The Iranian regime cannot fix economy unless there is a sanction relief as a result of reaching a deal in nuclear talk with the six world powers, said the Treasury Department’s outgoing sanctions czar David Cohen.
In an interview with the Wall Street Journal Mr. Cohen said: “They’re (the Iranian regime) stuck. They can’t fix this economy unless they get sanctions relief. I think they are coming to the negotiations with their backs to the wall.”
According to Cohen who is leaving his post to assume the No. 2 spot at the Central Intelligence Agency the economy n Iran is now “fundamentally” incapable of recovery without a nuclear accommodation with the West.
“I think it would be accurate to say that the importance of financial tools in our national security toolbox has steadily increased over the past five to 10 years,” Mr. Cohen said.
The Wall Street Journal reported that “Cohen and other senior U.S. officials say they believe that Tehran’s decision in 2013 to negotiate over its nuclear program resulted from the sanctions damage to the economy.”
The Treasury Department calculates the Western sanctions have cut Iran’s oil exports by more than half in three years, while denying Tehran $40 billion in revenues last year alone.
Recent declines in oil prices, according to Mr. Cohen, could cost Iran another $11 billion over the next six months.
Some economic analysts disagree with Mr. Cohen, saying the decision by the White House last year to suspend some sanctions to advance the diplomacy has breathed new life into the Iranian economy.
