Tuesday, June 12, 2012

Eye on Iran: U.S. Exempts India, Not China, from Iran Sanctions






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Reuters: "The United States extended exemptions from its tough, new sanctions on Iran's oil trade to seven more economies on Monday, leaving China the last remaining major importer exposed to possible penalties at the end of the month. In the latest sign Washington is working with other countries to pressure Iran's nuclear program, India, South Korea, Turkey and four more economies will receive waivers from financial sanctions in return for significantly cutting purchases of Iranian oil, Secretary of State Hillary Clinton said. China, which alone buys as much as a fifth of Iran's crude exports, and Singapore, where much of the country's fuel oil is blended, did not receive such waivers, ramping up pressure on two important U.S. trade partners in Asia. The sanctions, which the United States may impose starting on June 28, are Washington's most ambitious measures yet to strangle Iran's nuclear program by cutting funding from its oil export sales... 'By reducing Iran's oil sales, we are sending a decisive message to Iran's leaders: until they take concrete actions to satisfy the concerns of the international community, they will continue to face increasing isolation and pressure,' Clinton said in a release... South Africa, Taiwan, Malaysia and Sri Lanka will also be exempt from the sanctions, Clinton said. Japan and 10 EU countries had been granted exceptions in March." http://t.uani.com/LWpt2s

Reuters: "European Union officials said on Monday that Iran has agreed to discuss a proposal from six world powers to curb its production of high-grade uranium at a meeting in Moscow next week in an apparent de-escalation of tensions ahead of the talks. The development follows more than two weeks of wrangling between Iranian diplomats and Western negotiators over preparations for the closely-watched round of nuclear talks which had cast some doubts over what can be achieved in Moscow. A tense exchange of letters between EU diplomats, who deal with Iran on behalf of the six powers, and Iranian officials had earlier appeared to suggest Tehran may be backtracking on its expressed willingness to discuss their most pressing concern - high-grade uranium enrichment even in broad terms. But on Monday, Iran's chief nuclear negotiator Saeed Jalili agreed to focus on the six powers' demands at the Moscow meeting, during a one-hour phone conversation with EU foreign policy chief Catherine Ashton. 'The Iranians agreed on the need for Iran to engage on the (six powers') proposals, which address its concerns on the exclusively peaceful nature of the Iranian nuclear programme,' a spokesman for Ashton said." http://t.uani.com/LjVQt8

WSJ: "Oil prices sank to an eight-month low amid concerns about excess global supplies. Crude-oil futures, which began New York trading in positive territory before easing, weakened further after the U.S. announced a raft of exemptions to trade sanctions with Iran soon to be put in place. The move eased worries that the restriction of Iran's oil sales would curtail supplies and keep prices elevated... Oil futures finished 1.7%, or $1.40, lower at $82.70 a barrel on the New York Mercantile Exchange, the lowest level since Oct. 6, 2011." http://t.uani.com/Kq5BLH
MTN Action AlertNuclear Program 
  
AP: "Iran's military is denying claims by the U.N.'s nuclear watchdog that it demolished buildings at a base in a suspected attempt to cover up nuclear testing, the state media reported Monday. The report by YJC.ir news website quoted Defense Minister Gen. Ahmad Vahidi as saying allegations that Iran was trying to erase evidence at the Parchin military base are 'irrelevant and unwise.' Iranian officials have issued similar denials over the past few weeks but this is the first by the defense minister, under whose authority the base falls. 'The allegations are aimed at affecting nuclear talks in Moscow,' Gen. Vahidi was quoted as saying, referring to an upcoming round of negotiations between Iran and six world powers in the Russian capital over the Islamic Republic's nuclear program." http://t.uani.com/KydXMJ

Reuters: "Two leading computer security firms have linked some of the software code in the powerful Flame virus to the Stuxnet cyber weapon, which was widely believed to have been used by the United States and Israel to attack Iran's nuclear program. Eugene Kaspersky, chief executive of Moscow-based Kaspersky Lab, which uncovered Flame last month, said at the Reuters Global Media and Technology Summit on Monday his researchers have since found that part of the Flame program code is nearly identical to code found in a 2009 version of Stuxnet. Later in the day, the largest security firm, Symantec Corp, said it had confirmed that some source code had been shared." http://t.uani.com/MGU4FZ

AFP: "Iran has taken 'initial steps' to design its first nuclear-powered submarine, a deputy navy commander claimed in an interview with the Fars news agency published on Tuesday. 'Initial steps to design and build nuclear submarine propulsion systems have begun,' Admiral Abbas Zamini, the technical deputy navy chief, told the agency. 'All countries have the right to use peaceful nuclear technology, including for the propulsion system of its vessels,' he said. Iran's navy 'needs the (nuclear-powered) propulsion system to succeed in realising very long-distance operations.'" http://t.uani.com/LhFAdJ

