Esfandyar Batmanghelidj Profile picture
May 21 16 tweets 5 min read Read on X
1. Sanctions have had a very significant negative effect on aviation safety in Iran.

But the idea that they contributed to the recent crash and the deaths of Raisi and Abdollahian makes little sense.

Recent reports by FT, NYT, and others taking that line miss some key details. Image
2. Old aircraft are not *necessarily* unsafe. The helicopter carrying Raisi was built in 1994.

Until a few years ago, the fleet of Marine Helicopter Squadron One, which transports the US president, included old Sikorsky VH-3Ds, including one from late 1970s. Image
3. The maintenance and refurbishment of the aircraft are what really matter.

Here, sanctions may have had an impact by making it more difficult for Iran to procure parts for the Bell 212, which is an American-made helicopter.
4. But the Bell 212 was widely produced and remains in operation across the Middle East. Parts would be available in the region.

For Iran, a 1990s helicopter is actually going to be easier to maintain and operate given less reliance on complex tech and advanced avionics. Image
5. The accident history of Bell 212s in Iran supports this view.

There are four accidents to date recorded in the ASN database (same as UAE and Iraq), of which three were fatal.

Weather and human error are the reasons for these accidents. Image
6. You can actually read the Iran Civil Aviation Organization investigation into the April 2018 accident which killed four people.

They concluded pilot error caused the accident.
aviation-safety.net/reports/2018/2…
Image
7. The aircraft, which was built in 1981, had been inspected and deemed airworthy ICAO that year. The operator was a civilian company.

If a civilian operator can get parts to keep a Bell 212 airworthy in Iran, then surely the Iranian Air Force and HESA can manage to do the same.Image
8. Notably, one of the four accidents recorded in Iraq was investigated by the NTSB because the aircraft was a Bell 212 operated by the U.S. Department of State.

The cause was pilot error... but the old bird was built in 1971!

That's way older than the helicopter in Iran. Image
9. We also need to think through what aviation safety means in this context.

When we say sanctions impact aviation safety in Iran, small increases in risk accumulate across large fleets, especially in airplanes.

I've written about these impacts before.
bourseandbazaar.com/articles/2018/…
10. Selecting a helicopter to transport the president is a different proposition. It's a single aircraft.

To suggest sanctions had a role implies that Raisi and Abdollahian were transported in an aircraft known to have technical vulnerabilities and there was no other choice.
11. The FT's own graphic shows that Iran has several Bell helicopters in active service that are less than 5 years old.

This suggests there was no concern about the aircraft used by the president, which had the tail number 6-9207. Otherwise a newer aircraft would've been used. Image
12. Have sanctions prevented Iran from procuring more modern helicopters, possibly with better safety technology?

Yes. Most of Iran's helicopters are very old.

Did sanctions force the president and foreign minister to be transported in an aircraft with known faults?

No.
13. Finally, there could have been some kind of catastrophic failure with the aircraft that could be connected to some defective part or substandard maintenance.

But we can't ignore the *obvious* reason for the crash.

The Bell 212 is not cleared for low visibility flying.
14. The helicopter got caught in bad weather, there was no visibility, the pilot got disoriented, and the chopper clipped some trees before crashing into the mountainside.

The question is why they were flying in bad weather? Was it negligence? Did the weather suddenly change? Image
15. Those are the questions that the investigation will need to answer.

There are lots of stories to tell about sanctions making lives harder, more miserable, and more dangerous in Iran.

But the demise of Raisi and Abdollahian in a helicopter accident isn't one of them.
16. Small postscript to say "that year" in Tweet 7 refers to the year of the accident, not 1981.

The Bell 212 in that incident was inspected and deemed airworthy the year it crashed.

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More from @yarbatman

May 22
1. Once again, a state funeral in Iran has led to a debate about how much political support the Islamic Republic enjoys.

Here's the thing...

Participation in collective mourning is a deeply embedded cultural custom in Iran.

It's not an *inherently* political act. Image
2. The motivation to participate in a funeral, whether for Soleimani or Raisi, is far less about the individual that has died and far more about the shared social custom.

