(Bloomberg) -- Iran’s supreme leader branded a European initiative to protect trade from U.S. sanctions “a joke,” saying the country would have to rely on its own efforts to revive the economy.
“Europeans failed to stand against the U.S.” to protect the 2015 nuclear deal, Ayatollah Ali Khamenei said in a live televised address from the northeastern city of Mashhad to mark the Persian new year. “They stabbed us in the back and we can’t expect them to do much.”
France, Germany and the U.K. -- the European Union signatories to the accord -- last month launched a special purpose vehicle, called the Instrument in Support of Trade Exchanges, to facilitate transactions with companies willing to do business with Iran. President Donald Trump had withdrawn from the 2015 deal in May as he sought to isolate and weaken the Islamic Republic, restoring many of the sanctions lifted under his predecessor.
The renewed sanctions have slashed oil revenue, battered the rial and pushed prices beyond the reach of many. Shortages, in meat, medicine, even gasoline in some regions, are spreading. Hardline conservatives in tune with Khamenei say that President Hassan Rouhani’s engagement with the West has failed.
The agreement capped Iran’s nuclear program and ensured strict international inspections.
Khamenei said Rouhani’s government needed to take “swift and practical” steps to counter the impact of sanctions, admitting that unemployment, a slump in the of the national currency and rising inflation were pressing issues.
The top leader -- Iran’s ultimate authority on all issues -- labeled the Persian year that started Thursday “Production Boom.” His annual habit of naming years serves as a directive to both officials and ordinary Iranians.
“Unnecessary imports must be stopped to help domestic production,” the top cleric said. If Iran boosts output in industry and agriculture it will see an economic revival, he said.
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