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US Eases Way for Covid-Related Deals

US Eases Way for Covid-Related Deals
US Eases Way for Covid-Related Deals

The United States on Thursday issued guidance easing the way for delivery of products such as face masks, ventilators and vaccines to combat the coronavirus pandemic to heavily sanctioned countries like Iran, Venezuela and Syria.
The US Treasury Department issued separate general licenses related to those three countries aimed at easing the way for coronavirus-related transactions, according to a statement, but stopped short of actually lifting any sanctions, Reuters reported.
The move comes after President Joe Biden on his first full day in office in January issued a national security memorandum calling for his administration to undertake a review of US sanctions programs to evaluate whether they were hindering responses to the pandemic.
"Even though we have comprehensive humanitarian general licenses in all our programs, we did see some gaps," a treasury official told Reuters, adding that prior to Thursday's move, obstacles were dealt with on a case-by-case basis that involved delay and cost. "This is lowering that barrier.”
The previous administration of president Donald Trump had been criticized by human rights groups for resisting any softening of sanctions rules against countries like Iran and Venezuela, which were targeted under his "maximum pressure" campaigns, to ease pandemic-related hardship.
The treasury's Office of Foreign Assets Control last year issued guidance laying out existing authorizations, and generally allows for humanitarian relief. But Thursday's move is designed to further lower barriers, the official said.
The new Venezuela license authorizes pandemic-related transactions involving the Venezuelan government in addition to some of the country's banks. Top Venezuelan officials as well as the financial sector have been subject to heavy sanctions imposed in the Trump era in an effort to oust socialist President Nicolas Maduro, who has held onto power.
Under the exceptions granted under the new Iran general license, the treasury is authorizing "all transactions and activities related to the exportation, reexportation, sale, or supply, directly or indirectly, of goods or technology for use in connection with the prevention, diagnosis, or treatment of Covid-19" to the Iranian government.
It further permits certain transactions that have until now been prohibited by sanctions regarding Iran's central bank and national oil company related to the fight against the coronavirus.
"OFAC encourages those interested in providing Covid related relief to Iran, Syria, and Venezuela to avail themselves of the available exemptions, exceptions, and authorizations pertaining to humanitarian assistance," the treasury statement said.

Swiss Channel

Last week, Biden voiced support to speed up approval of the financial transfers needed to deliver more food and medicines to Iran through a Swiss humanitarian channel, Swiss Foreign Minister Ignazio Cassis said Tuesday.
The trade channel, known as the Swiss Humanitarian Trade Arrangement (SHTA), was designed to facilitate food and medicine trade with Iran.
It started trial operations in January 2020, helping supply Swiss goods to Iran without violating Trump’s economic blockade against Iran. However, in essence it was a non-starter seemingly due to the US sanctions.
SHTA was created after the treasury granted waivers for using a portion of the Central Bank of Iran’s overseas resources to import basic goods and pharmaceuticals.
The BCP bank of Switzerland is reportedly authorized to handle SHTA transactions. Two Iranian banks are also involved, namely Saman Bank and the Middle East Bank. Only a trickle of deals has gone through so far.

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