Monday, October 15, 2012

Eye on Iran: EU Approves New Iran Sanctions








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WSJ:
"European Union foreign ministers Monday gave their formal approval to a fresh, wide-reaching package of sanctions against Iran and called on the Islamic Republic to urgently comply with its international obligations regarding its nuclear program. In a joint statement, EU ministers voiced 'serious and deepening concerns' over Iran's nuclear program and the expansion of its uranium enrichment capacities and called on the regime to cooperate with international nuclear inspectors. Iran says its nuclear activities are for peaceful, civilian purposes... One cornerstone of the latest measures is a ban on all financial transactions between European and Iranian banks, unless they relate to humanitarian aid. Iran's central bank will face fresh restrictions and the export of materials and metals used for industrial or military purposes will be prohibited. New rules will seek to curb the movement of Iranian oil tankers and cargoes and impede the country's ship-building capacities." http://t.uani.com/R6PzFL

AP: "Iran is ready to show flexibility at nuclear talks to ease Western concerns over its contentious nuclear program, its foreign ministry spokesman said on Saturday, as tensions rise in the standoff between the Islamic Republic, Israel and the West. The remarks by Ramin Mehmanparast, published by the official IRNA news agency, underscore Tehran's push to resume talks with world powers as Western sanctions squeeze the economy tighter and the European Union weighs a boycott of Iranian natural gas. 'Iran is ready to show flexibility to remove concerns within a legal framework but such measures should be reciprocal,' Mehmanparast was quoted as saying. 'The other party needs to take measures to fully recognize Iran's nuclear rights and Iran's enrichment for peaceful purposes.'" http://t.uani.com/TR4TdC

AP: "A leading European satellite provider took 19 Iranian television and radio broadcasters off the air Monday as a result of European Union sanctions aimed at punishing human rights abusers. People in Iran still have access to most of the channels, operated by Iranian state broadcaster Irib, but they're no longer broadcast in Europe and elsewhere. Satellite provider Eutelsat agreed with media services company Arqiva to block the Irib channels as of Monday morning because of 'reinforced EU council sanctions' Eutelsat spokeswoman Vanessa O'Connor said. Irib's access to Eutelsat was via a contract with Arqiva." http://t.uani.com/SVVe3M
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Nuclear Program

Reuters: "Iran would negotiate on halting higher-grade uranium enrichment if given fuel for a research reactor, senior officials said, reviving a previous offer in a possible attempt to show flexibility in stalled nuclear talks with world powers... 'If a guarantee is provided to supply the 20 percent (enriched) fuel for the Tehran Research Reactor, our officials are ready to enter talks about 20 percent enrichment,' Foreign Ministry spokesman Ramin Mehmanparast said at a Eurasian media forum in Kazakhstan on Friday, according to Iran's Press TV. Foreign Minister Ali Akbar Salehi told the German newsmagazine Der Spiegel earlier in the week: 'If our right to enrichment is recognised, we are prepared to offer an exchange. We would voluntarily limit the extent of our enrichment program, but in return we would need a guaranteed supply of the relevant fuels from abroad.'" http://t.uani.com/QEnvZx

NYT: "American intelligence officials are increasingly convinced that Iran was the origin of a serious wave of network attacks that crippled computers across the Saudi oil industry and breached financial institutions in the United States, episodes that contributed to a warning last week from Defense Secretary Leon E. Panetta that the United States was at risk of a 'cyber-Pearl Harbor.' After Mr. Panetta's remarks on Thursday night, American officials described an emerging shadow war of attacks and counterattacks already under way between the United States and Iran in cyberspace.  Among American officials, suspicion has focused on the 'cybercorps' that Iran's military created in 2011 - partly in response to American and Israeli cyberattacks on the Iranian nuclear enrichment plant at Natanz - though there is no hard evidence that the attacks were sanctioned by the Iranian government. The attacks emanating from Iran have inflicted only modest damage." http://t.uani.com/R6fm0N

Reuters: "Iran said on Sunday the launch of a drone aircraft into Israel by Iranian-backed Lebanese militant group Hezbollah was a sign of the Islamic Republic's military capabilities. Hezbollah claimed responsibility on Thursday for the launch of the drone aircraft which Israel shot down last weekend after flying 25 miles into the Jewish state, saying the drone's parts were manufactured in Iran and assembled in Lebanon... 'Iran has great capabilities and our capabilities are at the service of the Islamic nation,' Defence Minister Ahmad Vahidi told state television. 'The Zionist regime (Israel)...was defeated in this respect and it can no longer bully Islamic nations,' he added." http://t.uani.com/OAfJ5i

