Thursday, July 12, 2012

Eye on Iran: Iran Oil Trade Skirts Ship Insurance Ban






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Top Stories


Reuters: "Iran is shipping oil to China, its top buyer, despite a row over freight terms, and Japan has taken steps to resume imports in August as Tehran finds ways to get around Western sanctions on ship insurance for its drastically reduced shipments... On Wednesday, industry sources said Japanese insurers were expanding their maritime coverage to allow more domestic tankers to transport Iranian crude and that Iranian shipments to China were flowing despite the dispute about terms. At least 4 million barrels of Iranian oil from the July program are on their way to Chinese refiners, said a Chinese crude trader familiar with the negotiations. 'Looks like the freight negotiations are not a package, but voyage by voyage,' said the trader, who declined to be identified due to the sensitive nature of the matter. He referred to talks between Chinese state refiner Sinopec and the National Iranian Tanker Co (NITC). China plans to buy about 15 million barrels of Iranian oil in July, sources have told Reuters." http://t.uani.com/NruOna

FP: "Legislation that would impose a new regime of sanctions against Iran appears stalled in Congress, but behind the scenes both chambers are working to come up with a package that can be signed into law this summer. The Senate passed the Johnson-Shelby Iran Sanctions, Accountability and Human Rights Act of 2012 in May, legislation that would punish any entity that provides Iran with equipment or technology that facilitates censorship or the suppression of human rights, including weapons, rubber bullets, tear gas, and other riot control equipment -- as well as communications jamming, monitoring, and surveillance equipment. It also calls on the Obama administration to develop a more robust Internet freedom strategy for Iran and speed new assistance to pro-democracy activists in the country... The House version was passed last December and has some key differences compared to the Senate bill. Senate Majority Leader Harry Reid (D-NV) said in May that the sanctions were so urgent he couldn't even allow floor time for senators to debate the bill and offer amendments. Now, two months later, there seems to be no progress... The clock is ticking, however. If the bill isn't finished by the end of this month, which is the end of the current legislative session, there's little chance Congress will pass it this fall so close to the election." http://t.uani.com/NA5AD4

WSJ: "South Africa has suspended its former ambassador to Iran amid allegations he accepted a bribe from MTN Group Ltd. to help the mobile-phone operator obtain an Iranian business license. The charges are part of a broader corruption case that have cast a shadow over one of South Africa's star companies and complicated the country's commercial ties with Iran, a large supplier of crude oil. On Thursday, a spokesman for South Africa's foreign ministry said Yusuf Saloojee, who was South Africa's ambassador to Iran when MTN obtained a business license seven years ago, had been suspended at the start of July. The foreign ministry has been investigating whether Mr. Saloojee engaged in wrongdoing during his time as ambassador, but so far hasn't released details of the probe." http://t.uani.com/NjMqSO
MTN Action Alert   
Nuclear Program
  
NYT: "One of the Navy's oldest transport ships, now converted into one of its newest platforms for warfare, arrived in waters off Bahrain late last week, a major addition to the enlarged presence of American forces in the Persian Gulf designed as a counter to Iran. The keel for the ship, the Ponce, was cast in 1966, and the vessel, nearing the end of its service, was to have been scrapped. But the Ponce was reborn as a floating forward base for staging important military operations across the region - the latest example of the new American way of war." http://t.uani.com/NjKslo

LAT: "The Navy is rushing tiny underwater drones to the Persian Gulf to help find and destroy sea mines as part of an American military buildup aimed at stopping Iran from closing the strategic Strait of Hormuz in the event of a crisis, U.S. officials said... The first drones began arriving in recent weeks as the latest round of negotiations with Iran over its disputed nuclear development program appears to have stalled. Renewed diplomatic talks between Iran and the five permanent members of the United Nations Security Council plus Germany have failed to achieve a breakthrough or lessen tensions." http://t.uani.com/P2rJeB

Guardian: "A former Iranian interior minister, Abdollah Nouri, has called on the leaders of the Islamic republic to hold a referendum over the fate of the country's nuclear programme. As economic sanctions begin to take their toll and the threat of war looms, Nouri said that 'the disadvantages' of the nuclear programme meant that it should be left to people to find a way out of the current stalemate. 'The harms, disadvantages and pressures caused by the Iranian nuclear programme have got out of control and the establishment should make a reasonable and wise decision to find a way out of this deadlock in order to protect the country's national interests,' he told a group of student activists gathered at his house, according to opposition websites." http://t.uani.com/NrCrtS

