Wednesday, February 6, 2013

Eye on Iran: Iran Boosts Export Muscle with New Oil Tankers







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Reuters: "Iran has taken delivery of several new tankers from Chinese shipyards, giving it greater flexibility in maintaining oil exports in the face of Western sanctions. The sanctions, imposed by the United States and European Union to halt a nuclear programme they believe is a cover to develop atomic weapons, have hurt Iran's oil exports, leading to a plunge in its currency. But Iranian crude oil imports rose in December to their highest since European Union sanctions took effect last July, helped in part by more tankers deployed. Since the start of 2013, two supertankers have joined Iran's trading fleet, with another three new vessels having arrived in recent months, according to industry sources and shipping data. Each vessel has a maximum capacity of 2 million barrels of oil. 'Right now Iran needs every tanker, and it will certainly make life easier for them,' said Sam Ciszuk with KBC Energy Economics consultancy. 'With a few more tankers, they could build floating storage to make sure they can provide a buffer for these big fluctuations in oil demand,' he said, referring to holding oil on board ships at sea until buyers can be found... With the latest acquisitions, NITC's supertanker fleet has been boosted to 30 vessels with a maximum carrying capacity of 60 million barrels. It has an additional 14 small crude oil tankers... The Atlantis and Infinity, the two vessels that joined NITC's fleet in recent weeks, are part of a $1.2 billion contract with two Chinese shipyards that was ordered in 2009 for 12 new supertankers. The Carnation, Rainbow and Skyline reached NITC last year." http://t.uani.com/XU8GDp

FT: "Will he eventually drink from the poisoned chalice? The question is on the lips of many Iranians, who are debating whether Iran's supreme leader, Ayatollah Ali Khamenei, will bow to pressure from world powers and strike a deal over its nuclear programme. Iranian usage of the expression dates back to 1988 when the founder of the Islamic Republic, Ayatollah Ruhollah Khomeini, finally accepted the UN-brokered ceasefire to end an eight-year war with Iraq - a setback that was, he said, 'more deadly than drinking from a poisoned chalice'. In Tehran, speculation is rife over whether history will repeat itself: will the supreme leader bow to international calls to curb Iran's nuclear ambitions for the sake of alleviating the growing economic strain of international sanctions? Iran is set to resume nuclear talks with the six major powers - the US, UK, France, Russia, China and Germany - in Kazakhstan on February 26 after an eight-month hiatus." http://t.uani.com/WvsM9a

Bloomberg: "Iran faces a fresh obstacle to turning its most lucrative export into cash as the U.S. tightens sanctions this week to keep importers from paying for the oil with dollars and euros. Under penalty of expulsion from the U.S. banking system, Iranian crude customers such as China, Japan and India will be restricted to using their own currencies for the purchases, starting today. Importers will be compelled to keep the payments in escrow accounts that Iran can use only for locally sourced goods and services, in what will amount to barter arrangements. 'They'll have to accept that a lot of cash is piling up in banks in importing countries, and they'll now have to look for ways to get it out,' said Robin Mills, the head of consulting at Dubai-based Manaar Energy Consulting & Project Management, in a Jan. 31 phone interview. 'It's making the trade much more difficult.' ... Today's sanctions, part of U.S. legislation passed last year, may exacerbate the decline because it forces bartering with countries whose exports to Iran are in almost every case less than the amount of oil they buy from it... Even so, the revenue Iran can generate from its current level of exports is probably enough to sustain its economy, said Olivier Jakob, managing director of consultants Petromatrix GmbH in Zug, Switzerland. With Brent crude, a benchmark for more than half of the world's oil, selling at more than $110 a barrel, and Iranian prices at similar levels, the country doesn't face immediate financial distress, he said Jan. 31 by phone. 'The amount of crude Iran exports at current prices is equivalent to exporting at full capacity with the price of $81 a barrel,' Jakob said. 'As long as the oil flow isn't stopped, Iran has time to work out the financial way around the new sanctions.'" http://t.uani.com/VHOVVd
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Nuclear Program

