Monday, December 1, 2014

Eye on Iran: Khamenei Tells Iran Armed Forces to Build Up 'Irrespective' of Diplomacy








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Reuters: "Iran's supreme leader Ayatollah Ali Khamenei said on Sunday the armed forces should increase their combat capability regardless of political considerations, in an apparent allusion to continuing nuclear talks with the West aimed at easing tension in the Middle East. 'Given our vast maritime borders and the enemy's huge investments in this area, our armed forces should continuously improve their (combat) readiness, irrespective of political calculations,' Khamenei told a gathering of senior navy officials during a ceremony to mark the 'Navy Week' in Iran... In tandem with Rouhani's diplomatic overture, generals appointed by Khamenei are maintaining a relentless war rhetoric and unveil on an almost daily basis what they say are new innovations in weaponry. 'The range of (our) missiles covers all of Israel today,' the chief of the Revolutionary Guards, General Mohammad Ali Jafari, said last week. 'That means the fall of the Zionist regime, which will certainly come soon.'" http://t.uani.com/1z7kzdR

AFP: "Iran's auto industry has been a major casualty of penalties imposed over the Islamic republic's nuclear programme, with production plummeting and workers laid off because of the ensuing economic slowdown... But the auto sanctions were lifted earlier this year after an interim nuclear agreement was reached between Iran and world powers and a final accord is still on the horizon, raising the prospect of better times for the industry. That will draw international suitors to Tehran on Monday for the second consecutive Iran Auto Show. Mercedes Benz, Volkswagen, Renault, Peugeot, Kia and Toyota have confirmed... "The day the nuclear deal is signed... business will pick up," said a foreign auto expert who claims a preliminary agreement with Volkswagen's Skoda has already been made. Hyundai and Fiat are also reportedly looking for deals." http://t.uani.com/1vH7uaF

Reuters: "Russia hopes a deal to supply grain and equipment to Iran in return for oil can be reached soon, Russia's Economy Minister Alexei Ulyukayev said on Sunday. 'It (the deal) will affect not only grain, there are broad lists of goods ... We expect that (a deal) could be reached in the near future,' Ulyukayev told reporters in Tehran, according to the RIA news agency. In January, Reuters reported that Moscow and Tehran were discussing a barter deal worth up to $20 billion that would see Moscow buy up to 500,000 barrels a day of Iranian oil in exchange for Russian equipment and goods. Such an agreement would enable Iran to significantly raise oil exports despite sanctions over its nuclear programme, and give the slowing Russian economy a much-needed boost. But it would also strain relations between Moscow and the West at a time when they are already frayed over the Ukraine crisis." http://t.uani.com/1y7zNRF

   
Nuclear Program & Negotiations

Reuters: "Iran will convert more of its higher-grade enriched uranium into reactor fuel under an interim nuclear deal with six world powers, making the material less suitable for building atomic bombs, a diplomatic source said on Monday... Iran earlier this year eliminated its stockpile of uranium gas enriched to a fissile concentration of 20 percent, a relatively short technical step from weapons-grade material. A large part of it was processed into oxide. When the deal was first extended in July, Iran undertook to move further away from weapons-usable material by converting 25 kg of the higher-grade uranium oxide - a quarter of the total - into nuclear fuel during the initial four-month extension. The source, who declined to be named, said under the new extension Iran would continue this work and suggested about 5 kg would be converted per month. The details of the extended agreement have yet to be made public. In July, a senior U.S. official said that once the oxide had become fuel plates for a Tehran research reactor, Iran would 'find it quite difficult and time-consuming' to use it in any nuclear bomb 'breakout scenario.'" http://t.uani.com/1y3VZbB

