Eye on Iran: With Natural Gas Byproduct, Iran Sidesteps Sanctions

Join UANI           Top Stories NYT: "Iran is finding a way around Western sanctions to export increasing amounts of an ultralight oil to China and other Asian markets, expanding the value of its trade by potentially billions of dollars a year. The exports come during a slight thaw in Iran's relations with the West as negotiations over its nuclear program continue, and energy experts say it is counting on the United States and Europe to tolerate an increasing export stream. According to Iranian customs data, the country in recent months has exported 525,000 barrels a day of the ultralight oil, known as condensates, over two times more than it did a year ago. In the last three months, the sales have generated as much as $1.5 billion in extra trade - a rate of about $6 billion a year - based on Iranian trade figures and market prices, analysts said. The result has been an overall increase in petroleum shipments to China and other Asian markets without violating the letter of the sanctions. American officials have aimed to keep Iranian oil exports at around one million barrels a day, but when combined with condensate sales, they averaged 1.4 million barrels a day between January and May, according to the Energy Department... American regulatory agencies consider them a form of crude oil and severely limit the ability of producers to export the product. 'For U.S. regulations, we can't export condensates because it's a crude oil, but in sanctions for Iran they can export condensates because it's not a crude oil,' noted Larry Goldstein, a director of the Energy Policy Research Foundation, an organization partly financed by the oil industry. 'From a policy perspective, there is an inherent contradiction.'" http://t.uani.com/1urS0Zt Tasnim (Iran): "Supreme Leader of the Islamic Revolution Ayatollah Seyed Ali Khamenei on Wednesday dismissed as 'useless' the interaction between Iran and the US, and stressed that sitting around the table with Americans will have damaging effects. 'Relations with the US and negotiating with that country, except in specific cases, will have no benefit to the Islamic Republic, but rather will be harmful,' the Leader said, addressing a meeting with Iran's foreign minister, ambassadors and heads of diplomatic missions to the foreign countries, held in Tehran on Wednesday. Ayatollah Khamenei explained that the nuclear negotiations between Iran and the sextet of world powers over the past year caused a series of talks between Iranian diplomats and those of the US, which is also a member of the Group 5+1 (the five permanent UN Security Council members plus Germany). The Leader underlined that such meetings with the American negotiators within the framework of nuclear talks once again proved that negotiating with the US 'will not help anything, contrary to what some had assumed.' 'Not only did these contacts (with the US) fail to yield results, but also the tone of Americans became harsher and more insulting,' Imam Khamenei noted, referring to Washington's decision to ramp up sanctions against Tehran as a testimony to futility of the talks. The Supreme Leader, however, made it clear that Iran will not bow out of the nuclear talks, but stressed that such a 'precious experience' proved that 'interaction and talks with Americans have absolutely no impact on reducing their hostility and are useless.'" http://t.uani.com/Xhh87M Press TV (Iran): "Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei says Israel must pay for the crimes it has committed in Gaza by ending the siege of the Palestinian coastal strip... The Leader pointed to the growing global hatred of the US for its complicity in Israel's atrocities and noted, 'There is nobody in the world to absolve the Americans of involvement in the crimes and genocide by the usurper, wolfish, murderous, infidel and oppressive Zionist regime in Gaza; therefore, the Americans are now in a weaker position.'" http://t.uani.com/1urWvmF     Sanctions Relief Trend: "Iran's gas condensate exports increased to 7.75 million tons during the last four months, indicating a 2.3-time increase compared to the same period last year. Iran's fiscal year starts on March 20. Iran's Custom Administration released its monthly report on Aug. 13, saying the country's total gas condensate export value during last four months was $5.18 billion, 1.7 times more than the same period last year. It is not clear why Iran's gas condensate export experienced a 127 percent increase in volume, but has only a 72.3 percent increase in value, while there have not been any significant fluctuations in oil prices since last year. However, Iran reportedly offers discounts to customers to encourage them to buy more Iranian oil." http://t.uani.com/1prB5D0 Trend: "Iran's non-oil exports (including gas condensates) surpassed $16.1 billion during the 4-month period from March 21, which indicates an increase by 21.14 percent compared to the same months of the preceding year (Iran's fiscal year starts on March 21). Iran exported some 33.76 million tonnes of non-oil goods during that period which is 13.24 percent more compared to the 4-month