfers using documents. Everything is done by international [electronic] transfers. What will they do now? Carry around suitcases with gold?”

Finance Minister Yuval Steinitz (pictured) believes that SWIFT's action will lead to the collapse of the Iranian economy.

Finance Minister Yuval Steinitz said Sunday that SWIFT's decision to halt Iran's ability to use its electronic fund transfer system to make international transfers constitutes a tremendous blow that could potentially lead to the collapse of the Iranian economy.

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Speaking prior to the weekly cabinet meeting, Steinitz said that cutting Iran off from making international transfers will "make importing and exporting very difficult" for Tehran.

Steinitz stated that the move makes receiving money for billion dollar oil transactions impossible.

The finance minister called SWIFT's decision "dramatic," but said he did not know if it would halt Iran's drive for nuclear weapons.

Well, maybe. If the sanctions are ever enforced. But given that two US companies are about to sell 220,000 tons of wheat to Iran, and that Iranian diplomats continue to be welcomed at international meetings, I would not hold my breath waiting for Iran to give up its nuclear program in response to sanctions anytime soon.

Labels: Iran sanctions regime, Iranian nuclear threat

posted by Carl in Jerusalem @ 6:29 PM