Sanctions

Reuters: "Chinese refiner Sinopec has turned down offers of bargain Iranian crude and will cut imports by up to a fifth this year, a senior Chinese oil executive said, insisting ties with the United States were more important than cut-price oil as the West squeezes Tehran over its nuclear program... While China made big cuts in first-quarter imports from Iran, the United States is wary that Beijing might find it difficult to resist a bargain if Tehran tries to sell crude it can no longer export to other buyers later this year. Sinopec has already resisted such offers, said the Beijing-based official who has knowledge of the refiner's trading operations. 'The Iranians have made some offers, but we have turned them down,' the official said, declining to elaborate. 'The economic benefits of filling some discounted Iranian oil into the national oil reserves would be too small a consideration for the state. The key concern for the Chinese government would be China-U.S. relations.'" http://t.uani.com/Klrqe3

Reuters: "Iran's Bank Parsian has stopped issuing payment guarantees for Iranian importers who buy Indian goods, because its account that was set up to skirt Western sanctions does not have the necessary funds in rupees... New Delhi and Tehran in January had agreed on a barter-like system to settle 45 percent of their $10 billion-plus a year oil trade in rupees, which are not freely traded internationally, and use them to repay Indian exporters of other goods. In this arrangement, letters of credit (LCs) would have guaranteed payments and smoothed trade, which could have helped Iran's economy as sanctions squeeze its oil sales and revenues. India's only other means of payment to Iran currently is in euros through Turkey's Halkbank, after a clearing mechanism in dollars was closed by the Reserve Bank of India under pressure from Washington in December 2010." http://t.uani.com/L2jjCo

Reuters: "Japan's cabinet ministers approved and submitted a special bill to parliament on Monday to enable the government to provide insurance cover for Iranian crude imports once a European Union ban on insurance and reinsurance takes effect on July 1. The insurance scheme would enable the Japanese government to provide direct payments of up to $7.6 billion in the event of a critical incident on a tanker carrying Iranian crude bound for Japan, the transport ministry said in a statement. Japan intends to keep importing oil from Iran and has been lobbying the EU to be exempted from the ban on insurance and reinsurance of Iran's oil exports, with no indication of success so far." http://t.uani.com/KAzano

Sun Sentinel: "A new law requires Florida-chartered banks to report information to the state on any accounts that might be linked to foreign financial institutions supporting terrorism. Aimed at Iran, the law stemmed from efforts by the Jewish Federations in Palm Beach County. Gov. Rick Scott signed the law into law on Friday, and on Monday he held a ceremonial re-signing at the Jewish Federation of South Palm Beach County... The new law requires banks chartered by the state to put in place policies through the state Office of Financial Regulation to make sure no money from Florida banks is loaned to international banks that are doing business with Iran. It's similar to a federal law that deals with federally chartered banks, Mack said. Preventing any Florida money from being used to help Iran 'is the best way to put another squeeze on Iran,' he said." http://t.uani.com/Or1eNV
 
Terrorism


Times of India: "Delhi Police has started has process of sending letter rogatories to Iran and Thailand in its probe in the February 13 Israeli diplomat attack case. Sources say that the process has started and they will soon move the court to take a final permission. Delhi Police was recently given 90 days more time to finish the probe in the case. The department is still waiting for Iran's clearance for sending a team to Tehran for the investigations. On its part, the Delhi Police is almost ready for leaving there. 'We have prepared all the questionnaires and list of required documents, for the three Iranian bombers - Houshang Afshar Irani, Mohammad Reza Abolghasemi and Seyed Ali Mahdian,' said a senior police officer. The three Iranian bombers had allegedly fled to Tehran after carrying attack in New Delhi on February 13 this year." http://t.uani.com/LQnqih

Human Rights

JPost: "Iran's stepped up its crackdown on the country struggling Christian community by closing a church in Tehran, prompting an Iranian human rights group and religious freedom experts to slam the regime. 'The ability to join a church or mosque or temple is one of the most fundamental religious freedoms,' Hadi Ghaemi, a spokesman for the group International Campaign for Human Rights in Iran, said last week. 'This drive to close churches is an assault on free religious practice, in violation of Iran's international commitments, and a sign of growing religious intolerance within the Iranian government.'" http://t.uani.com/NvoufK

AFP: "Tehran police have sealed a multi-screen cinema in the capital that defied a police ban on selling women tickets for live public screenings of Euro 2012 football games, the ISNA news agency reported on Monday. ISNA cited Tehran police as saying that the 'Zendegi cinema complex has been sealed by police after it sold tickets to women since cinemas are only authorised to sell tickets for such screenings to men.' Contacted by AFP, the cinema complex confirmed the closure, without going into further detail. The closure came after Bahman Kargar, deputy police commander in charge of social affairs, said women in Iran were being banned from watching live Euro 2012 screenings because of an 'inappropriate' environment where men may become rowdy." http://t.uani.com/MH35yS

