Thursday, February 13, 2014

Eye on Iran: Iran Steadies as Tensions Ease








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Top Stories

WSJ: "Iran's economy, though still crippled by sanctions, has begun to improve as a new president and a nuclear accord with the West stabilize its currency and raise confidence, say economists and merchants here and abroad. Residents of this ancient trade hub say they are encouraged by the new administration's economic policies and the prospect of a lifting of international sanctions in the coming years. Such sentiments have helped stabilize the volatile Iranian rial, which in turn has eased rising prices and spurred an uptick in informal trade, economists say... The International Monetary Fund on Wednesday projected Iran's economy to grow by up to 2% for fiscal year 2014-2015, which begins in March. That contrasts with a 2% contraction the IMF estimates for the current fiscal year. It predicts a fall in inflation to between 15% and 20% in the year starting in March from a 45% high in July. Such data lead critics of the easing of sanctions to say the White House is undermining its own efforts. 'As Iran's economy improves and our sanctions regime unravels, the mullahs will be under less and less pressure to fully dismantle their nuclear- weapon capabilities,' Sen. Mark Kirk, an Illinois Republican, said in an email." http://t.uani.com/1gb4TyJ

WSJ: "Chinese purchases of crude boosted Iran's oil exports in January, an energy watchdog said Thursday, confirming an easing of the Islamic Republic's economic hardship after a sanctions-relief deal with Western nations. In its closely watched monthly oil market report, the International Energy Agency, which represents some of the world's largest oil consumers, said Iranian crude exports rose 100,000 barrels a day to 1.32 million barrels a day, with the largest part of that increase coming from China and, to a lesser extent, Japan and India. But the volume of Iran's exports is above a limit agreed with world powers of one million barrels a day, suggesting the country may have to cut sales to comply... Iran's exports exceed that limit by 320,000 barrels a day, the IEA data shows, though last month the deputy oil minister Ali Majedi said the country intends to comply with the agreed limit over the coming half year." http://t.uani.com/1eSdXtx

NYT: "The International Monetary Fund issued a sobering appraisal of Iran's economy on Wednesday, warning that years of government mismanagement aggravated by the impact of the West's antinuclear sanctions had left the country vulnerable to anemic growth and rampant inflation that require urgent attention. The I.M.F. appraisal was the organization's first on-the-ground assessment of the Iranian economy in nearly three years. It was issued as Iran is seeking to undo the Western sanctions through negotiations on its disputed nuclear program. A temporary agreement reached in November and put into effect last month provided some limited sanctions relief to Iran. But the basic restraints remain in force, and they have limited Iran's ability to sell oil, its most important export, and have largely paralyzed its ability to conduct international financial transactions electronically. 'Large shocks and weak macroeconomic management over the past several years have had a significant impact on macroeconomic stability and growth,' Martin Cerisola, the I.M.F. assistant director for its Middle East and Central Asia department, said in a statement on the I.M.F. website... Mr. Cerisola, who led a delegation to Tehran from Jan. 25 to Feb. 8, said that the authorities in the administration of President Hassan Rouhani, which took over last summer, 'are well aware of these challenges and the need to advance reforms, and have begun the preparatory work in many of these areas.' He said a more comprehensive Iran report would be prepared by late March." http://t.uani.com/1dKE6nK
   
Nuclear Program & Negotiations

Free Beacon: "A leading House lawmaker is calling on President Obama to publicly release the full text of the recently signed Iran nuclear deal, which is currently being held under lock and key in a secure compound on Capitol Hill. Rep. Ileana Ros Lehtinen (R., Fla.), a leading member of the House Foreign Affairs Committee, wrote to Obama on Wednesday in a bid to force the Iran deal into the public. The precise details of the deal have remained 'shrouded in secrecy' despite the critical nature of the agreement, Ros-Lehtinen said. The White House has come under increasing fire from lawmakers and others for refusing to publicly release the text of the deal. Lawmakers and qualified Hill staffers must submit to an extensive security procedure just to view the text, which is being kept hidden from the American public. The deal was even kept from members of Congress until the last moment, according to Ros-Lehtinen... The Washington Free Beacon reported on Wednesday that those seeking to view the deal must pass through many layers of security-even though the deal is technically marked as 'unclassified.'" http://t.uani.com/1nvTTwf

