Thursday, February 4, 2016

Eye on Iran: Race for Iran Oil Cargoes Could be False Start - Insurance Officials






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Reuters: "Oil companies looking to steal a jump on rivals in the race to benefit from Iran's emergence from Western sanctions risk having tankers left in limbo by international insurers' continued reluctance to provide cover. While companies jockey for position after world powers lifted curbs on Tehran's banking, insurance and shipping sectors last month as part of a nuclear deal with Iran, international insurers are no nearer to resolving concerns over U.S. sanctions that remain in place. Lars Lange, secretary general of the International Union of Marine Insurance (IUMI), said insurers faced the risk of massive fines if they fall foul of existing measures. 'It all comes back to this basic principle that we have to be very, very careful with our steps,' Lange told a news conference on Tuesday. 'It is paramount that we comply with all sanctions.' With measures still in place from Washington prohibiting U.S. individuals or companies from trading with Iran, Frederic Denefle, chairman of IUMI's legal and liability committee, said insurers are still seeking to clarify details on the parameters of the U.S. sanctions. In recent days, oil companies have been trying to conclude deals for their first Iranian cargoes. One tanker, which broker fixtures show has been booked by France's Total, is on its way to Iran to pick up oil. According to ship-tracking data, the Atlantas tanker is due to arrive in Iran on Feb 12. Trade houses are also looking to conclude deals. 'Insurance is the No.1 issue for everyone,' one tanker industry source said. 'There is still not enough clarity on where we stand.' ... Third-party liability insurance and pollution cover for vessels is provided by P&I clubs -- marine insurers owned by shipping clients and reinsured internationally. The International Group, which represents the top P&I clubs, recently flagged the potential for a 'snap back' in sanctions if Iran fails to meet its nuclear commitments and advised members to include provision for termination of contracts at short notice." http://t.uani.com/1mg2l8Y

Reuters: "Iran will continue to develop its missile program and it should not be considered a threat to neighboring and friendly countries, the semi-official Fars news agency quoted the head of the army as saying on Thursday. Under a deal reached between Iran and six major powers in 2015, most international sanctions imposed on Iran due to its nuclear program were lifted last month. However, sanctions imposed on its missile program were not lifted. According to a July 20 United Nations Security Council resolution endorsing the deal, Iran is still 'called upon' to refrain from work on ballistic missiles designed to deliver nuclear weapons for up to eight years. In October, Iran violated a United Nations ban by testing a precision-guided ballistic missile, prompting a U.S. threat to impose more sanctions. In December, President Hassan Rouhani ordered Iran's missile program to be expanded. 'Iran's missile capability and its missile program will become stronger. We do not pay attention and do not implement resolutions against Iran, and this is not a violation of the nuclear deal,' Fars quoted commander-in-chief Ataollah Salehi as saying... 'Our missile program is not a threat against our friends but it is a threat against our enemies. Israel should understand what it means,' Salehi said." http://t.uani.com/1R5Yx78

Reuters: "A powerful U.S. lawmaker on Wednesday demanded Secretary of State John Kerry provide an explanation of a $1.7 billion claim settlement paid to Iran just as Tehran released American prisoners last month. Republican Ed Royce, chairman of the House of Representatives Foreign Affairs Committee, wrote that the timing of the settlement and the administration's failure to brief Congress 'has led some to express concern that the payment represents a de facto ransom for the release of American hostages.' Royce asked Kerry to provide by Feb. 17 information including lists of all U.S. officials who participated in negotiations with Iran over the settlement agreement, the prisoner release and the nuclear agreement announced in July. He also asked for legal analyses of the dispute, a timeline of negotiations over the dispute and an explanation of how the interest payment in the settlement was calculated, among other information. On Jan. 17, the State Department said the United States and Iran had settled a longstanding claim at the Iran-U.S. Claims Tribunal, releasing to Tehran $400 million in funds frozen since 1981 plus $1.3 billion in interest. State Department spokesman John Kirby said Kerry would respond to the letter." http://t.uani.com/1PWyal9

