Thursday, May 12, 2016

Eye on Iran: European Banks Resist Calls to Increase Business Ties with Iran






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FT: "Some of Europe's biggest banks are to resist rising political pressure to do more business in Iran when they meet the US secretary of state and the British foreign secretary on Thursday. John Kerry and Philip Hammond plan to call on the banks to do more to reconnect with Iran and to finance British companies seeking to win contracts in the Middle East's second-largest economy. But the continuation of many US sanctions relating to other issues, such as facilitating terrorism, has made many western banks wary of working with Iranian institutions and individuals. This is causing growing frustration among officials in Iran, the US and Europe about the slow pace with which Tehran is being reconnected to the global financial system. 'We want our banks to be able to support British companies working in Iran,' Mr Hammond said in a statement sent to the Financial Times before Thursday's meeting in London's Mayfair district. 'It is in our economic interest, as well as Iran's, that legitimate business is supported. After many years of restricted relations some challenges remain, but we are working through them with international partners, Iran and the banking community.' His pleas are likely to largely fall on deaf ears among the bankers invited to attend the meeting, including executives at Standard Chartered, HSBC, Barclays, Deutsche Bank, BNP Paribas, Santander, Lloyds Banking Group and Royal Bank of Scotland. StanChart told the FT it would be 'happy to share the practical and legal considerations behind our stated position regarding Iran: we will not accept any new clients who reside in Iran, or which are an entity owned or controlled by a person there, nor will we undertake any new transactions involving Iran or any party in Iran'. Banks including StanChart and HSBC have paid more than $15bn in fines for breaching sanctions in various countries over the past five years. The costliest was the $8.9bn penalty for France's BNP Paribas in 2014... Bankers doubt Mr Kerry will be able to change their cautious approach to Iran. They fear that even if they receive assurances from the US Treasury department, US prosecutors and independent regulators might adopt a different and stricter interpretation of the rules. They add that Iran presents multiple challenges for banks other than the prospect of breaching US sanctions, including the risk of inadvertently aiding money laundering, financing terrorism and financial crime in a country that has for many years been in the financial wilderness and remains 'off the grid' for most compliance systems. With a US election looming in November, one banker said: 'Kerry is not long for this world,' adding that Donald Trump, the likely Republican party nominee for president, has expressed much more negative views about the Iran nuclear deal." http://t.uani.com/24NZ4iy

WSJ: "U.S. Secretary of State John Kerry met with heads of some of Europe's biggest banks in London on Thursday to address their concerns about doing business in Iran, in a controversial push to ensure that Tehran sees the relief that the U.S. and other world powers pledged it in a nuclear accord that took effect in January. After a roughly hourlong meeting, Mr. Kerry said that he hoped to glean from bankers the obstacles they see to doing business with Iran and address them. 'We want to make it clear that legitimate business, which is clear under the definition of the agreement, is available to banks as long as they do their normal due diligence and know who they're dealing with,' Mr. Kerry told reporters. ' They're not going to be held to some undefined and inappropriate standard.' 'They [the Iranians] have an expectation that the sanctions that are supposed to be lifted are in fact lifted.' Mr. Kerry said Thursday. British Foreign Secretary Philip Hammond said the U.S., U.K and other world powers that negotiated the deal were actively working 'to support European businesses in resuming normal trade and investment patterns with Iran.' ... Top bankers at the meeting on Thursday included John Cryan, chief executive of Deutsche Bank AG, and Antó nio Simõ es, chief executive of HSBC Bank PLC, part of HSBC Holdings PLC. Other attendees included Tracy Clarke, regional chief executive for Europe and Americas at Standard Chartered PLC and Michael Roemer, group head of compliance at Barclays PLC. British Bankers' Association Chief Executive Anthony Browne, who also attended, is helping to coordinate banks' views and concerns on Iran business. A U.S. official said Mr. Kerry told the bankers he's aware that Iran hasn't done anything to lessen banks' concerns about doing business in the country. 'He specifically mentioned our acknowledgment that Iran, despite the fact that they're meeting their obligations in the [nuclear accord], continues to conduct destabilizing support for terrorists, ballistic-missile activity,' the official said. 'They continue to provoke and to destabilize the region in other unhelpful ways and we understand that that is also causing a measure of skittishness.' ... A further meeting between banks and U.S. officials is to be held in Washington, D.C. next week, the person said. Some banks say that they have made up their minds on not doing business with Iran, in part because they have agreements in place with U.S. agencies that may take a different view than the official government stance on Iran." http://t.uani.com/1NrBdAX

