Friday, June 21, 2013

Eye on Iran: Group Keeps Watch on Iran and Possible Sanction Violations











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NYT: "Inside a nondescript Midtown Manhattan office, a couple of computer analysts spend their days peering intently at large screens of satellite mapping surveillance data, watching dozens of little blips moving like snails. Each one, they said, represents a ship controlled by Iran or its trading partners. They said they were looking for suspicious behavior. The analysts work for United Against Nuclear Iran, a privately financed advocacy group founded by former American diplomats that has become an annoying thorn to Iran, which regards it as a vigilante extension of a hostile American foreign policy. The group's latest effort is its maritime monitoring system, which it says provides a new level of scrutiny of compliance with the sanctions imposed on Iran by the West because of Iran's disputed nuclear energy program. Although the economic and trade sanctions, including a European oil embargo, have deeply hurt Iran, the country has been somewhat successful in finding ways to evade them, the group says. A litany of clever tactics for cloaking commerce on the high seas has included reflagging, renaming or clandestinely acquiring ships, engaging in secretive ship-to-ship transfers to mask the origins of oil or other contraband, temporarily disabling onboard satellite transponders to hide their true locations or simply transmitting false destinations. 'Iran thrives on deception and disguise,' said Mark D. Wallace, the chief executive of United Against Nuclear Iran, who would like to see a maritime blockade of the country... United Against Nuclear Iran's monitoring system, called Minerva (an acronym for Marine Intelligence Network and Rogue Vessel Analysis) is one of many tools used by the group in an increasingly aggressive campaign to harass and frustrate Iran. The group, formed in 2008 by Mr. Wallace and other prominent American diplomats including Ambassador Richard C. Holbrooke, who died in 2010, has claimed success for persuading dozens of multinational corporations to stop doing business with Iran. It was also among the first to pressure a global banking communications consortium known as Swift to expel sanctioned Iranian financial institutions last year... 'The establishment of this group was among a series of actions, which indeed cast a shadow over the policy of engagement announced at that time,' Alireza Miryousefi, a spokesman for Iran's United Nations mission, said in response to a request for comment about the group's activities." http://t.uani.com/11RLZCR

AP: "American officials are hailing the election of an Iranian president who vows to seek relief from international sanctions as the first tangible evidence that the U.S. strategy is influencing Tehran's nuclear policy. The draconian sanctions have wreaked havoc on the Iranian economy and weighed heavily in the June 14 vote for Hasan Rowhani, a candidate who openly criticized how his country's leadership has handled the nuclear file. His election has opened a debate in the U.S. on whether it's time to ease sanctions and see whether Tehran shifts away from what the U.S. believes is the pursuit of a nuclear weapon. It also has set off intense discussions among government agencies on how to proceed with Iran, according to U.S. officials who spoke on condition of anonymity because they were not authorized to speak publicly on the issue... The U.S. officials said there will be no lifting or easing of sanctions at this time unless Iran offers something concrete in return. Washington is well-aware that hard-line Supreme Leader Ayatollah Ali Khamenei and Iran's ruling clerics - not the president - call all the shots in policymaking and make every major decision on the nuclear program and dealings with the West." http://t.uani.com/1azw9ni

Bloomberg: "Mitsubishi UFJ Financial Group Inc.  agreed to pay $250 million to the state of New York to settle claims it transferred billions of dollars for countries facing U.S. sanctions including Iran, Sudan and Myanmar. Bank of Tokyo-Mitsubishi UFJ Ltd., the main lending unit of Japan's biggest bank by market value, moved an estimated $100 billion through the state for government and privately owned entities on the Specially Designated Nationals list issued by the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) between 2002 and 2007, the New York State Department of Financial Services (DFS) and New York Governor Andrew Cuomo said in a statement yesterday. The transfers involved about 28,000 clearing transactions and the bank routinely stripped information from wire transfer messages that could identify countries and people subject to international sanctions, the department said. The agreement follows HSBC Holdings Plc (HSBA)'s record settlement with the U.S. last year, stemming from sanctions aimed at pressuring Iran to halt its nuclear program. 'We have and will continue to take a hard line in rooting out misconduct at banks that threaten our national security,' Benjamin Lawsky, the superintendent of the department, said in the statement." http://t.uani.com/10Drcb6
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Sanctions