Domestic Politics

AP: "Iran's president hardly seemed like a fading political force at a security summit in Beijing last week. Leaders from China and Russia carved out time to hold private talks with Mahmoud Ahmadinejad and gave him center stage to unleash his pet theories about the unraveling of Western power. But Ahmadinejad always seems to catch a second wind on the road. It's at home where his political wounds are most visible and his expiration date is already factored into high-stakes calculations. The one-time favored son of Iran's theocracy -- its flame-throwing populist in a common man's wind breaker or bureaucrat's off-the-rack suit -- is now limping into his last year in office sharply weakened and in the unexpected position as an outcast among hard-liners." http://t.uani.com/NvjQ1f

Opinion & Analysis

David Ignatius in WashPost: "The Iran nuclear negotiations may not be headed toward a dead end in Moscow next week, as feared. Iran's top negotiator has said he is ready to 'engage on the proposal' from Western nations for Iran to export its supply of 20 percent-enriched uranium as a first step toward a broader nuclear deal. Saeed Jalili, the Iranian chief representative in the talks, made the comment in a phone conversation Monday night with Catherine Ashton, the chief European Union diplomat who heads the 'P5+1' negotiating group of major powers. Jalili also dropped Iran's call for another preliminary meeting to prepare for the Moscow session, which is set for next Monday and Tuesday. 'They backed down,' a European diplomat who is involved in the talks told me Monday. 'They had been setting up a failure in Moscow and preparing to blame us for it,' he said, arguing that the renewed agreement to engage, after several weeks of foot-dragging, was 'a small diplomatic victory' for Ashton. 'The formula we have agreed is that they will engage in the substance of our proposal,' the diplomat said. 'In turn we will think a bit about their ideas.' He added that the Western powers have not yet offered to halt the economic sanctions that will take effect June 28 and July 1, though they have said that Iran's 'steps will be met by reciprocal steps.' The Iran talks have been a roller coaster of speculation, with hopes rising and falling as each side plays out the game of expectations. The opening meeting in Istanbul, in April, produced a surge of optimism, which plunged to foreboding after the meeting in Baghdad last month. Some have predicted that the talks might collapse altogether after next week's meetings, given Iran's behavior in Baghdad and since. Is this just Tehran's way of stringing along the talks, while it continues to push ahead with enrichment of uranium that could eventually be used to make a bomb? That's precisely what some analysts predicted the Iranians would do - show just enough progress at each session to keep the negotiations going, without ever actually getting to yes. The counterargument is that time is actually working against the Iranians, because the P5+1 have made no promise that they would remove major sanctions if Iran agreed to export its existing stockpile of uranium enriched to 20 percent... In the background, as ever, remain the drivers for diplomacy: Economic sanctions have already damaged the Iranian economy and are soon going to get considerably worse; Iran also faces the threat of possible Israeli military action, and the now-confirmed U.S. use of cyberweapons to disrupt the program. There's a lot of theater here, to be sure, but also a danger of significant conflict if progress isn't made soon." http://t.uani.com/Ky8w0b

Robert Tollast and Reidar Visser in Small Wars Journal: "It's now clear that the regime in Iran is going through very tough times: the Supreme Leader says sanctions have had "no effect," while the country privately pushes for them to be lifted. As India announces it will cut oil imports from Iran, oil exports (80% of Iran's total exports) are being squeezed from almost all sides. Iran's long term ally in Syria is running out of time and money. Iran in turn, is running out of funds to help Assad. We might suppose that Iran's logical next step is to expand its involvement in Iraq to compensate for these foreign policy losses. In March, Iran Khodro, the country's largest car manufacturer announced it would make 30,000 cars in an undisclosed production site in Iraq. Here is what not for profit advocacy group United Against Nuclear Iran (UANI) has to say about Khodro: 'Iran Khodro are subsidiaries of the Iranian Development and Renovation Organization (IDRO), an entity blacklisted by the U.S., UK and EU for its activities in a wide range of nuclear and military activities. Moreover, the IRGC commander, Rostam Ghasemi, currently holds a position on IDRO's Board of Directors. In August 2010, the U.S. Treasury Department's Office of Foreign Asset Control (OFAC) formally sanctioned Mr. Ghasemi.' Considering this, and the recent Stratfor report which suggests pro-Iranian groups are smuggling $20 million dollars' worth of Iraqi oil into Iran every day, do you think that sanctions and the collapse of Assad is forcing Iran to stretch its tentacles further into Iraq? No doubt they also fear a surge in Iraqi oil production which would eat away at their own oil revenues. Meanwhile, the Iraqi government appears to be allaying Iranian fears by hailing the growing trade between the two nations..." http://t.uani.com/L2hZQ4

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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