Bloomberg: "Iranian crude production rose to levels last seen before sanctions were imposed more than four years ago, helping to drive OPEC output to the highest in almost eight years, according to the International Energy Agency. Iran pumped 3.56 million barrels a day last month, a rate last reached in November 2011 before trade restrictions were imposed over the country's nuclear program, the IEA said Thursday. Exports soared more than 40 percent to 2 million barrels a day -- near pre-sanctions levels -- as the nation worked to regain lost market share. While Iraq and the United Arab Emirates also boosted output, Iran's addition of 300,000 barrels a day was the key contributor to OPEC's production gain to 32.76 million barrels a day, the highest since August 2008... Iran's exports jumped by around 600,000 barrels from March, 'with China buying big and Europe loading substantially more,' the IEA said in its monthly report... China was the biggest buyer of Iranian crude in April, lifting more than 800,000 barrels a day, a 57 percent gain from March, according to the IEA. Purchasers in Europe loaded roughly 500,000 barrels a day, more than double the previous month, with Total SA and Tupras Turkiye Petrol Rafinerileri AS leading the orders." http://t.uani.com/24NZFAM

Nuclear & Ballistic Missile Program

Reuters: "The United States switched on an $800 million missile shield in Romania on Thursday that it sees as vital to defend itself and Europe from so-called rogue states but the Kremlin says is aimed at blunting its own nuclear arsenal. To the music of military bands at the remote Deveselu air base, senior U.S. and NATO officials declared operational the ballistic missile defense site, which is capable of shooting down rockets from countries such as Iran that Washington says could one day reach major European cities. 'As long as Iran continues to develop and deploy ballistic missiles, the United States will work with its allies to defend NATO,' said U.S. Deputy Defence Secretary Robert Work, standing in front of the shield's massive gray concrete housing that was adorned with a U.S. flag... Before the ceremony, Frank Rose, deputy U.S. assistant secretary of state for arms control, warned that Iran's ballistic missiles can hit parts of Europe, including Romania." http://t.uani.com/220jZgJ

Free Beacon: "Iran's military recently publicized a third underground missile facility and showed the launch of a new ballistic missile through the top of a mountain. U.S. intelligence agencies said in a recent internal report on the launch that the new underground missile facility was disclosed by Iran in March. It was the third time since October that Tehran showed off an extensive network of underground missile facilities. The new video, however, for the first time shows a missile launch from one of the country's underground launch facilities... The latest video was disclosed March 9 by the Mehr New Agency, run by the hardline Islamic Propagation Office, which is in turn affiliated with the Qom seminary... The video begins with grainy footage showing an underground tunnel where missiles are stored on either side. The video then shifts to a concrete cavern where what appears to be a Qiam-1 ballistic missile is being set up beneath a launch tube in the ceiling of the cavern. The video then shows a news announcer stating that on March 8 a Qiam missile was launched 'from the depths of the earth.' The final scene shows a missile lifting off through the top of a mountain." http://t.uani.com/1YnHYEn

Congressional Action

AP: "The Senate on Wednesday blocked a Republican effort aimed at undercutting last year's landmark international nuclear deal with Iran. The Senate fell three votes short of the 60-vote threshold - 57-42 - to move ahead on the amendment sponsored by freshman Republican Sen. Tom Cotton of Arkansas. Cotton's proposed provision would have barred the United States from using taxpayer dollars to buy any more Iranian 'heavy water.' The proposal had triggered a war of words with the White House. Heavy water is not radioactive but has research and medical applications and can also be used to produce weapons-grade plutonium. Under the nuclear deal, Iran is allowed to use heavy water in its modified Arak nuclear reactor, but must sell any excess supply of both heavy water and enriched uranium on the international market. The Obama administration bought 32 metric tons of heavy water from Tehran last month, an $8.6 million deal that helped Iran meet the nuclear agreement's terms." http://t.uani.com/1THv93z