Sanctions

WSJ: "India has been forced to seek its own arrangements to insure its purchases of Iranian oil, officials said, even as it reduces imports under pressure from U.S. and European Union sanctions. Indian state-owned insurers, shipping lines and government officials met to discuss the situation in Mumbai on Wednesday. India's state-run insurance firms have agreed to offer coverage of up to $50 million for each Indian ship carrying Iranian crude. The state-run General Insurance Corp. will reinsure the cargoes. Such coverage is much lower than the up to $1 billion that European insurers would normally give per ship to cover third-party claims in the event of an oil spill or other accident... 'Our exposure would run into billions of dollars, but since there haven't been many insurance claims in the last several years, we have taken a pragmatic view,' said Sabyasachi Hajara, chairman and managing director of state-owned Shipping Corp. of India, the country's biggest shipper of crude from Iran." http://t.uani.com/LhP8s1

Bloomberg: "Iran's oil-production costs will more than quadruple in coming years, Donya-e-Eqtesad said. The cost of producing each barrel will rise to $30 or more from $7 currently, the newspaper said, citing citing Gholamreza Manouchehri, an adviser to the head of National Iranian Oil Co. He didn't give a timeframe for the increase. Iran currently allocates $20 billion a year to develop fields and $10 billion on maintaining output, the report said. In the next decade, maintaining production will cost $50 billion, with a similar sum required for development, it said." http://t.uani.com/NOFH0M

Terrorism

National Post: "One of Canada's most recognizable Iranian-born activists says Iran's embassy in Ottawa should be shut down amid allegations the Islamic regime is using its office here to recruit Iranian-Canadians to serve Tehran's interests. '[The embassy] has no purpose here,' said Nazanin Afshin-Jam, a human rights activist who fled Iran in 1979 after her father was imprisoned and tortured. 'The embassy in Ottawa sometimes uses cultural events as an excuse to spread their own propaganda.' ... '[Iranian-Canadians] call it the house of terror,' said Sayeh Hassan, a Toronto-based criminal lawyer who fled Iran 25 years ago and has for years pressured Ottawa to close the embassy. 'I don't want to see Canada become a safe haven for the Islamic regime and those affiliated with the dictatorship, rather than a safe haven for people who are running away from the dictatorship.'" http://t.uani.com/MmT4Wi

Human Rights


Guardian: "A former general of Iran's powerful Revolutionary Guards has accused the country's supreme leader, Ayatollah Ali Khamenei, of having blood on his hands over the brutal crackdown on the country's opposition, and described government claims that its nuclear programme is entirely peaceful as a 'sheer lie'. In a letter to prominent opposition activist Mohammad Nourizad (website in Farsi), the former officer gives a rare glimpse of political dissent within the ranks of the elite force in charge of the nuclear programme and Khamenei's personal security. Identified only by his initials, the general says that he and a number of his colleagues were threatened with execution for disloyalty and then - after a series of secret courts-martial - dismissed 'because we refused to participate in the betrayals and the crimes committed by our seniors.'" http://t.uani.com/MlNf9V

Guardian: "Activists with Reporters Without Borders staged a protest in front of Iran Air offices in Paris to denounce the imprisonment of journalists in Iran and to commemorate the 10th anniversary of the death in jail of the Iranian photojournalist Zahra Kazemi." http://t.uani.com/LLibWn

Foreign Affairs

WSJ: "Iran is opening a public debate over its approach toward Syria's crisis, with some diplomats publicly questioning whether Tehran should continue supporting Syria's regime. The diplomats' statements, in interviews and online pieces, suggest a split of opinions within Tehran, the most important regional ally of Syria's President Bashar al-Assad. The debate emerged ahead of diplomat Kofi Annan's visit to Tehran this week, amid questions in the international community over whether to include Iran in negotiations for a Syrian peace plan. Iran's foreign policy rests largely with the powerful Iranian Revolutionary Guard Corps and Supreme Leader Ayatollah Ali Khamenei, and the country is still considered a staunch ally of Mr. Assad. But dissent over Iran's support of Mr. Assad has appeared to grow, largely from diplomats in the Foreign Ministry, signaling to some analysts that Tehran is at least considering a backup plan-such as reaching out to the opposition and advocating reform and a quiet transition-should Mr. Assad fall." http://t.uani.com/MmPGe1

RFE/RL: "A cartoon by an Iranian illustrator that portrays stereotyped Jews worshipping the New York Stock Exchange has won first prize in the inaugural 'International Wall Street Downfall Cartoon Festival.' The festival was co-sponsored by Iran's semiofficial Fars news agency in an attempt to show solidarity with the Occupy Wall Street movement and 'help people in the United States take their message out to the world.' ... At least one, the winning entry by Mahmod Mohammad Tabrizi, was anti-Semitic in nature. It depicts Wall Street, the hub of the U.S. financial world, as Jerusalem's Western Wall, one of the holiest sites of Judaism." http://t.uani.com/LLlzAC

