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Report: Iran Nuclear Program has Cost over $500 Bn

FILE PHOTO: Iranian workers stand in front of the Bushehr nuclear power plant, about 1,200 km south of Tehran October 26, 2010. REUTERS
FILE PHOTO: Iranian workers stand in front of the Bushehr nuclear power plant, about 1,200 km south of Tehran October 26, 2010. REUTERS
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Report: Iran Nuclear Program has Cost over $500 Bn

FILE PHOTO: Iranian workers stand in front of the Bushehr nuclear power plant, about 1,200 km south of Tehran October 26, 2010. REUTERS
FILE PHOTO: Iranian workers stand in front of the Bushehr nuclear power plant, about 1,200 km south of Tehran October 26, 2010. REUTERS

A report issued by the Arab Strategy Forum in Dubai has estimated the total cost of Iran’s nuclear program to have exceeded more than $500 billion since 2006.

The report titled ‘The Economic Costs and Consequences of Iran’s Nuclear Program’, found that international economic sanctions have cost Iran more than $500 billion to date.

The costs of developing and operating infrastructure and facilities for the program have added some US$50 billion to the bill, it said.

The Arab Strategy Forum is set to take place on Dec.12 in Dubai. Its report was issued at a panel discussion on Wednesday in collaboration with Al-Ahram Center for Political and Strategic Studies.

Led by Dr. Sultan Mohammed Al-Nuaimi, Associate Professor at Abu Dhabi University and Expert on Iranian Affairs, the discussion drew the participation of prominent academics and media personalities.

In addition to the cost of the Iranian nuclear program, the report “examines the consequences of the program in terms of economic hardship among the population," Nuaimi said.

According to the report, the adverse economic situation in Iran has led to frequent protests in various regions across the country throughout the past years, with protesters citing inflation, unemployment, poverty, and corruption as their primary concerns.

The United States decided in May to withdraw from the 2015 nuclear deal and reimpose sanctions on Iran, making the situation worse.

The report highlights how the ongoing sanctions on Iran have limited foreign direct investment, FDI, flow to the country. Moreover, foreign companies have canceled new investment contracts worth tens of billions of dollars, especially in the energy sector that needs between $130 billion and $300 billion of new investments to maintain productivity until 2020.

As a result, unemployment rates in Iran have risen, especially among youth. About one-third of the country’s young people have no job opportunities, which fuels their frustration with the local economic situation. The value of the Iranian rial has also plummeted due to sanctions, especially the recent US sanctions, which led to a surge in the price of the US dollar on the black market to IRR112,000 in August 2018, compared with IRR36,000 on the official market in early 2018, before the new sanctions regime.

The inflation rate has witnessed unprecedented levels and is projected to reach an annual average of 203 percent by end-2018 according to some estimates, said the report.

Various economic sectors in Iran were affected by the sanctions and their consequences, it said.

Notably, the oil sector, which the country’s economy heavily relies on, has seen production and exports decline. The Iranian industrial sector, another target of the recent US sanctions, has also suffered. The agricultural industry has borne the negative impact of insufficient automation and the absence of modern technologies, and, to make matters worse, the local industrial sector is unable to provide an alternative. International sanctions have also led to the deterioration of Iran's infrastructure due to the drop in public revenue from oil exports and the reluctance of foreign companies to invest in the sector.

Also, the sanctions have restricted knowledge exchange and imports of modern equipment, which has adversely affected the technology sector. This has resulted in heavy wear of Iran's infrastructure, especially energy networks, which has caused significant annual losses due to reduced efficiency and productivity.

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World

Iran War as a New Catalyst...China Secretly Enters Nuclear Arms Race

China asserts that it follows a defensive strategy and is committed to the no-first-use of nuclear weapons (file-Reuters).
China asserts that it follows a defensive strategy and is committed to the no-first-use of nuclear weapons (file-Reuters).
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Iran War as a New Catalyst...China Secretly Enters Nuclear Arms Race

China asserts that it follows a defensive strategy and is committed to the no-first-use of nuclear weapons (file-Reuters).
China asserts that it follows a defensive strategy and is committed to the no-first-use of nuclear weapons (file-Reuters).

When three villagers from China’s Sichuan Province wrote to local officials in 2022 questioning why the government was confiscating their land and evicting them from their homes, they received a brief response: "It is a state secret."

An investigation by CNN revealed that this secret centers on China's plans to significantly expand its nuclear capabilities. More than three years after the citizen evacuations, satellite imagery shows their village has been leveled, replaced by new buildings designed to support some of China’s most critical nuclear weapons production facilities.

CNN reported that the expansion of these sites in Sichuan, observed through satellite imagery and a review of dozens of Chinese government documents, confirms recent allegations by President Donald Trump’s administration that Beijing is conducting its largest nuclear modernization campaign in decades.

President Trump is scheduled to visit Beijing on a historic trip next month, where he is expected to seek a dialogue on an agreement to curb Chinese President Xi Jinping’s nuclear ambitions.

Most Significant New Facilities in Sichuan Province

Among the most prominent of these facilities is a massive, fortified dome built on the banks of the Tongjiang River in less than five years. It appears to still be undergoing outfitting, suggesting it may not yet be operational.

The reinforced dome covers an area of 3,344 square meters (equivalent to 13 tennis courts). It is encased in a concrete and steel structure equipped with radiation monitoring devices and blast-proof doors, with a network of pipes extending from the facility to a building featuring a high ventilation chimney.

According to several experts, these features, along with advanced air-handling equipment, are designed to contain highly radioactive materials, such as uranium and plutonium, within the dome, indicating an expansion of the Chinese nuclear program's production capacity. The facility is also surrounded by three layers of security fencing.