Nuclear Program & Agreement

Fars (Iran): "Commander of the Islamic Revolution Guards Corps (IRGC) Aerospace Force Brigadier General Amir Ali Hajizadeh said the IRGC doesn't give a flip about the repeated US demands for restrictions on Iran's missile defense program and capabilities. 'They keep raising the issue of sanctions against Iran over its missile program and they expect us to retreat. Far from it, the IRGC response to the US demands will be offensive,' Hajizadeh said in Tehran on Saturday. He said the American attempts to limit Iran's missile power backfired as our Armed Forces boosted their efforts and made significant progress in defense." http://t.uani.com/1PUrRIi

WT: "The U.S. must do more to track and block companies that could be aiding the collaboration between Iran and North Korea on nuclear and military programs, according to a report published in Washington on Thursday that claims the links between the two isolated nations is deeper than commonly recognized. The report by the Foundation for Defense of Democracies, a Washington-based think tank, was released just weeks after Pyongyang claimed to have carried out a successful test of a hydrogen bomb and international sanctions on Iran are being lifted under the Obama administration-backed nuclear accord with Tehran. While the foundation's report notes there is 'no proof' of explicit Tehran-Pyongyang nuclear cooperation, there remain a host of unanswered questions and fears among some analysts that Iran is 'outsourcing aspects of its nuclear weapons program' to North Korea. 'Signs of military and scientific cooperation between Iran and North Korea suggest that Pyongyang could have been involved in Tehran's nuclear and ballistic-missile program, and that state-run trading companies may have assisted in critical aspects of Iran's illicit nuclear-related activities,' the foundation's report notes, saying that put more pressure on the Obama administration to track the suspected linkages. Debate over the extent of collusion between the two is heated, although evidence of collaboration has piled up for years. One of the more significant developments came in November 2010 with the leaking of a classified U.S. government cable written 10 months earlier that revealed that American intelligence officials believed Iran had obtained 19 advanced missiles from North Korea." http://t.uani.com/20bNw4v

U.S.-Iran Relations

Fars (Iran): "Chief of Staff of the Iranian Armed Forces Major General Hassan Firouzabadi warned that the US is planning to assassinate Islamic Revolution Guards Corps (IRGC) Quds Force Commander Major General Qassem Soleimani. 'The Americans are desperate to hit General Soleimani to make them feel better about themselves,' Firouzabadi told reporters in Tehran on Thursday. He however maintained that maximum security measures are in place to protect the Iranian commander from such threats, who knows how to organize his forces, launch offensives against terrorists, and earn results... Asked about rumors about his injury or death in Syria spread by the terrorist groups and the Zionist media, General Soleimani said, 'This is what I have been looking for in all plains and mountains.'" http://t.uani.com/1nJhKj0

LAT: "The call came in to the rug store at 10:30 on Wednesday morning: After five days in U.S. customs, the shop's first batch of carpets imported from Iran were ready for pickup. Store owner Alex Helmi quickly gathered his employees and told them to drive to the airport to pick up the shipment: 40 handmade rugs valued at about $500,000. 'I wanted to cry,' Helmi said. A 2010 embargo on Iranian-made rugs has meant tough times for sellers such as Helmi, who found his carpets caught up in a clash of geopolitics and nuclear brinkmanship. Last summer's landmark international nuclear agreement, however, paved the way for importing rugs once again in what was once Iran's largest foreign market... Apart from oil, Persian carpets were the product that suffered most from the sanctions. Experts say that before the embargo, the U.S. accounted for one-fifth of Iran's carpet exports." http://t.uani.com/20bJ2uE

