Tuesday, December 23, 2014

Eye on Iran: Oil Price Drop, Nuclear Deal Delay Unsettle Iran's Economy








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WSJ: "Plummeting oil prices and the failure so far to conclude a nuclear agreement are dealing a double blow to Iran's economy just as it was starting to recover. Oil prices, which have fallen about 50% since June, resumed their decline on Monday after Saudi Arabia, the world's largest crude exporter, said it may boost production despite a global glut. The slide in prices is strangling revenues in Iran, a country dependent on oil money... The renewed economic travails are eroding gains that accompanied President Hasan Rouhani 's surprise election 18 months ago. Mr. Rouhani, whose political fortunes rest largely on an economic recovery, has been scrambling to contain the damage. In a recent address to parliament, he touted a radical but difficult plan to address what he called an unprecedented oil slump: cutting dependence on oil income by boosting industrial exports and hiking taxes. He has also proposed dramatic fiscal tightening in the new Iranian year that begins in March. 'Iran is moving to a very austere budget,' said Fereydoun Khavand, an Iran expert and senior lecturer at Paris Descartes University." http://t.uani.com/1CvjBwX

Al-Monitor: "Last week, the University of Tehran hosted a conference in which a panel of prominent professors and former officials expressed unprecedented public criticism of Iran's nuclear program. The panelists drew parallels between the devastating costs of the Iran-Iraq war and those of Iran's nuclear program and questioned its usefulness and achievements. The meeting made headlines even in the Western media for the panelists' audacity in questioning what the top leadership of the Islamic Republic considers a national security issue. As expected, criticism of the panelists - Sadeg Zibakalam, Ahmad Shirzad and Davoud Hermidas-Bavand - was swift and harsh. 'One voice with Israel' was the top headline of hard-line Vatan Emrooz, which featured a picture of the panelists, suggesting that they are adopting Israel's positions in their opposition to Iran's nuclear program. The article's subheader read, 'Footprints of the hopes of [Israeli Prime Minister Benjamin] Netanyahu and [US President Barack] Obama in the recommendations of the administration's supporters.'" http://t.uani.com/1wZUvCX

Al-Monitor: "US President Barack Obama issued a vigorous defense of his policy of diplomatic engagement with historic adversaries such as Cuba and Iran, saying the negotiations with Iran have resulted in demonstrable restraints on Iran's nuclear program. 'You look at an example like Iran, over the last year-and-a-half, since we began negotiations with them, that's probably the first year-and-a-half in which Iran has not advanced its nuclear program in the last decade,' Obama said in an interview with CNN's Candy Crowley Dec. 21. 'We know that,' Obama continued. 'That's not just verified by the United Nations and the IAEA [International Atomic Energy Agency] and ourselves. Even critics of our policy, like the [Benjamin] Netanyahu government in Israel, their intelligence folks have acknowledged that, in fact, Iran has not made progress.'" http://t.uani.com/1zf5K7s

   
Nuclear Program & Negotiations

Tehran Times: "The Islamic Republic of Iran is the fourth missile power in the world, Defense Minister Hossein Dehqan says. 'Iran has an acceptable status among countries possessing missile capabilities, and stands after the United States, Russia, and China [in missile power],' Dehqan said in a televised interview with Al-Alam channel on Friday. The country is currently striving to boost the accuracy of the missiles and make them radar evading, he noted, adding that Iran has increased the range of its missiles 'in proportion to possible threats against the country.'" http://t.uani.com/1wX9SvN

Sanctions Relief

Tasnim (Iran): "The value of trade transactions between Iran and the 28 members of the European Union in October 2014 has witnessed a 37 percent increase, compared to the corresponding period last year, data released by the Eurostat showed. Trade turnover between Iran and the EU in October 2013 had stood at 524 million euros, while it reached 721 million euros in the same month in 2014, according to a report by the Eurostat. According to the report, the EU imports from Iran in October reached €111 million, showing a two-fold increase compared to the same period last year, in which the figure stood at €55 million. Italy was the biggest importer of Iranian goods among the bloc members in October, allocating more than half of the commodities the EU imported from Iran... By exporting €232 million worth of goods to Iran in October alone, Germany ranked first among the bloc members in that month." http://t.uani.com/1rdoC9a

Tasnim (Iran): "The value of trade between Iran and Britain grew by 36 percent this year, according to latest figure released by the Eurostat. According to the Eurostat, the value of commercial transactions between the two countries reached over 133 million Euros between January and October, showing a 36 percent rise compared to the same period last year. Britain exported 99.5 million Euros worth of goods to Iran in the ten-month period while its exports to Iran in the same period in 2013 stood at 71.4 million Euros. The West European country's imports from Iran also saw a 28-percent growth, hitting 33.8 million Euros, the report said." http://t.uani.com/13rJuhC