period of last year, according to the Iranian Customs Administration's latest report released on Aug. 13... Iran exported $5.179 billion worth of gas condensates during that period. Meanwhile, the country's petrochemical exports surpassed $4.383 billion. Liquefied propane worth $687 million, methanol worth $579 million and liquefied butane worth $535 million also topped the list of Iran's exported non-oil goods. Iran also imported about $17.655 billion worth of goods during the period, which indicates a rise by 35.78 percent, compared to the 4-month period of the preceding year." http://t.uani.com/1rqMT6Q Bloomberg: "Chennai Petroleum Corp., a unit of India's largest refiner, plans to resume crude imports from Iran after a two-year gap as insurers return to the market. 'This year, we plan to restart Iran oil purchases,' Managing Director S. Venkataramana said in a phone interview. 'We are already talking to the re-insurers for this, and we are getting positive responses so far.' Chennai Petroleum, controlled by Indian Oil Corp. (IOCL), plans to import about 300,000 metric tons of oil from Iran for the year ending in March 2015, he said." http://t.uani.com/1sSt8WS Human Rights ICHRI: "Three weeks after Washington Post reporter Jason Rezaian and his journalist wife Yeganeh Salehi were arrested in Tehran, Iranian judicial authorities continue to refuse to provide any information about the reasons for the couple's arrest or any news about their condition. The International Campaign for Human Rights in Iran has also learned that officials from the Iranian Judiciary and Ministry of Culture and Islamic Guidance have kept reporters from pursuing the case by telling them that this is a 'security' case and that its pursuit 'is dangerous.'" http://t.uani.com/1oJanRp ICHRI: "The youths involved in making the 'Happy in Tehran' dance video will be collectively put on trial on September 9, 2014, a source informed the International Campaign for Human Rights in Iran. The accused, who are being represented by several lawyers, were last summoned for questioning between June 16 and June 19. They were asked questions such as, 'Whose idea was it to make the video?' and 'Who uploaded the video on YouTube?' The charges include 'illegitimate relations,' 'contact with foreign television networks,' 'distribution of a video on the vulgar YouTube channel,' 'failure to observe Islamic covering [hijab],' and 'dancing.' Agents used personal photos and films confiscated during the arrests to pile additional charges against the accused. On May 19, 2014, six individuals involved in the Iranian version of the popular 'Happy' video by Pharrell Williams were detained and transferred to the Tehran Morality Police's Vozara Complex. They were released two days later, after posting bail. Sassan Soleimani, the video's alleged director, was arrested on May 20, 2014, and held in detention for several weeks." http://t.uani.com/1AdA7ha Domestic Politics LAT: "Iranian President Hassan Rouhani found himself in a political firestorm Tuesday, the day after he denounced his hard-line critics as 'political cowards' who oppose his efforts to reach an agreement with the West over the country's nuclear program. Two hundred members of Iran's Parliament demanded that Rouhani meet with them behind closed doors to explain his speech, delivered to an annual meeting of Iranian ambassadors. In it, the president, known as a moderate, said the opponents of a nuclear deal were suffering from 'negotiation-phobia' and suggested they go to hell. 'Once one talks about negotiations, they say we are trembling. To hell -- go find a warm place for yourself! God has made you cowards,' he said. The deputy speaker of Parliament, Mohsen Abutorabifard, was among those criticizing Rouhani on Tuesday, saying the president should avoid using such intemperate language. Even two reformist publications chided him, saying Rouhani shouldn't behave like his predecessor, the fiery conservative Mahmoud Ahmadinejad, by using 'colloquial and inappropriate' words. 'One President Ahmadinejad is enough for Iran,' said the Initiative newspaper." http://t.uani.com/XhibEP Foreign Affairs Reuters: "Iranian Supreme Leader Ayatollah Ali Khamenei lent his support to new Iraqi Prime Minister-designate Haider al-Abadi on Wednesday, the clearest sign yet that Tehran was no longer standing by old ally Nuri al-Maliki. 'I hope the designation of the new prime minister in Iraq will untie the knot and lead to the establishment of a new government and teach a good lesson to those who aim for sedition in Iraq,' Khamenei said during a meeting, according to a statement on his website. Abadi has won swift endorsements from the United States and Iran as he called on political leaders to end feuds that have allowed Islamist militants to seize a third of Iraq. But Maliki said on Wednesday that Abadi's appointment to replace him violated the constitution and 'had no value.'" http://t.uani.com/Vlthqq Press TV (Iran): "Tel Aviv has descended into a geopolitical cul-de-sac thanks to the sway of the Islamic Republic, Iran's Defense Minister says. 