Senior Researcher at the Gaidar Institute’s International Trade Department Olga Rozanova spoke to Nezavisimaya Gazeta about possible consequences of tighter regulations on undersea cables in the Strait of Hormuz.
According to the expert, major telecommunications companies have already invested significant funds in infrastructure tied to a specific route, and relocating the cables will require substantial costs.
“The negative consequences of such behavior are predictable. Trust in a partner who changes the rules after the fact inevitably declines. The reputational damage for Iran could be substantial, and most importantly, it could discourage future investments,” noted Olga Rozanova.
The expert emphasized that as a result, companies planning new infrastructure projects may begin to choose alternative routes, and the potential benefits for Iran will prove to be only short- term.
In addition, according to Olga Rozanova, there are practical limitations as well.
“Iran does not yet have its own fleet of repair vessels, which is necessary for the full-scale maintenance of deep-sea cables. Obstacles are also possible in the legal sphere,” she added.