Monday, February 3, 2014

Eye on Iran: Iran Welcomes French Business Chiefs After Sanctions Eased








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Reuters: "Iran welcomed the most senior French trade delegation in years on Monday, telling more than 100 executives that the farsighted among them stood to win the race for business following an easing of some economic sanctions. The prospect of a relaxation of commercial restrictions has whetted the appetite of French firms eager to win back business in an oil- and gas-producing country of about 80 million people where some previously had extensive operations. 'A new chapter has begun in relations between Iran and Europe,' Mohammad Nahavandian, President Hassan Rouhani's chief of staff, was quoted as saying by the official IRNA news agency. 'You should carry the message back that potential for cooperation with Iran is real and not to be overlooked,' he told the delegation. 'Those with longer foresight stand to win this race.' The delegation of more than 100 executives from Medef, the French employers' association, on a Feb 2-5 trip, met Nahavandian and members of Iran's Chamber of Commerce, Industries, Mines and Agriculture, IRNA said. A source close to the delegation told Reuters it was the most senior group of entrepreneurs and financiers to visit Iran since the 1979 revolution, representing the defence, aviation, petrochemicals, automotive, shipping and cosmetics sectors. Among companies represented were Safran, Airbus, Total, GDF-Suez, Renault, Alcatel, Alstom, Amundi and L'Oréal, the source said. 'Many of these firms have worked in Iran before and their goal now is to restore links,' the source said. 'The very makeup of the delegation shows these people are here to evaluate potential for cooperation.' A French embassy source in Tehran said the visit was merely exploratory and 'nothing is to be signed this time around.'" http://t.uani.com/1eMMMel

AFP: "Iran has received the first instalment of $4.2 billion in frozen assets as part of a nuclear deal with world powers, Deputy Foreign Minister Abbas Araqchi told ISNA news agency Saturday. Unblocking the funds under the landmark deal in which Iran agreed to roll back parts of its nuclear programme and halt further advances is expected to breathe new life into its crippled economy. 'The first tranche of $500 million was deposited in a Swiss bank account, and everything was done in accordance with the agreement,' Araqchi said... A senior US administration official told AFP last month that the first $550-million (400-million-euro) instalment of $4.2 billion in frozen assets would be released from February. 'The instalment schedule starts on February 1 and the payments are evenly distributed' across 180 days, the US official said." http://t.uani.com/1kunVB3

Fars News (Iran): "Supreme Leader's representative at the Islamic Revolution Guards Corps (IRGC) Ali Saeedi underlined Iran's regional influence, and said that the country's clout has now gone way beyond the nation's geographical borders. 'Today our borders have stretched and reached the Mediterranean coasts,' Saeedi said, addressing a ceremony marking the 35th anniversary of the return of the founder of the Islamic Republic, late Imam Khomeini, from exile back in 1979. The IRGC official underlined that Iran should now be careful not to lose these stretched boundaries of power, otherwise the enemy will once again come to stand right behind the country's borders." http://t.uani.com/1cNedbl
   
Nuclear Program & Negotiations

Reuters: "Six world powers and Iran will begin talks in Vienna on February 18 on a long-term deal for Tehran to curb parts of its nuclear programme in exchange for a gradual end to sanctions, European Union foreign policy chief Catherine Ashton said on Friday. 'We have agreed that we will start the talks on February 18 at the U.N. building in Vienna,' Ashton said after what she described as a 'really interesting' meeting with Iranian Foreign Minister Mohammad Javad Zarif at the Munich security conference. 'It's a good change of venue to the U.N. office (in Vienna). We are looking forward to seeing you in Iran soon,' Zarif said." http://t.uani.com/1aW82Tx

WSJ: "The six powers negotiating a nuclear accord with Iran will take the time they need to seal what will be an 'extremely difficult' accord even if that means extending their six-month timeline, European Union foreign-policy chief Catherine Ashton said. In an interview with The Wall Street Journal on the sidelines of the Munich Security Conference on Sunday, Baroness Ashton, who is the EU's chief negotiator, said a final deal must make the international community certain that Iran's nuclear program is peaceful... 'Everyone will say to you, and rightly so, this is extremely difficult,' Baroness Ashton said. 'We have no guarantees in this and we will take the time that is necessary to get this to be the right agreement.' Western officials say privately that they are doubtful an accord can be sealed by July, given the complexity of the issues... An extension of the talks could escalate pressure in the U.S. Congress for fresh Iran sanctions and would mean the continuation of negotiations during the American midterm vote in November." http://t.uani.com/1ajsDjV

