Friday, January 22, 2016

Eye on Iran: U.S. Payment of $1.7 Billion to Iran Raises Questions of Ransom






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WSJ: "A deal that sent $1.7 billion in U.S. funds to Iran, announced alongside the freeing of five Americans from Iranian jails, has emerged as a new flashpoint amid a claim in Tehran that the transaction amounted to a ransom payment. The U.S. Treasury Department wired the money to Iran around the same time its theocratic government allowed three American prisoners to fly out of Tehran on Sunday aboard a Dassault Falcon jet owned by the Swiss air force. The prisoner swap also involved freedom for two other Americans held in Iran as well as for seven Iranians charged or convicted by the U.S. The announcements coincided with the implementation of the nuclear agreement with Iran, lifting international economic sanctions in exchange for Iran curtailing its nuclear program. The $1.7 billion financial settlement ended a 35-year legal saga that centered on a purchase of U.S. arms by Iran's last monarch, Shah Mohammad Reza Pahlavi, that were never delivered because of the Iranian revolution in 1979. The White House described the settlement as a victory for taxpayers, arguing that the U.S. was likely to lose in arbitration under way in The Hague, Netherlands, and could have been held liable for billions more if the process had dragged on. 'Iran will be returned its own funds, including appropriate interest, but much less than the amount Iran sought,' President Barack Obama said on Sunday. But the transaction is stirring a debate here over whether the funds were essentially a ransom paid to Iran's leadership. A senior Iranian military official has publicly stated that the clearing of the $1.7 billion was a key factor in Tehran's decision to release the imprisoned Americans, most of whom were charged with espionage. 'Taking this much money back was in return for the release of the American spies and doesn't have to do with the [nuclear] talks,' said Gen. Mohammad Reza-Naghdi, commander of Iran's powerful Basij militia, in state media on Wednesday. 'The way to take our rights back from the arrogants [Americans] is to become powerful, and we must grow stronger and stronger every day.' ... White House and State Department officials have denied any connection between the payout of the disputed funds and the prisoners' release... But Republican lawmakers are calling for an inquiry. They've also criticized what they said was an imbalance in the prisoner exchange: The White House freed seven Iranians and dropped extradition proceedings against another 14 in exchange for the five Americans... Some lawmakers also are questioning why the White House didn't use the $1.7 billion to compensate U.S. terror victims. Iran has lost numerous court cases in the U.S. tied to terror attacks Tehran allegedly supported... The settlement talks dovetailed with the secret talks being pursued by the U.S. and Iran to secure the release of their prisoners. The White House has described the two issues as distinct. But top State Department diplomats involved in negotiating the prisoner swap, including Mr. Kerry and Brett McGurk, a Middle East specialist at the State Department, were concurrently working to ensure the $1.7 billion payment was cleared by last weekend, according to people involved in the deliberations. One person said Mr. McGurk was involved as early as Christmas in helping to complete the payment." http://t.uani.com/1Pn94eN

Reuters: "U.S. intelligence agencies investigating the kidnapping of three Americans in Baghdad last week are focusing their probe on three militant Islamic groups closely affiliated with Iran, U.S. government sources said on Thursday. Asaib Ahl al-Haq, Kata'ib Hezbollah and the Badr Organization are the principle focus of the probe into how the men were snatched in the Dora neighborhood, south of Baghdad, the sources said... Despite the U.S. belief that Iran was not involved, U.S. Secretary of State John Kerry on Thursday said he had asked Iran for help in finding them... Kerry told reporters that he and Iranian Foreign Minister Mohammad Javad Zarif discussed the case of the three men during a meeting on Wednesday. Iraqi intelligence and U.S. government sources on Tuesday said the men were kidnapped and were being held by an Iranian-backed Shi'ite militia. They are the first Americans to be abducted in Iraq since the withdrawal of U.S. troops in 2011. 'I asked him (Zarif) for whatever help, if Iran knew any way to provide help, or if there was some way they could have impact in getting the right outcome,' Kerry told reporters. 'He said he would take it under advisement and try to do what they can. He didn't have any immediate knowledge whatsoever about it,' Kerry added. The three men are employed by a small company that is doing work for General Dynamics Corp, under a larger contract with the U.S. Army, according to a source familiar with the matter. Asaib Ahl al-Haq, Kata'ib Hezbollah and the Badr Organization are Shi'ite militia groups that are part of Iraq's Popular Mobilization Front, a group closely tied to Iran, according to the New York-based Counter Terrorism Project advocacy group." http://t.uani.com/1PsIcUw