Congressional Action

Free Beacon: "Leading Republican lawmakers are spearheading a new legislative push that would stop the Obama administration from blocking state-level efforts to impose new sanctions on Iran, according to a copy of new legislation obtained by the Washington Free Beacon. The push, which is led by more than 20 House Republicans, comes in response to Obama administration efforts to prevent state governments from wading into the Iran debate. Since the nuclear agreement was implemented, many state officials have expressed interest in leveling new economic sanctions against Iran in a bid to stop local governments and business from re-engaging in business with the Islamic Republic. At least half of all U.S. states have laws or policies on the books that sanction Iran. Governors from 15 states co-signed a letter in September expressing their intent to use state-level sanctions to target Iran. The Obama administration has expressed outrage about the effort, warning that it could interfere with and even violate the nuclear agreement. A portion of the agreement includes language that threatens to block U.S. states from moving forward with new sanctions. In a bid to protect these state rights, Rep. Ron DeSantis (R., Fla.) and a delegation of other House lawmakers, have filed legislation to protect governments from legal attacks brought as a result of their Iran sanctions efforts, according to information provided to the Free Beacon. 'States such as Florida that have imposed sanctions against Iran play a vital role in protecting the security of the American people,' DeSantis said in a statement. 'The Obama administration's disastrous nuclear deal with Iran was neither ratified as a treaty nor adopted as statutory law, and therefore cannot preempt valid state laws. The State Sanctions against Iranian Terrorism Act will preserve, protect, and enhance the authority of individual states to pass laws ensuring that their dollars do not flow to the world's leading state sponsor of terrorism.' The legislation would give states a greater ability to issue their own sanctions on Iran and limit the business community's interactions with Iran." http://t.uani.com/1NSeXt9

Sanctions Relief

Reuters: "Iran and Russia have initialed contracts worth around $40 billion, including for power-engineering and railway projects, Russian news agencies quoted Ali Akbar Velayati, top adviser to Iran's Supreme Leader Ayatollah Ali Khamenei, as saying on Thursday. Velayati, who is wrapping up a visit to Moscow, said he had discussed some of the projects with Russian President Vladimir Putin. He said Tehran was interested in obtaining a loan from Russia for Iran's railways and nuclear power engineering. He said the package of projects had been signed in the past few months. 'They have been initialed and are ready for implementation,' Interfax news agency quoted him as saying." http://t.uani.com/1nPrRUf

Reuters: "Spanish refiner Cepsa will ship a 1-million barrel cargo of Iranian oil to its refineries, according to vessel agents' data and market players' information on Wednesday... According to Reuters shipping data, Cepsa has chartered the suezmax Monte Toledo which will load at Iran's Kharg Island for delivery to the Spanish ports of Huelva and Algeciras. Spain and Iran are considering jointly building an oil refinery in Algeciras. A Cepsa spokeswoman said it was not the company's policy to give any details about specific commercial operations, but said the company was open to taking Iranian crude. 'We will consider it again, as we consider any other crude oil, if it's profitable,' she said." http://t.uani.com/1UNAjgW

Reuters: "An economic battle is likely for dominance of the skies over the Gulf after Iran decided to invest $27 billion in an airline fleet capable of taking on the region's supercarriers. By ordering dozens of long-distance European jets last month after the lifting of sanctions, Iran is positioning Tehran as a potential long-term transit point between East and West to rival regional hubs such as Dubai, air officials and analysts say... The International Air Transport Association (IATA), a trade association, has predicted Iran's market will more than treble from 12 million passengers a year now, mostly domestic flyers, to 44 million by 2034. 'While the airlines here (in Iran) are rebuilding their capacity, the regional carriers ... are looking to suck traffic out over the Gulf airports,' Dick Forsberg, strategy chief at aircraft lessor Avolon, said during the CAPA Iran Aviation Summit... Already 28 foreign carriers serve Iran and more are likely to arrive, says CAPA... Parvaresh said Iranair would start flights to Toronto, home to an estimated 50,000 Canadian Iranians." http://t.uani.com/20taw4p

Terrorism

JPost: "Palestinian Authority security forces have recently arrested five pro-Iranian operatives in Bethlehem planning to establish a foothold in the West Bank and carry out attacks against Israel, Israel Radio cited Palestinian security forces as saying. According to the sources, the five members of the 'a-Sabrin' organization had operated in the Gaza Strip over the past years before being arrested two weeks ago after leaving the coastal Palestinian enclave. The operatives working under Iranian orders had reportedly received funding in Gaza and were instructed to carry out terror attacks. The Israel Radio report cited the organization's leader in Gaza, Hisham Salem, as confirming that the group operates in the West Bank, adding that it would soon receive financial and military aide... While Hamas and the Islamic Republic have faced strained ties since 2011 over their backing of opposing sides in the Syrian civil war, other Iranian proxy groups have recently been caught attempting to set up operations in the West Bank. In January, security forces announced that they had foiled a Hezbollah-controlled suicide bombing and sniper cell based in the West Bank city of Tulkarm. According to the Shin Bet (Israel Security Agency), the terror cell was set up by the son of Hezbollah leader Hassan Nasrallah." http://t.uani.com/1L0cgWw