Opinion & Analysis

Robert Fisk in The Independent: "Syria strikes again. After weeks of shelling across the Lebanese border, the inevitable has happened. An anti-Iranian activist group, along with a host of 'informed sources' in a Wall Street Journal report, is claiming that Beirut's wealthy banks have become a sovereign money-laundering jurisdiction for 'massive inflows of illicit deposits ... from Hezbollah's terror and criminal activities, and the illicit symbiotic relationships among Iran, Syria and Hezbollah'. At least, that's what the United Against Nuclear Iran group says. And, of course, everyone says that the Central Bank of Lebanon is involved. Poor old Lebanese banks. Or rather, rich old Lebanese banks. For every time there is a new hate wave against the hateful Islamic Republic, or a new Israeli-Hezbollah dust-up, New York fumes with allegations that Lebanon's bankers are deep in the financial mud with the various Hitlers of the Middle East. And of course, Riad Salameh, the Lebanese central bank governor has trotted out to deny all the accusations. 'Everything that has been said about the traffic of money from Syria to Lebanese banks is untrue,' he said, adding that the number of Syrian deposits in Lebanese banks had gone down... But now that the US Treasury is being told to designate Lebanon's financial system as a 'money-laundering concern', is it true? Well, the Treasury blacklisted the Lebanese Canadian bank last year over money-laundering charges and 'connections to a terrorist group'. But, long before the Arab revolutions, it was said that up to three-quarters of all Syria's privately-held dollar liquidity rested in Lebanese accounts. After all, who would open an account in the Central Bank of Syria?" http://t.uani.com/NrsVal

David Ignatius in WashPost: "Hopefully we won't see a Middle East replay of 'The Guns of August,' as Barbara Tuchman titled her account of the slide toward World War I. But the region is edgy this summer as negotiators struggle to resolve confrontations with Syria and Iran. One small sign of the rising tension is that Saudi Arabia is said to have alerted some of its military and security officials to cancel their summer leaves. Saudi and U.S. sources say this limited mobilization reflects worries about possible military conflict with Iran, the war of succession in Syria, and Sunni-Shiite tensions in neighboring Bahrain... On the Iranian front, talks are continuing over controls on Tehran's nuclear program. This effort is backed by the five permanent members of the U.N. Security Council and Germany, but meetings in Istanbul, Baghdad and Moscow have produced little beyond an exchange of paper. Talks are continuing among technical 'experts' who perhaps can explore a deal outside the parameters of the canned negotiating scripts. Certainly, this will be a summer for diplomatic brinkmanship... The Iran negotiations are also driven by the prospect of war, if diplomacy should fail. U.S. analysts believe that the past three months of talks should at least have convinced the Iranians that their bargaining position is weak. Tehran's hard line hasn't prevented the imposition of new sanctions, it hasn't amplified Europe's economic jitters and it hasn't fractured the P5+1 coalition. Now the real bargaining begins, in the view of some U.S. and European officials, with economic sanctions adding more pressure on Tehran every day... Once an escalation begins, it may be hard to stop. In Syria, many analysts think the level of sectarian killing is already past the tipping point; there are too many scores to settle. In Iran, the definition of the crisis is the lack of trust between Tehran and the West. There's too little mutual confidence even for a hotline. The Obama administration has opted to work with international coalitions to confront Syria and Iran. This still seems like the most sensible policy. But if these multilateral efforts are failing, it will fall to the United States to devise an alternative strategy. If the United States wants to get to 'yes' in these negotiations, it will have to bargain more independently and aggressively." http://t.uani.com/NAbcxb

Alan Elsner in HuffPo: "Last month, Iranian President Mahmoud Ahmadinejad got a rude shock when he arrived in Rio for a U.N. sustainability conference known as Rio+20. Instead of being the center of attention, he found himself snubbed by many of the world leaders in attendance who passed up the opportunity to meet with him. This is entirely appropriate behavior toward the leader of a nation which is defying multiple U.N. resolutions to stop developing nuclear weapons and who personally has repeatedly called for the destruction of Israel, a fellow member of the U.N. in good standing. Lately, utterances from Iranian leaders have crossed the bounds of what might be described as mere 'anti-Zionism' into the clear realm of anti-Semitism. On June 26, Iranian vice president Mohammad Reza Rahimi delivered an unprecedented, public anti-Semitic tirade in front of local and international dignitaries. He blamed the spread of drugs on the teachings of the Talmud, a basic holy Jewish text that collects centuries of discussions in Jewish academies explaining Judaism's oral laws. Rahimi said, outrageously, that the Talmud teaches how to destroy non-Jews. He stated that four fifths of American wealth in owned by Jews. As if that wasn't enough, Rahimi dug up a new variation of the traditional blood libels used against Jews, claiming that Jews sterilized thousands of Native Americans. Last week, the speaker of the Iranian parliament, Ali Larijani, added his voice to the chorus, saying the entire West as well as Israel should 'disappear.' 'Today, the time has come for the disappearance of the West and the Zionist regime (Israel) -- which are two dark spots in the present era -- from the face of the universe,' said Larijani. These kind of hateful statements should put Iran beyond the pale for responsible leaders of other nations. It's time for them to shun Ahmadinejad and his colleagues and to cut them off from the normal niceties of diplomatic relations. Any world leader who meets them is in effect saying that their genocidal threats are not important and not to be taken seriously. The regime in Tehran continues to place high importance on international meetings. Just this week, Ahmadinejad is addressing an international conference on 'Women and Islamic Awakening' which is being attended by delegates from 80 Muslim states as well as representatives of Muslim minorities of non-Muslim countries." http://t.uani.com/Mk2K7B