TASS (Russia): "Construction of the second power unit at the Bushehr nuclear power plant (NPP) will start by March 20, head of Iran's Atomic Energy Organization Ali Akbar Salehi told IRINN TV channel on Thursday. 'Construction of the second power unit at Bushehr will start until the end of this year [the year ends on March 20 on Iranian calendar - TASS]. In two-three years we will launch construction of the third power unit. In 8-10 years they will be connected to common power systems,' Salehi said. 'All steps necessary to start construction have already been made. The capacity of each new Bushehr power unit will stand at 1050 MW. We want to use as much as possible cutting-edge technologies and achievements in the sphere in the construction,' he stressed. The second and third power units at the Bushehr NPP will be constructed together with Russia's Rosatom State Nuclear Energy Corporation in accordance with the contract signed in Moscow in November 2014. Salehi earlier said that the total sum of the contract on two power units stands at $11 billion... According to the official, Iran will grant special privileges to Russia in peaceful nuclear energy cooperation... 'At this point I must mention that the first nuclear power plant in Bushehr was built by none other than Russia. And it was Russia that agreed to build two more power-generating units there. We will grant special privileges to our friends who supported us in difficult times, even considering the fact that many countries, from which are now receiving proposals (on the construction of new nuclear power plants), are at times offering even better financial conditions,' Salehi said." http://t.uani.com/1PneG91

Nuclear Program & Agreement

WSJ: "U.S. Secretary of State John Kerry said some of the funds freed up by the implementation of the Iranian nuclear deal could end up in the hands of the hard-liner Iranian Revolutionary Guard Corps and wouldn't rule out the possibility that they could be used for terrorism, but he insisted the money isn't driving Iranian provocation in the region. Republicans in Washington were quick to condemn Mr. Kerry's comments, citing his acknowledgment in a television interview and a later meeting with reporters that the money could support terrorist activities. The White House also has said the extra money Iran will receive under the international nuclear agreement, which took full effect last weekend, potentially could be used by Iran to support militants in the region. But the potential for new sources of support for extremists has sparked more alarm now that the deal is in effect, triggering the flow of billions in frozen Iranian assets as well as sanctions relief. No Senate Republican backed the Iran deal when the chamber voted on it in September. Mr. Kerry said on CNBC that the U.S. so far isn't seeing 'the early delivery of funds going to that kind of endeavor,' but added: 'I'm sure at one point we will.' 'It is certain that they will use this money to support terrorism,' Sen. Lindsey Graham (R., S.C.), one of the loudest GOP critics of the administration's foreign policy, told reporters Thursday. 'You might as well have written the check to [Syrian President Bashar al-] Assad yourself. You might as well have funded Hezbollah yourself,' he said in comments aimed at Mr. Kerry. Mr. Kerry later told reporters traveling with him that the U.S. believes Iranian President Hassan Rouhani as well as the country's supreme leader won't be able to deliver on promises to improve Iran's economy if they funnel money toward militancy. Additionally, the U.S. has sanctions and other mechanisms in place to hold Iran responsible if it does, Mr. Kerry said. 'The IRGC is already complaining that they're not getting the money, by the way,' Mr. Kerry said. 'I can't tell people that, No, some amount might not. But we don't believe that that is what has made the difference in the activities of Iran in the region.'" http://t.uani.com/20j9Gnm