Reuters: "China's average daily crude imports from Iran jumped nearly 50 percent in May from the previous month, back around levels before sanctions were slapped on the Middle Eastern country over its disputed nuclear programme two years ago. The jump in China's imports of Iranian crude to 555,557 barrels per day (bpd) came just before the United States renewed the country's waiver on U.S. sanctions aimed at cutting off Iran's oil revenues and bringing it to the negotiating table. But industry sources with knowledge of China's crude imports said the surge from Iran may be due to the timings of cargo arrivals and how they were counted by the General Administration of Customs (GAC). The sources said China's two main importers - Sinopec Corp and Zhuhai Zhenrong - do not usually vary their term crude imports widely month-to-month. China, the world's second biggest oil consumer, bought 2.36 million tonnes of Iranian crude in May, equivalent to about 555,557 bpd, data from the GAC showed on Friday. That was up 49.5 percent from the 371,500 bpd of Iranian crude that China imported in April, the data showed. The May level rose 6.4 percent from 521,936 bpd a year earlier." http://t.uani.com/107ixeQ

Bloomberg: "China's fuel oil imports surged to the highest level in five years last month as the country boosted purchases from Iran, customs data show. Imports of the residual fuel, used by power plants and so-called teapot oil refineries, rose 19 percent to 2.83 million tons from a month earlier, according to data e-mailed by the General Administration of Customs in Beijing today. That's the most since May 2008. Shipments from Iran climbed to 526,203 tons in May, the highest since February 2004 when Bloomberg started tracking the data. Iran ranked as China's second-largest fuel oil supplier in May after Russia, which shipped 632,078 tons, the data show." http://t.uani.com/1c3zjgY

Reuters: "Geneva-based agricultural trader Afegra - an exporter of cereals to Iran until last year - is parting company with its managing director and its trading team, sources familiar with the matter said... The sources said Afegra had lost a vital source of income after encountering difficulties with obtaining payment from Iran for agricultural deliveries, which were at least partly a result of Western financial sanctions aimed at Iran's nuclear programme." http://t.uani.com/16lDeED

Reuters: "The Iranian currency, the rial, rose further on Thursday on hopes the country's deep economic crisis could ease under its next president, a relative moderate elected last week. The rial has strengthened by nearly 10 percent against the dollar since Hassan Rohani was declared winner of the June 14 vote, according to Iranian currency dealers and websites. The rial was trading at around 33,300 per dollar compared with about 36,300 at the close of business a week ago. Rohani's victory brings an end to eight years under hardline President Mahmoud Ahmadinejad, a period that resulted in intensifying financial pressure on Iran thanks to several rounds of economic sanctions imposed over its nuclear programme." http://t.uani.com/16TdfFC

Opinion & Analysis

Michael Soukup in Tages-Anzeiger (Zurich, Switzerland): "For years, critics have warned Switzerland of the reputational risks involved in commodity trading. Commodity traders reportedly operate with complex corporate structures in order to optimize taxes, to pay bribes or circumvent embargoes. For years, the Swiss government has been taking this threat lightly. The last time at the end of March, when the Federal Assembly released its long-awaited report on the regulation of commodity trading: instead of arguing for stricter transparency rules, the Assembly was mainly concerned with the protection of the competitiveness of the approximately 500 commodity trading companies. After the successful attack of the Americans on the Swiss banking center, they are now targeting the commodity trading center. A particular sense of exasperation reigns in the US, as Switzerland is not complying with the European oil embargo against Iran. Last October it became known that the Geneva based company Vitol had bought two million barrels of oil from Iran via an Arabic subsidiary. 'It is time to characterise Switzerland's behaviour as hypocritical and opportunistic. Switzerland should finally start acting like a responsible member of the international community and should impose the same measures against Iran as its European neighbours and international partners', wrote Mark Wallace, CEO of United Against Nuclear Iran (UANI) and former US Ambassador to the UN in a letter to the TA... In contrast to the EU and U.S., who for the last two years have been trying by means of sanctions to prevent Iran from building a nuclear weapon, Switzerland pays only lip service to the embargo. In the case of Vitol, Swiss authorities did not see an infringement because 'the Swiss sanctions regime against Iran is not applicable to subsidiaries of Swiss companies abroad,' the State Secretariat for Economic Affairs (Seco) responded to an enquiry at the time. But a secret UN report that became public in May constituted the final straw. The Zug based commodity giant Glencore and the Lucerne based metal dealer Trafigura allegedly provided aluminium for the Iranian nuclear program via barter deals. Glencore and Trafigura confirmed their business dealings with the Iranian company Iralco. But the last transaction are said to date from October 2012, two months before the EU sanctions were imposed. However, Mark Wallace remains unimpressed. 'At the end of the day, because of Switzerland, the Iranian regime maintains access to an important trade and finance centre to finance its nuclear and terrorist activity. This is unacceptable.'" http://t.uani.com/12RihTK