Sanctions Relief

Trend: "French giant carmakers Renault and Peugeot will continue cooperation with Iran. Jean-Christophe Quémard, Peugeot Operational Director of Middle-East and Africa, said the company is interested in launching production lines in Iran benefiting from state-of-the-art technologies, Iran's Fars news agency reported on Dec. 1. He made the remarks on the sidelines of the 2nd Iran Auto Industry International Conference, which opened today in Tehran. Peyman Kargar, Renault Managing Director for Middle East, said on the sidelines of the conference that Renault sees Iran as a strategic partner and will continue making joint ventures with Iranian companies. The company has the capacity to produce 300,000 cars in Iran, he added." http://t.uani.com/1A7tZXC

Trend: "Iran's non-oil trade turnover (including condensates) surpassed $65.7 billion during the first eight months of current Iranian fiscal year (March 21- Nov. 22), Iranian Customs Administration reported Nov. 30. Iran's non-oil exports stood at $31.447 billion during the period, 19.72 percent more compared the 8-month period of last year(Iran's fiscal year starts on March 21). Iran also imported about $34.254 billion worth of goods during the period, which indicates a rise by 20.22 percent in value year on year." http://t.uani.com/11HUFlX

Trend: "Iran's Vice President for Planning and Strategic Supervision Mohammad Baqer Nobakht said the inflation rate for the 12-month period to the eighth Iranian calendar month (ended on November 21) hit 17.8 percent. 'The figure is 1.3 percent less than its preceding month,' he said, Iran's Mehr News Agency reported on Nov. 26. 'The country's point-to-point inflation in the mentioned month was 13.2 percent, while the previous month it stood at 14.2 percent,' he said." http://t.uani.com/1vHi7dt

IRNA (Iran): "A trade delegation comprising over 30 senior managers of Germany's Near and Middle East Association will arrive in Tehran on December 6. According to the official website of Trade Promotion Organization of Iran, tpo.ir, during their four-day visit, the delegation will hold meetings with the ministers of trade, energy and communications to explore ways of broadening economic ties, according to Monday's edition of 'Iran Daily'. Valiollah Afkhami-Rad, the head of TPOI, will host the German delegation on Monday to discuss promotion of bilateral trade. The German traders plan to hold meetings with Mehdi Karbasian, the head of Iranian Mines and Mining Industries Development and Renovation Organization, Gholamhossein Shafeie, the head of Iran's Chamber of Commerce, Industries, Mines and Agriculture, and Mohammad Khazaei, the head of the Organization for Investment, Economic and Technical Assistance of Iran. The delegation is also scheduled to hold meetings with the managing directors of Iran Khodro Diesel, Saipa, National Iranian Copper Industries Company, Bank of Industries and Mines, and Renewable Energy Organization of Iran." http://t.uani.com/1yBvlum

Trend: "Finnish mining technology company Outotec signed a deal with Iranian Mines and Mining Industries Development and Renovation (IMIDRO) worth €9.3 million to transfer Nepheline syenite production technology. The deal was signed on Saturday and the technology will be transferred over the course of eight months, Iran's IRNA news agency reported on November 23. The industrial use of Nepheline syenite includes refractories, glass making, ceramics and, in pigments and fillers. It is also used as construction facade, interior wall texture, and countertops. The project is aimed to produce 200,000 tons of alumina powder and 150,000 tons of industrial salts per year. Iran needs around 800,000 tons of alumina powder annually." http://t.uani.com/1tD7ILZ

Trend: "Two Iranian companies have expressed readiness to invest around $1 billion in the implementation of the Imam Khomeini International Airport development project. Managing Director of Iran's Airports Company Mohammad Ilkhani said a memorandum of understanding has been signed with the two companies, Iran's Fars news agency reported on November 22. However, he did not provide details about the two companies. Meanwhile, the managing director of one of the companies said €1.2 billion will be invested in the project through a Chinese-French joint venture. China's CSCEC and France's Lyon Airport will participate in the joint investment plan, he added." http://t.uani.com/12jQKLS