NYT: "Iran's foreign minister, Mohammad Javad Zarif, met for an hour on Sunday with Secretary of State John Kerry, another sign of serious efforts to solve the crisis around Iran's nuclear program. The two met on the margins of the Munich Security Conference here, and Mr. Zarif later said on a public panel that Iran 'will go to those negotiations with the political will and good faith to reach an agreement.' According to American officials, Mr. Kerry 'reiterated the importance of both sides negotiating in good faith' when talks aimed at a comprehensive deal begin Feb. 18 in Vienna. Mr. Kerry also urged Iran to keep to 'its commitments' under an initial temporary deal agreed upon in November. Mr. Kerry told Mr. Zarif that the United States would continue to enforce existing sanctions, the officials said, but also emphasized that Washington would keep its commitment not to create new sanctions while the temporary, six-month deal was in force." http://t.uani.com/1dYbTcT

Reuters: "Iranian Foreign Minister Javad Mohammad Zarif said on Monday a final deal with world powers on Tehran's nuclear program is possible within six months if there is good will and he was not worried about the U.S. Congress trying to impose new sanctions... 'With good will we can reach an agreement within six month,' he said in a speech to the German Council on Foreign Relations. 'I don't fear a decision in the U.S. Congress ... The U.S. president has promised to veto it.' Zarif was visiting Berlin after meeting U.S. Secretary of State John Kerry and other members of the six powers negotiating with Iran at the annual Munich Security Conference at the weekend." http://t.uani.com/1kEg4kg

Reuters: "President Hassan Rouhani has secured the backing of senior conservative clerics against hardliners opposed to a nuclear deal reached with major powers, Iran's official news agency IRNA said on Saturday. His first vice president, Eshaq Jahangiri, visited clerics in the Shi'ite Muslim holy city of Qom to explain the deal and seek their blessing over 'complex foreign policy issues' ahead of talks next month on a long-term accord, IRNA said... IRNA said the response of from the clerics in Qom, in central Iran, was unanimously positive. Support from Qom, whose clerics traditionally have influence among core supporters of the establishment, is likely to boost Rouhani's government's position in the next round of talks in Vienna, having already won over more reform-minded clerics." http://t.uani.com/1bn3YJx

Sanctions Relief

AFP: "Six months after the inauguration of Iran's moderate President Hassan Rouhani, Western diplomats and businessmen are racing to Tehran hoping that a diplomatic thaw will reopen lucrative markets... Iran has also seen recent high-profile political visits, including by Turkish Prime Minister Recep Tayyip Erdogan, who led a delegation last week aimed at boosting economic ties between the two countries, which back opposite sides in Syria's civil war. Italian Foreign Minister Emma Bonino visited Tehran in December. And Swedish Foreign Minister Carl Bildt is due to arrive in Tehran on Monday, while his Polish counterpart Radoslaw Sikorski is expected in late February. The recent visits of former British foreign minister Jack Straw and ex-UN chief Kofi Annan could be also added to the list... 'These visits are a sign that the taboo of sanctions has been shattered,' Amir Mohebian, a political analyst, told AFP. 'This is already a major success for the diplomacy of President Rouhani.'" http://t.uani.com/1dm0V0W

FT: "A delegation of more than 100 French companies is set to visit Tehran on Monday in the biggest demonstration of western business interest in Iran for more than a decade. The three-day visit, which includes top French companies such as oil major Total, engineer Alstom, telecoms group Orange and carmaker Renault, has raised hopes in Iran that an interim deal on its nuclear programme could lead to a return of foreign investment. This was sharply curtailed after sanctions were imposed in retaliation for Tehran's perceived bid to acquire nuclear weapons... The French delegation includes government representatives but not France's two big nuclear power companies, Areva and EDF. Other countries are also preparing to seize opportunities which may be created if sanctions are eased. A German business delegation, comprised of specialised companies in the food industry, health, spare auto parts industries, as well as in urban planning and engineering, is due in late February. A Dutch delegation is also expected soon." http://t.uani.com/MqbHgL

