Wednesday, June 1, 2016

Eye on Iran: Iran Faces Financial Hurdles for Airbus Orders








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WSJ: "Concerns in the financial community about doing deals in Iran are hampering Airbus Group SE's ability to close a multibillion-dollar aircraft deal with Tehran, the European plane maker's head of sales said Wednesday. 'We have to find ways to get money out of Iran through the banking system,' said John Leahy, Airbus Chief Operating Officer for customers. While progress has been made, it has been slower than expected, Mr. Leahy said. Banks remain reluctant to do deals now that the U.S. and European governments are looking to foster transactions, after facing fines imposed by U.S. regulators on lenders with Iran dealings when western sanctions were in place. 'They are all very shy,' Mr. Leahy said... IranAir Chief Executive Farhad Parvaresh acknowledged that the banking issue is one of the biggest hurdles to closing plane deals. The airline is also in talks Boeing Co., the world's largest plane maker by deliveries, about a potential order. IranAir has now met twice with the U.S. company and talks are progressing, Mr. Parvaresh said in an interview with The Wall Street Journal. He wouldn't say when a deal might be sealed. The banking issue goes beyond the airplane sector. Oil companies also have struggled to line up big banks to back deals. They have, in some cases, had to resort to barter arrangements or using smaller banks. That is a system also working for plane makers. Franco-Italian turboprop maker ATR is putting together to a mix of banks and lessors to help finance the euro-denominated sale of 40 of its planes to Iran, the plane maker's Chief Executive Patrick de Castelbajac said. The company hopes to deliver the first of its regional planes by the end of the year... The reluctance of bankers isn't the only obstacle to completing agreements for jetliner sales. Airbus and others are still waiting approval to sell their planes from the U.S. Treasury's Office of Foreign Assets Control. Mr. de Castalbajac said a decision was expected months ago. The U.S. government is facing a flood of license applications, not just for aircraft deals, he said." http://t.uani.com/1sLoSOu

AP: "National Public Radio should consider avoiding grants such as one the Ploughshares Fund provided for coverage of the Iran nuclear agreement and related issues, the radio network's ombudsman said. The White House recently identified Ploughshares as a group that helped sell the multinational deal to a skeptical public. The ombudsman's report was published on NPR's website last week, following an Associated Press story about a $100,000 grant Ploughshares gave the network last year. The money supported 'national security reporting that emphasizes the themes of U.S. nuclear weapons policy and budgets, Iran's nuclear program, international nuclear security topics and U.S. policy toward nuclear security,' according to Ploughshares' 2015 annual report. Ploughshares also funded reporters and partnerships with other news outlets, according to its website. That raised questions about journalistic independence after Ben Rhodes, President Barack Obama's deputy national security adviser, described how the White House set up an 'echo chamber' of organizations, experts and even friendly reporters to advocate for the deal that curtailed Iran's nuclear activity and U.S.-led economic sanctions on Tehran. Rhodes credited Ploughshares for its help in a New York Times magazine profile about him... 'In this case, NPR's money came from one side of a very partisan debate on a specific issue to fund reporting on a specific topic. And the money was not from a sponsor who in exchange would get on-air credit; in this case the sponsor money was going directly to support the reporting,' Jensen wrote. 'In the case of grants such as the one from Ploughshares, which are intended to fund reporting on specific, highly controversial issues, my suggestion is that NPR consider not accepting them in the future if they contain such specific language.'" http://t.uani.com/1VvTqiI

The Hill: "A pair of Democratic senators is pushing to extend sanctions on Iran until President Obama can guarantee its nuclear material is for peaceful purposes. Democratic Sens. Tim Kaine (Va.) and Chris Murphy (Conn.) have introduced legislation that would extend the Iran Sanctions Act, currently set to expire at the end of the year, 'in order to effectuate the Joint Comprehensive Plan of Action in guaranteeing that all nuclear material in Iran remains in peaceful activities.' Under their proposal, the sanctions would be lifted when the president is able to certify to Congress that the International Atomic Energy Agency's (IAEA) director general 'has reached a broader conclusion ... that all nuclear material in Iran remains in peaceful activities.' ... The Kaine-Murphy legislation doesn't specify when the president would be able to make that certification, but it could set up the sanctions law to be lifted on the deal's 'transition day.' 'Transition day' will occur eight years after the deal was adopted, or 'upon a report from the director general of the IAEA ... stating that the IAEA has reached the broader conclusion that all nuclear materials in Iran remains in peaceful activities, whichever is earlier,' according to the European Union's outline of the deal's implementation plan. Amy Dudley, a spokeswoman for Kaine, said that under the Kaine-Murphy legislation '[if] Iran breaks the terms of the deal and the President is unable to make this certification, ISA is extended in an open-ended manner. This is to prevent a non-compliant Iran having a sanctions expiration date in its sights.' The legislation comes as lawmakers have pledged to extend the sanctions law but failed to build momentum behind one proposal. Supporters of an extension argue it's needed so sanctions can be 'snapped back' if Iran violates the deal." http://t.uani.com/1XPkE45