Syria Conflict

Fars (Iran): "Another Islamic Revolution Guards Corps (IRGC) war veteran commander, providing military counseling services to the Syrian forces in their fight against the foreign-backed Takfiri terrorists, was killed. Brigadier General Mohsen Qajarian, the commander of Imam Reza Armored Brigade 1 from Neishabour, Northeastern Iran, was martyred in an attack by the ISIL Takfiri terrorists while on duty. Brigadier General Qajarian had been in Syria for sometime offeirng military advice to the Syrian Army and popular forces in their fight against ISIL. In September 2014, Deputy Chief of Staff of the Iranian Armed Forces Major General Gholam Ali Rashid had announced that Iran's military advisors were present in friendly regional states to provide them with necessary military recommendations. 'Some of our commanders are in the field to give military advice to the Iraqi army, Lebanon's Hezbollah and the Palestinian resistance movement,' Major General Rashid said, addressing a conference attended by a group of senior military commanders in Tehran." http://t.uani.com/1TGvaJf

Human Rights

Guardian: "Authorities in Iran have arrested a former BBC journalist on the eve of a visit to London by Mohammad Javad Zarif, the Iranian foreign minister. Bahman Daroshafaei was taken to jail on Wednesday after facing a series of interrogations, according to sources in Tehran. Daroshafaei is of dual Iranian-British nationality and is a former employee of the BBC's Persian service, which is loathed by the Iranian establishment. Zarif is due to participate at a high-profile summit on Syria in London on Thursday, in the first visit to the UK by an Iranian foreign minister in 12 years. It comes after Britain and Iran reopened embassies in their respective capitals last August following the landmark nuclear deal... Daroshafaei, who left BBC Persian two years ago to return to Iran to work on children's literature, was active on social media, particularly on issues relating to human rights, such as the situation of imprisoned journalists and activists. He had worked for the corporation for five years as a staff journalist... Another British-Iranian, the businessman Kamal Foroughi, 76, remains in jail in Iran after he was imprisoned for more than four years." http://t.uani.com/20tisTn

Journalism Is Not A Crime: "Iranian journalist Bahman Daroshafaei was arrested in Tehran this morning. According to an informed source based in the Iranian capital, the former BBC journalist has been interrogated 40 times over the past few months. The journalist had reportedly been working as a translator for Mahi Publishing Company and for an NGO focusing on vulnerable children and women. Arresting authorities did not present a warrant when they arrived at Daroshafaei's home early on February 3." http://t.uani.com/1NShKCE

Guardian: "Mohammad, 14, is an Afghan immigrant who recently joined the flow of refugees arriving in the holding centre for unaccompanied minors on the Greek island of Lesvos. Leaving his parents behind in Iran, he crossed the Aegean Sea on an overcrowded rubber dinghy with 38 other passengers... Afghans account for the largest proportion of unaccompanied minors arriving in Lesvos. Over one-third of the 2,248 minors that passed through Lesvos last year hail from Afghanistan, according the Greek NGO Metadrasi. Most Afghans fleeing war and economic strife in their homeland have spent time in Iran, which has hosted the second-largest population of Afghan refugees for over 30 years. But worsening living conditions in Iran are forcing young migrants like Mohammad to leave even their temporary homeland in search of yet another one. An estimated 2.3-3 million Afghans now live inside Iran, of whom 800,000 are children. The first wave of Afghan refugees arrived in Iran following the 1979 Soviet invasion of Afghanistan and subsequent civil war. They had access to public education and opportunities to work. Some 97% of Afghans lived outside refugee camps, and were integrated into urban communities. Since the 2001 US invasion of Afghanistan and the fall of the Taliban, Iran began instituting increasingly restrictive laws on Afghans, including bureaucratic hurdles, limitations on movement, deportation of minors and separation of families, and reduced access to education." http://t.uani.com/1TGtLCw

