Friday, June 8, 2012

Eye on Iran: AdaptiveMobile Drops Iran Contracts on Gear for Text Monitoring






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Bloomberg: "AdaptiveMobile Security Ltd. ended its contracts with an Iranian phone company following the disclosure that the closely held firm supplied and serviced technology for monitoring and storing text messages. AdaptiveMobile, based in Dublin, stopped doing business with MTN Irancell, Iran's second-largest mobile provider, as of May 24, according to United Against Nuclear Iran, a New York- based advocacy organization that pressures companies to cut business ties to Iran. The group cited an e-mail from AdaptiveMobile. Iranian authorities use surveillance technologies to round up and interrogate political activists, according to accounts provided by victims and human rights groups. AdaptiveMobile sold technology for monitoring and storing text messages to Irancell in 2008, Bloomberg News reported last October. The company was still servicing the commercial gear. Police have access to the system, two former MTN Irancell managers said. 'We applaud AdaptiveMobile for ending its business in Iran,' said Kristen Silverberg, president of United Against Nuclear Iran, in a statement. 'AdaptiveMobile has made the responsible decision, and we encourage other telecommunications companies to follow suit.'" http://t.uani.com/KmdaOG

Reuters: "France's Bureau Veritas, which verifies the safety and environmental standards of ships, has stopped its marine work in Iran, the classification society said in a new setback for Tehran as it faces growing pressure from Western sanctions. Without the necessary verification from such bodies, ships are unable to call at international ports. The move follows a similar decision in April by British classification society Lloyd's Register to halt operations in Iran... U.S.-based United Against Nuclear Iran (UANI), which has been among pressure groups opposed to the Islamic Republic's nuclear ambitions, said it had urged Bureau Veritas to stop providing cover for Iranian vessels... In a letter addressed to UANI this week, Bureau Veritas said that following discussions with French government authorities it had decided to 'disengage completely' from all marine activities related to Iran... Pressure group UANI, which had previously said Bureau Veritas's certification activities were in violation of EU sanctions, welcomed the move. 'We accept Bureau Veritas's pledge to end all of its marine activities related to Iran,' said UANI chief executive Mark Wallace, a former U.S. ambassador. 'The international community must focus specifically on the shipping industry, to deny the Iranian regime access to global trade and seaborne crude oil exports.'" http://t.uani.com/Mho5J1

NYT: "Senior inspectors from the United Nations nuclear watchdog renewed talks with Iran on Friday aimed at securing access to restricted sites where the agency believes scientists may have tested explosives that could be used as triggers for nuclear warheads, officials at the agency said. The discussions at the International Atomic Energy Agency in Vienna are separate from the broader talks between Iran and world powers on its contested nuclear program, which are to resume in Moscow later this month after an inconclusive round in Baghdad in May. But the more technical discussions in Vienna are seen as offering a clue to Iran's readiness to adopt a more cooperative attitude as a deadline looms on July 1 for tighter sanctions on its oil and banking industries." http://t.uani.com/KgGue7

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Nuclear Program 
  
Reuters: "World powers will insist on Iran curbing its production of high-grade uranium at the next round of nuclear talks in Moscow, a senior European Union negotiator told her counterpart in Tehran on Thursday. In a letter to Tehran, the European Union's Helga Schmid said an offer by the six powers trying to resolve a standoff with Iran over its nuclear work, proposed at talks in Baghdad in May, was still on the table. The six countries - the United States, China, Russia, Germany, France and Britain - have asked Tehran to stop enriching uranium to 20 percent to address their concerns that the Iranian nuclear work aims to produce weapons. But Schmid said more talks on the details of the proposal were needed. 'We would feel very encouraged if Iran were ready ... to enter into these discussions,' she wrote in a letter, seen by Reuters, to Iran's deputy negotiator Ali Bagheri. EU diplomats negotiate with Iran on behalf of the six powers." http://t.uani.com/LIwI00