AP: "In years past, keeping track of Iran's claims of military and technological advances was relatively easy: Wait until early February and watch the parades and announcements in the buildup to celebrations marking the Islamic Revolution. Now, with the strategic stakes ever higher, Iranian officials are boasting louder, pressing harder and leaving questions about how much is real. The reasons for the flood of self-described achievements touch on the various pressures bearing down on Iran, including Western sanctions and the threats of possible military action if diplomacy cannot solve the standoff over Tehran's nuclear program. It also highlights the learning curve of Internet-age showmanship from a country that acknowledges the economic pain inflicted by sanctions - which could tighten further on Wednesday - but claims it has the tools to bounce back stronger. Since January alone, Iran has showcased a steady stream of purported advances that have been met with varying degrees of skepticism. They include another domestically made surveillance drone, claims of a monkey sent into space on a successful roundtrip mission, a supersonic air tunnel and a compact, single-seat warplane described as a radar-evading jet fighter." http://t.uani.com/TGjWqH

AFP: "Russia put pressure on Iran Wednesday by noting that it expected to see 'serious progress' made at this month's talks in Kazakhstan over Tehran's disputed nuclear programme. Deputy Foreign Minister Sergei Ryabkov said world powers and the Islamic republic had made no progress since the last round of top-level negotiations were held in Moscow at the end of June 2012. But he stressed that pressure will be high on sides to climb down from their respective positions and seek middle ground at the February 26 meeting in Almaty. 'Despite everything, I would very much hope to see the upcoming round result in -- if not an outright breakthrough -- then serious progress,' Ryabkov said in a wide-ranging interview with the state-run RIA Novosti news agency." http://t.uani.com/WOvHLN

Sanctions

NYT: "When German customs agents at the Düsseldorf airport found a check for the equivalent of nearly $70 million in Venezuelan currency in the carry-on bag of a former Iranian economy minister last month, it seemed like the elements of an international thriller. But an Iranian construction company contended on Tuesday that the reality was much more mundane: the money, it said, was meant to pay wages and buy concrete and other materials as part of a project to build 10,000 apartments in Venezuela. 'They're buildings, not bombs, not missiles,' said a lawyer for the company, Kayson Venezuela, mocking speculation here that the company's construction projects were a front for more sinister activities... The unusual courier was Tahmaseb Mazaheri, a former Iranian economy minister and Central Bank governor, according to the lawyer and a second employee, Khosro Mobasser, the company's director of Latin American business development. They said Mr. Mazaheri was bringing the check to Venezuela as a favor to the company, which is owned by Kayson, a large Iranian construction company." http://t.uani.com/X1LGpv

Human Rights

Fox News: "The American pastor sentenced to eight years in Iran's Evin prison is unaware of the groundswell of international support for him, and instead fears he's been abandoned, according to relatives who met with him this week. Saeed Abedini mentioned his doubt during a visit with relatives on Monday. It was a second time he was allowed to see members of his extended family since he was convicted. Abedini expressed apprehension and concern to his relatives about his fate and openly asked if there were international efforts to secure his freedom, according to advocacy group American Center for Law and Justice. It is believed that Abedini's downtrodden spirit is due to abuse and brain-washing techniques used by prison officials." http://t.uani.com/XnR0Qo

Domestic Politics

NYT: "As President Mahmoud Ahmadinejad escalated a bitter political fight this week with Iran's most influential political family by disclosing secret film recordings of what he purported were fraudulent business deals, Iran's political maneuvering took a new turn Wednesday when an imprisoned associate of the president was reported to have been freed. The release of Saeed Mortazavi, reported by two Iranian news agencies, came as the latest chapter in several days of political drama playing out with unusual prominence in the public eye." http://t.uani.com/VDF0dV

Foreign Affairs

Reuters: "President Mahmoud Ahmadinejad, on the first visit to Cairo by an Iranian leader in more than three decades, called for a strategic alliance with Egypt and said he had offered the cash-strapped Arab state a loan, but drew a cool response. Ahmadinejad said outside forces were trying to prevent a rapprochement between the Middle East's two most populous nations, at odds since Iran's 1979 Islamic revolution and Egypt's signing of a peace treaty with Israel in the same year. 'We must all understand that the only option is to set up this alliance because it is in the interests of the Egyptian and Iranian peoples and other nations of the region,' the official MENA news agency quoted him in remarks to Egyptian journalists published on Wednesday... Video footage shot by a Turkish cameraman appeared to show a bearded man trying twice to throw a shoe at Ahmadinejad as he was mobbed by well-wishers on leaving the Hussein mosque." http://t.uani.com/Wx7Lex