AP: "The U.N. Security Council has set out new arrangements to monitor an arms embargo on Iran and restrictions on its ballistic missiles and other programs that remain in place after its compliance with last summer's landmark nuclear deal and the lifting of U.N. and Western sanctions. The new arrangements replace the Security Council committee that monitored U.N. sanctions until they were lifted last Saturday. A note from the council president circulated Thursday sets out 'practical arrangements and procedures' for the Security Council to ensure implementation of the resolution it adopted on July 20 that endorsed the deal to rein in Iran's nuclear program. They include selecting one of the council's 15 members to be the 'facilitator,' and asking U.N. Secretary-General Ban Ki-moon to authorize U.N. support for the council's work, including helping to organize meetings and managing communications. While crippling economic sanctions are now lifted, the nuclear deal with six major powers keeps the U.N.'s arms embargo on the country for up to five years, though it could end earlier if the International Atomic Energy Agency clears Iran of any current work on nuclear weapons. A similar condition was put on U.N. restrictions on the transfer of ballistic missile technology to Tehran, which could last for up to eight more years. The United States just imposed new U.S. sanctions over Iran's ballistic missile testing. The resolution contains a provision that would automatically reinstate U.N. sanctions if Tehran reneges on its promises. All provisions of the resolution will terminate in 10 years, including the 'snap back' provision. But the six major powers and the European Union sent a letter to the secretary-general in July saying they agreed to extend the snap back mechanism for an additional five years." http://t.uani.com/1nDumsc

Sanctions Enforcement

WSJ: "The U.S. Department of Commerce showed, less than a week after the Iran nuclear agreement was implemented, how it will remain on the beat enforcing existing sanctions compliance obligations. Commerce's Bureau of Industry and Security, which develops U.S. export-control policy, said in a statement that it issued a temporary denial order against three people and two entities for attempting to sell aircraft to Caspian Airlines, which the U.S. placed under sanctions in 2014 for its alleged support for terrorism. 'U.S. sanctions imposed on Iran because of its support for terrorism remain in place notwithstanding the implementation of the JCPOA,' said Commerce Assistant Secretary for Export Enforcement David W. Mills, referring to the nuclear agreement between Iran and global powers." http://t.uani.com/1SBusxc

Sanctions Relief

WSJ: "Amid all the noise about what companies can do under the Iran nuclear agreement, there are some things legal experts reminded Risk & Compliance Journal that aren't authorized. U.S. companies, save for a few certain activities, are still prohibited from dealing with Iran, and what they can facilitate for their foreign subsidiaries is limited. Also, no Iran-related transactions can be conducted in dollars. Erich Ferrari, in a post for the Sanction Law blog, wrote that people are not accurately reading the general license authorizing foreign subsidiaries of U.S.-owned companies to do business with Iran. Mr. Ferrari, founder of Ferrari & Associates PLLC, a sanctions-focused firm, noted that there are still questions regarding 'facilitation,' or what the American side can do to help with business it can't conduct itself directly. To that point, the license doesn't allow American companies to broker deals between Iran and their foreign subsidiaries, and it's unclear whether they can create a new foreign entity specifically for Iran-related business, he wrote. The relief is similar to a reset from 2010 before the rounds of secondary sanctions came into place, wrote Mr. Ferrari. 'Thus, if you couldn't engage in an Iran-related transaction prior to 2010, then you probably cannot do so now,' he wrote. Ryan Fayhee, a partner at law firm Baker & McKenzie LLP, pointed out in an email that missing from much of the Iran-deal coverage is the lack of U-Turn relief afforded under the agreement, meaning that no foreign transactions involving Iranian business can be carried out in dollars. If so, the transaction will be blocked, regardless of who is involved. 'This will present a significant compliance issue for companies and banks, largely as a result of the confusion stemming from a misunderstanding that sanctions have been lifted globally,' said Mr. Fayhee." http://t.uani.com/1ZRJfZa

WSJ: "The sanctions relief process of the Iran nuclear agreement began Saturday with the marking of Implementation Day. Among the developments was the U.S. authorization for foreign units of American companies to strike business deals with Iran... Among the documents issued by OFAC was a general license that authorized an entity outside the U.S. controlled or owned by an American to do business with the Iranian government, or any Iranian. The license also authorized activity to set up such an entity, including work to ensure companies have 'automated and globally integrated' systems, such as back-office structures, for handling the business. Experts praised the general license, noting that the section allowing for changes in operating procedures answered key questions for U.S. parent companies about what they could do to avoid compliance pitfalls in their attempt to seek business with Iran. 'This puts them on roughly equal footing with their foreign competitors,' said David Mortlock, a partner with the law firm Willkie Farr & Gallagher LLP. Richard Matheny, a partner at law firm Goodwin & Procter, said he expects 'a flurry of activity' by U.S.-owned foreign companies 'to see how they can take advantage' of the opportunities the license allows. Another license authorized imports of Iranian-origin food and carpets. OFAC also issued a statement that 'establishes a favorable licensing policy' for the sale of aircraft and spare parts to Iran, provided the transactions don't involve someone still under U.S. sanctions... Despite the new authorizations, it will still be tough for Western, and especially U.S. companies to engage in business with Iran... Michael Burton, a partner at law firm Jacobson Burton Kelley PLLC, said it will be easy for U.S.-owned foreign companies to get the new authorizations wrong, and to potentially pull their U.S. parents into the transactions in ways that would violate the license." http://t.uani.com/1K1bNrV

