Friday, March 1, 2013

Eye on Iran: Glencore Bartered with Firm Linked to Iran Nuclear Program









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Reuters: "Commodities giant Glencore supplied thousands of tons of alumina to an Iranian firm that has provided aluminum to Iran's nuclear program, intelligence and diplomatic sources told Reuters. The previously undisclosed barter arrangement between Glencore, the world's biggest commodities trader, and the Iranian Aluminum Company (Iralco) illustrates how difficult it is for Western powers to curb Iran's ability to trade with the rest of the world. Even as the West imposes stringent restrictions on banks that do business with Iran, United Nations diplomats say that Tehran keeps finding new ways to do business with willing partners. Reuters first learned about Glencore's barter deal with Iralco, and an aluminum supply contract that Iralco had with Iran Centrifuge Technology Co (TESA), from a Western diplomatic source in early November. That was about six weeks before the European Union's December 2012 decision to levy sanctions on Iralco for supplying aluminum metal to TESA, which is a subsidiary of the Atomic Energy Organization of Iran (AEOI)." http://t.uani.com/Z2iA76

Reuters: "Iran has stepped up executions of prisoners including juveniles as well as arrests of dissidents who are often tortured in jail, sometimes to death, the United Nations reported on Thursday. In twin reports issued in Geneva, U.N. Secretary-General Ban Ki-moon and the U.N. special investigator on human rights in Iran, Ahmed Shaheed, voiced concern at what they called an apparent rise in the frequency and gravity of abuses in Iran. 'The Secretary-General remains deeply troubled by reports of increasing numbers of executions, including of juvenile offenders and in public; continuing amputations and flogging; arbitrary arrest and detention; unfair trials, torture and ill-treatment; and severe restrictions targeting media professionals, human rights defenders, lawyers and opposition activities, as well as religious minorities,' Ban reported. The Islamic Republic, which is under economic sanctions for its disputed nuclear program, has failed to investigate 'widespread, systemic and systematic violations of human rights', Shaheed's report said. He called for the 'immediate and unconditional release' of detained human rights advocates, journalists and lawyers." http://t.uani.com/13tBL0A

Reuters: "A Chinese businessman indicted in the United States over sales of missile parts to Iran is still making millions of dollars from the trade, say security officials who monitor compliance with Western and U.N. sanctions. These officials, speaking on condition of anonymity, said the businessman, Li Fangwei, has earned at least $10 million from illegal sales to Iran since his indictment by the New York County District Attorney in 2009. Trade sanctions are at the heart of international efforts to curb Iran's nuclear program for fear it is for military ends - a suspicion Iran rejects. Li's alleged activities may point to Iran's resourcefulness in circumventing those sanctions and turn a spotlight on China's ability to police its own export restrictions... Contacted by Reuters on Feb 4, Li said he continued to get commercial inquiries from Iran but only for legitimate merchandise, such as steel products. Li said his company, LIMMT, had stopped selling to Iran once the United States began sanctioning it several years ago." http://t.uani.com/YGgVoX
MTN BannerNuclear Program

Reuters: "Nuclear talks between Iran and world powers this week were more constructive and positive than in the past, but Iran's willingness to negotiate seriously will not become clear until an April meeting, a senior Western diplomat said on Thursday. The diplomat was more upbeat about the talks in Kazakhstan than other Western officials have been, suggesting there could be a chance of diplomatic progress in the long standoff over Iran's nuclear activities. 'This was more constructive and more positive than previous meetings because they were really focusing on the proposal on the table,' said the diplomat, speaking on condition of anonymity." http://t.uani.com/XrEVgj

Sanctions

AFP: "A consortium will start work next week on a much delayed $7.5 billion gas pipeline from Pakistan to Iran despite American warnings of possible sanctions, Pakistani officials said on Friday. The date was announced after Pakistani President Asif Ali Zardari held talks in Tehran with Iranian counterpart Mahmoud Ahmadinejad and supreme leader Ayatollah Ali Khamenei, who urged Islamabad to press ahead with the project. 'The groundbreaking is going to be performed on March 11 on the Pakistani side of border and we hope that the presidents of the two countries will be present on the occasion,' a senior Pakistani official told AFP, requesting anonymity. He said the ceremony would mark the start of work by an Iranian-Pakistani consortium on the 780-kilometre (485-mile) pipeline earmarked for the Pakistani side of the border, which is said to cost some $1.5 billion." http://t.uani.com/13t853q

Human Rights

Iran Human Rights: "Six prisoners were hanged in three different Iranian cities reported the Iranian state media. Four of the prisoners were hanged in public." http://t.uani.com/15W1QEZ