Reuters: "Iran's Revolutionary Guards chief has drafted a plan to cause an environmental disaster in the Strait of Hormuz to block seaborne oil exports with the goal of removing economic sanctions imposed on Tehran, the weekly Der Spiegel said in an unsourced report. There was no independent confirmation of the report. The German newsmagazine reported that Mohammad Ali Jafari's plan, codenamed 'Muddy Water', envisages the Iranians steering a tanker onto the rocks in the Strait, the world's most important oil shipping waterway. 'The aim is to block shipping temporarily through the contamination, to 'punish' adjacent Arab states that are hostile to Iran and to force the West to take part in a large-scale cleanup of the waters - and possibly thereby a suspension of sanctions against Tehran,' Spiegel said." http://t.uani.com/RLrEey

Sanctions


Reuters:
"Iran said it would seek to cut imports of non-essential goods and urged its citizens to reduce their use of foreign-made mobile telephones and cars, as the country struggles to cope with Western economic sanctions. The policies suggest the government is moving the economy onto an austerity footing to resist the sanctions, which have been imposed over Iran's controversial nuclear programme and have slashed its income from oil exports this year. Authorities have divided imports into 10 categories based on how essential they are, and will provide importers with dollars at a subsidised rate to buy basic goods, Deputy Industry Minister Hamid Safdel was quoted as saying on Sunday. Meanwhile, importers of goods in two non-essential categories will have to obtain dollars at much more expensive rates on the open market, the Iranian Students' News Agency (ISNA) quoted him as saying." http://t.uani.com/R6ewRK

WSJ: "Iran's oil-rich economy, already forecast to contract this year, is likely to suffer further in the future as a result of the steep plunge in the value of its currency, the rial, over the past month, according to the International Monetary Fund and economic experts. In its semiannual report on global economic conditions, the IMF said the Iranian economy will contract by 0.9% in 2012, after growing 2% last year. It estimated inflation will rise to 25% this year from 21.5% last year, and that its current-account surplus will fall to 3.4% this year from 12.5% a year earlier. However, the sharp devaluation of recent weeks, sapping one-third of the rial's value, will adversely affect those predictions, fueling inflation and undermining the ability of Iranian companies to finance trade and import goods, according to private economists... The IMF report, released this week, was compiled before the rial's plunge. It forecast a potential for positive economic growth in 2013. But those forecasts are likely to fade as a result of the currency's precipitous fall... Some critics of the IMF accuse the Washington-based organization with relying almost solely on the Iranian government for its economic data, resulting in overly optimistic projections. Many believe that Mr. Ahmadinejad's policies have pushed annual inflation to as high as 70%, much higher than the fund's estimate of 25%." http://t.uani.com/RJHPc5

NYT: "Daily oil production in Iran, the most important component of its economy, fell in September to the weakest level in nearly a quarter-century, according to monthly data released on Friday by the International Energy Agency. The agency forecast declines in Iran's ability to produce oil for years to come if Western sanctions were not lifted. The agency's report came as other signs of economic weakness were further revealed, notably severe drops in port calls and automotive production. Taken together, they depicted a stressed economy likely to exert new pressure on the rial, Iran's currency. The rial lost 40 percent of its value against the dollar this month in panicky selling before the Iranian banking authorities moved to severely restrict currency trading. But acute inflation in Iran from the rial's weakness is a major source of concern in the country, and outside economists have pointed to this as evidence that the sanctions, which have severely restricted Iran's ability to sell oil and do international banking transactions, are having a profound impact." http://t.uani.com/SUPTcZ

AFP: "Iran's enemies seek to disrupt the 'calmness' in the country through economic confrontation, supreme leader Ayatollah Ali Khamenei said on Monday in an address delivered in the northeastern city of Shirvan. The fiery speech comes as the European Union is about to ratchet up sanctions against Iran over its disputed nuclear drive and as an oil embargo by the United States and EU begins to impact on the Islamic republic's economy. 'I am asking officials in the judiciary, executive and legislative branches to be watchful so the the illwishers (Western powers) are not able to disrupt the calmness in the country with their plots,' Khamenei said his address, which was broadcast live on television. 'With God's grace, as was the case in other issues which the enemies were not able to do anything, they can do no damn thing in their economic confrontation with our people,' he added." http://t.uani.com/SY1nrB