RFE/RL: "Parchin, a large military complex located southeast of Tehran, is one of the key pieces of the puzzle that is Iran's nuclear program -- a puzzle the United Nations' nuclear watchdog has been long trying to solve. On June 8 in Vienna, UN nuclear negotiators will sit down with Iranian officials to discuss their suspicions about military aspects of Iran's nuclear program. With Parchin on the agenda, here's some of what makes it a likely topic of discussion." http://t.uani.com/LzIyeL

Sanctions

Reuters: "The United States will announce a new list of countries that will receive exceptions to financial sanctions on oil trade with Iran as soon as early next week, a government official said on Thursday. Not all of Iran's oil buyers are likely to get the waivers, said the source, who declined to elaborate. Around two thirds of Iran's crude exports flow to Asia, where the biggest buyers are China, Japan, India and South Korea. The United States granted Japan an exception in March and has signaled it has had good talks with South Korea about reducing oil purchases. Refiners in South Korea will switch to other sources on July 1, industry sources have said. But the U.S. may withhold waivers for China and Singapore, according to an advocate of tougher sanctions on Iran, stepping up pressure on Iran's biggest crude oil buyer and a major destination for its fuel oil exports." http://t.uani.com/MsgsPg

Reuters: "Through a combination of somewhat fortuitous factors, the imminent imposition of Western sanctions on Iran is shaping up as a bit of a non-event for Asian crude buyers. The U.S. and European measures that start late this month and next aim to halt Iranian shipments of oil to Europe and impact those to the rest of the world by limiting the ability to pay or insure cargoes. But far from being a major worry for Asia, replacing much of the about 1.5 million barrels day that the region used to buy from Tehran has been fairly easy. Fortuitous factor number one is Greece, or more specifically the economic woes in Europe caused by the ongoing sovereign debt crisis that is at its worst in the Mediterranean nation. There is some irony insofar as a weakening economic outlook has actually helped Europe achieve its aim of keeping oil prices under control even as it plans to shut off imports from Iran, which totaled 740,000 barrels a day last year... Fortuitous factor number two is the faster-than-forecast slowing in China's economic growth rate, which is manifesting itself in weaker commodity imports." http://t.uani.com/MhEY97

Reuters: "The global oil market is well supplied and can cope with the loss of Iranian crude to Western sanctions, oil officials and executives, including the heads of Total and Royal Dutch Shell, said this week. An increase in global crude supplies and falling crude prices have helped cushion the impact of sanctions targeting Iran's controversial nuclear programme. 'The market is well supplied. There is no shortage,' the head of French oil firm Total said at a conference in Malaysia when asked if he was concerned about the loss of Iranian supply on the oil market. Total's Chief Executive Christophe de Margerie added that Brent crude prices had seen 'a very important decrease.' Brent crude was trading just under $99 per barrel on Friday after dropping to a 16-month low below $96 a barrel earlier this week." http://t.uani.com/KOjP8g

Reuters: ""India's Essar Oil, one of Iran's key Indian clients, has significantly reduced purchases from the santions-hit nation in May and switched to Latin American grades, which accounted for about a third of its overall imports during the month, tanker discharge data made available to Reuters show. Essar, which earlier this week completed an expansion of its Vadinar refinery in western Gujarat state to double capacity to 400,000 barrels per day (bpd), stepped up imports from Iran in January-March to meet last fiscal year's commitment and build stocks by July when tighter sanctions come into effect, making payments, insurance and supplies more uncertain." http://t.uani.com/KDeP7a