WSJ: "Iran is preparing to restart regular crude-oil shipments to the European Union possibly as early as February, Iranian officials said this week, despite a host of barriers to selling its petroleum to the West. Iran's state-owned National Iranian Oil Co. is tentatively preparing a shipment of at least 1 million barrels of light crude to a Mediterranean port in the European Union around mid-February, an Iranian official said. It would be the first shipment to the EU since an embargo on Iranian oil was lifted last week as part of the end of western sanctions. The preparations come as rivals like Russia and Saudi Arabia have been aggressively discounting their crude oil to Europe in a price war ahead of Iran's full return to the market. Both countries seized a greater share of the Iranian market after western countries tightened sanctions on Iran in 2012. With sanctions lifted over the weekend, Iran has pledged 500,000 barrels a day of new crude exports in the next few months and 1 million barrels a day within a year. 'Most of that oil will go to Europe,' one Iranian government official said, reflecting the country's desire to claw back customers in a market it dominated before sanctions. The rest will chiefly go to Asia, the official said... No Iranian oil has reached the EU since western sanctions were tightened in mid-2012, apart from a small number of tankers delivered to Italy to honor pre-sanctions contracts. It remains unclear how the European refineries will be able to legally purchase the crude. Several layers of U.S. sanctions remain in place over terrorism, human rights and weapons issues, including a ban on dollar transactions with the Islamic Republic. Most oil transactions are carried out in dollars... Oil companies such as Total SA of France, Anglo-Dutch giant Royal Dutch Shell PLC and Spain's Cepsa are in talks with Iran to buy crude, the official said." http://t.uani.com/1ZH2E9U

Reuters: "Freed from nuclear-related sanctions, Iran has signaled its appetite to buy more than 100 Western planes, a prospect that would usually have the giants of the $130 billion-a-year jet industry scrambling for a piece of the action. But a muted response from both Airbus and arch-rival Boeing underscores the lingering uncertainty and complications of doing business with Tehran. Western and Iranian officials say Iran will require at least 400 jets over a decade to replenish its ageing fleet. Of those, 100-200 are pressingly needed, and would be worth over $20 billion at list prices. That makes it a hugely enticing market at a time when planemakers are facing a slowdown after years of strong orders. But industry leaders say it could take months or longer to remove all the legal, regulatory and political obstacles so that significant numbers of jets can be sold to Iran, which still remains subject to a broad range of other U.S. sanctions. 'This is an opportunity in a big market that needs a lot of replacement capacity, let alone growth capacity. But we have to be crystal clear that sanctions have been removed,' said Aengus Kelly, chief executive of Dutch leasing giant AerCap. The willingness and ability of planemakers to enter the Iranian market will provide an early test case of how quickly the country can reopen for business after years of U.N., U.S. and European Union sanctions over its nuclear program... Iran is to host aviation leaders on Sunday and Monday at a Tehran conference together with Australian consultancy CAPA to discuss ambitious plans to restore and expand its airline and tourism industries... Despite its edge over rival Boeing in the headlines, any deals Airbus strikes will also require U.S. license approval, since more than 10 percent of its planes come from U.S. parts. With significant U.S. interests including a new Alabama factory, the European company is expected to tread carefully. 'We are studying our way forward ... in full compliance with all international laws,' a spokesman said... Some aircraft executives are worried about the risk that sanctions can be reintroduced if Iran fails to curb its nuclear activities, under a so-called 'snapback' mechanism... Sponsors of Sunday's Tehran meeting include Chinese-backed Dublin leasing firm Avolon and other foreign lessors, who could have a significant role due to long delivery times for new jets." http://t.uani.com/1Npw2KN