Opinion & Analysis


UANI-ISD Advisory Board Member Pauline Neville-Jones: "2013 looks like being a crunch year in Iran's relationship with the outside world - between a military and a negotiated outcome to her long running pursuit of nuclear capability. On the one hand, Tehran gets ever closer to being able to make enough weapons grade enriched uranium to build a nuclear warhead and on the other the regime confronts an economic crisis of increasing intensity and from which there is no easy exit without relief from UN, US and EU international economic sanctions. Another round of talks with Tehran led by the EU's Foreign Affairs Representative Catherine Ashton began in Kazakhstan this week. As on previous occasions, an issue will be the good faith of the Iranian side: are they coming to the table to seek agreement on the substance of nuclear issues or is this simply one more play in a long line of feints designed to get relief from economic pressure? While the genuineness of Iran's willingness to negotiate on core nuclear issues remains in doubt, it is important that no slackening is signalled in the greatly strengthened sanctions regime which has played its part in getting Tehran to the table once again. Indeed, the reverse of soft pedalling is needed: remaining gaps need closing, especially those which bear directly on Iran's ability to continue her enrichment programme. One such is Iran's shipping industry- the life line of the economy- and certain key commodities it still carries. Most Iranian trade travels by sea. Sanctions targeting Iran's shipping industry have made it increasingly difficult for the regime to export oil and petrochemical products, import raw materials, and ship weapons to its proxies in the region. But loopholes remain. Working with United Against Nuclear Iran (UANI), a non-partisan, US non-profit group, seeking to prevent a nuclear armed Iran, the UK based think tank, Institute for Strategic Dialogue (ISD) has for the last year argued for a strengthening of the European sanctions regime against Iranian tankers. In a move advocated by UANI-ISD, the European Union in October banned the licensing and provision of technical services and spare parts for the Iranian maritime industry. As almost all vessels of the Iranian tanker fleet are fitted with European engines, this has impeded the safety certification of these engines. And without a safety certificate, access to international harbours has become next to impossible for Iranian tankers. Furthermore, as a result of Iranian oil being delivered on uninsured, uncertified tankers sailing flagless with unsafe engines, customers of Iranian oil are now demanding significant discounts. In the much tightened sanctions regime, there still remain important loopholes, some of them directly enabling Iran to continue her nuclear programme. The ability to obtain or produce steel is an example. As the sanctions regime has made payment for imports into Iran increasingly difficult, shipments of steel have fallen drastically. As a result, Iran has turned to domestic production. To fuel this, Iranian imports of coal and coke rose dramatically in 2012. The majority of the vessels transporting these goods are either insured or reinsured in Europe. European sanctions legislation should be amended urgently to ban insurance and reinsurance for ships that carry coal, coke, and other raw materials necessary for steel production, to Iran." http://t.uani.com/ZHH085

WashPost Editorial: "The most interesting public result of the latest talks with Iran on its nuclear program was the claim by Tehran's chief negotiator, Saeed Jalili, that the new negotiating proposal from the United States and five partners was a possible 'turning point' in what has been nearly a decade of fruitless diplomacy. Those cheery words, and the Iranian's quick agreement to two follow-up meetings in the next five weeks, raised the question of whether the regime is positioning itself to strike a deal that would freeze the most dangerous elements of its nuclear work in exchange for an easing of the sanctions that are choking its economy. We hope that is the case. Unfortunately, an equally plausible explanation for Mr. Jalili's comment was that he was celebrating the fact that, in the eight months since Iran last agreed to meet with the international coalition, the offer to Tehran had grown more, rather than less, generous. 'It was they who tried to get closer to our point of view,' he crowed, while adding that there remained 'a long distance to the desirable point.' U.S. officials denied that the terms offered Iran had grown softer as the regime has refused talks, stonewalled international inspectors and continued to defy U.N. Security Council resolutions by adding to its stockpile of enriched uranium. But it certainly looks that way. While the previous proposal of the five Security Council members and Germany, in Baghdad last May, called for Iran to shut down an underground nuclear plant known as Fordow and to ship its stockpile of medium-enriched uranium out of the country, the bid made in Almaty, Kazakhstan, scales back the Fordow shutdown to a suspension of operations and allows Iran to retain some of that 20 percent-enriched uranium. In part, this shift can be seen as a response to a changing situation: Iran has been converting some of the medium-enriched stock into fuel for a research reactor, giving it a pretext to refuse a previous scheme under which uranium shipped out of the country would have been returned as fuel rods. But the coalition also appears to have offered a greater easing of sanctions - though officials said measures directed at Iran's oil industry and financial system would remain intact. If Iran altered its own, unacceptable proposals from previous rounds, there was no indication of it in the accounts of either side. That raises the possibility that the regime will simply pocket the easier terms and return to its stonewalling, with the expectation that another crumbling of the coalition position will ensue. In recent months, Tehran has avoided crossing Israel's red line for military action by keeping its stockpile of ¬medium-enriched uranium below the quantity needed for a bomb, but it has also begun installing a new generation of centrifuges, which could move it much closer to a breakout capacity. Maybe these zigs and zags, like Mr. Jalili's declarations, are the prelude to a compromise. But history suggests they are the tactics of a regime convinced that it can outlast and outmaneuver the United States and its partners." http://t.uani.com/15VWEkt