Congressional Action

Free Beacon: "New legislation could force the Obama administration to disclose if it paid Iran $1.7 billion in taxpayer funds as part of a 'ransom payment' earlier this year to secure the release of 10 U.S. sailors who were abducted at gunpoint by the Iranian military, according to a copy of the legislation and conversations with lawmakers. The bill, jointly filed by Rep. Mike Pompeo (R., Kan.) and Sen. John Cornyn (R., Texas), comes on the heels of a Washington Free Beacon report disclosing that the Obama administration has been suppressing potentially 'shocking' details related to the January abduction of the sailors, who were held at gunpoint by Iranian soldiers and forced to apologize on camera. The legislation, dubbed the No Impunity for Iranian Aggression at Sea Act, would compel the Obama administration to issue a report to Congress detailing whether it paid Iran a $1.7 billion settlement as part of the hostage release. It also would level sanctions against Iran for possible breach of Geneva Convention rules governing legal military detainment. Lawmakers and others have suspected for months that taxpayer money was partly used to secure the release of the sailors and other imprisoned Americans, though the administration has been adamant the issues are not linked. The new legislation would require the White House to certify whether any federal funds, including January's $1.7 billion payment, were doled out to Iran as part of a 'ransom' to secure the release of these sailors and citizens imprisoned in Iran. The legislation noted that the administration released the money to Iran just a day after it freed several U.S. citizens from prison." http://t.uani.com/1spSP6N

Sanctions Relief

Reuters: "Indian oil refiners will clear around 6 billion euros ($6.7 billion) of outstanding debt to Iran through Turkey's Halkbank soon, a senior Iranian economy official said on Wednesday. India is one of the biggest buyers of Iranian crude and built up a payments backlog when Iran was under Western sanctions, with its refiners owing about $6.5 billion to Iran. They cleared around $770 million in euros through Halkbank to the National Iranian Oil Co (NIOC) in May. 'As per the instructions of the Central Bank of Iran, the local banks in India will transfer the money to Halkbank,' Sadegh Akbari, Iran's general director for foreign economic relations, told reporters at a conference in Istanbul. Asked when the remaining funds would be cleared, he said 'in a short period of time' but declined to comment further. The refiners had been holding back some payments to Iran after a channel through Halkbank was closed in 2013, although payment of some of the funds was allowed after an initial temporary deal to lift sanctions... He also said the Turkish and Iranian central banks had reopened their connection on the SWIFT global transaction network, in a sign of normalising banking ties." http://t.uani.com/25AJjiU

Bloomberg: "Iran plans to invite international companies to bid for oilfield development rights in June, a government official said, as the Persian Gulf country seeks to revive its energy industry after years of crippling sanctions. The Oil Ministry will solicit bids in a tender round starting June 21 and running for a month, state-run Islamic Republic News Agency reported Tuesday, citing Mehdi Hosseini, chairman of the ministry's oil contracts revision committee. National Iranian Oil Co. is working on a model investment contract for any development agreements, he said." http://t.uani.com/1r2DqYW

AFP: "Iran's first vice president has asked Oil Minister Bijan Zanganeh to amend new petroleum contracts aimed at facilitating foreign investment in the post-sanctions era, a government website reported on Tuesday. 'Thank you for your efforts to take critical views into account: please present the government with your proposals for amendments for adoption as soon as possible,' the site reported Ehsaq Jahangiri as writing to Zanganeh. In November, a new model for contracts was presented at a Tehran conference attended by 183 Iranian companies and 152 foreign firms including oil majors. At the time, Zanganeh said the new contact models were 'not perfect or ideal, but an effective and responsive model for both sides'. He said Iran hoped to attract $25 billion in oil and gas investment with the new standard contract after international sanctions were lifted in January following a deal with world powers on Iran's nuclear programme. The new Iran Petroleum Contract (IPC) was intended to replace the old 'buy back' system under which a foreign firm developed an oil or gas field, but then an Iranian company took over production. The IPC will instead launch joint ventures for crude oil and gas production with international companies being paid a share of the total output, officials said. The Iranian partner in a joint venture must have a majority stake of at least 51 percent. But in the months since the new model was introduced, there has been growing criticism, particularly among conservatives who say it gives too many advantages to foreign companies." http://t.uani.com/1WwFnuk