WSJ: "Schlumberger Ltd., the world's largest oil-field services company, is in talks to buy back its former Iranian unit, Well Services of Iran, said the chief of the ex-subsidiary. In an interview, Siamak Javid, managing director of Well Services of Iran, didn't disclose how much Schlumberger was offering, or how advanced the talks were. He said it was too early to say if the talks would succeed. A Schlumberger spokesman said 'we typically do not discuss [merger and acquisition] opportunities.' As Schlumberger prepared to exit Iran in 2010, along with other western companies, it sold Well Services of Iran to Nima Energy Ltd., a Hong Kong-based holding company... The potential deal would be among the first to emerge since western sanctions over Iran's nuclear program were lifted last weekend. Iran is attempting to lure energy services companies back to kick-start its oil industry as it tries to resume exports to Europe. Schlumberger's agreement to sell Well Services of Iran had language that implied it would have first rights to buy the company back when sanctions were lifted... Schlumberger, a multinational company with headquarters in Houston, Paris and The Hague,  has a controversial history in Iran. As part of a plea agreement with the U.S. Department of Justice last year, a Schlumberger subsidiary agreed to pay $232.7 million in March 2015 and plead guilty to conspiring to violate the International Emergency Economic Powers Act. According to U.S. officials, the Texas-based unit facilitated the sales of drilling equipment to Iran and Sudan from 2004 to 2010, using methods that sidestepped sanctions and took steps to disguise the transactions, such as referring to Iran as 'Northern Gulf' in emails." http://t.uani.com/1ndBRps

Reuters: "Iran believes Greece can be a conduit for re-entering Europe's oil market following the lifting of international sanctions, Greece's energy minister said on Friday after meeting Iran's deputy oil minister in Athens. Panos Skourletis said he had held talks with Amir Hossein Zamaninia about Greece restarting oil purchases from Iran. Hellenic Petroleum, Greece's biggest oil refiner, was a major buyer of Iranian crude, which accounted for about 20 percent of the southeast European country's annual crude oil imports before sanctions were imposed on Tehran in 2011. 'They (Iran) are positively disposed towards Greece and think that Greece can be the European conduit for them to re-enter the market,' Skourletis told Reuters, saying the two countries had traditionally enjoyed close relations. The two ministers also attended wider talks between officials from Hellenic Petroleum and the National Iranian Oil Company (NIOC) on Friday, a meeting whose arrangement was reported by Reuters on Jan. 18. Hellenic Petroleum is estimated to owe Iran around $550-600 million for oil it bought before the sanctions but was unable to pay for when the international embargo was imposed. Skourletis said the two sides agreed Hellenic Petroleum could settle its debt now the sanctions were easing, and was optimistic a mutually acceptable deal could be reached." http://t.uani.com/1OCaajj

Reuters: "Japan on Friday lifted sanctions on Iran, falling in line with major world powers after the United Nations atomic energy agency confirmed last weekend that Tehran had fully taken steps to curb its disputed nuclear program... 'Japan would like to strengthen our cooperative relationship with Iran further and contribute to the peace and stability of the Middle East through our traditional friendly relationship with Iran,' Chief Cabinet Secretary Yoshihide Suga said as he made the announcement at a regular press conference. With the lifting of the sanctions, Japanese insurance companies will be able to issue policies covering trade deals involving Iran. Japanese business will also be able make new investments in Iran's oil and gas sector. An investment agreement between Tehran and Tokyo is expected to be signed soon. Japanese companies are already lining up to resume business ties with Iran, with Suzuki Motor Corp on Thursday saying it was considering returning to the Iranian market." http://t.uani.com/1SBy8iH

Daily Star (Lebanon): "Lebanon appears hesitant to seize this opportunity and move to the promising Iranian market until the picture becomes very clear. Lebanese banks, with deposits of more than $150 billion, seemed very cautious if not reluctant to take a hasty and risky decision to do any business with Iran. 'It is too early to consider examining possibility to do business with Iran because the Americans need to clarify the types of operations one can do with this country. I don't think any Western bank is eager to make any move toward Iran until the sanctions are fully lifted,' Joe Sarrouh, the adviser to the chairman of Fransabank, told The Daily Star... Sarrouh stressed that banks in Lebanon and the West want to know whether lifting the sanctions will also cover the Iranian Revolutionary Guard, which controls large parts of the oil and gas sector as well as some important businesses. 'There are a lot of things that need to be clarified. We want to know if the U.S. Congress or judicial authorities plan new sanctions on Iran concerning other files,' he said... Another banker said that lenders fear an American punitive measure if they moved too fast to Iran. 'Why should we take any risks? We don't want do anything which we regret about in the future. For the time being, we will be the last banks to do business in Iran,' the banker explained. But Lebanese industrialists and business leaders saw a great opportunity to increase the volume of trade with Iran even if the sanctions are not fully lifted." http://t.uani.com/1PsJajr