Reuters: "France will have 'significant commercial opportunities' in Iran if sanctions are lifted, but Tehran first has to prove its good faith in abiding by nuclear undertakings, Finance Minister Pierre Moscovici said on Sunday. Moscovici was speaking on LCI television as a French business delegation travelled to the Iranian capital for meetings with officials and business leaders. The three-day visit is intended to 'convey the message that, if the situation improves, there will be significant commercial opportunities for France in Iran', Moscovici said. 'But the underlying message should be read as an (encouragement) to the Iranians to keep their word,' he said, adding: 'It's a very sensitive dossier.'" http://t.uani.com/1fSdTXx

Sanctions Enforcement & Impact

WSJ: "U.S. officials are fanning out across the globe, privately warning international executives not to commit too much as they re-engage with Iran during a temporary easing of sanctions. The outreach echoes some of the statements U.S. officials have made in recent weeks cautioning about the limited and temporary nature of the sanctions relaxation. In recent days, senior U.S. officials have also started touring global commercial capitals-including London, Paris and Dubai-and meeting executives from blue-chip companies to hammer home the message. Treasury Secretary Jacob Lew said in an interview on Friday that he has personally taken on the issue in meetings with hundreds of American and international business executives in recent weeks. This effort included meetings he held at the World Economic Forum in Davos, Switzerland last week. 'It's really important that businesses understand that we are continuing to monitor transactions and enforce sanctions,' Mr. Lew said. 'It's really been our focus that we don't have any misunderstandings.'" http://t.uani.com/1n7ecjk

WashPost: "Secretary of State John F. Kerry told Iran's foreign minister Sunday that the United States will continue to enforce existing sanctions on Iran while bargaining over a deal to rein in Iran's disputed nuclear program. The top U.S. and Iranian diplomats held a rare face-to-face meeting Sunday in Germany, the State Department said... 'Secretary Kerry reiterated the importance of both sides negotiating in good faith and Iran abiding by its commitments' under that initial agreement, a senior State Department official said Sunday. 'He also made clear that the United States will continue to enforce existing sanctions.'" http://t.uani.com/1fSgz7r

Syria Conflict

Al-Monitor: "Hard-line Iranian University Students News (IUSN) published the names of 15 Iranians killed who had volunteered to go to Syria. While Iranian officials and commanders have admitted to having sent 'advisers' into Syria to assist the Syrian government in its fight against the opposition, that Iran has active fighters is addressed only when the hard-line media mention that a fighter has been killed in Syria 'defending the Shrine of Zeinab,' which is the official line on those who die in Syria. Iran has mandatory military service, but those who have gone to fight in Syria are most likely part of the Islamic Revolutionary Guard Corps' Quds Force that have chosen to fight in Syria. In the Iranian hard-line media are typically shown pictures of their funerals and posters of them with the Shrine of Zeinab in Damascus. In September of 2013, video footage of an Iranian commander and cameraman revealed that Iran's role in training militias across the region was deeper than officials had suggested." http://t.uani.com/1bn6aRf

Human Rights

AFP: "Iranian opposition figure Mehdi Karroubi, detained for three years at a safe house for orchestrating anti-government protests, has been moved home but still kept under house arrest, his son said Sunday. Karroubi and fellow opposition leader Mir Hossein Mousavi and Karroubi have been held incommunicado under separate house arrests since February 2011 for orchestrating massive, unprecedented street protests sparked by a disputed presidential election in 2009. Karroubi 'was transferred to his home last night,' his son, Hossein Karroubi told ISNA news agency. He said that his father has been confined to the second floor of the family house while 'security forces are present on the first floor'. 'In terms of security, nothing has changed. The location (of his incarceration) only has changed,' said Hossein Karroubi. He said that his father can only watch state television and has no access to the Internet or the telephone." http://t.uani.com/MRQj4S

Al-Monitor: "Mahboubeh, a 62-year-old Iranian schoolteacher, was forbidden from traveling outside the country a couple of weeks ago. She has been separated from her husband for three years, after what she describes as over three decades of constant fighting. Since her husband has not agreed to divorce her, he has taken revenge by preventing her from leaving the country, even for a short trip to the United Arab Emirates with a couple of her old friends. Mahboubeh told Al-Monitor she's fed up with the system that hands over so much authority to men, allowing them to rule women's lives, even when they are no longer living under the same roof. Married Iranian women, even if they hold a valid passport, require their husband's permission to depart the country, regardless of age. For obtaining or renewing a passport, a notarized permit from the spouse is required. Husbands can easily refrain from allowing their wives to obtain or renew their passport." http://t.uani.com/1bn5ATL

