ASSESSMENTS

An Alternative View on Iran's Subsidy Reforms

Dec 20, 2010 | 22:01 GMT

ATTA KENARE/AFP/Getty Images

Summary

As Iran drastically cuts its subsidies on gasoline, many in the West are viewing the move as evidence that the U.S.-backed sanctions regime is working to drive Iran toward negotiations. However, a STRATFOR source close to the Iranian government has shed light on the unintended consequences of the sanctions regime and how the country's growing foreign exchange reserves are contributing to Iranian President Mahmoud Ahmadinejad's confidence in the current spate of nuclear negotiations.

While many in the West are viewing the cut in gasoline subsidies as evidence that sanctions are working, a STRATFOR source close to the Iranian regime explains how the sanctions may in fact be adding to Iran's confidence in nuclear talks....

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