Reuters: "Singapore imports of Iranian residual fuel oil were 84,785 tonnes in the week to May 25, data from International Enterprise (IE) Singapore released on Thursday showed. Total imports of Iranian fuel oil into Singapore since the start of the year have risen to almost 688,000 tonnes since the lifting of U.S. and EU imposed sanctions in mid-January." http://t.uani.com/1spSalL

Extremism

Tehran Times: "French cartoonist Zeon, who was arrested for his anti-Zionist work in March 2015, and Iranian artist Arash Forughi have won first prizes at the 2nd International Holocaust Cartoons Contest in Tehran. Zeon was awarded a cash prize of $12,000 in the cartoon section and Forughi received a cash prize of $7,000 in the caricature category during a ceremony held at the Art Bureau on Monday. Speaking at the ceremony, the secretary of the competition, Masud Shojaei-Tabatabai said, 'One of the subjects we asked cartoonists to focus on was why the Western countries arrest any scholar who doubts the Holocaust while they put no limit on freedom of speech in other categories.' 'The other subject was why Palestinians should pay for the Holocaust... we are concerned about the modern Holocaust that is being sought by the Zionist regime, which is known as a child killer government,' he added. In the cartoon section, the second prize went to Jitet Koestana from Indonesia while the third prize was presented to Mahmud Nazari from Iran... Iran's House of Cartoon and the Sarcheshmeh Cultural Complex organized the second edition of the contest. An exhibition displaying a selection of submissions to the contest was also held at the Art Bureau from May 14 to 30." http://t.uani.com/1WYx2zx

Times of Israel: "An Iranian museum on Tuesday kicked off a 'Zionist caliphate' cartoon contest, with 'Zionism, terrorism and racism' and 'ISIL terrorism and genocide in the name of religion and to the benefit of the Zionists' the designated themes. The contest by Iranian Cultural-Art Masaf Institute will offer one $5,000 award for best cartoon, $1,000 for best caricature and four $500 awards to the other top entries, according to the semi-official Fars News Agency. In its portrait session, participants are asked to focus on Theodor Herzl and Queen Elizabeth. The competition is dedicated to the 'Nakba,' or displacement of Palestinians in 1948 with the establishment of the State of Israel, according to the report. The 'Zionist caliphate' contest was announced a day after Iran's annual Holocaust cartoon contest - which has been condemned by Israel, Germany, the US, and UNESCO - concluded." http://t.uani.com/1UgWjyF

Human Rights

NYT: "A popular Iranian actress whose latest movie won two awards at the recent Cannes Film Festival threw her native country into an uproar on Tuesday after images emerged suggesting that she had a feminist tattoo on her arm. At a news conference on Monday celebrating the return of the cast of the movie, 'The Salesman,' to Tehran, cameras captured what appeared to be a tattoo of the 'woman power' symbol of a raised fist sticking out from under the sleeve of the lead actress, Taraneh Alidoosti, 32, known by some as the Natalie Portman of Iran. On Iran's vibrant social media scene, hard-liners were quick to criticize Ms. Alidoosti, who is married and has a daughter, saying the symbol meant she supported abortion rights and was against the family. Her many fans came to her defense on Twitter. 'Now that I think about it, I have been feminist from the very beginning,' wrote one woman. Other Twitter users were less flattering. 'You are advertising foreigners,' said one." http://t.uani.com/1Y2rrId

Opinion & Analysis

David Albright, Serena Kelleher-Vergantini & Andrea Stricker in ISIS: "On May 27, 2016, the International Atomic Energy Agency (IAEA) released its second report on Iran's compliance with United Nations Security Council (UNSC) resolution 2231 (2015).  UNSCR 2231 codified into international law the Joint Comprehensive Plan of Action (JCPOA), an agreement reached between the P5+1 and Iran in July 2015 aimed at limiting Iran's nuclear program. Although Iran appears to be living up to most of its general commitments, the IAEA report continues to lack technical details about critical implementation issues.  The following is a list of questions about missing information or data that the IAEA has routinely detailed in earlier reports, but that has been missing from both of the Post-Implementation Day reports. It would greatly increase transparency of the JCPOA's implementation if the IAEA released this missing information.  Without this information, an independent determination of whether Iran is complying with the JCPOA is not possible.  The lack of information also inevitably leads to questions about the adequacy of the IAEA's JCPOA verification effort.  The IAEA strategy, evident in the first two reports, appears to be that it is committed to only report violations in detail.  However, this strategy is not credible and undermines confidence that the JCPOA is being verified.  It also raises a fundamental question: if the IAEA is unwilling to provide routine and adequate transparency, can it be trusted to be transparent every time a violation occurs?  It is in fact unclear if the IAEA has reported all the violations thus far.  It also appears that the IAEA is not reporting information relevant to loopholes in the agreement that Iran is exploiting." http://t.uani.com/1Y1kiru