Domestic Politics

FT: "Iran's bitter power struggle has moved into the business sector as hardliners try to undermine high-profile deals agreed since a landmark nuclear agreement came into force last month. Conservatives, mostly concentrated in the parliament and media affiliated to the elite Revolutionary Guards, have questioned a number of contracts signed by the government of president Hassan Rouhani in the past fortnight, warning that the country's natural and financial resources are at risk of being looted by western companies... Contracts signed with French companies including Airbus, Peugeot and Total, during Mr Rouhani's visit to Paris last week, have also been attacked as harming the country's national interest... An article published by the hardline Fars news agency questioned why Iranian assets were being used for French companies that 'had forgotten the most basic principles of human rights, notably the safety of human beings, during sanctions'. It also published a picture of an A380 jetliner with a caption that read: 'At a time when the aviation fleet is used by less than 5 per cent of the population, and the country is in recession, there is a question why the government's first major economic move is to buy Airbus.'" http://t.uani.com/1QIexdp

Opinion & Analysis

Tony Badran in Tablet: "The administration of President Barack Obama seldom missed an opportunity to insist that the alternative to the Iran nuclear deal was a war with Iran, a prospect that has now presumably been kicked further down the road. Middle Easterners are not so lucky: They get to fight their wars with Iran right now. Where America stands on the question of the wars that Iran is fueling across the Middle East has been obscured to some extent by outdated expectations, diplomatic niceties, and deliberate smoke-screens. But it would be wrong to take pro forma statements about America's alliances with old friends like Turkey, or Saudi Arabia, or Israel at anything like face value. The first thing the Obama Administration did following the recent burning of the Saudi embassy and consulate in Iran by a state-sponsored mob was not to condemn this assault on a longtime U.S. ally. Rather, the White House immediately launched a media campaign pushing the message that the problem was actually Saudi Arabia, and, as anonymous U.S. officials suggested on background, maybe it was time to reconsider America's regional alliances. Yet the president has actually been explicit about his dislike for the old American order in the Middle East. The 'old order that had been in place for 50 years, 60 years ... was unsustainable, and was going to break up at some point.' Obama proclaimed at a DNC event in 2014. The new order, he added, was not born yet. Earlier that same year, Obama was more explicit still about his intention to realign the United States away from its old alliances: 'I think change is always scary. I think there was a comfort with a United States that was comfortable with an existing order and the existing alignments, and was an implacable foe of Iran.' Washington's traditional 'partners in the region,' the president made clear almost two years ago, were going to have to 'adapt to change.' The foundation of the new American-approved security framework was the recognition and respect of what Obama refers to as Iran's 'equities.' This translated into legitimization of Iranian spheres of influence throughout the region, especially in Iraq and Syria. For Obama, this recognition of Iran as a regional pillar worked on several levels, especially as it was in accord with the president's clearly broadcast aversion to military intervention. Elevating Iran's regional position provides the president with the possibility of establishing an alternative security structure, one that no longer relies on U.S. military power. Obama has repeatedly described the foundation as well as purpose of this new structure as establishing 'equilibrium' between 'the Shiites'-which, for Obama, means Iran-and 'the Sunnis,' primarily meaning the Saudis. But this was effectively meaningless. In practice, Obama was looking for Iranian cooperation on key regional issues in order for him to shrink the American military footprint in the region. However, the president needed a mechanism that would, in one fell swoop, reduce tension with Iran and open the door to pursue cooperation in other areas. This, in short, is the purpose of the Joint Comprehensive Plan of Action. Indeed, the administration's sales pitch for the deal encouraged the promise of closer cooperation on regional affairs. In an interview in August of last year, Secretary of State John Kerry emphasized precisely the prospect of regional collaboration with Iran: 'If we can get this deal done, then we're ready to sit down and talk about the regional issues, and we may be able to work things in different places.' Yet while Obama may hope for convergence, Iran has naturally been seizing the opportunity to leverage U.S. support to advance its own regional interests, which happen to run squarely against the traditional American alliance system. Even more fundamentally, Iran is a revolutionary actor, whose expressed objective is to overturn the existing order and replace it with Iranian hegemony. True to form, the Iranians used their recent seizure of the U.S. Navy boats and their crew on the day of the State of the Union address two weeks ago to underscore this point, both to the United States and to its traditional regional allies. The newspaper Kayhan, a mouthpiece for Supreme Leader Ali Khamenei, ran a telling headline about the detention of the sailors, describing the episode as, 'the humiliation of the godfather of the Gulf emirates.' The message is clear: Iran is manhandling America with impunity. Allies and clients of the United States have been put on notice. Iranian impunity is not a function of Iran's actual military power vis-à-vis the United States. Rather, it emanates from the Iranian understanding that Obama wants to extricate the United States from the region, has no interest in maintaining the old American order, and is therefore willing to recognize Iran's position at the head of the regional table. Hence, the administration has found itself repeatedly acting as Iran's lawyer, excusing and justifying its behavior, legitimizing its ambitions, and instead lashing out at old regional allies. These dynamics, which the administration set up in order to cooperate with Iran, were codified in the JCPOA and give Iran substantial leverage to determine the terms of the U.S.-Iranian relationship. Insofar as Obama has made the nuclear deal and cooperation with Iran his signature, legacy-setting policy, the United States must act as Iran's advocate in the region, lest the deal and the promise of cooperation collapse. Sustaining the deal with Iran and gaining its cooperation in the region therefore requires the United States to downgrade traditional allies like Israel, Saudi Arabia, and Turkey, which are in direct conflict with Iran throughout the region, in Iraq, Lebanon, Syria, and Yemen. Because there is nothing very appealing to most Americans about the prospect of making a pro-Iranian U-turn in U.S. foreign policy, Obama has sought cover for this policy with the conceit of 'fighting extremism,' namely ISIS." http://t.uani.com/1NSip7b