'The regional power of the Islamic Republic of Iran and its allies has made the Zionist regime [Israel], which until yesterday fantasized about extending its dominion to the Nile and the Euphrates, now resort to a separation barrier to provide its security and hit a geopolitical impasse in the confrontation with the Palestinian people's Intifada [uprising] and the fierce resistance of the Gazans,' Brigadier General Hossein Dehqan said in an address to a gathering in Tehran of Iranian ambassadors and envoys on Tuesday. Dehqan further stressed the importance of Iran's geopolitical and geostrategical position and added that Iranian Armed Forces' defense and deterrence power buttresses the country's foreign policy. 'After the victory of the Islamic Revolution [in 1979], the Islamic Republic of Iran, as a regional power, has played a leading and influential role in the regional and international scene.'" http://t.uani.com/1oJdEju Fars News (Iran): "Commander of the Basij (volunteer) Force Brigadier General Mohammad Reza Naqdi described the British embassy in Iran as a 'spy den' due to its role in the 2009 post-election unrests, and said the British are desperately seeking to bring back Iran under their reign, although to no avail. Naqdi referred to the British embassy's role in the 2009 post-election unrests in Iran, and said, 'The people (in Iran) are entitled to know about the role of the British spy den in those bitter events.' 'The filthy monarchical British regime still feels pity for the black era of colonialism and it wishes to find new Khans to follow the footsteps of its former servants like Reza Khan (the father of Mohammad Reza Pahlavi, the last king of the Pahlavi dynasty in Iran who was toppled in the 1979 Islamic Revolution in the country) and rule the Iranian people and it wishes to return to the black era of colonialism by sowing discord and creating distance between the Iranian people and the pivot of Islam and unity, but it will take this wish to the grave,' he said, addressing Iranian war veterans in Tehran on Wednesday." http://t.uani.com/1urWMWM Opinion & Analysis UANI Advisory Board Member Walter Russell Mead in The American Interest: "As Maliki loses ground in the face of combined US-Iranian disapproval, rapprochement with Iran is probably looking more appealing to the White House than ever. The U.S. and Iran are both concerned about ISIS and they both agree on the need for pragmatic, results oriented leadership in Baghdad as the threat grows. The convergence of U.S. and Iranian interests in Iraq continues to develop. If there is one fixed star in the administration's Middle East policy it has been the belief that a 'grand bargain' with Iran offers the best hope for regional stabilization. From the campaign trail back in the Democratic primary season in 2008 right up through the current round of negotiations with Iran, President Obama has done his best to steer American policy toward some kind of arrangement with the government in Tehran. He is likely to be strengthened in that belief by the recent developments in Iraq and will be more convinced than ever that his core strategy of attempting a nuclear deal with Iran as the basis for a new architecture in the Middle East remains his best and perhaps his only option. There are signs that many of the President's advisors share a belief that the rise of ISIS is as frightening to the mullahs as it is to the West, and that the new jihadi peril will therefore strengthen the factions in Iran who believe in compromise with the West. They will see Iran's willingness to accept Abadi as evidence that much broader cooperation is possible, and they will urge President Obama to do everything he can to seize the opportunity for a breakthrough with Iran. U.S. negotiators will sweat blood to meet the new November deadline in talks with Tehran, in Iraq the Administration will seek to build on common support for Abadi, and militarily we may even look for ways to cooperate with Iran against ISIS. More, the perception that a breakthrough with Iran is just around the corner will encourage the President to slight or sacrifice the interests of traditional U.S. allies in the region. It will strengthen the hand of those in the Administration who tell the President that he should stay the course in the Middle East, pursuing a 'grand bargain' with Iran, and supporting 'moderate Islamists' and pro-Muslim Brotherhood governments in places like Qatar and Turkey, even if that alienates Saudi Arabia, Israel and Egypt. If America takes this course, expect regional tensions to rise, rather than relax, even if things calm down in Baghdad. It's not clear that the President's goal of a grand bargain with Iran is within reach, or that it will deliver the kind of stability he hopes for. For one thing, it's possible that the Iranians are less interested in reaching a pragmatic and mutually beneficial relationship with Washington than in using Obama's hunger for a transformative and redeeming diplomatic success to lure him onto a risky and ultimately disastrous course. For another, Iran's local rivals will be looking for ways to derail administration strategy on the ground. As we've seen from the Saudi-backed coup in Egypt against the U.S.