WSJ Editorial: "'Iran has a government that was elected and that sits in the United Nations.' So said John Kerry in Paris on Wednesday, on his first tour of Europe since becoming Secretary of State. The former Senator was answering a reporter who asked why he had publicly applauded the French for refusing to negotiate with terrorists in Africa-on the same day the U.S. and its allies were trying to negotiate a nuclear deal with a 'terrorist' regime in Tehran. Good question. Regarding the Secretary's answer, well, he's right about Iran having a seat at the U.N. As for the part about an elected government, Mr. Kerry surely knows that ultimate authority in Iran rests with Supreme Leader Ali Khamenei. The Grand Ayatollah has held office for nearly 24 years and was elected in roughly the way Leonid Brezhnev became the Soviet General Secretary. Mr. Kerry also knows that the last time Iran had an election for the secondary post of president, the results were almost universally regarded as fraudulent. He knows that the re-installed government of Mahmoud Ahmadinejad responded to protests by murdering demonstrators in the streets, putting defeated candidates under house arrest, and jailing hundreds if not thousands of Iranians suspected of opposition sympathies. Mr. Kerry also knows that in the latest round of parliamentary elections, the unelected Guardian Council arbitrarily disqualified nearly 3,000 candidates. He knows that neither women nor non-Shiites are allowed to run for the presidency in Iran, and that parliamentary representation for minorities is limited to a few token seats. We realize the Administration is eager to cut a deal with the mullahs before they cross the point of nuclear no return, and sometimes talking with nasty regimes is necessary in diplomacy. But a U.S. Secretary of State owes the Iranian people better than to pretend their government can claim any sort of popular consent other than what it exacts through brute force." http://t.uani.com/YGjM1a

Emanuele Ottolenghi & Saeed Ghasseminejad in JPost: "When the European Court of Justice decided on January 29 to remove Iran's Bank Mellat from the European Union's sanctions list, its judges no doubt thought their judgment was a triumph of the rule of law over arbitrary state power. The EU had slapped sanctions on Bank Mellat because it claimed the government of Iran owned the financial institution and used it to facilitate proliferation activities. But the bank, opined the court, has now been privatized, and can no longer be considered an arm of the Iranian regime. A week later, the court ruled again against the EU in a similar case brought by Bank Saderat - the bank's ownership had shifted from public to private since the EU designated it, the court noted, and therefore the reasons for its designation were no longer valid. The EU is adamant that these entities continue to aid and abet their government's brazen and illicit efforts to procure nuclear and ballistic missile technology. So is the US government. The judges beg to differ. So, who's right? The court overruled the EU because, claims the court, the EU failed to meet the desired burden of proof when it comes to Iran's control over the banks. Ironically, the court did so on the flimsiest of evidence - because Iran's privatizations are phony. Evidence shows that the Islamic Republic of Iran maintains significant control over the shareholding structure of these two banks - either through shareholders it controls, or through individuals who, while formally independent, are in fact close to the regime. The government's divestment of its assets then is in effect a controlled distribution of public-owned companies to government loyalists and government subsidiary companies. According to Bank Mellat's latest official report, published in July 2012, government ownership is down to 20 percent. Though technically speaking, this is not a controlling stake, it makes Iran's government the largest shareholder - an influence reflected in the fact that the government's representative on the board, Mr. Ali Khorsandian, is the bank's vice-chairman. Yet, beyond its direct 20% share, the Islamic Republic controls Bank Mellat indirectly through other shareholders... Bank Saderat's privatization is no different... In short, these privatizations were a scam - the government sold or transferred shares to government entities and public enterprises it owns or controls, and to government loyalists it can trust to serve its interests. Iran's regime has used its privatization laws to obfuscate its ongoing connection to designated Iranian entities in order to circumvent sanctions - with the result of bamboozling European judges and, in the process, undermining the EU sanctions regime aimed at peacefully preventing Iran from going nuclear." http://t.uani.com/12giRdW


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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