IRNA (Iran): "Foreign Minister Javad Zarif said his ministry regards resistance economy one of its priorities to carry out economic diplomacy... Zarif referred to Superme Leader's emphasis on the significance of resistance economy in reducing the negative impact of anti-Iran sanctions and said the Ministry of Foreign Affairs has accordingly employed the policy in execution of the economic diplomacy." http://t.uani.com/1ARKVkT

Terrorism

Bloomberg: "Hamas test-fired rockets from the Gaza Strip into the Mediterranean Sea for the second time in nine days, in a show of military strength months after its devastating war with Israel... Iran 'was unsparing in its financial and military and other assistance and provided us with missiles that pulverized the defense of the Zionist enemy,' spokesman Abu Obeida said.  Michael Segall, a former head of the Iran desk for the research branch of Israeli military intelligence, said Iranian support for the Hamas rocket program was a 'long-term investment' in a strategy designed to 'encircle Israel.' 'Iran has completely removed the secrecy surrounding its provision of rockets and missiles to anti-Israeli terror organizations,' Segall wrote in a paper today for the Jerusalem Center for Public Affairs, an Israeli research center with close links to the government." http://t.uani.com/1vjPWz0

Human Rights

ICHRI: "A high-ranking cleric and Khomeini-era member of the Supreme Judicial Council has told Fars News Agency that Baha'is are not entitled to citizenship rights. The statement was made only weeks after Mohammad Javad Larijani, Head of the Iranian Judiciary's Human Rights Council, denied the systematic denial of Baha'is right to higher education. 'We never say that Baha'is have the right to education; Baha'is don't even have citizenship rights,' Ayatollah Bojnourdi told Fars. 'Christians, Jews, and Zoroastrians enjoy citizenship rights. They have representatives in the Parliament, because they are Abrahamic religions and we engage with them and their representatives are our friends,' he added. Such statements reflect the continuation of the widespread and systematic violation of the rights of Baha'is in Iran, despite assertions by Iranian Judiciary officials who, faced with growing international criticism in this area, allege otherwise." http://t.uani.com/1wCP9xq

Guardian: "For five months, Washington Post journalist Jason Rezaian has slept on the concrete floor of his cell, waking each morning to relive the nightmare that is solitary confinement in one of Iran's most notorious prisons. Rezaian, an Iranian-American who holds dual citizenship, was arrested under dubious circumstances in July and jailed at Evin prison in Tehran, where he has been held for the past 153 days - the longest any western journalist has been detained in Iran... According to his brother, Rezaian is being held in a bare prison cell, where he is forced to sleep on the hard floor. His physical and mental health are deteriorating, and his family is deeply concerned his prolonged detention will cause permanent damage, Ali said. He has spent days at a time locked in his cell without seeing another human being other than his guard, according to his brother. Other days, interrogators will question him for hours, Ali said. In the first months of his detention, Rezaian lost nearly 20% of his body weight, which has caused new health problems, his brother said. Rezaian suffers from chronic high blood pressure - for which the prison is providing him with the Iranian version of his prescribed medication - and he is also afflicted with recurring eye infections and an inflammation of his groin." http://t.uani.com/1wZSJ4K

The Hill: "Sen. Bob Casey (D-Pa.) called on Secretary of State John Kerry to secure the release of journalist Jason Rezaian, who is being held in an Iranian prison. 'I respectfully request that you redouble your efforts to secure Rezaian's release and prioritize his case in your discussions with Iranian officials,' Casey wrote in a letter to Kerry. 'Iran's treatment of Rezaian is not only an affront to due process, but to journalists around the world working in difficult environments.' ... 'I ask you to unequivocally reject any efforts by the Iranian regime to use him as a pawn in other negotiations and insist that the Iranian regime does not continue to unjustly punish him for his reporting,' Casey wrote." http://t.uani.com/1zR4dav

ICHRI: "A Tehran Revolutionary Court has increased the sentence of a 21-year-old Facebook user from 15 to 20 years in prison for his postings on Facebook. The case was originally appealed in the hope that the severe 15-year sentence would be reduced. However, the appeals court remanded the case to the lower court because one of the charges, "insulting the sacred," was not addressed in the original ruling. As a result, the judge in the lower court, Judge Moghisseh, added the charge of 'insulting the sacred' to the ruling in the case of Masoud Seyed Talebi, which added five more years to his sentence, according to a source close to Talebi's case. The ensuing 20-year sentence is indicative of the intensifying crackdown on social media networks in Iran, as hardline authorities attempt to reign in exponential growth in the use of such networks." http://t.uani.com/1ADMQeF