No Sign of Retreat

This development comes at a time of rising international tensions, particularly following the expiration of the latest nuclear arms limitation treaty between the United States and Russia (known as "New START") earlier this year. Trump is seeking to broker a new and improved agreement with Moscow that would also include China.

However, the radical changes witnessed in Sichuan indicate that the Chinese military's nuclear weapons development shows no sign of slowing down, according to the CNN report.

In contrast, China denies the accusations; military spokesperson Jiang Bin emphasized that his country "follows a defensive strategy and is committed to no-first-use of nuclear weapons."

However, experts believe the significant changes on the ground reflect a fundamental shift in the nuclear program. Analyst Decker Eveleth said that this extensive modernization suggests a fundamental restructuring of the technology underpinning the entire system.

Renny Babiarz, Vice President of Analysis and Operations at AllSource Analysis, who reviewed the satellite imagery for CNN, also pointed to the potential development of "new processes and different types of equipment" within these facilities. He said it was clear that there are many changes happening on the ground."

This expansion coincides with directives issued by the Chinese President to accelerate the building of strategic deterrence capabilities amid escalating regional tensions, particularly regarding Taiwan.

Observers believe these moves could lead to a new nuclear arms race more complex than the Cold War era, with China emerging as a major third party. There are also concerns that the United States might overestimate China's capabilities, thereby exacerbating nuclear proliferation.

Jeffrey Lewis, a distinguished scholar in global security at the Middlebury Institute, said some in the US will argue that we need to radically expand our nuclear weapons production capacity to match China..."but we won't be matching what they are doing; we will be matching what we think they are doing. We will be matching our own nightmare. And that is extremely dangerous."

Impact of the Iran War on China’s Nuclear Program

Experts say that the ongoing US-Israeli war on Iran may have strengthened China's resolve to expand its nuclear program.

"If you were Chinese and looked at what is happening, you wouldn't see that disarmament or weakening yourself makes any sense," Lewis said. He added: "One outcome of what the Trump administration is doing in Iran will not be to intimidate or subdue China, but rather to push it to build more nuclear weapons."

Lewis noted that, given these factors, the chances of reaching arms control agreements appear limited, pointing out that China may engage in "formal" dialogues to de-escalate tensions without offering substantial concessions.

World

India Says Defense Exports Hit 'All-time High' of $4 bn

India said it exported more than $4 billion of defense equipment including missiles, boats and artillery. Dibyangshu SARKAR / AFP
India said it exported more than $4 billion of defense equipment including missiles, boats and artillery. Dibyangshu SARKAR / AFP
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India Says Defense Exports Hit 'All-time High' of $4 bn

India said it exported more than $4 billion of defense equipment including missiles, boats and artillery. Dibyangshu SARKAR / AFP
India said it exported more than $4 billion of defense equipment including missiles, boats and artillery. Dibyangshu SARKAR / AFP

India's defense exports "skyrocketed" to an all-time high of more than $4 billion in the last fiscal year, as it looks to boost its arms manufacturing sector, the government said Thursday.

The figures mark a rise of more than 60 percent from 2024, the defense ministry said, and provide a shot in the arm for the South Asian country, which is determined to recast itself as a major producer and exporter of weapons, AFP said.

"India is marching ahead towards becoming a global defense manufacturing hub," the ministry quoted Defense Minister Rajnath Singh as saying.

"This big jump... in defense exports reflects the growing global trust in India's indigenous capabilities and advanced manufacturing strength," Singh said, adding that it had hit an "all-time high" in the fiscal year 2025-26 of 38,424 billion rupees ($4.15 billion).

Government defense companies produced nearly 55 percent of the exports, with the rest made by private companies.

"This milestone showcases the power of a collaborative and self-reliant defense ecosystem," Singh said.

India exports defense equipment to more than 100 countries, with the United States, France and Armenia among the top customers, according to the defense ministry.

Shipments range from missiles, boats and artillery to radar systems, rocket launchers and electronic components.

However, the country is still primarily a buyer, not a seller, and remains globally a minor player in exports.

New Delhi earlier this year announced a record $85 billion boost for its defense sector.

But India's arms purchases still make up around eight percent of all imports globally, according to the Stockholm International Peace Research Institute.

 

World

Russia Repels Drone Attack on Gas Pipeline to Türkiye, Says Gazprom

File photo: Pipes at the landfall facilities of the Nord Stream 1 gas pipeline are pictured in Lubmin, Germany, March 8, 2022. (Reuters)
File photo: Pipes at the landfall facilities of the Nord Stream 1 gas pipeline are pictured in Lubmin, Germany, March 8, 2022. (Reuters)
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Russia Repels Drone Attack on Gas Pipeline to Türkiye, Says Gazprom

File photo: Pipes at the landfall facilities of the Nord Stream 1 gas pipeline are pictured in Lubmin, Germany, March 8, 2022. (Reuters)
File photo: Pipes at the landfall facilities of the Nord Stream 1 gas pipeline are pictured in Lubmin, Germany, March 8, 2022. (Reuters)

Russian forces repelled a drone attack early Thursday on part of the TurkStream gas pipeline connecting Russia and Türkiye, the pipeline's operator Gazprom said in a statement.

"The Russkaya compressor station, which ensures the reliable export of gas via the TurkStream pipeline, came under attack from three aircraft-type unmanned aerial vehicles," Gazprom said. "The attack was repelled and no damage was caused to the Gazprom facility."

The Russkaya compressor station is the starting point of the TurkStream pipeline. Russia has accused Ukraine of targeting it multiple times.