Opinion & Analysis

WashPost Editorial Board: "On Tuesday the Bulgarian government confirmed what most of the world has known for months: The bombing of a bus carrying Israeli tourists in the Black Sea resort of Burgas last July 18 was carried out by members of Lebanon's Hezbollah organization. The results of an official investigation present leaders of the European Union with a reality that will be difficult to ignore. They must decide whether to allow a terrorist attack on E.U. territory to go unpunished or to sanction a movement that is both an Iranian proxy and the dominant party in the Lebanese government. The case for sanctions is a strong one. The Burgas attack, which killed five Israelis and wounded more than 100, was not an isolated incident but part of a campaign of terrorism against Israeli, U.S. and gulf state targets by Hezbollah and the Quds Force of Iran's Revolutionary Guard Corps. According to a new report by Matthew Levitt of the Washington Institute for Near East Policy, the two groups decided in January 2010 to launch a campaign of violence aimed at punishing Israel for the assassination of Iranian scientists and deterring an attack on Iran's nuclear program. Since then the Quds Force has, among other things, plotted to kill the Saudi ambassador to the United States in Washington and the U.S. ambassador to Azerbaijan, and it has attacked an Israeli diplomat's wife in India. Hezbollah has attempted attacks on Israeli tourists in Cyprus, Greece and Thailand as well as in Bulgaria. Mr. Levitt says that more than 20 terror attacks by Hezbollah or the Iranian force were detected between May 2011 and July 2012; fortunately, almost all failed or were disrupted. Israel participates in this shadow war, too: Five Iranian nuclear scientists have been assassinated in recent years. The United States has sponsored cyberattacks on Iranian nuclear facilities. But nothing justifies Hezbollah's attempts to murder tourists; one of those killed in Bulgaria was a pregnant woman. Nor should a democratic community such as the European Union tolerate terrorist attacks on its territory by an established organization such as Hezbollah, which seeks recognition as a legitimate political movement worthy of governing Lebanon. The United States, which long ago designated Hezbollah as a terrorist organization, has been pressing European leaders to do the same so that the group's funds in European banks and other financial assets can be targeted. Several governments, led by France, have resisted; they worry that sanctions could further destabilize Lebanon or subject European peacekeepers in the south of that country to reprisals. Bulgaria's findings should end the debate. Inaction would mean accepting that Europe can be a free-fire zone for Iran and its proxies." http://t.uani.com/VDGHbj

Michael Singh in NYT: "Few of President Obama's original foreign policy goals have eluded him so much as engagement with Iran. Over the weekend, Vice President Joseph R. Biden Jr. announced during a speech in Munich that the United States was ready for direct talks with Iran. With the risk of war over Iran's nuclear program looming, the offer is prudent, but it is also beside the point. As Iran continues to evade negotiations - literally in this case, since the Iranian foreign minister was in the same building as Mr. Biden - the real question is not whether America should talk to Iran, but how to get the Iranians to talk to us in earnest. Diplomatic engagement with Iran isn't a new idea. Every American president from Jimmy Carter on has reached out to Iran. But such approaches have never led to improved relations. That was true of the secret visit by President Ronald Reagan's national security adviser, Robert C. McFarlane, to Tehran in 1986 in what became the Iran-contra affair; it was also true of quiet talks over Afghanistan and Iraq in the 2000s, when the former achieved only fleeting tactical progress and the latter none at all. The reasons for failure in all the approaches share a common thread: Iran shrank from any broad bilateral thaw because it feared engagement with the United States more than it feared confrontation. 'Resistance' to the West - and especially to the United States - was a founding principle of Iran's Islamic regime. And while Iran has gradually normalized relations with many European and Asian allies of Washington, it has not done so with the United States itself, just as it has not with America's ally Israel. To lose those two nations as enemies would be to undermine one of the regime's ideological raisons d'être. As a result, serious engagement with the United States is likely to be only a consequence of a strategic shift by the regime, rather than a cause of it. And so far, no such shift has taken place. While there are signs of increasing dissent within the Iranian government  as sanctions begin to bite more deeply, there are also indications that existing sanctions have done all they can in this regard: Iran's oil exports are ticking upward after a long decline, and high inflation and unemployment have not produced mass unrest. This provides a good reason for America to offer direct talks - to counter Iran's narrative of 'resistance.' But there is little hope that Iran will accept this offer, or that talks right now would be productive. In fact, the regime may feel that time is on its side. American and Israeli red lines for military action depend on the pace of Iran's nuclear activities, meaning that Iran can delay conflict simply by slowing those activities, as it recently has done. Meanwhile, Iran's leaders may be hoping that black-market workarounds and a pickup in global oil demand will allow their country to expand its exports. So the United States must be more creative in the ways it uses engagement and pressure to hasten a change in Iran's strategic outlook." http://t.uani.com/Xm8MDP