FT: "An Iranian oil supertanker named Serena is heading to South Korea, among the first to exit floating storage and head for foreign shores following the lifting of sanctions. Vessel tracking data and shipping brokers say it left the Iranian port of Assaluyeh on January 12 after being moored there for more than a year, report Anjli Raval and David Sheppard in London. Between January 15-20 it was possibly loading shipping fuel nearby off Khor Fakkan along the east coast of the United Arab Emirates, in the Gulf of Oman. Iran has in the past used ship-to-ship vessel berths in the Gulf of Oman to transfer Iranian oil to other tankers, however this time data suggests no oil has been discharged... By early Thursday the vessel had set sail for the South Korean port of Uslan. It has now exited the Gulf of Oman and entered the Arabian Sea. 'This tanker is among hundreds of vessels which were removed from a sanctions list in recent days,' said analysts at data company Genscape." http://t.uani.com/1RZ1Den

Reuters: "Hindustan Petroleum Corp plans to import crude from Iran this year for the first time since 2012, its refineries head said, which could make it the first company to resume purchases since the lifting of sanctions on Tehran. HPCL was buying 60,000 barrels per day from Iran until problems securing insurance halted imports. Iran is now emerging from the economic isolation in return for Tehran complying with steps to curb its controversial nuclear ambitions. 'There is a possibility that Iranian crude will fit in our basket in a small way,' B.K. Namdeo told Reuters on Friday. 'We hope insurance hurdles that forced us to halt supply will be resolved as the sanctions have been lifted.'" http://t.uani.com/1RYWQd6

Reuters: "Danish drugmaker Novo Nordisk, the world's top insulin supplier, expects to be ahead of the pack now nuclear sanctions are lifted in Iran, thanks to a continuous presence and a pre-emptive investment plan. The country is an attractive target for Big Pharma seeking to sell new medicines to its large and growing population, but going in at ground level and securing good relations with authorities will be key, industry executives say... 'With the sanctions being lifted, we can operate more freely,' Jakob Riis, Novo's head of marketing told Reuters at the World Economic Forum in Davos, Switzerland. The Danish company has maintained a staff of around 130 in Iran through the sanctions era and it now plans to more than double that, adding 160 additional staff, following a decision in September to invest 70 million euros ($76 million) on a factory in the country. 'Novo has been there throughout. Now there are a lot of companies lining up to get into Iran and I think we are going to benefit from having been there for a while,' Riis said... Other drugmakers are actively pursuing the opportunity. 'It's a significant country,' said Christophe Weber, CEO of Takeda, Japan's biggest drugmaker. 'We have a team assessing the situation.' ... Also ahead of the curve, Indian generics maker Cipla set up a manufacturing plant in Iran in 2014." http://t.uani.com/1SBwz4b

Domestic Politics

Reuters: "Several Iranian clerics and politicians have strongly criticised the mass disqualification of moderate aspirants to run in parliamentary elections in February, the opposition website Kaleme said on Thursday. Preventing pro-reform hopefuls from entering the race by Iran's hardline watchdog body, the Guardian Council, is expected to deepen political infighting between hardliners and President Hassan Rouhani's allies in Iran. Moderate politicians believe the mass rejections via a vetting process are aimed at helping hardline candidates keep control of the 290-seat parliament, which could hinder political and social reforms promised by Rouhani during his 2013 election campaign... 'Disqualification of those who believe in the Islamic Republic, Islam and the pillars of our system ... will create a deep rift between real believers of our system and the establishment,' Kaleme quoted Ayatollah Kazem Nourmofidi as saying. Iran's Supreme Leader Ayatollah Ali Khamenei said on Wednesday that 'those who don't have faith in the clerical establishment, should not be allowed to perform a duty'... 'This is the biggest number of disqualifications in the history of the Islamic republic,' the semi-official ILNA news agency quoted moderate politician Hossein Marashi as saying... Head of the Council Ayatollah Ahmad Jannati said 'pressure will have no effect', hinting that the revision will be limited... 'You have acknowledged the right of only 30 percent of our voters, ignoring rights of others,' said Grand Ayatollah Ali Mohammad Dastgheyb in a letter to the Guardian Council, published by the Kaleme. 'Don't you think it will create a huge rift between the people and the leadership?'" http://t.uani.com/1S9tzdJ