Al-Monitor: "Congress hasn't managed to pass a single Iran-related bill since the nuclear deal went into effect last year, but that doesn't mean its supporters can breathe easy. Behind the scenes, lawmakers in both chambers and both parties have been working together on comprehensive legislation that will seek to punish Iran for its human-rights abuses, ballistic missile tests and other activities. That strategy could help explain why a bill to renew sanctions on Iran's energy sector that expires at the end of the year has been bottled up in the Senate banking panel for the past 11 months despite bipartisan support for its passage. 'My sense on the Republican side is that the leadership is not going to accept a mere extension [of the Iran Sanctions Act] without additional sanctions,' said Sen. Robert Menendez, D-N.J. 'Certainly I want to get it done, period. But if it helps drive a bigger package, that's a good thing.' Menendez, a member of the Senate Foreign Relations Committee who opposed the Iran deal, has been working for months with panel chairman Bob Corker, R-Tenn., on broader sanctions legislation. That effort is on the verge of succeeding, Corker told Al-Monitor May 11. 'We have a bipartisan bill,' Corker said, 'and we're getting ready to roll it out real soon.' Menendez said a recent New York Times magazine profile of Obama's foreign policy advisor, Ben Rhodes, has only energized deal-skeptic lawmakers because of the dim view it takes of Congress... House members likewise have increasingly been signaling their intentions to go after Iran with everything they can muster... House Foreign Affairs Committee Chairman Ed Royce, R-Calif., and ranking member Eliot Engel, D-N.Y., have been working on such legislation for several months... The top Democrat on the Senate Foreign Relations Committee, Sen. Ben Cardin, D-Md., said he supports renewing the Iran Sanctions Act and strengthening ballistic missile sanctions, but that the Republican leadership appears to want more.  'I think we could do both and get broad consensus,' Cardin said, 'but I do not sense a lot of enthusiasm by the Republican floor leadership to move in that direction.' As a result, he said, there has been 'no progress' in his talks with Corker, suggesting that the chairman may end up releasing his bill with Menendez on board but not Cardin." http://t.uani.com/1THvF1s

Extremism

WashPost: "This weekend, Iran will stage its third cartoon exhibition about the Holocaust. The images on display, pooled from submissions that came in from various parts of the world, mock a history of genocide and Jewish suffering. The event has garnered global notoriety and is a persistent mark against an Iranian regime that has tried over the past year to show that it's ready to emerge from international isolation... as myriad observers have noted, Holocaust denial within the Iranian regime did not begin and end with Ahmadinejad. Rather, it starts at the top with the supreme leader, Ayatollah Ali Khamenei, who just this year questioned the 'reality' of the genocide on Holocaust Remembrance Day. 'Senior Iranian officials have for many years systematically promoted Holocaust denial and distortion,' said Tad Stahnke, who heads the U.S. Holocaust Memorial Museum's Initiative on Holocaust Denial and Antisemitism. He added that the contest 'discredits Iran and its people' and is an 'affront' to the victims and survivors of the Holocaust, which include some Iranians themselves." http://t.uani.com/1WsogcU

RFE/RL: "The United States Holocaust Memorial Museum has called on the Iranian government to disavow a Holocaust cartoon contest that is due to kick off next week. Iran's foreign minister has denied any affiliation with the event, which begins on May 14 and features prizes ranging from $5,000 to $12,000 for the top three entries. But the Washington-based museum, which is funded by U.S. government and private donations, has suggested the event has government links, and ought to be canceled or condemned... Influential Iranian officials have minimized the killings in the past. Supreme Leader Ayatollah Ali Khamenei has questioned the Holocaust and referred to it as 'an event whose reality is uncertain.' And former President Mahmud Ahmadinejad, who was known for frequently making anti-Israeli remarks, regularly questioned the Holocaust and called it 'a myth.' ... Officials at the Holocaust Museum told reporters on May 11 that the contest organizers, including the House of Cartoon and the Sarcheshmeh Cultural Center both have ties to state entities, including the Islamic Revolutionary Guards Corps and the Culture Ministry." http://t.uani.com/1TRxuMr

