The Cradle | July 20, 2023

The US Treasury Department and the Federal Reserve Bank of New York have barred 14 Iraqi banks from conducting transactions in US dollars as part of a sweeping crackdown to stop Iran and other sanctioned nations from acquiring the greenback, the Wall Street Journal (WSJ) reported on 19 July.

US officials say the new sanctions were issued after discovering information showing the banks engaged in money laundering and fraudulent transactions, some of which may have involved sanctioned individuals and raised concerns that Iran could benefit.

We have strong reason to suspect that at least some of these laundered funds could end up going to benefit either designated individuals or individuals who could be designated, a senior US official told the WSJ.

The banks targeted by the punitive measures are small institutions reportedly heavily involved in US dollar transactions.

According to Iraqs Shafaq News, the targeted banks include the Islamic Advisor for Investment and Finance, the Islamic Qartas for Investment and Finance, Al Mustashar Islamic Bank, Elaf Bank, Erbil Bank, the International Islamic Bank, Trans-Iraq Bank, Mosul Bank, Al-Rajeh Bank, Sumer Commercial Bank, Trust International Islamic Bank, the World Islamic Bank, and Zain Iraq Islamic Bank.

The sanctions came only one day after the US State Department issued a new 120-day sanctions waiver to allow Baghdad to deposit payments for Iranian natural gas into non-Iraqi banks in response to criticism that the White House is responsible for recent power cuts at the height of Iraqs blistering hot summer.

Since 2003, all Iraqi oil revenues have been paid into an account with the US Federal Reserve. Although Iraqis formed a sovereign government after the US invasion and occupation of their state, Iraq is still restricted from opening accounts for its oil earnings outside the US.

Given its dominance of the global financial system, Washington can control all funds of Iraq...

Western thinking of Turkish and Azerbaijani Presidents Recep Tayyip Erdogan and Ilham Aliyev has been very wrong. Both countries are Ukraines strongest allies in the Greater Middle East, where Arab countries and Israel are sitting on the fence and trying to play both sides or hiding their heads in the sand. This is not the case with Turkiye and Azerbaijan.

Turkiye and Azerbaijan have a close military and political alliance drawn up after the 2020 Second Karabakh War. Both countries are critically disposed toward Russia and align with the pro-Western camp: Turkiye as a NATO member and Azerbaijan as a non-aligned country that has stayed away from Russian-led Eurasian integration projects.

Turkiye is home to millions of Crimean Tatars who moved to the Ottoman Empire in the nineteenth century. Their Crimean homeland was occupied by the Russian Empire in 1783 which changed its ethnic balance. Crimean Tatars, who closely follow developments in Russian-occupied Crimea, where racism, Islamophobia, and political repression is endemic, are a powerful anti-Russian lobby in Turkiye.

Iran meanwhile has become Russias staunchest ally in the Kremlins fight against the US-dominated unipolar world and its replacement by an allegedly more democratic multipolar world. Iran is constructing a facility to build Shaheed drones in Russia, while Turkiye is building a plant to build Bayraktar drones in Ukraine.

Western governments have wrongly portrayed President Erdogan as being in bed with Vladimir Putin, Russias president, and were therefore wrong-footed by his recent steps. In the space of a week, Erdogan released Ukrainian POWs from the Spring 2022 battle for the port of Mariupol, infuriating the Kremlin because they had been released from Russian captivity on the basis that they would spend the entirety of the war in Turkiye.

But Erdogan went even further. On the eve of the recent NATO summit, Erdogan extended strong support to Ukraine becoming a member of NATO. Turkiyes support infuriated the Kremlin who has expressed strong opposition to Ukraine joining NATO and the EU because this would definitively end any possibility of bringing the country into the Russian World.

In addition to 35 Bayraktar TB2 and 24 Mini-Bayraktar reconnaissance drones, Turkiye is sending other types of military equipment to Ukraine. Before the US announcement, Turkiye said it would supply Ukraine with cluster munitions. Turkiye sent up to 200 TRLG-230 Rokestan missiles to Ukraine that can be fired from multiple rocket launchers and have a range of 20 to 70 kilometers. Turkiye also sent 200 Kirpi mine-resistant armoured personnel carriers and 20 COBRA II 44 Tactical Wheeled Armoured Vehicles.

During the same week of NATOs summit in Vilnius, Turkiye said its navy would escort Ukrainian grain ships through the Black Sea. Turkiyes offer will be tested later this month after R...

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