Global Security Newswire: "An Iranian official on Wednesday set aside the idea of potentially altering a nuclear reactor that other nations fear could produce atomic-bomb fuel. Iran cannot convert its Arak heavy-water reactor to a light-water facility, Hamid Babaei, a spokesman for Iran's delegation to the United Nations, wrote in a Wednesday commentary published by the London Guardian. Such a change would reduce the unfinished site's capacity to produce weapon-usable plutonium once activated, addressing a major concern shared by world powers as they seek a deal with Iran aimed at preventing its atomic assets from supporting any nuclear-arms production. But the diplomatic official said this kind of modification would prove infeasible. 'It is now too late to change [the Arak reactor] into a light-water prototype, as some have suggested in the West,' Babaei wrote. 'This generous offer should have been made much earlier.'" http://t.uani.com/NFDTNX

Sanctions Relief

Bloomberg: "Imports of Iranian crude rose by 100,000 barrels a day last month, with China, Japan and India taking more oil as a deal easing sanctions over Iran's nuclear program took effect, the International Energy Agency said. Purchasing countries received 1.32 million barrels a day last month, the IEA, a Paris-based adviser to 28 nations, said in an e-mailed report today. An increase in the number of barrels shipped to the three Asian importers more than made up for reduced deliveries to South Korea, Syria and Taiwan, the agency said... Iran had an estimated 30 million barrels of crude held on tankers at the end of January, including 6 million barrels in vessels off China's coast, according to the report. Total production rose by 30,000 barrels to 2.78 million last month, as cold winter weather in Iran boosted domestic fuel use." http://t.uani.com/LX5b0i

Reuters: "Iran has asked India for $1.5 billion in back oil payments under the nuclear deal that provides Tehran some relief from Western sanctions, Indian sources with direct knowledge of the matter said on Thursday. If the payments are approved, this could make India the third of Iran's major buyers, after Japan and South Korea, to start processing frozen back payments. The payments are contingent on Iran holding to its agreement to start curbing its nuclear programme. Indian refiners are holding about $3 billion in payments due the Middle Eastern crude producer, one of the sources said. Other funds owed to Tehran are held in a rupee-denominated account at India's UCO Bank." http://t.uani.com/1hfD7E2

AFP: "Russia's economy chief on Wednesday announced plans to visit Iran amid reports of the two sides nearing a mammoth oil-for-goods deal that has raised consternation in the United States. Economy Minister Alexei Ulyukayev told Russian media his late April trip would focus on a 'wide range of trade and economic issues' but provided no further details. Moscow's Kommersant business daily on January 16 said the two close trading partners were negotiating a barter agreement under which Russia could import up to 500,000 barrels of Iranian oil per day... Tehran's Fars news agency quoted Moscow's Iranian ambassador as saying on Saturday that the latest terms of the proposed deal would see Russia build Iran railroads in exchange for oil... Moscow media have been speculating since the weekend that the deal would see Russia re-export the oil to China while also providing Iran with train cars and locomotives. Russian Railways state corporation chief Vladimir Yakunin had earlier expressed interest in helping Iran develop a railroad to its northern neighbour Armenia." http://t.uani.com/1eShtnF

Bloomberg: "Total SA Chief Executive Officer Christophe de Margerie defended a visit by a French trade delegation last week to Iran as a way for companies to gain a competitive edge should sanctions be lifted. 'When it becomes legal to work in Iran and contractual terms are satisfactory, I don't see why Total would deprive itself of the possibility to beat out its Anglo-Saxon competitors in Iran,' de Margerie said today at a press conference. 'We have the right to move, that's not illegal.' The U.S. has criticized the visit, during which more than 100 representatives of French businesses including oil producer Total met top Iranian trade officials in Tehran." http://t.uani.com/1lIR4sO

Sanctions Enforcement & Impact

Reuters: "BNP Paribas, France's biggest listed bank, has set aside $1.1 billion for a possible fine for breaching U.S. sanctions on countries including Iran, the latest bank to take a hit to profit from a legal investigation... BNP said on Thursday it had set aside the funds after talks with the U.S. authorities, though it said there had been no discussion on the size of any potential penalty. 'We've been doing a retrospective review for several years and we've basically now presented our findings to the U.S. authorities,' BNP Chief Financial Officer Lars Machenil told Reuters Insider TV." http://t.uani.com/1brOQxg