Reuters: "Iran's oil exports have remained steady in recent months, Iran's OPEC governor said on Saturday, denying a report from the International Energy Agency (IEA) that Iran is struggling to arrest a decline in its oil sales. In a report on Friday, the IEA estimated Iran's exports falling to a new low of 860,000 barrels per day (bpd) in September, a huge plunge from 2.2 million bpd at the end of 2011... But Mohammad Ali Khatibi, Iran's OPEC governor, said the IEA's data was faulty and ran counter to data provided to OPEC by Iran. 'Iran's oil exports are the same as previous months and the situation is stable,' Khatibi was quoted as saying by the Iranian Students' News Agency (ISNA) on Saturday. Khatibi also denied that the only buyers of Iranian oil were China, India, South Korea, Japan, and Turkey." http://t.uani.com/TrvLLF

Reuters: "Iran may attempt to buy more costly foreign gasoline while maintenance work is carried out on a big oil refinery, at a time when the government is trying to slash imports to shore up its sanctions-hit economy. Alternatively the country will have to rely more heavily on the poor-quality gasoline it produces from converted petrochemical plants. Iran can produce about 60 million liters a day of gasoline when all its refineries are fully operational, compared with daily consumption of around 65 million liters, the semi-official Mehr news agency reported over the weekend." http://t.uani.com/TrvWGK

Reuters: "India's HMEL, part-owned by steel tycoon Lakshmi Mittal, has emerged as a new oil client of sanctions-hit Iran, potentially complicating New Delhi's bid for a renewal of its waiver from U.S. sanctions for buying crude from Tehran. HPCL-Mittal Energy Ltd (HMEL) has taken two shipments of Iranian oil since the start of September to maximize margins at its 180,000 barrels per day (bpd) Bathinda refinery in northern India, two sources with knowledge of the deals told Reuters. The purchases came to a total 2 million barrels... HMEL is part-owned by Indian tycoon Mittal, who heads ArcelorMittal, the world's largest steelmaker. ArcelorMittal produces 35 percent of its steel in the Americas and 47 percent in Europe, according to the company's website. State-run refiner Hindustan Petroleum Corp and Mittal own 49 percent each in the joint venture HMEL." http://t.uani.com/QZVpu4

Haaretz: "The Swedish government is trying to prevent the European Union from imposing further sanctions on Iran for fear of losing a lucrative deal for Swedish communications company Ericsson, according to a Foreign Ministry official in Jerusalem. Several leading EU countries are aware of the planned deal between Ericsson and Tehran, and of the Swedish government's fear that the deal will be in jeopardy if further sanctions are imposed, the source said. The EU foreign ministers are due to meet in Luxembourg on Monday to vote on a new round of sanctions.  'We know that in Sweden they fear that if the deal between Ericsson and Iran is canceled this could have implications for the company's other deals,' the Foreign Ministry official said. 'The Swedes fear that other countries with problematic human rights records such as China will hear about the cancellation and worry about their ties with Ericsson.'" http://t.uani.com/WmitEZ

Reuters: "A U.S. court has delayed ruling on a $4.2 billion suit by Turkish mobile operator Turkcell against South African rival MTN Group, pending a Supreme Court decision on a separate case, the two companies said. Turkey's largest cell phone operator sued MTN in a U.S. federal court in March, alleging the Johannesburg-based company used bribery and attempted trafficking of political influence to win a mobile licence in Iran that was first awarded to Turkcell. MTN has asked for the case to be dismissed, saying the suit has no legal merit and a U.S. court does not have jurisdiction over the case. The court has put the suit on hold, the two companies said in separate statements late on Friday, to await a Supreme Court decision on a different case using the Alien Tort Statute - the human rights law on which Turkcell's suit is based." http://t.uani.com/QmvV8z

WSJ: "The U.S. and the European Union are looking to close loopholes in sanctions designed to impede Iran's oil exports after it emerged that Tehran is secretly using offshore tax havens to help ship its crude. The National Iranian Tanker Co., the largest oil-vessel operator in Iran, is hiding some of the ownership of tankers it controls right under the nose of the U.S. in Central American tax havens, concealing their real nationality from flag registries... Earlier this year, the nominal ownership of at least seven NITC tankers was transferred to entities incorporated in the Caribbean tax havens of Belize and the British Virgin Islands-a U.K. dependency-according to the database of the International Maritime Organization and tax-haven and shipping officials." http://t.uani.com/OBC2HX