Foreign Affairs

Reuters: "The world's largest Muslim body backed Saudi Arabia in its weeks-long diplomatic spat with Iran in a statement issued on Thursday night, accusing Tehran of backing terrorism and meddling in other countries' affairs. The Organisation of Islamic Cooperation (OIC), based in the Saudi city of Jeddah, had gathered for an exceptional meeting called by Riyadh over the storming of its embassy and consulate by Iranian protesters on Jan. 2... In its final statement, the OIC condemned the attacks on Saudi missions and criticized 'inflammatory Iranian statements on the implementation of court rulings against a number of perpetrators of terrorist crimes in Saudi Arabia'. '(The OIC) condemns Iran's interference in the internal affairs of countries in the region and other countries, including members (Bahrain, Yemen, Syria and Somalia) and the continuation of its support for terrorism,' the body added." http://t.uani.com/1SBAwG5

Daily Star (Lebanon): "Iran's intervention in the affairs of the Arab world is complicating the situation in the region and is the main reason for its rift with Saudi Arabia, Prime Minister Tammam Salam said Friday. 'While Russia and the United States are exerting efforts to reach a solution in the region... tension is on the rise between various sides in the region, in particular Saudi Arabia and Iran,' Salam said during a panel session with his counterpart Haider al-Abadi at the 46th annual meeting of the World Economic Forum in Davos, Switzerland. Salam said that Riyadh is 'right to consider that it has a leading role that it should assume in the Arab world in order to maintain its stability, but Iran, on the other hand, has been interfering in the affairs of the Arab world for the past years, which is the main point of contention between the two countries.' 'Saudi Arabia isn't meddling in Iran's affairs, then why is Tehran interfering in our local affairs and complicating the situation?' Salam asked, according to a statement released from his media office." http://t.uani.com/1PndDpu

Opinion & Analysis

WINEP Bipartisan Statement Signed by UANI Chairman Joseph Lieberman: "In this policy statement marking the nuclear deal's 'Implementation Day,' a group of experts organized by The Washington Institute urges the Obama administration to take steps ensuring Iran's full compliance with its many continuing commitments, and to implement a truly robust regional strategy designed to push back on Tehran's problematic behavior throughout the Middle East. 'It is a mistake to infer that Iran has now satisfied its requirements [under the Joint Comprehensive Plan of Action],' the statement reads. 'To ensure Iran's full compliance over the life of the JCPOA, it is essential that the United States, along with its P5+1 partners, establish the highest level of vigilance now.' Toward that end, the sixteen distinguished bipartisan experts called on Washington and its partners to ensure that the International Atomic Energy Agency (IAEA) has put in place the monitoring regime called for in the nuclear accord and to undertake whatever intelligence gathering is necessary to verify Iran's compliance. The statement also emphasized that the administration must 'take the moment of Implementation Day -- and Iran's receipt of considerable sums in sanctions relief -- to implement a truly robust strategy to counter Iranian destabilization' in the Middle East. The group recommends bolstering U.S. support for traditional regional allies; more active efforts to counter Iranian military and other support to terrorist proxies; and swifter resort to punitive measures, including sanctions, as a response to egregious actions by Iran outside the scope of the JCPOA. The group specifically urged the White House to counter the perception that Iran is a constructive partner in the counter-ISIL campaign. 'Nothing could be further from the truth,' the group argued. 'The reality is that Iran's policy across the region is to promote instability.' Download the PDF above to read the full statement. The group previously drafted a June 2015 statement on the nuclear negotiations and an August statement on the JCPOA." http://t.uani.com/1PsKRNY