Jay Bernstein in The Baltimore Sun: "Given this reality, it would be a mistake for the United States and the West to respond to the election results by easing sanctions against Iran. To the contrary, it is more critical than ever that such sanctions be promoted, enforced and strengthened. Here in Maryland, much has already been done to address the Iranian threat. In recent years, Maryland has enacted legislation divesting the state pension fund from companies doing business in Iran, and barring companies that invest in Iran's energy sector from receiving state contracts. These laws are intended to end the economic and financial support that the Iranian regime receives from these companies and thereby compel Iran to abandon its illegal nuclear weapons program, support for terrorism and gross human rights violations. In addition to these measures, Maryland should confirm that shipping companies that operate in the Port of Baltimore do not conduct business in Iran, and deny entry to companies like Orient Overseas Container Line (OOCL) that operate in both the Port of Baltimore and Bandar Abbas, the site of Iran's largest container terminal. Such operations not only violate Maryland's public policy but are contrary to the National Defense Authorization Act signed by President Barack Obama in January, which authorizes sanctions against anyone who knowingly supports activity benefiting port operators in Iran. Shippers that operate in Iran contribute to the regime's economic viability at a time when the international community is working to isolate Iran in response to its support for terrorism, human rights abuses and pursuit of an illegal nuclear weapon. Last year, Gov. Martin O'Malley declared that the United States and its allies 'need to stand together against regimes like Iran and others who seek to destabilize the region and take us in a backward direction.' If Governor O'Malley's call to action is to have any meaning, shippers like OOCL must be required to choose between the business of Maryland and the business of Iran. Hopefully, companies confronted with this choice will choose Maryland's business over Iran's, and in so doing contribute toward the effort to moderate the regime's policies and force it to behave in accordance with international norms." http://t.uani.com/19YelUh

Sohrab Ahmari in WSJ: "'The Diplomatic Sheikh' is what Western diplomats dubbed Hassan Rohani during his tenure from 2003 to 2005 as Iran's chief nuclear negotiator. The nickname was quickly picked up by the American press upon Mr. Rohani's election Saturday as Iran's next president. It complemented Mr. Rohani's newly minted reputation as a 'moderate' and a 'reformer.' But the Iranian dissidents whose assassination he oversaw would find the label inapt-that is if they were still around to object. As the U.S.-based Iran Human Rights Documentation Center reported in a 2008 briefing titled 'No Safe Haven: Iran's Global Assassination Campaign,' Mr. Rohani throughout the mid-1990s served as a member of the Islamic Republic's sinister Special Affairs Committee. The body 'was established after Ayatollah Khomeini's death to make decisions on important matters of state,' according the report. 'One of the issues handled by the Committee was the suppression and elimination of political opposition to the Islamic Republic. As the secretary of the Supreme National Security Council, Vice-President Hassan Rohani told the Iranian newspaper Ettela'at in 1994 '[Iran] will not hesitate to destroy the activities of counterrevolutionary groups abroad.'' Just how did Mr. Rohani and his colleagues go about doing this? 'Once the Committee's recommendation was approved by the Supreme Leader, an individual committee member would be charged with implementing the decision with the assistance of the Ministry of Intelligence's Special Operations Council,' according to the IHRDC. 'The council's operational commanders receive a written order signed by the Supreme Leader authorizing an assassination.'... Perhaps a better nickname for Mr. Rohani-one of the key overseers of Iran's global-assassination campaign in the 1990s-might be the Sheikh of Terror." http://t.uani.com/125gDvM