Reuters: "U.S. exports to Iran rose by nearly a third this year, chiefly because of grain sales, according to U.S. data released last week, despite the tightening of U.S. financial sanctions. The jump to $199.5 million in the first eight months of 2012 from $150.8 million a year earlier, according to Census Bureau data, is surprising given Western efforts to isolate Iran economically because of its suspected pursuit of nuclear arms. The increase masks a drop in the export of some humanitarian goods such as medicines, a decline U.S. exporters blame largely on the difficulty of getting paid by Iranian importers because of new U.S. financial sanctions. But it also shows that goods such as milk products and medical equipment - whose sale to Iran is allowed with a Treasury Department export license - continue to flow despite the sanctions and the payments difficulties." http://t.uani.com/OBCw0L

Reuters: "Iran is hopeful its ally China will fund up to $2 billion to complete Tehran's metro rail which faces delays due to lack of financing as a result of sanctions, a government official said on Monday. Phase two of the metro is on track for completion next year but two new lines under the third phase may be delayed due to lack of money, Mohammad Montazeri, deputy managing director, planning & logistics, Tehran Urban & Suburban Railway Co said. 'We are seeing funds from foreign companies. We are in negotiations with China (government, banks and agencies), we are hoping to get financing,' he told Reuters on the sidelines of the Middle East Economic Digest's Rail Projects conference." http://t.uani.com/R6N2vd

Human Rights
 

Bloomberg: "The government of Iran carried out as many as 223 executions, of which 82 were done in secret, in the first five months of this year, a United Nations investigator said. Ahmed Shaheed, the UN special rapporteur on the human rights situation in Iran, said in a report made public today that at least 141 officially announced executions took place between January and early June 2012. A further 82 executions were done in secret in that same period, according to the report. Under Iranian law, the death sentence can be applied for crimes such as alcohol consumption, adultery and drug trafficking. Two men were sentenced to death in June for drinking, the report says. There were 53 executions across the country during one week in May, according to the report. 'A large number of those sentenced to death were convicted in the absence of fair trial standards,' Shaheed wrote in the report. There have been 3,766 floggings since 2002, with 1,444 in 2009 alone, according to the report. Common charges include adultery, public disruption such as taking part in 'illegal gatherings' and drug offenses." http://t.uani.com/SV6nBD

AP: "Three top U.N. human rights experts appealed Friday to Iran to halt 11 executions they say are scheduled to take place Saturday and to declare a moratorium on the death penalty. 'We urge the Iranian authorities to stop the executions of Saeed Sedeghi and 10 other individuals scheduled for Saturday, 13 October,' said the UN Special Rapporteurs on Iran, Ahmed Shaheed, on extrajudicial executions, Christof Heyns, and on torture, Juan E. Mendez. Sedeghi was sentenced to death on June 2 for drug-related offenses. The Office of the U.N. High Commissioner for Human Rights says he did not receive a fair trial and was subjected to torture. 'In countries which have not abolished the death penalty, the sentence of death can be imposed only for the most serious crimes, which do not include drug crimes. Cases that do not meet these standards are tantamount to arbitrary executions,' noted the experts, who are appointed by the Geneva-based U.N. Human Rights Council to report on specific human rights themes." http://t.uani.com/TrvFUq

Foreign Affairs

WashPost:
"Azerbaijan, Iran's neighbor and longtime rival, is coming to relish its role as the region's anti-Iran, a secular, Western-leaning country that is working mightily to become everything that Iran is not. As Iran sinks ever deeper into isolation and economic distress, its northern neighbor is sprinting in the opposite direction, building political and cultural ties to the West along with new pipelines connecting energy-hungry Europe with the country's rich petroleum fields on the Caspian Sea. Where Iran is repressive and theocratic, Azerbaijan is socially and religiously tolerant, offering itself as a model of a nonsectarian, Muslim-majority society that champions women's athletics and embraces Western music and entertainers." http://t.uani.com/RsZXGK

AP: "Bahrain's king says his country will stand against foreign interference - a clear reference to Iran - in clashes between the Sunni-led ruling system and majority Shiites seeking a greater political voice. The comments Sunday to parliament by King Hamad bin Isa Al Khalifa are part of efforts to link Iran to the 20-month Shiite uprising in the strategic Gulf nation, home to the U.S. Navy's 5th Fleet. Iran has denounced the violence, and there is no firm evidence of Tehran aiding the protesters." http://t.uani.com/XaWqk8