UANI Advisory Board Member Michael Singh in WINEP: "When the next President enters office, Iran will be a nuclear-weapons threshold state operating more than 5,000 centrifuges, with more than 14,000 additional ones at hand but deactivated-assuming the July 14 accord is implemented and survives its infancy. It will be openly engaged in research and development on advanced centrifuges. Its heavy water reactor and its underground second enrichment facility will both be modified but otherwise intact and in use. Iran will have successfully defied multiple UN Security Council resolutions by refusing to suspend uranium enrichment, to dismantle illicitly built nuclear infrastructure, and to make a full declaration regarding its past clandestine nuclear activities or fully address IAEA inquiries about them. Iran will also possess a large, sophisticated ballistic missile arsenal, face no ban on the development of intercontinental ballistic missiles, and will be relieved of sanctions against its missile efforts by 2023 regardless of its actual missile activities. Its regional influence will have expanded, and its support for terrorism will likely continue unabated, benefited by Iran's influx of financial resources and the prospective lifting of sanctions against its export of conventional arms in 2020 and selective de-designations of the Islamic Revolutionary Guard Corps Quds Force and its commanders. Iran will not be free of all sanctions, but it will have shed the most significant and restrictive ones, allowing it to grow economically and expand its influence diplomatically and militarily. A major divide will linger between the United States and its closest regional allies over perceived U.S. diffidence in the face of Iranian assertiveness, further eroding a U.S.-led security architecture already reeling from the Iraq War, the Arab uprisings, and subsequent American disengagement from an active role in Iraq, Syria, and elsewhere. It might be tempting to regard these developments as regrettable but peripheral to America's global foreign policy agenda as Asia and Russia loom larger as concerns. Some may regard it as an acceptable price for deferring a long-running confrontation between Tehran and Washington over Iran's nuclear ambitions. But the truth is that Iran poses a challenge to vital U.S. interests in the Middle East: nonproliferation, counterterrorism, the freedom of navigation in key waterways such as the Strait of Hormuz, cyber security, and others. Iran's strategy for advancing its own objectives clashes with America's strategy for advancing its interests, which aims to ensure regional stability, provide for the security of Israel and other allies, weaken violent non-state actors, and prevent the rise of any hegemon from within the region or without. The next President will thus inherit not only a nuclear accord that was opposed by majorities of congress and the American public, but a broader policy that her or she regardless of party affiliation will find insufficient to meet the challenges the U.S. faces with respect to Iran and the Middle East. As part of a broader comprehensive strategy to rebuild American alliances, advance U.S. interests, and improve stability and security in the region, the next Administration should devise an Iran policy focused on re-establishing American deterrence, strengthening constraints on Tehran's nuclear program, countering Iranian efforts to project power regionally, and increasing pressure on the regime. The next President will be doing so in a more difficult international and regional environment and with fewer tools at the ready compared to predecessors. The Obama Administration's Iran policy has boiled down to a double gamble: first, that striking an agreement with Tehran that relieved sanctions while leaving it with an extensive nuclear weapons capability was better than the available alternatives; and second, that U.S. overtures and security assurances, together with the time bought by the agreement, could see Iran transformed into a more benevolent regional power whose threat to the United States and its allies is diminished. The challenge for the next President is that he or she will not know upon assuming office, or perhaps even over the full four to eight years of his or her tenure, whether President Obama's gambles will ultimately pay off.  Nor will the next Administration have the luxury of waiting to see the nuclear bargain's impact on Iran's long-term internal dynamics, because it seems more likely that Iranian behavior will worsen rather than improve in the short-to-medium-term, and that the regime will strengthen its hold on power... The next President is likely to inherit an Iran policy with which he or she is dissatisfied-not only an overly generous nuclear accord, but also a record of relative inaction against Iran's expanding regional activities and on questions of human rights.  Countering Iran in the wake of the nuclear accord will be a challenging and complicated task. International consensus may prove elusive, and the U.S. government will have sacrificed many of its most effective tools of pressure. But it is a task than cannot be shirked. It should be pursued with an eye not only to thwarting the threats Iran poses to U.S. interests, but also as part of the sort of comprehensive strategy toward the Middle East that has been absent in recent years, one that takes care to not only preserve but to enhance American influence and leadership globally." http://t.uani.com/1OLkZNO
       

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