WSJ: "India's plan to use a rupee payment mechanism for oil imports from Iran in exchange for agricultural commodities such as wheat and rice has been hit by delays amid lack of clarity on the differential tax treatment promised in this year's federal budget. With the Finance Ministry yet to notify the new tax regime for such transactions, state-run Indian oil companies have held back from transferring rupee funds into local bank accounts against crude oil imports from Iran, which is facing U.S sanctions. With dollar payments for Iranian oil becoming difficult after the sanctions, Iran had, in March, agreed to accept payment in Indian rupees which it could use for import of agricultural commodities and other items from the later. Since then, businessmen on both sides have signed deals for the shipment of commodities such as rice, wheat, soymeal and pharmaceutical products." http://t.uani.com/Nmsijn

FrontPageAfrica: "Under scrutiny in Liberia over a controversial arrangements, the mobile giant, MTN the corporate partner of Lonestar Cell is being investigated by South Africa's elite Hawks police into allegations of corruption at MTN relating to its purchase of a cellular license in Iran... Adding more fuel to the fire, the United Against Nuclear Iran (UANI) CEO, Ambassador Mark D. Wallace, issued a statement Tuesday following reports that MTN evaded U.S. sanctions in order to send sophisticated American computer equipment to Iran, and is being investigated by its own government for bribery and corruption in Iran -- where MTN allegedly promised the Iranian regime that South Africa would vote against sanctioning Iran's nuclear program." http://t.uani.com/KDanVP

Reuters: "The United States is disappointed that Switzerland has not yet adopted the European Union's embargo on Iranian oil, the U.S. Ambassador to Switzerland said, adding that he did not expect the country to permit a legal loophole in the long run. Switzerland, a major physical oil trading hub and base for Iranian state-owned oil trading firm Naftiran Intertrade Company, extended an Iran blacklist in April but postponed a decision on the EU ban until a 'later date'. It also exempted Iran's central bank from its asset freeze. 'We expressed our disappointment. We would like them to do it [follow the EU on Iran sanctions],' Donald S. Beyer told a news conference in Geneva on Wednesday." http://t.uani.com/NmuuaA

Foreign Affairs


Bloomberg: "The suggested involvement of Iran in ending Syria's political strife has pitted Russia against the U.S. as a United Nations peace plan unraveled with shots fired at observers of a UN-backed truce. With his cease-fire agreement in tatters, UN envoy Kofi Annan warned the General Assembly that more needs to be done to prevent Syria from sliding into civil war after two massacres less than two weeks apart. He joined Russia in wanting Iran, as a country with influence in Syria, to assist efforts to seek a possible successor to President Bashar al-Assad... Still, the initiative was immediately rejected by U.S Secretary of State Hillary Clinton, and at the UN, the U.S. position has not changed. 'I think Iran is part of the problem,' U.S. Ambassador Susan Rice told reporters yesterday after a day of briefings on Syria. 'There is no question that it is actively engaged in supporting the government in perpetuating violence on the ground.'" http://t.uani.com/MRc5ns

Opinion & Analysis

Colin Kahl, Matthew Irvine & Melissa Dalton in FP: "As Iran's nuclear progress continues, the risk of an Israeli preventive strike grows. Given ongoing talks between Iran and the permanent members of the U.N. Security Council plus Germany (the so-called P5+1), an Israeli attack may not be imminent. But after inconclusive negotiations in Istanbul in April and Baghdad in May, we can expect the drums of war to beat even louder in Jerusalem if the third round of talks, scheduled to begin in Moscow on June 18, fails to produce results. As we argue in a new report published by the Center for a New American Security, some of the potential dangers to Israel from a nuclear-armed Iran have been exaggerated. For example, despite the abhorrent threats by some Iranian leaders to 'wipe Israel off the map,' the actual behavior of the Islamic Republic over the past three decades indicates that the regime is not suicidal and is sufficiently rational for the basic logic of nuclear deterrence to hold. Iran is therefore unlikely to deliberately use nuclear weapons against Israel or enable a terrorist group to do so. At the same time, a nuclear-armed Iran would be a much more dangerous adversary. Believing that its nuclear deterrent immunized it against retaliation, the Iranian regime would probably increase lethal support to proxies such as Hezbollah and Hamas and commit more brazen acts of terrorism abroad. The already-tense Israeli-Iranian rivalry would become more crisis-prone, and these crises would entail some inherent risk of inadvertent nuclear war. Preventing Iran from achieving nuclear weapons should therefore remain an urgent priority. Rushing into preventive war, however, would risk making the threat worse. Until Iran appears poised to weaponize its nuclear capability, the emphasis should remain on using economic pressure and diplomacy to convince the Iranians to change course. All options, including preventive military action, should remain on the table. But force should be seen as a last resort; it should be contemplated only by the United States, and it should be employed only under stringent conditions... Given the threat posed by Iran's nuclear ambitions, the option of using force should remain on the table. But the high risks and uncertain rewards mean it should be employed only if: (1) all nonmilitary options have been exhausted; (2) Iran has made a clear move toward weaponization; (3) there is a reasonable expectation that a strike would significantly set back Iran's program; and (4) a sufficiently large international coalition is available first to help manage the destabilizing consequences of the strike and then to contain Iran and hinder it from rebuilding its nuclear program." http://t.uani.com/Ld3V2R

