Friday, July 26, 2013

Eye on Iran: Renault May Scale Back in Iran











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WSJ: "French car maker Renault SA, one of the last large European companies still active in Iran, is considering winding down its sales to the country as the impact of international sanctions deepens, according to people familiar with the matter. The pullback from the Iranian market could prove costly for Renault, due to lost sales revenue and asset write-offs, the people said. The surprise election of moderate Hasan Rouhani as Iran's president last month has rekindled hope in Tehran of a thaw in its relations with the West and of possible relief in mounting sanctions. But new U.S. sanctions targeting Iran's automotive sector since July 1, combined with difficulties in getting paid by Iran as its economy sharply declines, has led Renault to cut its sales of automobile kits to Tehran's manufacturers and review its strategy in the country. A spokeswoman for Renault said the company's commercial transactions in Iran 'are slowing down, and we don't have any visibility for the future.' Renault said recently it 'is taking appropriate measures necessary to address the scope' of the new U.S. sanctions and their impact on its Iranian operations." http://t.uani.com/11j4h39

NYT: "Prime Minister Nuri Kamal al-Maliki of Iraq told the Obama administration this month that Iran was interested in direct talks with the United States on Iran's nuclear program, and said that Iraq was prepared to facilitate the negotiations, Western officials said Thursday. In a meeting in early July with the American ambassador in Baghdad, Mr. Maliki suggested that he was relaying a message from Iranian officials and asserted that Hassan Rouhani, Iran's incoming president, would be serious about any discussions with the United States, according to accounts of the meeting. Although Mr. Maliki indicated that he had been in touch with confidants of Iran's supreme leader, Ayatollah Ali Khamenei, he did not disclose precisely whom he was dealing with on the Iranian side. Some Western officials remain uncertain whether Iran's leaders have sought to use Iraq as a conduit or whether the idea is mainly Mr. Maliki's initiative." http://t.uani.com/16ikaGE

WSJ: "The Obama administration, seeking to improve relations with Iranian President-elect Hasan Rouhani, eased restrictions on medical supplies, agricultural products and humanitarian aid entering the heavily sanctioned country. The Treasury Department's announcement Thursday was viewed by many Iran-watchers as a gesture of good will from Washington as it seeks to restart talks with Tehran over its nuclear program once Mr. Rouhani enters office next month. However, the White House is clashing with Congress, where a bilateral group of lawmakers is seeking to tighten the sanctions, say U.S. officials and Capitol Hill staffers. Their proposed legislation would significantly toughen financial penalties on Iran by targeting the country's oil exports, ships and banks by October, in an effort to convince Tehran to halt its nuclear program." http://t.uani.com/1bUW62W
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Sanctions

WSJ: "Renault SA said a €512 million ($680 million) provision to cover disrupted Iranian sales weighed on its earnings in the first half of the year. A six-month operating loss of €249 million also reflected falling revenue from chronic weakness in the European automobile market, the French car maker said Friday. The Obama administration's decision in June to toughen economic sanctions on Iran and to extend them to the automobile sector has meant that Renault can't repatriate money that it is owed, Chief Financial Officer Dominique Thormann said to a group of journalists. Renault has no industrial activity in Iran. It has no employees and no fixed assets. It ships kits of semicompleted vehicles that are assembled by its Iranian partner, and these shipments are being halted, Mr. Thormann said. Renault is basically writing off its Iranian receivables, he said." http://t.uani.com/174wERp

AFP: "French auto group Renault reported a profit plunge on Friday owing to charges for halting its activities in Iran and for restructuring in France. The group reported a net profit for the first six months of the year of 39 million euros ($52 million) compared with 746 million euros at the same time last year. The exceptional charges helped to push the operating result to a loss of 249 million euros from a profit of 519 million euros last time... The company took a charge this year of 512 million euros for its activities in Iran which have been hit by a hardening since July 1 of international sanctions which now include the auto sector. Finance director Dominique Thormann told a press conference that 'there is an effective halt to activity' in this country. Renault is the second-biggest French auto group after struggling PSA Peugeot Citroen which early last year interrupted its activities in Iran." http://t.uani.com/12pe2PU

WSJ: "Oil field services giant Schlumberger Ltd. said in a securities filing that it wound down its operations in Iran, which ran at a loss. The disclosure, made late Wednesday in a securities filing under sanctions law requirements that went into effect in February, said non-U.S. subsidiaries of Schlumberger provided oilfield services to the National Iranian Oil Co. in the first half of the year as the company completed its wind-down of the operations during the second quarter. Schlumberger earned $102 million in revenue during 2013 for the Iranian activity, resulting in a net loss of $69 million, it said in the filing." http://t.uani.com/1dZQt07