Trend: "Iranian Minister of Industries, Mines and Trade Mohammad Reza Nematzadeh defended decision of issuing license for imports of Marlboro cigarettes. He said that the cigarette brand producer is not related to Israel, Iran's official IRNA news agency reported Nov. 30. He added that after investigations it was clarified that the issue of ties between Israel and Philip Morris Company is not true. So the ministry issued the license for legal imports of Marlboro cigarettes to prevent smuggling, Nematzadeh said. The ministry has issued necessary licenses for importing and producing 12 billion Marlboro cigarettes, according to Iranian media outlets which has triggered objections by Iranian hardliner MPs calling the US firm a 'Zionist company.'" http://t.uani.com/1va7Nfr

Trend: "Trend: Two Dutch and Russian firms are conducting pigging operations on Iranian oil pipelines network. Qasem Arab Yarmohammadi, an official with the Iranian Oil Pipelines and Telecommunications Company, said there are over 14,000 kilometers of oil pipelines and telecommunications network across the country, Iran's Mehr news agency reported on No. 30. He did not provide any details about the foreign companies." http://t.uani.com/1FINZD9

Sanctions Enforcement & Impact

IHS Maritime: "The government of Zanzibar terminated its agency agreement with Philtex (Belize) Ltd, which is based in Dubai, effective from 13 October, 2014. Philtex had an exclusive ten year contract to manage the Tanzania Zanzibar International Register of Shipping (TZIRS). In a notice issued by Dr Malik Akil Juma, the principal secretary at the Ministry of Infrastructure and Communications, he said that the 'government was setting up an administrative office to manage TZIRS in Sharjah, UAE supported in marketing on specific agreement by Alkhaleej Industries FZE, UAE'. All ships registered under the TZIRS flag are now required to report to the Zanzibar Maritime Authority within two months. The US government has mounted pressure on the Zanzibar government, the semi-autonomous island off of Tanzania, over the past couple of years to sever ties with Philtex following allegations that the agency was registering Iranian vessels under the Tanzanian flag, despite sanctions against Iran. Zanzibar signed an agreement with Philtex in 2007, registering about 406 ships. Last year, Minister for Infrastructure and Communication, Rashid Seif Suleiman informed the House of Representatives that it had deregistered 33 Iranian oil tankers." http://t.uani.com/1Cyb7pA

Terrorism

Trend: "Iran has equipped Lebanese Hezbollah group with missiles with pinpoint accuracy, Sheikh Naim Qassem, deputy secretary general of the group said, Iran's Tasnim news agency reported Nov. 23. Iran not only has shipped missiles to Lebanon, but also has trained the Hezbollah forces to prepare and launch them, the Hezbollah senior official said. 'When we are talking about the missile capability, it does not mean that only a number of Iranian missiles are delivered to Hezbollah, but such a capability includes the all necessary items for missiles, preparing, as well as training the experts' Qassem underlined." http://t.uani.com/1rKXO0z

Human Rights

Independent: "An Iranian woman has filmed herself defying Iran's restrictive laws against women by dancing to a song by British pop group Little Mix with her hijab around her shoulders. The unidentified young woman can be seen energetically dancing on a train in Tehran while other passengers hold the camera. Her dancing may seem innocuous enough, but the young woman is actually breaking two laws in the ultra-conservative country, where dancing in public is prohibited. The woman initially begins with her hijab on her head, but her lively moves cause it to slide off. Other female passengers appear to be trying not to look at her as she moves up and down the carriage, while a couple agree to hold a mobile phone and film her. The viral video was posted to the Stealthy Freedoms of Iranian Women Facebook page, which has over 700,000 followers. Her dancing is all the more brave in light of the punishments meted out to a group of young Iranian men and women who were filmed dancing to the song 'Happy'. All seven were given suspended sentences of prison time and 91 lashes after posting their home made 'Happy in Tehran' music video on YouTube." http://t.uani.com/1rNywt6

