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Stories
NYT: "Iran has reached an
agreement with the Boeing Company for the acquisition of new passenger
planes to help modernize its outdated fleet, state-run Iranian news
media reported on Tuesday. Such an agreement, if completed, would
potentially be worth many billions of dollars to Boeing and amount to
the most prominent commercial transaction between an American company
and Iran since sanctions linked to Iran's nuclear program were lifted
six months ago. It also would send a strong signal that Iran and the
United States, despite decades of antipathy, might be moving toward
normalized ties. Numerous obstacles remain to such an agreement, most
notably other American sanctions on Iran that are not related to the
Tehran's nuclear program, including a ban on using dollars in trade
with the country... Iran's minister of roads and urban development,
Abbas Akhoundi, was quoted by Iranian news agencies on Tuesday as
saying that a deal with Boeing had been completed and that details
would be 'announced within the next few days.' Asked about Mr.
Akhoundi's assertion, a spokesman for Boeing at the company's Chicago
headquarters, John Dern, did not deny it... Mr. Dern's statement also
cautioned: 'Any agreements reached will be contingent on U.S.
government approval.' ... Iranian officials have complained that
nonnuclear American sanctions remain a major impediment, dissuading
many foreign companies from investing in and trading with Iran...
United Against Nuclear Iran, a New-York based advocacy organization,
has claimed some responsibility for Iran's frustration, through a
campaign that warns companies that they could risk incurring American
legal problems by engaging in business with Iranian entities. The
organization claimed responsibility for the cancellation of an
international forum on opportunities in Iran's natural gas industry
that had been scheduled for Thursday and Friday in Barcelona, Spain.
Anthony Bright, operations manager for INconnect, a Czech company that
had organized the forum, said in an emailed statement that it had been
postponed until December. Mr. Bright did not provide a reason." http://t.uani.com/25XsaQF
Reuters: "Iran's Supreme Leader,
Ayatollah Ali Khamenei, threatened on Tuesday to 'set fire' to the
nuclear deal sealed with world powers if U.S. presidential candidates
reneged on the agreement... 'The Islamic Republic won't be the first to
violate the nuclear deal. Staying faithful to a promise is a Koranic
order,' Khamenei said, according to state media. 'But if the threat
from the American presidential candidates to tear up the deal becomes
operational then the Islamic Republic will set fire to the deal.' ...
Khamenei noted that sanctions had not been completely lifted, issues
with Iranian banks had not been resolved and that Iranian money that was
being kept in other countries had not been returned. 'The nuclear deal
has holes which, if they were closed, would reduce or cancel its
disadvantages,' he said. He added: 'Some think that we can get along
with the Americans and solve our problems. This is an incorrect idea
and a delusion.'" http://t.uani.com/1WNzh9g
AP: "U.S. Secretary of State John
Kerry met his Iranian counterpart in Norway on Wednesday to once again
discuss Iran's complaints that it's not getting the sanctions relief it
deserves under last year's landmark nuclear deal. Kerry also raised the
importance of Iran using its influence with Syria's government to
ensure humanitarian aid deliveries and respect a fragile truce with
moderate opposition groups. He said later that the truce was 'frayed
and at risk' and that it was 'critical for a genuine cessation of
hostilities to be put in place.' He indicated that U.S. patience with
Syria and its Russian and Iranian allies was wearing thin. Kerry's
meeting with Iran's Foreign Minister Mohammad Javad Zarif in Oslo came
just a day after Iran's supreme leader renewed accusations that the
U.S. is not living up to its commitment to ease sanctions under the
agreement that gave Iran the relief in exchange for curbing its nuclear
program. 'The two discussed progress on the continuing implementation
of the (nuclear deal), including issues related to banking and relief
of nuclear-related sanctions,' the State Department said in a brief
statement after the 70-minute closed-door talks in a downtown Oslo
hotel... Meanwhile, Zarif, who was already in Oslo, said 'psychological
remnants' of the previous sanctions regime were preventing European and
Asian banks from conducting legitimate business with Iran. In response,
State Department spokesman John Kirby told reporters in Washington on
Tuesday that the U.S. was going out of its way to clarify what is now
allowed. He said any 'psychological remnants' hindering legal business
with Iran are related to Iranian behavior. 'The United States is not
standing in the way, nor will we stand in the way, of business that can
be legitimately done and permitted with Iran since the (nuclear deal)
took effect,' he said. 'What makes business nervous, what makes
business reticent isn't some lack of education or effort by the United
States, but when they see missiles being shipped to Hezbollah, missiles
being fired at U.S. aircraft carriers, and support to terrorist
groups,' Kirby said. 'That's what makes business nervous. Those are the
psychological remnants which need to be lifted.'" http://t.uani.com/1XpjwoX
U.S.-Iran
Relations
AP: "Khamenei reiterated his
opposition to a wider rapprochement with the U.S. and other Western