Mohamad Bazzi in Reuters: "On May 30, Iraqi special forces stormed the southern edge of Falluja under U.S. air cover, launching a new assault to recapture one of the last major Iraqi cities under the control of Islamic State militants. Iraq's elite forces who are leading the fight have been trained by U.S. advisers, but many others on the battlefield were trained or supplied by Iran. It's the latest example of how Washington has looked the other way as Iran deepened its military involvement in Iraq over the past two years. In recent weeks, thousands of Iraqi soldiers and Shi'ite militia members supported by Iran assembled on the outskirts of Falluja for the expected attack on the Sunni city. In the lead-up to the assault, General Qassem Soleimani, commander of the Quds Force, the special operations branch of Iran's Revolutionary Guards, met with leaders of the Iraqi coalition of Shi'ite militias known as the Popular Mobilization Forces. Sunni politicians in Iraq condemned the involvement of Soleimani and other Iranian advisers in the battlefield preparations, saying it could fuel sectarian tension and unleash a new round of Sunni-Shi'ite bloodletting. They also cast doubt on the Iraqi government's assurances that the offensive is purely an Iraqi-led effort to defeat Islamic State. 'Soleimani's presence is cause for concern,' said an Iraqi member of parliament from Falluja. 'He is absolutely not welcome in the area.' Leaders of the Shi'ite militias have pledged that they will not take part in the main offensive on the city, and will instead help secure nearby towns and lay siege to Islamic State fighters. But the battle over Falluja highlights Iran's growing military and political influence over Iraq, a country wracked by a complex civil war that leaves it open to outside manipulation. If there is one regional player that gained the most from America's gamble in Iraq, it is Iran. With its invasion in 2003, the United States ousted Tehran's sworn enemy, Saddam Hussein, from power. Then Washington helped install a Shi'ite government for the first time in Iraq's modern history. As U.S. troops became mired in fighting an insurgency and containing a civil war, Iran extended its influence over all of Iraq's major Shi'ite factions. Today, the Iranian regime is comfortable taking a lead role in shaping the military operations of its Iraqi allies. There is no one to restrain Tehran, and the rise of Islamic State, which views Shi'ites as apostates, threatens the interests of Iran and all Iraqi Shi'ite factions." http://t.uani.com/1TJHUM1

Mortimer B. Zuckerman in U.S. News & World Report: "Whatever the case for impeding Iran's advance to nuclear status, we are letting a tiger out of the cage by releasing more than $100 billion in frozen assets without a commitment on how it will be spent. Some of this money may be spent wisely, but Iran remains a central banker for Murder Inc. Millions of dollars will go to sustain the vision of restoring a Persian empire. Of course the language of Iranian President Hassan Rouhani is that they seek more closeness, unity, brotherhood and better relations. Tell that to the families of more than 200,000 Syrians killed during that country's civil war, courtesy of Iran's lethal investment. Tell it to the nearly 5 million Syrian refugees begging for sanctuary in Jordan, Turkey, Iraq and Lebanon. Tell it to the people of Bahrain, the United Arab Emirates and Yemen coping with subversion financed by Iran. Tell it to the relatives and colleagues of officials murdered in Lebanon. And prove your fine words by stopping adventurism. Stop encircling your Arab states while inciting their Shiite population. Stop menacing Israel with funding with your proxy Hezbollah installations of more than 100,000 rockets and missiles to strike deep into Israel. Stop joining with Qatar in rebuilding Gaza. Stop trying to kill Jews wherever they may be. We must sustain our fight for human rights by maintaining sanctions against Iran until it behaves like a civilized nation. We should stop money from reaching the Iranian Revolutionary Guard and the business entities it owns. Obama never submitted the Iranian nuclear deal to the Senate for ratification for he knew it would have no chance of passing. No wonder it will go down in American history as one of the most counterproductive diplomatic efforts by any American administration, for this deal grants legitimacy to the Iranian regime after improving its economy and strengthening its international stance, even though Iran will likely violate it as well. As Panetta said: 'And you know my view, talking with the president, was: If brought to the point where we had evidence that they're developing an atomic weapon, I think the president ... is not going to allow that to happen.' When asked would you make that assessment now? He said, 'Probably not.' No wonder Americans feel less safe. They are. The focus on Iran's nuclear future is inevitable, but the nightmare is irrefutable now. In eight months there will be a new administration and Rhodes can get back to his former life. Which, as he put it, involved, 'drinking and smoking pot and hanging out in Central Park.' And presumably writing more fiction." http://t.uani.com/1ZcZtI5