Domestic Politics

Trend: "Iran's national currency has lost about 9 percent of its value versus the US dollar during the last week. Today, each US dollar is sold at 35,200 rials in the Iran's open foreign currencies market, while the official USD rate offered by the Central Bank of Iran is about 26,846. Iranian government calculates the state foreign trade based on official USD rate, including oil revenues, non-oil export and imports. However, most of private traders have no choice, but to purchase expensive US dollar from open markets. During ex-President Mahmoud Ahmadinejad's second term, Iran's rial lost its value by about four times. Each USD was sold at 9,830 rials in 2009, but the figure reached 36, 000 in mid-2013, when Ahmadinejad was replaced by Hassan Rouhani. During last 18 months of Rouhani's presidency, the USD price in Iran's open markets was almost stable around 31,000 to 32,000 rials, but during last week, the rial lost its value against dollar significantly." http://t.uani.com/1A7tmx5

Foreign Affairs

FT: "Bahrain's foreign minister says Gulf states are launching a joint military command based in Saudi Arabia to counter threats from militant jihadis and Shia Iran. Sheikh Khalid al-Khalifa said the joint command force, which analysts say will eventually have several hundred thousand soldiers under its control, would begin military operations after a Gulf Co-operation Council summit due to take place later this month in Qatar. The new command is to focus on defensive operations and will co-ordinate with the GCC's naval command based in Bahrain and its air command in Saudi Arabia... Sheikh Khalid, a member of the Bahraini royal family, said the new military body, first mooted two years ago, would start 'working from now' to co-ordinate against what he said was a growing threat from Iran and unrest in Yemen." http://t.uani.com/1zHzmMh

Press TV (Iran): "Iran plans to host an international conference on violence and extremism in the near future, Iranian Foreign Minister Mohammad Javad Zarif says. He made the remarks in a meeting with Nickolay Mladenov, the special representative of UN Secretary General Ban Ki-moon to Iraq, in the Iranian capital Tehran on Sunday. Zarif added that distinguished international and regional figures will attend the gathering entitled 'World against Violence and Extremism,' yet he did not provide any details on the exact date and place of the conference." http://t.uani.com/1vZfPK6

Mehr (Iran): "The International Day of Solidarity with the Palestinian People is observed by the United Nations on or around November 29 each year. In a statement released on this occasion on Saturday night, Iran's Ministry of Foreign Affairs condemned the occupation of Palestine and the organized inhuman crime of the Zionist regime against the residents of this holy land for being the origin of one of the longest-running global crises. The actions of the Zionist regime are the root of many problems and conflicts not only in the Middle East and the Muslim world, but also on a global scale, the statement read." http://t.uani.com/1tDefGf

Opinion & Analysis

Eric Reeves in WashPost: "It is not often that we're able to listen in on the comments of senior officials in a government that stands internationally accused of genocide. But that's exactly what we've been given through the leaked minutes of a security meeting held Aug. 31 by top military and security officials in Sudan. Prominent in the document are plans for further genocidal tactics in parts of the country... Central in the minutes is discussion of Khartoum's 'strategic relationship' with Iran. Although Iran is ruled by a Shiite regime, it shares with Sunni Sudan a commitment to both Islamism and international terrorism. The minutes include discussion of the regime's having sent weapons to the New Dawn Islamist movement in Libya. Maj. Gen. Hashim Abdalla Mohammed, chief of Sudan's joint general staff, reveals a telling problem with the Saudis: 'They found out about the weapons we sent by way of the Red Sea to Abd al-Malik Al-Huthi's Shiia group in Yemen.' Al-Huthi's Shiite terrorist organization controls large parts of western and northern Yemen - bordering Saudi Arabia. In this joint commitment to Islamism and terrorism, Sudan and Iran have what may be described as a strategic relationship - precisely the description offered more than a dozen times by the men at the Aug. 31 meeting. But this leaves Sudan with problems in its relations with the Gulf states and Saudi Arabia, not least because the Sudanese economy, after 25 years of mismanagement, is imploding. Khartoum is obliged to play a double game. Hence, the comments by Gen. Yehya Mohammed Kheir, minister of state for defense: 'We will not sacrifice our relations with the Islamists and Iran for a relationship with the Saudis and the Gulf states. What is possible is a relationship that serves our mutual economic interests in terms of investment and employment.' There is, of course, no true 'mutuality' to the relationship as conceived here by Khartoum. Further, Gen. Mohamed Atta, head of Sudan's National Intelligence and Security Services, acknowledges that terrorism is a tool at Khartoum's disposal. The regime believes the Saudis were complicit in the September 2013 uprising; thus the Saudis fear, according to Atta, "we may use or release terrorist groups to [seek] revenge." This would hardly be idle speculation on the Saudis' part... The clear consensus emerging from the minutes is that Islamism and support for radical Islamist groups are of preeminent importance to Khartoum in its search for a place in a region made more complex by the emergence of the Islamic State; this also dictates a 'strategic relationship with Iran.' If so, it would be a strategy entirely in character." http://t.uani.com/12eGkhN