Saudi-Iran Tensions

AP: "Iran will not send pilgrims to Saudi Arabia this year for the annual hajj pilgrimage, an Iranian official said Thursday, the latest sign of tensions between the two Mideast powers after a disaster during the event last year killed at least 2,426 people. Iran said Saudi 'incompetence' caused the Sept. 24 crush and stampede in the holy city of Mina during the hajj, which is required of all able-bodied Muslims once in their life. The Islamic Republic has said the disaster killed 464 of its pilgrims. Negotiations between Shiite power Iran and the Sunni kingdom had been trying to 'resolve the issue' of security for months, but failed to make any headway, said Ali Jannati, Iran's minister of culture and Islamic guidance. 'We did whatever we could but it was the Saudis who sabotaged' it, Jannati said in comments carried by the state-run IRNA news agency. 'Now the time is lost.'" http://t.uani.com/1T8ll3i

Domestic Politics

NYT: "Minoo Khaleghi easily won a seat in the Iranian Parliament in February, part of a wave of independents and reformists who now have the numbers to wrest authority from the hard-liners. On Wednesday, however, a powerful state committee demonstrated that the conservative forces would not relinquish power without a fight. Citing 'evidence' that had emerged against her, the Dispute Settlement Committee of Branches, a part of Iran's generally conservative judiciary, ruled that Ms. Khaleghi could not be sworn in as a new member of Parliament, the semiofficial Fars News Agency reported. The evidence, it turned out, consisted of photographs of Ms. Khaleghi, 'leaked' on social media last week, showing her in public in Europe and in China without the obligatory Islamic head scarf. Hard-liners immediately accused her of 'betraying the nation.' But opposition-aligned analysts and Ms. Khaleghi shot back that the case against her was politically motivated, more about curtailing and marginalizing prominent reformists - and a woman - than about her traveling abroad without a head scarf. While acknowledging that all Iranian women are obliged to cover themselves in public, even when traveling abroad, they said there was a problem with the evidence. The photographs were, Ms. Khaleghi said in a statement to the official government newspaper Iran, malicious fakes." http://t.uani.com/1Opf5SC

Reuters: "On a podium decorated as a bunker from the Iran-Iraq war, Mahmoud Ahmadinejad woos a crowd of hundreds with an anti-Western speech reminiscent of his fiery addresses as Iran's president. At the end of the event in Jiroft in southeast Iran, held partly to honor victims of the 1980-88 war, some of the crowd chant: 'The slogan of any man is that Ahmadinejad is coming back.' After nearly three years out of the public eye following two terms as president, Ahmadinejad has made a handful of appearances in the past few weeks, including his speech last week in Jiroft, which have stoked talk of a political comeback." http://t.uani.com/1T8kkrW

Opinion & Analysis

Nikahang Kowsar in Times of Israel: "Twenty years ago, a group of leading Iranian cartoonists lobbied the mayor's office to get a small building as Iran's first Cartoon House. I was one of them; a young and ambitious editorial cartoonist who wanted to push the red lines of the regime through cartooning. I was in charge of the classes and setting up a curriculum. I remained an active member until 2003, when I fled my country after receiving death threats for my work as a cartoonist. A couple of weeks ago, Iranian Foreign Minister Javad Zarif told The New Yorker that the Iranian government had nothing to do with the Holocaust cartoon contest. 'It's not Iran,' Zarif told his interviewer, Robin Wright. 'It's an NGO that is not controlled by the Iranian government. Nor is it endorsed by the Iranian government.' The claim that the Iranian government doesn't control this platform for spewing hate and denying the Holocaust is a pure lie, coming from a pathological liar whose previous absurd claim, exactly a year before this one, was 'we do not jail people for their opinions.'" http://t.uani.com/24O1dLg
       

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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