Tuesday, January 26, 2010

Dubai Helps Iran Evade Sanctions as Smugglers Ignore U.S. Laws

http://www.bloomberg.com/apps/news?pid=20601109&sid=av5smtYe_DDA&pos=10

Iran’s biggest non-oil trading partner provides a stream of household items -- from diapers and mobile phones to laptops and washing machines -- as well as illicit items such as aircraft parts and computer chips that the U.S. says have nuclear and military uses.

Abu Dhabi’s Role

Abu Dhabi, the most powerful of the emirates by virtue of about $45 billion in oil exports in 2009, may flex its muscles to try to break up the Iran-Dubai connection, says Nader Habibi, an economics professor at Brandeis University in Waltham, Massachusetts.

Abu Dhabi, which has always been suspicious of Iran’s political and nuclear ambitions, enjoys considerable leverage. In 2009, the emirate, which is about 16 times the size of Dubai, stepped in with a $20 billion bailout.

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