Aaron David Miller in LAT: "In the late 1960s, the Rolling Stones recorded one of their classic tunes: 'You Can't Always Get What You Want.' The song's philosophical message - to the extent Mick Jagger and Keith Richards thought about it - seemed to suggest that there are times in life when you can't get what you want (most everything). But you just might get what you need (less than everything but still pretty darn good). Based on my years in and around Middle East negotiations, that tune pretty well summed up the approach to successful negotiations too. In every negotiation that worked, nobody got everything they wanted, no one got 100%. But they at least received what they really needed to make the deal. In short, the perfect was not allowed to become the enemy of the good. The Stones' message was clearly not on display in the talks between six world powers and Iran last week in Vienna, certainly not on the part of the Iranian negotiators and their leaders in Tehran. In these so-called P5-plus-1 talks, U.S. negotiators may have hoped that Iran was willing to conclude a deal based on needs, not wants. But Iran clearly saw matters differently and felt little pressure to do a deal now. And here's why. It's been evident for a good while that the negotiators in Tehran, Foreign Minister Mohammad Javad Zarif and even President Hassan Rouhani aren't running the show. No negotiator ever does. Leaders do. But for talks on truly big issues to work, negotiators and leaders need to be in sync. In this case, they're not. The gap between what Zarif and Rouhani might have been willing to concede, particularly on Iran's capacity to enrich uranium, and the red lines of the supreme leader, Ayatollah Ali Khamenei, and those around him was simply too wide to make a deal. And the negotiators clearly failed to persuade the harder line mullahs - assuming they even tried - to be more flexible or of the urgency of the situation. Iran's leverage and the integrity of the entire negotiating enterprise will be much weaker, not stronger, in Washington once a Republican Congress comes into session. Paradoxically for the hard-liners, that's OK. But more pressure on Tehran probably would only convince the mullahcracy that what the U.S. really wants is regime change, not a change in behavior on the nuclear issue. It is true that sanctions imposed by Washington, Europe and the U.N. Security Council were crucial in getting Iran to the table. But that doesn't mean economic and financial pressure is powerful enough to compel an agreement. Iran is hurting from diminished oil sales, currency devaluation, budget deficits and banking and financial restrictions. But Iran's capacity to withstand economic pain and to engage in what the supreme leader calls a 'resistance economy' - one resistant to sanctions and outside economic pressures - is much greater than we think. No doubt hard-line security elites are also making tons of money from the black market. Tehran also has been very agile in finding loopholes and cutting oil deals with Russia and China. Iran also has no intention of throwing away billions invested in its nuclear infrastructure. We can't underestimate how important Iran's nuclear program is as a hedge against regime change and as a symbol of its great power status in the region, particularly to many hard-line conservative elites convinced that the U.S. wants the mullahs gone. The nuclear issue has become part of Iran's identity. Defying the West's effort to restrict that enterprise has become a matter of national pride and dignity. Iran may not want to weaponize now. But those in charge may well want the option to do so at some point of their choosing. Iran isn't 10 feet tall, but the way the situation in the Middle East is playing out may have persuaded the mullahs that Iran's centrality and influence in U.S. policy is increasing. There is a view that America needs Tehran to stabilize the situation in Iraq and in Syria, and to fight Islamic State militants. Indeed, Iran may actually believe that it's winning, that there is less urgency to settle the nuclear issue now and much more incentive to not give in, and hope to gain more... So is a deal going to be possible next year? As Secretary of State John F. Kerry said in a news conference last week, it's hard to imagine that time is going to make tough issues easier to resolve. Iran can't continue on its merry way to becoming a nuclear threshold state and expect serious sanctions relief. Right now, Iran isn't prepared to make a choice. Will it in coming months? That's not at all clear, but one thing is. I'm pretty sure the supreme leader isn't a Rolling Stones fan." http://t.uani.com/1wc4Axm

