SONIC SANCTIONS BACKFIRE ON EUROPEAN UNION
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When international banking cartels hammer at your door for an outstanding $52 billion debt sensible folk would be looking at ways to live within one’s means. Not the hapless unelected EU Presidency and 27 governing commissioners.
Russia and Iran have just inked a $2.5 billion deal to start up a rail wagon production operation. The agreement was forged between the Industrial Development and Renovation Organization of Iran (IDRO) and Transmashholding, Russia’s largest rail equipment supplier. The two sides will set up a new joint venture, which will be 80% owned, although completely funded, by the Russian partner.
Renaissance Iran is currently in the midst of what could be called an infrastructure building bonanza. Neither the workers of the cash-strapped US or EU will benefit as trade with oil-rich Iran is against the wishes of the United States.
Emerging from decades of sanctions which left much of Iran’s transportation infrastructure in ruins, the nation has embarked upon a near-complete rebuilding of its highway and rail networks. The country is expected to add on 15,000 kilometers of new rail lines in the next five years alone, a rapid expansion which is going to require 8,000-10,000 new rail wagons each year.
Reinvigorating the transport sector is a key part of Iran’s vision to leverage its geographic position to become a vibrant hub of trans-Eurasian trade, which plugs nicely into China’s Belt and Road Initiative and Russia’s continued economic activity in the post-Soviet region. European workers and their families are also-rans.
Iran is also a core partner, along with Russia and India, in the emerging North-South Transport Corridor, which seeks to create a trade route that would cut the trade link-time between cities on the west coast of India and St. Petersburg in half, and has also worked out its territorial squabbles with Russia over the Caspian Sea. According to the speaker of Iran’s parliament, Iran has also given Russia priority in any industry it wants to invest in.
Trade between Russia and Iran doubled over the course of 2016, with the sale of military equipment, such as MI-17 helicopters and various rocket systems, being some of Iran’s most sought after acquisitions.
Russian oil and gas companies are also moving into Iran, with Gazprom recently being given the contract to develop the Farzad B gas field. It is estimated that the bilateral annual trade between the nations will soon spike to over $10 billion, enough to settle the EU debt.
This lost trade bonanza could go a long way to restore jobs and prosperity to the 27 nations of the Europe Union. However, it is welcomed by both the Russian and Iranian workers. The cost of being Washington’s lap dog is costing European workers, industry and the agricultural sector dearly.
Michael Walsh was awarded Euro Weekly News ‘Writer of the Year 2011’. With 60 books bearing his name, thousands of new stories and columns, Michael is arguably Britain and Europe’s most prolific author of multi-topic books.
MICHAEL WALSH is a British born Irish journalist, broadcaster and the author of RISE OF THE SUN WEEL, EUROPE ARISE, MEGACAUST, RHODESIA’S DEATH EUROPE’S FUNERAL, AFRICA’S KILLING FIELDS, and THE LAST GLADIATORS, THE BUSINESS BOOSTER and THE FIFTH COLUMN VOLUME I and II, and 60 other book titles.
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