RFE/RL: "An Iranian official says Tehran is considering new restrictions for thousands of Afghans seeking to reside in Iran. Aziz Kazemi, the head of the Interior Ministry's department for foreign nationals and immigrants, said on December 22 that the new restrictions on Afghan refugees will not be introduced in the current Iranian year that ends on March 20. He also said Tehran had recently banned the accommodation of Afghan immigrants in the northern province of Mazandaran. Iranian media report that Afghans are currently banned from living in nine provinces." http://t.uani.com/1B1OXHa

Domestic Politics

Tasnim (Iran): "A senior Iranian judiciary official raised the alarm over the cultural onslaught that enemies have launched against Iran through cyberspace, and said the move is aimed at creating sedition in the country. 'Today, the enemies of Islam and the sacred establishment of the Islamic Republic of Iran seek sedition (in the country), and the cyberspace has provided the ground for them,' Iran's Attorney General Hojatoleslam Seyed Ebrahim Rae'esi said on Friday. Addressing a congregation of Friday prayers in Tehran, the official emphasized the necessity to safeguard the country's cyberspace against the cultural onslaught as part of a broader attempt to thwart the threats against the Iranian nation's 'beliefs and ethics'. One of the main objectives of the enemy's cultural onslaught is to 'disrupt the Islamic lifestyle' and to 'secularize the society', he explained." http://t.uani.com/1v9n3of

Opinion & Analysis

Fouad Hamdan & Shiar Youssef in the Middle East Institute: "It is no longer accurate to describe the war in Syria as a conflict between Syrian rebels on the one hand and Bashar al-Assad's regime forces 'supported' by the Iranian Revolutionary Guards (IRG), Hezbollah, and Iraqi militias on the other. Most major battles in Syria-along the frontlines of regime-held areas-are now being directed and fought by the IRG and Hezbollah, along with other non-Syrian Shi'i militias, with Assad forces in a supportive or secondary role. The Iranian regime has spent billions of dollars on weapons and fighters shipped to Syria since the start of the Syrian revolution in March 2011. It has also financed a large part of the economy in the regime-controlled parts of Syria through loans and credit lines worth billions of dollars. The Assad regime would have collapsed were it not for this Iranian support. One result of this heavy Iranian involvement in the war in Syria has been a change in the nature of the relationship between the Syrian and the Iranian regimes. From historically being mutually beneficial allies, the Iranian regime is now effectively the dominant force in regime-held areas of Syria, and can thus be legally considered an 'occupying force,' with the responsibilities that accompany such a role. The revolution in Syria can therefore also be considered an international conflict that involves a foreign military occupation by Iranian forces and a struggle by the Syrian people against this occupation, as defined by the 1907 Hague Regulations and the Fourth Geneva Convention of 1949. Recognizing the war in Syria as an international conflict also means that, as an occupying force, Iran has certain duties toward the Syrian population under its occupation. There is sufficient evidence that the Iranian regime and its various forces and militias fighting in Syria have repeatedly violated many of these duties since March 2011. In November 2014, the campaign group Naame Shaam, of which the authors are founders, released a report on the role of the Iranian regime in the ongoing war in Syria. The report, 'Iran in Syria: From an Ally of the Regime to an Occupying Force,' provides many examples of human rights violations, war crimes, and crimes against humanity committed in Syria that would likely not have taken place without the Iranian regime's direct military involvement. The Iranian regime's adventure in Syria is not just about saving Assad and his regime. Rather, it has been primarily driven by the Iranian regime's own strategic interests. At the forefront of these interests is keeping arms shipments flowing to Hezbollah in Lebanon via Syria, so as to keep Hezbollah a deterrent against possible attacks on Iran's military nuclear program. The other Iranian lines of defense include the government and various Shi'i militias in Iraq, Hamas and Islamic Jihad in Gaza, and recently the Houthi militias in Yemen. If the Assad regime falls, Iranian arms shipments to Hezbollah are likely to cease, and Hezbollah would no longer be the deterrence against Israel that it is now. The Iranian regime would therefore feel more vulnerable and would not be able to negotiate from a strong position during nuclear talks with international powers. It may even have to at least temporarily give up its dreams of building a nuclear bomb. Resources in Iran-human, economic, and military-have as a result been mobilized to keep Assad in power... One effective way to end the bloodshed in Syria is to link the Iran nuclear talks and sanctions to the Iranian regime's intervention in Syria, Iraq, Lebanon, and Yemen. There is an obvious reason for this: agreeing to lift the sanctions on Iran for the sake of concessions from the Iranian regime about its nuclear program, and without any serious commitment to end its intervention in Syria, Iraq, Lebanon, and Yemen, is effectively giving the Iranian regime a green light to carry on with its policies in these countries and is buying it time to consolidate its regional influence. The Iranian regime must remain under serious political and economic pressure, not only until it gives up its military nuclear program, but also until it ends its destabilizing policies in the region... Only the credible threat to use force may convince the Iranian regime to end its destabilizing policies in Syria, Iraq, Lebanon, and Yemen. Other options will probably lead to the IRG expanding its influence in the region-and perhaps eventually to Iran having the confidence to move ahead with producing a nuclear weapon." http://t.uani.com/1whq6uR