Aaron David Miller in CNN: "The problem with dancing with a bear, the late Israeli Prime Minister Yitzhak Rabin once quipped, is that you can never let go. That uncomfortable reality is one the United States will be fully familiar with right now. On Sunday, Iranian Supreme Leader Ayatollah Seyyed Ali Khamenei honored an Iranian Revolutionary Guard Corps admiral and four others for detaining 10 U.S. sailors last month. The sailors were, of course, quickly released. But Sunday's move underscores just how strained (and strange) U.S.-Iran ties are right now. In some Republican presidential candidates' eyes, such provocations are cause enough to tear up the nuclear agreement. Indeed, in Thursday's debate, two candidates pledged to do exactly that if elected. But while frustration is understandable, such pledges are basically empty threats. Why? Because when the next president is inaugurated, implementation will have been underway for more than a year. Already, Iran is doing deals with Russia, Italy, France and China, among others, and nobody is looking for an international crisis right now. The natural inclination once a thing this large has settled is to accept it. And the mentality based on my own diplomatic experience will be to keep it going, not try to sink it. But while a case can certainly be made that the accord was better than the alternatives -- war or an Iran with a nuke -- implementation day was also no cause for unrestrained celebration, either. It's not just that the deal between the six world powers and Iran damaged relations with traditional U.S. allies, most prominently Saudi Arabia and Israel (both are in their different ways, to say the least, imperfect partners). The problem is that a fundamental shift in the balance of power is taking place in the region in Iran's favor. For a start, Iran gains access to frozen assets without having to end its support to the Bashar al-Assad regime in Syria, stop backing the Shiite rebels in Yemen who are fighting a proxy war with the Saudis or back off from its support to Lebanese Hezbollah. More broadly, Iran is rising as Arab states face increasing challenges to state authority; restive populations and worsening economies; and, in some cases, fragmentation. Moreover, after nearly four decades of tension, America's dependence on Iran is actually increasing. Washington, having gone all-in on the nuclear deal, needs Iran to uphold its commitments, something critical to the Obama administration's legacy. In addition, it also needs Iranian assistance in resolving the civil war in Syria and stabilizing Iraq -- complex issues that may require formal U.S. recognition of growing Iranian influence. Of course, the flip side of this, as supporters of the deal point out, is that Iran and the United States have another channel for communication. They point, for example, to the speedy resolution of the incident with the captured U.S. Navy personnel, as well as the prisoner exchange that saw several American-Iranians released. Yet the U.S. Navy personnel were still used for propaganda purposes by the Iranian military unit holding them -- and now by the Supreme Leader on Sunday. Meanwhile, Siamak Namazi, another U.S.-Iranian dual national, has not been released. And no information has been given about the fate of Robert Levinson. So moving forward, Iran's leadership is likely to exploit this channel with the United States whenever doing so suits its own interests. True, Iranian moderation was never the goal of the nuclear deal. Unfortunately, the opposite seems to be occurring. In fact, the strengthening of hard-line elements can be seen in a variety of recent actions, including the increase in the number of Iranian military advisers sent to Syria; the disqualification of thousands of centrists as candidates in the February elections for Parliament and the Assembly of Experts; the execution of large numbers of minors; and continued Holocaust denial. All this suggests that Iran's hard-line leadership never really saw the nuclear agreement as a threat to the regime's authoritarian and ideological character, but rather as a way to consolidate its power... For better or perhaps worse, we're now dancing with a bear and we won't be stopping anytime soon." http://t.uani.com/1L0oleu