Terrorism

Al-Monitor: "Iranian officials on Feb. 5 received a high-level Palestinian Islamic Jihad delegation headed by Ramadan Shallah, the movement's secretary general. Accompanying him was Islamic Jihad's deputy leader, Ziyad al-Nakhalah, whom the US Department of State announcement on Jan. 23 was being added to its list of 'specially designated global terrorists.' It was the first visit by Islamic Jihad representatives to Iran since President Hassan Rouhani took office in 2013. 'While this trip can be classified as a routine visit, it is important given that it comes after Nakhalah was added to the terrorist list and after Rouhani took office,' said Islamic Jihad spokesman Daoud Shihab. During a meeting with Al-Monitor at his office, Shihab noted that this is not the first time Iran has publicly expressed its support for Islamic Jihad and its leaders. He asserted that Iranian officials had at other meetings confirmed their rejection of the targeting of the Palestinian people and figures." http://t.uani.com/1evtjOm

Human Rights

Al-Monitor: "The 32nd Fajr International Film Festival in Tehran has been riddled with controversy, including numerous incidences of censorship during the live broadcasts and backlash against two films dealing with the sensitive topics of Ashura and the 2009 elections. The live broadcast of the closing ceremony of the film festival was interrupted by the head of Islamic Republic of Iran Broadcasting (IRIB), Ezatollah Zarghami, so often that Ghanoun mockingly awarded Zarghami the 'Best Censorship' prize on its front page. The Iranian Students' News Agency (ISNA) compiled a list of the moments IRIB cut from the broadcast. One of the most notable interruptions, according to ISNA, was when Seyed Jamal Satadian accepted his Best Producer award for his film 'Azar, Shahdokht, Parviz and Others.' Just as he said during his speech, 'I am hopeful that we reach a point where we tolerate all of the tastes,' the live feed was immediately cut. It appears that state TV cut into the ceremony mostly when the winners of specific films approached the podium to accept their Crystal Phoenix statues." http://t.uani.com/LX6CvG

Trend: "Two men were hanged in Iran's southern city of Shiraz this morning, Iranian Tasnim news agency reported on Feb. 13. The Iranian court has sentenced them to death by hanging on murder, rape and kidnapping charges. The two men, identified only as Rahim A. and Mohammad D. were executed upon the order of Shiraz Public and Revolution Prosecutor in the public square of the city of Kouzegari." http://t.uani.com/1jaFDs8

Foreign Affairs

Al-Monitor: "In a Feb. 4 interview with the semi-official Iranian Tasnim News Agency, Mohammed Majid al-Sheikh, Iraq's ambassador to Iran, was reported to have revealed his country's intention to strike a deal to buy weapons from Iran. The agency quoted Sheikh as saying, 'Some well-informed sources said that the Iranian-Iraqi talks came in light of the Iraqi Ministry of Defense's vision of the need to supply the Iraqi army with Iranian-made military equipment, given their efficiency and importance.' This style of statement is inconsistent with the ambassador's official role, which is to present the official position of the Iraqi government, from official Iraqi sources, not from 'well-informed sources.' This calls into question the validity of this supposed news, especially since it has not been confirmed by Iranian authorities or the Iraqi officials typically involved in such deals." http://t.uani.com/MfDwbS