Human Rights


HRW: "Iran's judiciary should stop the executions of four members of Iran's Ahwazi Arab minority because of grave violations of due process, Amnesty International, the Iran Human Rights Documentation Center, and Human Rights Watch said today. The judiciary should order a new trial according to international fair trial standards in which the death penalty is not an option. Family members and Ahwazi Arab rights activists have told human rights groups that the detainees contacted their families on July 16, 2013 and said they feared that authorities were planning to carry out the execution orders any day now." http://t.uani.com/13KURyr

Foreign Affairs

WSJ: "The inauguration ceremony of Iran's President-elect Hassan Rouhani, scheduled for Aug.4, is being carried out with unusual diplomatic fanfare. For starters, Iran decided to depart with its tradition of a low-key inauguration ceremony. The Foreign ministry said it has sent out formal invitations to all heads of states, except for the U.S. and Israel, to travel to Tehran for the event... 'Our invitations have been very well received,' said Abbas Araghchi, the foreign ministry spokesman. 'For the first time since the Islamic revolution we've decided to invite foreign guests to the inauguration.' Iranian inaugurations are nothing like their counterparts in the U.S. for example. The event is not open to the public. It takes place in the parliament and is usually attended by officials and resident foreign diplomats... But this year, it seems Iran is using the occasion to extend an olive branch to the world and showcase to the West that it's not an isolated pariah state. It also keeps with Mr. Rouhani's campaign promises that if elected, he will improve relations with the world, including with the West, and put an end to provocative foreign policies." http://t.uani.com/16ilQjp

Opinion & Analysis

Majid Rafizadeh in The National: "In less than two weeks, Hassan Rowhani, Iran's President-elect, will assume the presidential office and replace the hardliner and controversial figure, President Mahmoud Ahmadinejad. However, as more facts from Rowhani's past are unearthed, questions have been raised regarding who really is Iran's new president, and more importantly, if he will be able to legally take office based on the new astonishing information released this week by the Persian media. After a considerable amount of analysis on Persian newspaper archives conducted, one significant fact was revealed this week. First of all, it is crucial to contextualize the new information by shedding light on previous facts. It is well-known that passages of Rowhani's Glasgow Caledonian University PhD thesis, 1999, titled 'The Flexibility of Shariah (Islamic Law) with reference to the Iranian revolutionary experience,' were virtually identical to a passage of a book written by an Afghan author, Mr Kamali, titled Principles of Islamic Jurisprudence... Although the plagiarism of these passages justifies Rowhani's PhD to be revoked, plagiarism does not suffice as a strong enough reason to revoke his presidency, according to the laws of the Islamic Republic of Iran. In addition, given the notion that PhD part-time students at GCU are required to fulfill at least 12 hours per week for the demanding law program and given the fact that Hassan Rowhani had several crucial governmental positions, many questions have been raised whether Hassan Rowhani attended GCU and whether he wrote the Masters and PhD theses. Furthermore, GCU is not an obvious academic university for Shiite studies. The more recently-exposed information however reveals that Hassan Rowhani - before holding a PhD degree, or even a Master's degree - was already claiming in 1980 to have a doctorate degree from London University. On March 9, 1980, in an interview with Joomhoriye Islami, one of the most significant newspapers circulating in Iran, Rowhani stated that he had received his PhD in 'Legal Sociology' from the University of London. The newspaper wrote that he received his PhD in 1979; twenty years before Rowhani actually received a higher degree from another university: Glasgow Caledonian University... Although the plagiarism case might not have legal significance, counterfeiting a university degree and portraying oneself as a PhD holder while not even having obtained any graduate degree does have legal consequences in Iran. According to Iran's Islamic Penal Law Code article 527, any official who lies about his education, forge their university transcripts, or creates a fraud university degree will be sentenced from one year to thirty-six months in prison. However, it is unlikely that the Iranian government will hold Hassan Rowhani accountable for his actions. Rowhani is a governmental insider; his loyalty lies with Khomeini and Khamenei, he is a benefiter of the cleric system, and was approved by the Guardian Council to run for presidency. Yet, the counterfeiting of a Doctorate degree and impersonation of a London-educated intellectual has undoubtedly played a significant role in helping Rowhani climb the political ladder and even become elected president. An overwhelming of Iranian people highly value education and highly favor those candidates who have obtained a PhD, particularly from Western countries which they believe offer a more open-minded education. What do Rowhani's past actions suggest about his morals and personality? It suggests that Rowhani's first priority has been to use any tool possible - even if it means deceiving the Iranian people - in order to achieve his political ambitions. If honesty has not been a criterion for 'Doctor Hassan Rowhani', the President-elect of Iran, how can millions of Iranian citizens believe in all his promises that he made throughout his campaign? If gaining power and influential positions have been his main goal with disregard to ethics, how can the international community, IAEA, and other regional countries trust the sincerity of his actions?" http://t.uani.com/15kv4wC

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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