The Economist: "In 2009 Iran was on the verge of electing a reformer as president. Ayatollah Ali Khamenei, the supreme leader, subverted the vote and crushed the ensuing protests. Last week the same desire for change handed a landslide victory to Hassan Rohani-and Mr Khamenei hailed it as a triumph. When a country has seen as much repression as Iran, outsiders hoping for a better future for the place instinctively want to celebrate along with all those ordinary Iranians who took to the streets. The smiling Mr Rohani's public pronouncements encourage optimism, for he sounds like a different sort of president from the comedy-villain, Mahmoud Ahmadinejad, who precedes him. Yet even if his election bodes well for Iranians, it does not necessarily hold equal promise for the rest of the world. Iran's regional assertiveness and its nuclear capacity mean that it is a more dangerous place than it ever was before... While Iran's politics have probably changed less than Mr Rohani's election suggests, the balance of power between Iran and the rest of the world has been shifting in Iran's favour for two reasons. First, thanks to heavy investment in nuclear capacity by the mullahs, and despite attempts by the West and Israel to delay or sabotage the nuclear programme, Iran will soon be able to produce a bomb's worth of weapons-grade uranium in a matter of weeks (see briefing). Iran has installed more than 9,000 new centrifuges in less than two years, more than doubling its enrichment capability. It is a short step from the 20% enriched uranium that the country's facilities are already producing at an increasing rate to conversion into the fissile material needed for an implosion device. Although Western intelligence agencies think Iran is still at least a year away from being able to construct such a weapon, some experts believe that it could do so within a few months if it chose to-and that the time it would take is shrinking. This makes a nonsense of Western policy on Iran. Round after round of negotiations to try to persuade Iran not to get a bomb have been backed up by the implicit threat that armed force would be used if talks failed. But now it looks as though Iran will soon be in a position to build a weapon swiftly and surreptitiously. Should the West decide to use force, Iran could amass a small arsenal by the time support for a military strike was rallied. Against that background, a friendlier president becomes a trap as well as an opportunity. He may offer the chance of building better relations through engagement and the gradual lifting of sanctions. But Iran could take advantage of this inevitably slow process to build a weapon. The other development that threatens the West's interests is happening around Iran. Despite its economic troubles, the Iranian state is a powerful beast compared with its neighbours, and is keen to assert itself abroad. The Iraqi government is now its ally. It has sway over chunks of Lebanon through Hizbullah, the Shia party-cum-militia it finances. And it has sent Hizbullah into Syria, where its fighters have joined Iranian advisers, money and special forces to help turn the tide of the war in Bashar Assad's favour. Ostensibly the reason why Barack Obama agreed last week to arm the rebels in Syria (see article) was Mr Assad's use of chemical weapons; but many believe that the greater reason was his reluctance to see Mr Assad hold on to power as a client of Iran's." http://t.uani.com/17rO68G

Collin Anderson in Iran Media Program: "In the paper 'Dimming the Internet: Detecting Throttling as a Mechanism of Censorship in Iran,' released today on the open publication repository arXiv, Iran Media Program affiliated researcher Collin Anderson used a three-year dataset of network measurements as a monitoring service for political throttling, then applied the methodology to shed light on the recent history of censorship in Iran, and finds that Iran's Internet has experienced prolonged and significant disruptions timed annually near the anniversary of the Islamic Revolution and 25 Bahman, the first anniversary of the contested elections, and protests over the depreciation of the value of the Iranian Rial. This suspected interference often directly matched more overt forms of censorship, including the jamming of international satellite jamming. Through the Measurement Lab (M-Lab) platform, anti-censorship researchers gain a diverse and non-partisan perspective on a network that is often opaque and difficult to access from outside. The results described not only shed light on instances of censorship, but also the manner in which public networks are subjected to a greater degree of disruption than those of business, universities and governments." http://t.uani.com/17rQnR7

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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