Opinion & Analysis

Robert Fisk in The Independent: "In Iran, there should be a Dead Poets Society. Or perhaps a Martyred Poets Society, with its newest member a certain Arab-Iranian from Ahwaz, in the far south-west of the country, on the Iraqi border. He has been hanged for 'spreading corruption on earth', one of hundreds put to death by the Islamic revolution since 1979. Everything about Hashem Shabaani cries out in shame against his executioners: his pacifist poetry, his academic learning, his care for his sick father - a disabled soldier seriously wounded in the 1980-88 war against the Iraqi invaders of his country - and his love for his wife and only child. Already, of course, he has become a political corpse. His killers, the Iranian interior ministry and a revolutionary tribunal judge called Mohamed-Bagher Moussavi, must be the first culprits... Shabaani, needless to say, was accused of helping the 'resistance', presumably writing poetry in Arabic - and even translating Farsi poetry into the Arabic language - qualifies a writer as a subversive in Iran these days. In a letter from prison, Shabaani said that he could not remain silent against the 'hideous crimes against Ahwazis perpetrated by the Iranian authorities, especially arbitrary and unjust executions... I have tried to defend the legitimate right that every people in this world should have - which is the right to live freely with full civil rights. With all these miseries and tragedies, I have never used a weapon to fight these atrocious crimes except the pen.' Perhaps that was Shabaani's undoing. In Iran, the pen can indeed be mightier than the sword, especially when the nation's security services are growing increasingly paranoid about the danger of separatism, not only in Ahwaz, but in Baluchistan, Iranian Kurdistan and among the country's other minority communities... Shabaani himself should have been feted in his native Iran. Born in Ahwaz, he published poetry in both Persian and Arabic, got an MA in politics and led marches in protest at the arrest of students and the expulsion of professors. The prominent Iranian writer and journalist, Amir Taheri, has written of Shabaani's poetry - much of it non-political - and quoted from Shabaani's verse within days of his judicial killing. 'For seven days they shouted at me:/You are waging war on Allah,' Shabaani wrote of his trial in a poem he called 'Seven Reasons Why I should Die'. 'Saturday: because you are an Arab!/Sunday, well you are from Ahwaz ... Tuesday: You mock the sacred revolution ... Friday: You're a man, isn't that enough to die?'" http://t.uani.com/1nvUCh1

Aaron David Miller in FP: "here are many reasons that President Barack Obama doesn't want to get involved in Syria. And when I say involved, I'm not talking about providing humanitarian assistance or participating in the Geneva process. I mean significantly militarizing the U.S. role by either supporting the opposition with sophisticated military equipment or by directly applying U.S. military force -- or both... Yet it is more than likely that no real shift in America's limited, risk-averse strategy on Syria is in the offing. Obama has been stunningly clear on why. Indeed, reading David Remnick's interview with the president, it is refreshing to hear such honesty and clarity -- whether you agree with the policy or not. 'I am haunted by what's happened. I am not haunted by my decision not to engage in another Middle Eastern war. It is very difficult to imagine a scenario in which our involvement in Syria would have led to a better outcome, short of us being willing to undertake an effort in size and scope similar to what we did in Iraq. And when I hear people suggesting that somehow if we had just financed and armed the opposition earlier, that somehow Assad would be gone by now and we'd have a peaceful transition, it's magical thinking.' Yet there is one reason for the president's caution that he almost never mentions -- and it may be one of the most compelling. Not surprisingly, it is derivative of Obama's most important foreign-policy objective in the Middle East: a nuclear deal with Iran. Aside from another al Qaeda attack on the homeland, Iran is the only foreign-policy issue that has the power to mess up the remaining years of Obama's presidency. If diplomacy fails and Iran moves to break out and weaponize, or even come close to being able to make a deliverable weapon, the risks of three very unpleasant things happening go up: first, Obama getting blamed for being the leader on whose watch the mullahs got the bomb; second, Israel striking Iran; and third, America having to do the same thing, or getting dragged into an Israeli-Iran fight. The first development would leave Obama looking poor in the legacy department, weak and outfoxed. The latter two events would open up a box of very bad juju -- and would risk things like plunging financial markets, rising oil prices, attacks on U.S. forces in Afghanistan, and proxy terror. So, if at all possible, avoiding a confrontation with Iran is the president's core goal in the Middle East. (And, if I'm reading him correctly, he also believes it might have the fringe benefit of helping stabilize the region.) Where does Syria fit into all of this?Simply put, to have any chance of getting things done with Iran, America needs to be talking with the Iranians -- not shooting at them in Syria or anywhere else. Indeed, the last thing Obama wants or can afford now is direct military intervention in Syria that would lead to a proxy war; kill Iranian Revolutionary Guard units assisting Assad's forces; or convince Tehran that U.S. policy is designed to encircle Syria's Shia regime with a U.S.-backed Sunni arc of pressure. Critics of the president's Iran and Syria policy want him to pursue these objectives. Their argument holds that, if America brings Assad down, Iran will be more constrained and less of a threat, and that it will scale back its nuclear weapons ambitions. This is an interesting take -- and essentially great game strategy." http://t.uani.com/1kECF2H

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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