-backed Morsi government, and again in the Saudi-Egyptian-Israeli partnership to derail John Kerry's Gaza diplomacy, this alliance is not without capabilities. There's a very good chance that determined and feisty opposition by the new Cairo-Jerusalem-Riyadh axis, or by Iran's opponents in the U.S. Congress, would wreck the President's Iran deal even before it gets struck. Meanwhile, even as the President approaches the moment of truth with Iran, the region is becoming more explosive and less stable by the day." http://t.uani.com/1rqRWUQ Majid Rafizadeh in Al Arabiya: "After eight years of Nouri al-Maliki in office, the Islamic Republic turned its back on one of its staunchest allies. With no political, economic and military support from the Islamic Republic, the end of Maliki's political life seems to be in the pipeline... The Islamic Republic was influential in retaining Maliki's power and his Shiite coalition and ensuring his second term in power. Nevertheless, the Iranian authorities - particularly the Supreme Leader Ayatollah Ali Khamenei, the senior cadre of Iran's Revolutionary Guard Corps (IRGC) as well as Iran's ministry of intelligence- ultimately came to the conclusion that it was time to make a tactical shift and leave behind their ally, Maliki. Nevertheless, the key question is why the Islamic Republic made such a crucial shift in its foreign policy and abandoned Iraqi Prime Minister Maliki? First of all, Iranian leaders' decision to abandon the entrenched prime minister and endorse Haider al-Abadi might appear to be a pro-Western strategy, specifically in favor of the US current foreign policy towards the Iraqi crisis, sectarian conflict and civil war. However, it is critical to point out that the underlying factors behind Iran's decision to turn its back on Maliki is distinct from those of Western ones. There are several reasons behind Iran's shift. The major reason for abandoning Maliki is tactical with regards to the role of ISIS. In other words, one of the most critical security threats for the Islamic Republic is the rise of ISIS and the Sunni insurgency. In addition, Iran shares a 1,500 kilometer border with Iraq. This could be utilized as a significant platform by ISIS to infiltrate several Iranian cities near the border and cause political instability for the Iranian leadership. Secondly, many of the Iranians who reside near the border are Sunnis. The Iranian authorities are concerned that the Iranian Sunnis might be sympathetic to the Iraqi Sunni insurgency and could potentially join their cause. Ayatollah Ali Khamenei and the senior officials of IRGC have come to the conclusion that Maliki could not effectively control and manage the sectarian conflict, civil war, rise of ISIS and other Sunni insurgency groups. Thirdly, the Iranian authorities are concerned that this sectarian conflict might spill over to neighboring Iranian provinces with significant Arab populations, including Khuzestan and Ahvaz. Fourth, it is crucial to point out that without the approval of Ayatollah Ali Khamenei as well as the senior cadre of the IRGC, it would have been relatively impossible to envision the nomination of Haider al-Abadi as new Iraqi Prime Minister. The Islamic Republic's approval of Haider al-Abadi has likely included a long process of bargaining, political pressure and negotiations between Iranian authorities and the Iraqis. As a result, from the perspectives of the Iranian leadership the prime minister nominee, Haider al-Abadi, does serve their national, security, geopolitical, strategic and ideological interests. In addition, from the perspective of the Islamic Republic, Abadi is the best alternative to Maliki, who can also serve as a credible and close ally to the Islamic Republic. Otherwise, considering Iran's political, social, religious, ideological, and economic influence in Iraq, the Islamic Republic would have not accepted a nomination of a new prime minister in Iraq if it did not serve its national interests. Abadi has already accepted Iran's political assistance and role in re-stabilizing the country. Finally, from the realms of military, economic cost and benefits and spending of political capital, Iranian authorities have made a pragmatic and calculative tactical shift. Beside economic, financial advisory and intelligence assistance, Iran has been investing its troops from the Quds force - an elite branch of Iran's Revolutionary Guard Corps- which have been operating on the ground in Iraq in order to quell the rise and operations of ISIS and other affiliated extremist insurgencies. Nevertheless, the Islamic Republic's assistance to the government of Nouri al-Maliki and the ruling Shiite coalition did not completely halt the rapid advancement of ISIS fighters. The sectarian conflict, civil war and territorial and military progress of ISIS appeared to ratchet up despite the presence of Iranian ground forces. In other words, the government of Nouri al-Maliki became a costly burden on every level for Iran. Replacing Prime Minister Maliki with Haider al-Abadi is considered a pragmatic and more cost effective option for the Iranian leadership." http://t.uani.com/1urZewx 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.