Authorities take advantage of this cultural impulse and imbue state funerals with political iconography.
3. It's worth recalling the crowds that came out for Rafsanjani's funeral in 2017.

Did all those people take to the streets to express their political loyalty to a president whose second term ended way back in 1997?

Or were subtler cultural motivations at play? Image
Read 10 tweets
May 13
1. Russia and Iran have adopted "war economies" in response to sanctions. But the aims differ.

In Iran, the aim is to boost the military by allowing it to expand its economic activities.

In Russia, the aim is to boost the economy by smartly leveraging military spending. Image
2. Iran has faced tougher sanctions and a more acute security dilemma.

In turn, Iranian leaders were eager to give the military (namely the IRGC) a larger piece of a shrinking pie, sustaining military spending and enabling rentierism while otherwise embracing fiscal austerity.
3. Iran's military has been the great winner in the distributional conflict that began when sanctions thrust the country into a period of economic malaise.

To win the battle over resources, the IRGC became more politically active and began to take charge of Iran's technocracy.
Read 8 tweets
Mar 6
1. Went back to @mjavadshamsi's excellent firm-level research on how Iranian manufacturers adjusted to sanctions. This chart is really key.

What really matters for economic resilience under sanctions is not import substitution, but continued access to *export* opportunities. Image
2. Boosting exports is how firms in sanctioned economies try to respond to flat domestic demand, currency volatility, and rising input costs.

But this strategy may not be viable in a world where China is trying to get out of its economic slump by boosting exports.
3. In the case of Iran, we see surging Chinese exports to Iraq. Those goods are going to eat into the Iranian market share built over the last decade.

Similarly, Chinese exports will beat out Russian exports to Central Asia.

China is a *competitor* for sanctioned economies.
Read 4 tweets
Dec 22, 2023
1. Today, President Biden issued an executive order authorizing sanctions to block foreign banks that facilitate transactions related to Russian "technology, defense... construction, aerospace, or manufacturing."

Will these new secondary sanctions hobble Putin's war economy? Image
2. Coinciding with the new executive order, @wallyadeyemo has an op-ed in the @FinancialTimes explaining what Treasury aims to achieve.

Banks that are found to be supporting Russia's "war machine" will "risk losing access to the US financial system."
ft.com/content/f1fe5e…
3. This is a big deal because the US is finally set to use its most powerful sanctions authorities to try to hurt Russia's war effort. There remains a widespread impressions that the Russia sanctions are the strongest ever imposed. That's not quite right!
Read 32 tweets
Dec 16, 2023
1. I recently learned that although the world's largest producer of cashews is Côte d’Ivoire, the world's largest exporter of cashews is Vietnam.

Vietnam is making a fortune. Côte d’Ivoire is not.

This is a story of successful globalization and failed industrialization. Image
2. Last year, Vietnam exported $791m of cashews to the EU and $885m to the US.

Meanwhile, Côte d’Ivoire exported just $85m to the EU and $41m to the US.

But Côte d’Ivoire is the much bigger producer, with a crop yield of ~800k tonnes, compared to Vietnam's ~400k tonnes. Image
3. So where are all the Ivorian cashews going?

They are mostly going to Vietnam!

The value of cashew exports from Côte d’Ivoire to Vietnam will reach $1bn this year, accounting for around 80% of the trade between the two countries. Image
Read 13 tweets
Dec 1, 2023
1. This is an astonishing and terrifying report by @yuval_abraham on Israel’s use of an AI system called Hasbora to conduct mass targeting in Gaza, leading to “intentional” civilians deaths.

But who makes the Hasbora system?

That’s a key question.
972mag.com/mass-assassina…
2. Back in July @marissalnew detailed how the IDF had begun using an “AI recommendation system that can crunch huge amounts of data to select targets for air strikes.”

The system she wrote about is called “Fire Factory” and is produced by Rafael.
bloomberg.com/news/articles/…
3. Rafael is an Israeli defense contractor best known for producing the Iron Dome. Back in 2021 it announced that greater use of AI in its systems would “transform the operator from a hard worker into a decision-maker.”
jpost.com/israel-news/a-…
Read 8 tweets

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