Financial Times, February 2, 2010 – The US, Britain, France and Germany are trying to convince Russia and China to agree to blacklist Iran’s central bank and firms linked to the Revolutionary Guard Corps, in a new round of UN sanctions over Tehran’s nuclear program. Russia and China are permanent members of the UN Security council, which means they can – and do – veto resolutions.
Such sanctions could hurt Iran’s energy market. The government has allowed for up to €5bn euro bond issues by the oil ministry to help finance development of the country’s oil, gas and petrochemical sectors. The date is unknown, but it would be after Iran’s New Year, which begins March 21. Central bank sanctions would presumably prevent foreign investors buying these bonds.

Unfortunately for supporters of the sanctions, there is little hope the talks will achieve their goals. First, China and Russia have strong economic ties to Iran and have vetoed sanctions in the past. Second, at a meeting of five of the six countries last month, China sent a low-level envoy who said Beijing felt it was not the right time to pursue further sanctions against Tehran. And third, those most in the know – the officials of the four countries pushing for sanctions – see so little hope for consensus that they are beefing up their request, knowing it will be watered down.