Guy Bechor in YnetNews: "Never withdraw into a fortress, Machiavelli warned. Those who do so are trapped within their own walls and have nowhere to run. They are surrounded, thereby becoming an easy target for their enemies. Yet Iran is doing the exact opposite of this advice. It withdraws into itself, thereby turning into an isolated pariah state that experiences the kind of economic blows no country has experienced since World War II. It is true that Ahmadinejad and his colleagues are fooling the West in the nuclear talks, yet the Iranians know well how dangerous their situation is, on the eve of a decision of historical significance. They are aware of the dangers, yet nonetheless continue to withdraw. On July 1st, the European Union's full oil embargo on Iran will go into effect, and from that moment on Tehran shall lose one quarter of its sales revenues. At this time already, the Iranians have no customers for their oil, and tankers carrying some 30,000 barrels without a buyer are docked in the Persian Gulf. Iran can store up to 80,000 oil barrels in its 39 tankers before it needs to shut down oil wells. Such move would be destructive, as paralyzed oil wells sustain grave damage that prevents them from returning to full capacity later on. At this time the West presses states like China, India, South Korea and South Africa, and they too are minimizing oil acquisitions from Iran. Yet this is not the only blow to be sustained by Iran that day. In early July, the large insurance companies will stop insuring Iranian tankers and any vessel carrying Iranian oil. In light of this, South Korea, Japan and other states have announced that they will be forced to halt their Iranian oil purchases. Iran has no ability to insure the tankers itself. China may insure some of them, but the costs in such case would be huge. Iran's economic future never looked grimmer. It currently suffers from a huge deficit, wide-ranging unemployment, a worthless currency, reckless inflation, and young people who only want to flee the isolated state. Many of them have succeeded in doing so. On top of this, grave sanctions have already been imposed against Iran, such as disconnecting it from the global clearinghouse system and the boycott on companies that maintain ties with Iran's central bank or its oil industry." http://t.uani.com/LIzHpj