ICHRI: "In an action labor leaders are calling 'illegal,' security forces have arrested over 20 workers of the Chadormalu Mine in the central province of Yazd, including the head and the secretary of the labor union, who stopped work as part of a contract negotiation and labor dispute. Prominent labor unionist Mansour Osanloo told the International Campaign for Human Rights in Iran, 'According to the Iranian Labor Law, when workers reach a dispute with their employers because of their pay or other guild demands, they have a right to stop work. Therefore they didn't do anything illegal to warrant the arrests.' For the past several months, more than 3,000 workers have demanded a pay increase that is compatible with the inflation rate, as well as their overtime pay which had been unpaid for four months." http://t.uani.com/1esJpwD

Opinion & Analysis

Alireza Ramezani in Al-Monitor:
"Iran made the decision to prescribe 'resistance' for its ailing economy more than three years ago, after US-led sanctions against it gained momentum. The strategy was an attempt to thwart the effects of the sanctions and accelerate the implementation of a long-awaited plan to reduce the country's reliance on oil exports. The United States, however, moved too quickly for Tehran on new sanctions, leaving large parts of Iran's nearly $1 trillion economy disconnected from the rest of the world and shattering hopes that the new strategy adopted by ultraconservatives would have time to work. The idea to adopt a 'resistance economy' came from Iran's supreme leader, Ayatollah Ali Khamenei, who announced it in a speech in summer 2010. He later proclaimed the new year starting March 2011 as the 'Year of Economic Jihad.' Twelve months after that, he proclaimed the 'Year of National Production,' encouraging authorities to produce a revolution in the country's economy in defiance of Washington's demand that Tehran abandon its nuclear energy program or face continued economic punishment. The strategy required the government to take prompt measures to reduce reliance on oil revenues, which constituted approximately 60% of the country's foreign revenues. Many also interpreted the call to 'resistance' as a reaction to the populist President Mahmoud Ahmadinejad's economic policies, which ultimately increased liquidity to 4,730 trillion rials ($190.3 billion) in June 2013, a sevenfold increase compared to 2005 figures, and increased inflation by more than 40% for the first time in years. At present, the majority of political groups believe the economy simply did not respond to resistance, while a minority argues that the timing was not right early on. The groups who opposed the strategy from the beginning assert that the resistance economy was always a 'myth.' They contend that the nuclear deal reached in Geneva between Iran and the P5+1 powers in November was a more true solution to the decadelong dispute with the West. The six-month agreement - which includes easing sanctions and releasing $4.2 billion in frozen Iranian oil revenue assets - is expected to breathe fresh air into the Iranian economy. In addition, President Hassan Rouhani has vowed to pursue a more comprehensive agreement in the near future that he hopes will further break the ice on relations with Iran's greatest foe... With sanctions targeting Iran's economic Achilles' heel, the petroleum sector, its oil exports have fallen to around 1.2 million barrels per day (bpd), down from 2.5 million bpd in 2011. The decline in one year alone, 2012-2013, reduced oil revenue by $26 billion. Sanctions have affected other sectors as well. The automotive industry, which ranks second, after oil and gas in terms of revenue generation, is also in bad shape. In 2011, Iran produced 1.65 million cars, with exports to Africa, Iraq, Russia, South America and Syria. Production plunged by 40% in 2013, pushing the industry's world ranking to 21st, down from 13th two years prior, and affecting 700,000 employees, constituting 4% of the workforce. Iran has more than $100 billion in foreign exchange assets amassed around the world, but it has not been able to touch them due to the financial restrictions of the US-led sanctions. A shortage of foreign currency coupled with depreciation of the rial in the last couple of years caused food prices to jump multifold, raising fears among authorities that 'resistance' for millions of Iranians living below the poverty line was exhausting them. So, the Geneva deal was a relief for everybody, including ultraconservatives, despite their publicly expressed outrage against Rouhani's 'compromising.'" http://t.uani.com/1nImGRf

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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