Lee Smith in Tablet: "In late May, at a major security conference in Tel Aviv, former Obama Pentagon official Michelle Flournoy assured her mostly Israeli audience that a military strike against Iran was very much on the table. But she hastened to add that 'any military strike in its most wildly successful incarnation' would set back Iran's nuclear weapons program only one to three years. That one-to-three year caveat has become more than an estimate. Over the past several years, as Defense Sec. Leon Panetta, his predecessor Robert Gates, former Chairman of the Joint Chief of Staff Adm. Mike Mullen, and other officials have recited it at press conferences and think tanks, it has become received wisdom. But is it true? It's hard to believe that the United States lacks the military might to destroy the Islamic Republic's nuclear program-if not in one campaign, then in a series of campaigns to ensure that it doesn't get the bomb. 'I always felt the time frame was very conservative,' (Ret.) Gen. Jack Keane, former vice chief of staff of the United States Army, said. 'My judgment tells me that if we did something as devastating as we could do, taking down their major sites, which also means their engineers and scientists, I think the setback would be greater than five years. I don't like to read too much into people's motivations, but at times when we don't want to do something, we build a case in terms of our interpretation that it is too hard or it isn't worth the payoff.' Indeed, the assessment that Iran's program could only be delayed began with the George W. Bush White House, as former CIA chief Gen. Michael Hayden recently explained. It's hard not to conclude that the assessment was driven by political calculations: Because Bush could not embark on a third theater of conflict in the Middle East, it was convenient to say a military strike would not make much difference. In contrast, the Obama Administration has pulled out of Iraq and will soon pull out of Afghanistan. Yet the White House continues to repeat the trope that the program can, at best, be delayed a few years. Just as politics informed the Bush White House's insistence on the delay-not-destroy mantra, politics of a different sort are informing this White House: This administration is conducting a public diplomacy campaign with the purpose of undermining the capability of a U.S. attack because the administration has no intention of striking." http://t.uani.com/NrHkDe

Emanuele Ottolenghi in The Weekly Standard: "Despite all evidence that sanctions are hurting Iran's economy, four rounds of nuclear talks failed to prove that Iran's regime is now more malleable to a compromise. Diplomacy will continue, but with Iranian proposals falling short of Western minimum requirements, it is time to ask whether sanctions are working. It is true that the U.S.-EU partial oil embargo that began on July 1 will cost Iran dearly, but so far sanctions failed to persuade Iran's leaders to abandon its pursuit of nuclear weapons. Part of the reason is that the regime has managed to circumvent the sanctions by creating shell companies, both at home and overseas, with the sole purpose of taking over business that Iran's sanctioned entities can no longer handle. Whenever an Iranian company's ties emerge to proliferation efforts or to Iran's Revolutionary Guards, a new company is incorporated with a yet unblemished record to take over the business of the sanctioned entity. By the time the West catches up, Iran has already prepared the papers for the next front company. Take for instance, Iran's main shipping line, the Islamic Republic of Iran Shipping Lines (IRISL). After the Bush administration hit IRISL with sanctions in September 2008, Iran sought to preempt a similar European move. In January 2009, IRISL incorporated a shell company called First Ocean Administration GmbH to handle its European business. First Ocean then proceeded to establish 20 subsidiaries-First Ocean, Second Ocean, Third Ocean, and so on-each of which owned and managed a single IRISL vessel. This tactic made it harder for Western governments to curtail IRISL activities and when it was uncovered, IRISL renamed vessels. When it got caught, it reflagged them. The problem is that it takes months for Western officials to document the fraud, and it is always easier to commit a fraud than to prove it in a court of law. Moreover, in Europe, courts have determined that defense counsel for Iranian designated entities can see the evidence based on which the designation was made. Because intelligence agencies are reluctant to expose their sources to the scrutiny of a solicitor representing Iranian entities, governments have no choice but to designate companies only after abundant open source evidence becomes available to build their case. Because designations do not automatically extend to subsidiaries, when they are hit by sanctions, Iranian companies proliferate their networks of subsidiaries both home and overseas. Nowhere is this more prevalent than in the energy sector." http://t.uani.com/LRxCYu

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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