Emanuele Ottolenghi & Saeed Ghasseminejad in WSJ: "Hasan Rouhani submitted his 2015 budget proposal earlier this month to the Majlis, Iran's parliament. The proposal suggests that, contrary to the Iranian president's reputation for moderation in the West, 'Rouhanomics' is really about bolstering the regime's repressive apparatus while at the same time modifying some of the more reckless policies of his predecessor, Mahmoud Ahmadinejad. Mr. Rouhani came to power last year riding a wave of discontent with Mr. Ahmadinejad's mismanagement of the economy and the pain inflicted by mounting international sanctions. With a looming economic crisis at hand, Mr. Rouhani successfully extracted sanctions relief from the West and launched widely publicized corruption probes against Ahmadinejad cronies while restoring competent technocrats at the helm of state-owned companies. In his first year in office, Mr. Rouhani and his foreign minister, Javad Zarif, softened outside pressure on Iran's economy, leading the country partly out of recession and international isolation, slicing inflation almost by half to 18% in October 2014 from 34% in June 2013 and reducing unemployment to 9.5% in summer 2014 from 10.4% a year earlier, if official statistics are to be believed. You might think Mr. Rouhani would aim over the coming years to consolidate these gains. Yet his 2015 budget is a boon to the Islamic Revolutionary Guard Corps, or IRGC, the intelligence branches and clerical courts-suggesting that the great moderate's real agenda is primarily to preserve and strengthen the regime's core institutions of repression. Rouhanomics, in other words, is less about growth than it is about regime self-preservation. Consider the total expenditure. Mr. Rouhani plans in the next year to spend 8.4 quadrillion Iranian rials, or $293 billion at the regime's official exchange rate of 28,500 rials to the dollar. That's 4% higher than the previous year, and relies on a 23% increase in government tax revenue to partially offset oil revenues, which are expected to drop by 8%, or about $5 billion. Mr. Rouhani is also proposing to reduce subsidies by 26%, including a 40% decrease in bread subsidies. On the other hand, Mr. Rouhani will spend 59% more on Iran's broken health-care and insurance system. This will benefit lower- and middle-class Iranians and fend off potential social unrest. This isn't a recipe for economic growth but for balancing middle-class discontent. At the same time, Mr. Rouhani is requesting a dramatic increase in the budget for the IRGC, which serves as the regime's praetorian at home and the tip of its spear abroad. The proposed budget increases Iran's defense spending by 33%, to $10 billion, although the real figure is probably much higher since much military funding is off the books, coming as it does directly from the office of the Supreme Leader. Sixty-four percent of public military spending will go to the IRGC and the basij, the paramilitary force that answers to the IRGC. The IRGC is also benefiting from increased government appropriation for its holding company, the U.S. sanctioned Khatam al-Anbia, whose budget Mr. Rouhani plans to double. Assessing each branch of the military separately, the IRGC's budget rises an astounding 48% under the 2015 budget, while the regular army's budget shows only a slight increase. Not only is Rouhanomics going to inflict economic pain on the very constituency that swept the new president to power, but it will also empower the regime apparatus tasked with taming the inevitable discontent of Mr. Rouhani's constituents. His largess to the Guards is a sign of continuity with the repressive past. It also means that the Islamic Republic will continue its aggressive expansionary regional policy through the IRGC's Quds Forces. In addition, Mr. Rouhani would strengthen the other branches of Iran's authoritarian regime. His budget would grant Iran's Ministry of Intelligence $790 million, a 40% increase in funding, and give a 37% raise to a special religious court that polices dissent among clerics... The bottom line is that Mr. Rouhani's budget appears aimed at streamlining public spending without cutting off welfare completely, but at the same time strengthening the institutions tasked with internal repression and external adventurism. Rouhanomics is sure to disappoint those who put faith in the charm offensive Tehran launched soon after the new president's election. Far from turning a new page, Hasan Rouhani is mixing technocratic, pragmatic economic decisions with commitment to the ideals of the revolution. Those in the West, and inside the country, who had entertained illusions of reform will be disappointed." http://t.uani.com/1wCR0Co
    

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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