Opinion & Analysis

UANI Advisory Board Member Graham Allison & Shai Feldman in NYT:
"In fact, Mr. Netanyahu's about-face resulted from a long-building revolt by Israel's professional security establishment against the very idea of an early military attack, particularly one without the approval of the United States. For months, former and even serving chiefs of Israel's defense and intelligence communities have vigorously and publicly opposed Mr. Netanyahu's case for attacking Iran sooner, rather than after all other means have been exhausted. Meir Dagan, the much respected former head of Mossad, did so to an American audience in an interview with Lesley Stahl broadcast last March by CBS' '60 Minutes.' In Israel earlier, he had been quoted as saying that such an attack was 'the stupidest idea I have ever heard.' In addition, Mr. Netanyahu and Mr. Barak had proved unable to win sufficient support for early military action from other members of the government. Despite months of sustained effort, Mr. Netanyahu was not able to muster a majority even in his nine-member informal inner cabinet, much less Israel's larger security cabinet, whose agreement he would need before attacking. And in August, Israel's president, Shimon Peres, took the occasion of his 89th birthday celebration to decisively reject any unilateral Israeli attack. The country's pre-eminent elder statesman and the father of Israel's own nuclear project, he broke with the nonpolitical traditions of Israel's largely ceremonial presidency to argue that the central issue was the harm that going it alone could do to future American-Israeli relations. Meanwhile, behind the scenes, the Obama administration was conducting a quiet campaign that would strengthen the view, already circulating among Israeli security professionals, that prematurely attacking Iran would not advance Israel's interests and would damage Israel's relationship with America. Instead of holding Israel at bay or threatening punitive action, the administration was upgrading American security assistance to Israel - so much so that earlier this year Mr. Barak described the level of support as greater than ever in Israel's history. This increase was manifest at every level: intelligence sharing that resulted in a convergence of assessments about Iran's nuclear efforts; joint cyberoperations to slow Iran's nuclear program; support of Israel's development of antimissile defenses; and reaching a common declared strategic approach to Iran's nuclear program. That approach now focuses the two countries' efforts on preventing Iran from obtaining nuclear weapons, while also ruling out the option of a retreat to containing and deterring a nuclear-armed Iran. Equally important, increased American assistance has been accompanied by closer institutional links between the two countries' defense and intelligence communities, as well as more intimate personal ties between both communities' top echelons. Through numerous meetings in Tel Aviv, Jerusalem and Washington, the Obama administration has used these connections to convey an unambiguous message: Do not attack before all nonmilitary efforts to roll back Iran's nuclear program have been exhausted." http://t.uani.com/T3mb7v

Emile Hokayem in The National: "Among Syrians opposed to and suffering from Assad violence, hatred of Iran is growing. Shia Iran, the reasoning goes, supports the Alawite Assads out of sheer sectarian solidarity, crystallising religious rancour. It has a tragically comic side: a rebel unit called itself the Saddam Hussein brigade because the Iraqi dictator fought Iran. It later changed its name after realising this choice offended everyone - from the Kurds he gassed to the Kuwaitis he invaded - and apologised, but not without using prejudiced language against Shiites. The extent of Iranian support for the Assad regime as it tries to defeat a widespread rebellion is no longer in doubt. It includes expertise in internet and communications monitoring, help to circumvent oil and other sanctions, provision of weaponry and intelligence, and counterinsurgency advice. After all, Iran has valuable know-how, having crushed its own peaceful uprising and fought insurgencies. It also assists by keeping a cautious Turkey in check, by using a pliant Iraq as a conduit and by mobilising Hizbollah in Lebanon. The only unknown is whether Iranian troops are engaged in ground operations. This is proving difficult to confirm, even as alleged sightings increase. Tehran has valuable interests at stake: its force-multiplying alliance with Damascus has withstood the vagaries of Middle East politics and endless Arab and western attempts to pull them apart. The alliance has long - and mistakenly - been portrayed as one of convenience: the two countries were too dissimilar, many luminaries thought. In fact, the alliance resembles an arranged marriage that turned out much better than either of the two parties expected. Tough security-minded men, who operated for 30 years in the shadows and became brothers in arms, forged it. Although not always in sync, the two countries shared animosity towards the US and the Gulf states, gave each other strategic depth, and nurtured Hizbollah, which grew into the third leg of this mighty alliance. Its durability, however, made Iran complacent and blind. Not surprisingly for a regime that engages in repression at home and doesn't care about human rights abroad, it badly misread Syrian dynamics, misjudging the strength of the Assad regime and the anger against it. Iran, it turns out, didn't know nor care about Syrian society... Having invested so much in Syria, Iran will find it hard to write the country off as a sunk cost, to everyone's detriment." http://t.uani.com/WoEsLy

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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