Phillip Smyth in TNI: "The United Arab Emirates sent a major message to Washington by their inclusion of specifically named, Iranian-backed Shia jihadist organizations in a new list of terrorist organizations. This list has come under a mixture of criticism, praise and some level of confusion for some of its inclusions and exclusions. Much attention has also been placed on the inclusion of Muslim Brotherhood-related organizations, such as the U.S.-based Council on American-Islamic Relations (CAIR). However, it is the addition of Iran's proxies that deserves equal attention. Their presence represents the Gulf state's simmering tensions with their neighbor across the Persian Gulf. The release of the list takes on an added precedence in the context of Western and Iranian leaders meeting in Vienna for negotiations over Iran's nuclear program. For Abu Dhabi, it appears the present danger of Iran's proxies is just as much of a pressing threat as Iran's nuclear ambitions. Of the eighty-three listed groups, nine are direct Iranian proxies or contain demonstrable levels of Iranian influence or support. The listed organizations include groups operating in the Arabian Peninsula, including the Houthis of Yemen, Hizballah al-Hijaz (A.K.A. Saudi Hizballah), and "Hizballah in the Gulf Cooperation Council (GCC)." Iraqi Shia groups such as Asa'ib Ahl al-Haq (AAH), the Badr Organization, Kata'ib Hizballah (KH), Liwa Ammar Ibn Yasir (LAIY), and Liwa al-Yum al-Mawud also found places on the list. Even a Shia militia which has essentially become a synonym for the Iranian-organized and -led Shia jihad in Syria, Liwa Abu Fadl al-Abbas (LAFA), was named as a terrorist group. It's highly probable that Abu Dhabi released the names of these groups as a further way to snub the United States for a perceived lack of action against Iran's and its proxies' moves in the Gulf and/or highlight that the Gulf is not going to march in lockstep with Washington on Iraq or issues dealing with Iran. Speculation on the Gulf-Washington alliance aside, the UAE clearly views Iran's Shia proxy militias and more covert organizations as a major and expanding threat. What does the inclusion of these specific groups mean? ... The inclusion of these Iranian-backed Iraqi Shia militia creations is another example of the increasing threat they pose to the Gulf states. Throughout 2011, KH and AAH forces attacked Coalition targets as a way to show support for their oppressed coreligionists in Bahrain. During the summer of 2011, KH threatened South Korean companies operating in Kuwait as part of a new port project. The same group attacked the port in June 2011 with rockets. In November 2013, another Iraqi Shia proxy of Iran launched mortars at Saudi Arabia. In late-December 2013, a speedboat loaded with Iranian-made weapons was seized off of Bahrain... Pitfalls with the list aside, the UAE is sending a very clear message to regional powers and to the United States. With Iraq and the possible U.S. courting of Iran's proxies, the UAE, as with other Gulf allies, likely feels isolated by its longtime ally. What appears to be cognitive dissonance on behalf of Washington-where Iran's proxies are possibly being secretly engaged in Iraq, all while they actively threaten and target Gulf states-could have been the spur for the list's publication. The most likely hastily arranged list of groups indicates that the Emirates wanted to publish a list of relatively well-known Iranian proxies. Thus, Iran's activities were put in the spotlight, along with a not-so-secret nudge to Washington." http://t.uani.com/1wc5R7z
    

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

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