Karim Sadjadpour & Firas Maksad in Bloomberg: "As Syria's President Bashar Al-Assad clings mercilessly to power, hopes that his regime will be replaced by a stable, tolerant democracy are being dwarfed by fears of prolonged sectarian strife and Islamist radicalism. The outcome will hinge in part on a simple question: Whom do Syria's diverse rebels hate more, the U.S. or Iran? The anomaly of power in modern Syria -- where an Alawite minority rules over a Sunni Arab majority -- was never sustainable, and few countries stand to lose more from the regime's collapse than the Islamic Republic of Iran. Syria has been Iran's only consistent ally since the 1979 revolution, providing the leadership in Tehran with a crucial thoroughfare to Iran's most important regional asset, the Lebanese Shiite militant group Hezbollah. As a result, Iran has done its utmost to keep Assad afloat, providing billions of dollars of support as well as strategic aid to crush dissent. To relieve pressure on the Syrian military, Iran's Islamic Revolutionary Guards Corps is reportedly training two paramilitary organizations, Jaysh al Sha'abi and the Shabiha, which boast 50,000 fighters and are modeled on the Bassij militia that violently quashed Iran's 2009 popular uprisings. As Syria's President Bashar Al-Assad clings mercilessly to power, hopes that his regime will be replaced by a stable, tolerant democracy are being dwarfed by fears of prolonged sectarian strife and Islamist radicalism. The outcome will hinge in part on a simple question: Whom do Syria's diverse rebels hate more, the U.S. or Iran? The anomaly of power in modern Syria -- where an Alawite minority rules over a Sunni Arab majority -- was never sustainable, and few countries stand to lose more from the regime's collapse than the Islamic Republic of Iran. Syria has been Iran's only consistent ally since the 1979 revolution, providing the leadership in Tehran with a crucial thoroughfare to Iran's most important regional asset, the Lebanese Shiite militant group Hezbollah. As a result, Iran has done its utmost to keep Assad afloat, providing billions of dollars of support as well as strategic aid to crush dissent. To relieve pressure on the Syrian military, Iran's Islamic Revolutionary Guards Corps is reportedly training two paramilitary organizations, Jaysh al Sha'abi and the Shabiha, which boast 50,000 fighters and are modeled on the Bassij militia that violently quashed Iran's 2009 popular uprisings. This support can only delay, not prevent, Assad's demise. Thereafter Iran will face a strategic decision: whether to continue supporting a predominantly Alawite militia that represents only a small fraction of Syrian society, or to engage the Sunni Islamists who are poised to wield power in Damascus once Assad falls. Iran's leaders will try to embrace the Sunni radicals, and if that fails they will work with the Shabiha to prevent the formation of a stable, anti-Iranian order in Syria. What's most important for Iran is not the sectarian makeup of Syria's future rulers, but a like-minded ideological worldview premised on resistance to the U.S. and Israel. As Iranian Supreme Leader Ali Khamenei once said, 'We will support and help any nations, any groups fighting against the Zionist regime across the world.' Iran's Sunni allies Hamas and Palestinian Islamic Jihad are cases in point. Despite sharing common enemies with some Syrian rebels, there is no guarantee that Iran will be able to befriend the same forces it has helped to massacre over the past two years. Anti-Shiite, anti-Persian sentiment is rife among Syria's rebels, and the attraction of Iranian petrolargesse is eclipsed by the deeper pockets of Saudi Arabia and Qatar. The question for the U.S. and allies such as Turkey is what can they do to ensure that moderate factions in the Syrian opposition come to dominate in a post-Assad Syria, and that they will prefer to work with the U.S. and its friends in the region, rather than with Iran. That outcome isn't guaranteed, either. Iranian influence tends to thrive in countries suffering power vacuums and tumult, which they can attribute to U.S. or Israeli policies." http://t.uani.com/WOthwB

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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