Britain’s ‘Death to England’ Embassy The Sanctions Against Iran Are Already Crumbling.
http://www.wsj.com/articles/britains-death-to-england-embassy-1440458406
Foreign Secretary Philip Hammond on Sunday reopened Britain’s embassy in Tehran nearly four years after it was shuttered following a mob attack reminiscent of the 1979 assault on the U.S. Embassy. Accompanying Mr. Hammond were European business leaders eager to join the ayatollah gold rush—notwithstanding President Obama’s promise of “snap-back” sanctions if Iran cheats on the nuclear deal.
In November 2011 a mob overran the British outpost, breaking windows and trashing the compound. The mullahs never apologized for failing to protect the embassy, and the “Death to England” graffiti is still on the walls. Yet at a news conference with his Iranian counterpart, Mr. Hammond said the embassy will serve as a “practical channel for being able to engage on the very many issues that are of concern and the very many issues that we have shared interests.”
Investing in the Islamic Republic’s shattered energy industry is high on the list, judging by the companies that showed up. They included oil-company Shell, project managers Amec Foster Wheeler and the engineering firm Weir Group. Shell and other European oil companies have been exploring opportunities in a post-sanctions Iran since an interim nuclear agreement was signed in 2013, and Mr. Hammond is following Italian and French leaders who have made visits since July.
Some companies are already making deals. Italian engineering giant Finmeccanica earlier this month signed a €500 million ($579 million) contract to develop a power plant in Iran. Its Iranian counterpart in the deal, Ghadir Investment Co., was identified by the U.S. Treasury in 2013 as a front for Supreme Leader Ali Khamenei’s financial empire.
In Tehran Mr. Hammond predicted a quick end to sanctions. “We could be talking as early as next spring to start to see sanctions lifting off,” he told Reuters. “There is [a] very clear pitch here not to wait until then. There are things that can’t be done. Investments can’t be made, items can’t be imported or exported or whatever. But the business negotiation can start to take place well ahead of that.”
As those negotiations intensify, so will the commercial and diplomatic pressure to remove sanctions—and keep them off. These business interests will become a powerful lobby against taking action if evidence is found that Iran is cheating. Iran, Europe and President Obama are trying to present Congress with a fait accompli even before it votes on the deal next month.
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