Emanuele Ottolenghi in WSJ: "Mahan Air is an Iranian passenger airline that also happens to be a favorite with the country's Islamic Revolutionary Guard Corps. The IRGC uses Mahan planes to ferry weapons and personnel to aid the Syrian regime. That's according to the U.S. government, which has repeatedly committed itself to grounding the airline. Yet Mahan continues to fly the friendly Middle East skies and is even expanding its operations. Of all Iranian entities still under U.S. sanctions, Mahan is arguably the most significant. The U.S. Treasury sanctioned it in October 2011 for 'providing financial, material and technological support to the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF)' and for providing transportation services to Iran's Lebanese terror proxy, Hezbollah. In October 2012, Treasury blacklisted 117 Iranian commercial planes, including all of Mahan's aircraft, because 'Iran used Iran Air and Mahan Air flights between Tehran and Damascus to send military and crowd control equipment to the Syrian regime.' The Islamic Republic continued to rely on civilian aircraft to supply the Assad regime throughout the talks leading to last year's nuclear deal. A Western intelligence report leaked to Reuters in 2012 confirmed that Mahan was at the center of the IRGC airlift to the Assad regime. So has a United Nations panel in charge of monitoring implementation of international sanctions against Iran... Publicly available tracking information shows the same Mahan planes flying to commercial destinations within hours of their return from Damascus. An airline that, according to U.S. Treasury, delivers IRGC arms to Syria also flies to Gulf Arab states that supposedly oppose Iranian expansionism. Rather than shrinking due to the carrier's supporting role in the Syrian civil war, Mahan's international route network is expanding. It already introduced three flights to Russia last summer and plans to add new routes to Europe as European sanctions against Iran are lifted. After last summer's nuclear deal with Tehran, the Obama administration kept Mahan under sanctions. In Senate testimony shortly after the accord was signed, Acting Under Secretary of Treasury for Terrorism and Financial Intelligence Adam Szubin warned that regardless of the agreement, 'a foreign bank that conducts or facilitates a significant financial transaction with Iran's Mahan Air . . . will risk losing its access to the U.S. financial system.' These were empty words. If the administration were serious, Mahan would be grounded by now. Instead, its international routes are expanding. Worse, on Jan. 16, the White House agreed to lift an Interpol red notice against Mahan's chief executive and a senior manager whom the U.S. Treasury said was responsible for the airline's sanctions-evasion operations... The fact that Mahan can fly the IRGC to Damascus and, the next day, use the same planes to land in Milan, Munich or Stockholm speaks volumes to the lack of U.S. leverage to enforce sanctions... To restore credibility, Treasury should take immediate action against those financial institutions that transact on Mahan's behalf in Asia, Europe and the Gulf, and should slap heavy fines on European and Asian ground-service companies working with the airline. To pay for such services, Mahan needs, and likely receives, access to financial services in the countries in which it flies. The ground services it hires are indispensable to Mahan's operations. The airline would be forced to cancel routes if such services were no longer available." http://t.uani.com/1K0DMZ0
       

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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