Meir Javedanfar in The Diplomat: "Iran's leadership may be hoping that Beijing and Moscow will step in and help it with the West. But it's not in their interests to do so. Vladimir Putin has returned to the Russian presidential office. And, if his previous record as president is anything to go by, he's likely to take an even tougher line against the U.S. over Iran. This comes at a time when U.S. relations with China have been tense. Indeed, U.S. Defense Secretary Leon Panetta used a recent visit to Vietnam to underscore how the United States intends to back its allies in the Asia-Pacific region and help them enforce their rights in the South China Sea, an area that Beijing claims much of. Such sentiments are unlikely to have been well received by China's leaders. Against this backdrop, China and Russia are both veto wielding members of the U.N. Security Council, as well as members of the P5+1 group, which is negotiating with Iran over its nuclear program. The Iranian government could therefore be forgiven for seeing a diplomatic opportunity on the horizon, and Tehran can be expected to attempt to seize the moment by trying to create a rift between the rest of the P5+1 and Russia and China. Indeed, Iranian President Mahmoud Ahmadinejad will likely have used his meetings with Putin and senior Chinese officials on the sidelines of this week's Shanghai Cooperation Organization summit for this very purpose. The question that should be asked, though, is this: how much mileage can Tehran get from such discord? The answer is likely not much. Of course, Putin can be expected to crank up the rhetoric in challenging U.S. policies, especially those tied to new sanctions against Iran. In concrete terms, though, he'll be treading much more carefully. Putin may want to sound tough with the United States, but he's also aware that it's unwise to vigorously challenge current U.S. and EU oil sanctions against Iran's oil industry because they also serve his government's interests. Iran is a Russian competitor in the global energy market, and the less oil Iran is allowed to sell, the more scope there will be for Russia to step in. In the long run, Russia may even be able to poach some of Iran's long standing oil customers. In addition, the current tensions over Iran, and its absence from the oil markets, could help keep oil prices higher, a reality that will be welcome for a Russian administration that's determined to eliminate Russia's budget deficit by 2015. Doing so depends on oil prices averaging around $100 per barrel, by some estimates. The Chinese government's enthusiasm for the Iranian government, meanwhile, is also likely to be limited. The most important reason is China's slowing economy." http://t.uani.com/LzI6xb

Greg Jones in NPEC: "In various papers since 2008, this author has outlined how Iran's growing centrifuge enrichment program could provide it with the ability to produce Highly Enriched Uranium (HEU) for nuclear weapons. On May 25, 2012 the International Atomic Energy Agency (IAEA) published its latest safeguards update.  This update shows that not only has Iran's centrifuge enrichment effort continued to be unimpeded by Western counteraction but that it has undergone a significant expansion.  In particular in the last six months Iran has increased its production of 3.5% enriched uranium at the FEP at Natanz by about 60% and has installed over 1,000 new centrifuges at the well-protected Fordow facility.  Together these increases mean that Iran has increased its total enrichment capacity by nearly 80% since just last fall and tripled it since 2009.  This reality is in contrast to the continuing myth that cyberattacks against Iran's centrifuge enrichment facilities led to significant reductions in Iran's enriched uranium production. Though media coverage of this latest IAEA safeguards update has focused on the discovery of 27% enriched uranium particles at one of Iran's enrichment facilities, the rapid increase in Iran's overall enrichment capacity is the real story. The rapid expansion of Iran's enrichment capacity continues to shorten the time that Iran would require to produce the HEU needed to manufacture a nuclear weapon.  I currently estimate that Iran could produce enough HEU for a nuclear weapon in one to three months and might be able to produce enough HEU for three nuclear weapons in just six months if it were to decide to quickly do so. In order to produce a nuclear weapon Iran would also have to manufacture the non-nuclear components for such a weapon.  Iran has already made substantial progress in this area, in part aided by a Russian nuclear weapon expert.  I have estimated that Iran could produce these required non-nuclear components in just two to six months should it decide to quickly do so." http://t.uani.com/MhDZWE

Eye on Iran is a periodic news summary from United Against Nuclear Iran (UANI) a program of the American Coalition Against Nuclear Iran, Inc., a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code. Eye on Iran is not intended as a comprehensive media clips summary but rather a selection of media elements with discreet analysis in a PDA friendly format. For more information please email Press@UnitedAgainstNuclearIran.com

United Against Nuclear Iran (UANI) is a non-partisan, broad-based coalition that is united in a commitment to prevent Iran from fulfilling its ambition to become a regional super-power possessing nuclear weapons.  UANI is an issue-based coalition in which each coalition member will have its own interests as well as the collective goal of advancing an Iran free of nuclear weapons.

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