Michael Kugelman in FP: "On May 21, after a drone strike obliterated a car and its two occupants in Pakistan's Balochistan province, local officials discovered a Pakistani passport, miraculously intact, amid the smoldering wreckage and two bodies charred beyond recognition. The passport belonged to a man identified as Wali Muhammad. Its photo bore an uncanny resemblance to Mullah Akhtar Mohammad Mansour, the supreme leader of the Afghan Taliban targeted by the drone strike, who lay dead close by. According to reports in the Pakistani press, the passport indicated that its owner, presumably Mullah Mansour, had been returning from Iran, where he had been since April 26. He had also traveled there for several weeks in February and March. Mullah Mansour's decision to visit Iran and leave his sanctuary in Balochistan - where the Afghan Taliban's top leadership had long been safely ensconced - is odd. After all, Tehran is no friend of the Taliban; on the contrary, it has formally aligned itself with Afghanistan's Northern Alliance and other anti-Taliban actors. It played an instrumental role at the 2001 Bonn Conference that established a post-Taliban government. In the early years of the U.S. invasion of Afghanistan, Tehran gave Washington maps showing Taliban positions, and its military offered to train 20,000 Afghan troops. Iran also has good reason to distance itself from the Taliban. Simple sectarian considerations - Iran is Shiite, the Taliban is Sunni - offer one explanation. But the divergences run deeper: The Taliban harbors links to Jundallah, an anti-state Sunni terror group in Iran. It oversees a flourishing narcotics trade that feeds Iran's crippling heroin epidemic, and it has been blamed for the killings of nearly a dozen Iranian diplomats at their consulate in the Afghan city of Mazar-e-Sharif in 1998, which brought Iran and Taliban-run Afghanistan to the brink of war (according to some accounts, the Pakistani anti-Shiite militant group Sipah-e-Sahaba was behind that attack). Western authorities have a simple explanation for Mullah Mansour's presence in Iran: He was there to receive medical treatment, according to a European official quoted in the New York Times, in order to avoid Pakistani hospitals and the watchful eye of his patron, Pakistan's intelligence agency. No specifics were given as to what he was being treated for. The Wall Street Journal, curiously, has reported that Mullah Mansour was actually in Iran to visit family. In any case, U.S. officials knew of his whereabouts and, aided by communications intercepts, were able to track him there. According to a tweet by NPR correspondent Tom Bowman, Washington even had his SIM card number. Mullah Mansour's trip to Iran may well have been a simple trip to the doctor. But the trip may have had more nefarious purposes, too. Despite the differences between Tehran and the Taliban, they share some key interests and have often cooperated operationally. Indeed, Tehran and the Taliban have a more symbiotic relationship than meets the eye. In particular, they are both wary of the West and particularly the United States. And each seeks to undercut Washington's influence. Thomas Joscelyn, an international security analyst and senior editor with the Long War Journal, has presented a compelling case of long-standing links between Iran and the Taliban. These links date back to 2000, when, according to unclassified U.S. government memos, Mullah Mohammed Omar tasked Khirullah Said Wali Khairkhwa, the Taliban governor of Herat province, with improving relations between the organization and Tehran. As a result of this outreach, Iran agreed to supply the Taliban with mines and small arms. (On two separate occasions in 2007 and 2011, international forces in Afghanistan intercepted arms shipments from Iran destined for the Taliban.) The two sides also inked an open border agreement that enabled the Taliban to smuggle money, goods, and fighters into Iran. Khairkhwa's outreach laid the groundwork for a later, major triumph of Iran-Taliban cooperation: the 2012 opening of a Taliban office in the Iranian city of Zahedan, home to many of the several million Afghans residing in Iran." http://t.uani.com/1WYw0ni  
       

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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