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Sanctions Fail to Fuel Dissent on Iran's Streets

[Financial Times-UK] Gareth Smyth - When angry motorists torched petrol stations as Tehran introduced rationing last month, Iran's opponents scented success. But after three weeks of rationing, riots have given way to grumbling. The government opted to ration petrol rather than raise the price - among the lowest in the world - to market level. But the bulk of Iran's state-owned economy rolls on with record oil revenue that rose 13.6% to $54 billion in the Iranian year ending March 20. Tehran's trade with Italy has fallen 20% in six months. In 2006, Germany's exports to Iran dropped 7% and Japan's fell 13%. But business with China is booming. Last year Beijing signed a $100 billion deal to import Iranian natural gas. "The situation over sanctions is a huge opportunity for China, former Soviet republics and regional countries," says one Asian diplomat in Tehran.
2007-07-24 01:00:00
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