nations, saying they remain hostile toward Iran. 'It is a wrong idea
that we can reach a compromise with the U.S.,' he said. 'The main
argument is about the existence of the Islamic Republic, and this
cannot be resolved through negotiation.'" http://t.uani.com/1rpNB9U
Business
Risk
FT: "When more than 300 German
companies visited Iran last month, their interest in the Islamic
Republic stretched across myriad sectors, from machinery and
healthcare, to the auto industry and energy. They were just the latest
batch of European, Asian and other foreign companies that have beaten a
path to Iran since the lifting of sanctions as they look to tap into
the potential of the oil-producing nation and its 78m population. But
while provisional agreements worth billions of dollars have been
reached, there is mounting frustration in Iran that they have yet to
materialise into completed deals on the ground. The hope is that one
big international deal will unlock the floodgates. 'Everyone is waiting
for the first big bang - like France's Total or Royal Bank of Scotland
to open the way,' said an Iranian businessman. But western investors
first have to overcome a stumbling block - the wariness of western
banks to work with Iranian institutions and individuals. Although many
sanctions were lifted after Tehran reached a deal with western powers
last year to scale down its nuclear activities, US sanctions related to
issues such as facilitating terrorism remain in place. 'No major
western bank or company wants to be the first,' said a senior western
diplomat." http://t.uani.com/1UUpB6x
AFP: "A British-Iranian woman who
was arrested in Iran in April was accused on Wednesday of seeking to
'overthrow the regime', according to a statement from the powerful
Revolutionary Guards. Nazanin Zaghari-Ratcliffe, an employee of the
Thomson Reuters Foundation, was accused of being 'involved in the soft
overthrow of the Islamic republic through... her membership in foreign
companies and institutions,' the Mizan news agency quoted a regional
Guards branch as saying. Zaghari-Ratcliffe, 37, was arrested at Tehran
airport on April 3 as she prepared to return to Britain with her
daughter after visiting family in Iran, her husband told AFP last week.
Iran doesn't recognise dual-citizenship and, if put on trial, she will
be considered an Iranian. According to the Guards, Zaghari-Ratcliffe
was 'identified and arrested after massive intelligence operations' as
one of 'the heads of foreign-linked hostile networks.' She was alleged
to have conducted 'various missions... leading her criminal activities
under the direction of media and intelligence services of foreign
governments.' 'Further investigations are being done and her case has
been sent to Tehran for legal proceedings,' the statement added." http://t.uani.com/1YrDf74
Reuters: "Two senior Iranian officials
said last year that Iran was expected to buy 100 jets from Boeing once
sanctions were lifted. Both Airbus and Boeing would need U.S. export
licences to carry out their deals, due to the use of significant U.S.
technology in all modern jetliners. Even then, industry sources caution
that both deals could take some time to implement because of
uncertainty over financing, with the U.S. financial system still closed
to Iran. The Airbus deal is priced in euros instead of dollars, the
currency usually by planemakers, but many banks remain reluctant to
finance it because they fear losing their claim to the underlying
assets if sanctions are re-introduced, bankers say. BOC Aviation, a
Singapore-based leasing company in which Boeing recently invested as
part of its stock market debut, is in discussions with Boeing about
financing part of the deal, two people familiar with the matter
said." http://t.uani.com/239WUbV
Free
Beacon: "Rep.
Peter Roskam (R., Ill.), who has criticized Boeing and others for
pursuing business with Iran, told the Free Beacon that Congress could
take action to stop the sale. 'We've heard reports of a pending deal
between an iconic American company and terrorism's central bank,'
Roskam said. 'To say we have national security concerns would be an
understatement. Boeing and the Islamic Republic should know the U.S.
Congress will not look favorably upon any deal that jeopardizes the
safety and security of the American people.' Several GOP lawmakers
recently summoned the heads of Boeing and French air manufacturer
Airbus for a meeting about their dealings with Iran. Three House
members from Washington state, a major base for Boeing operations,
wrote to the company in May to request a meeting. 'We write to express
our serious concerns over the sale of airplanes, parts, and other
aircraft-related services to the Islamic Republic of Iran,' wrote
Republican Reps. Cathy McMorris Rodgers, the GOP conference chair, Dave
Reichert, chair of the House committee that regulates trade, and Dan
Newhouse." http://t.uani.com/1rpNCuA
Sanctions
Enforcement
AP: "The CEO of a New York-based
metallurgical company pleaded guilty Tuesday to illegally exporting to
Iran a metallic powder that can be used to build missiles. Erdal
Kuyumcu, 44, pleaded guilty in Brooklyn federal court to conspiring to
violate the International Emergency Economic Powers Act. Federal
prosecutors said Kuyumcu, the CEO of Global Metallurgy LLC., conspired
to export a powder containing cobalt and nickel without obtaining the
required license from the U.S. Treasury Department's Office of Foreign
Assets Control. Prosecutors said the powder can be used to coat gas
turbine components and also can be used in aerospace, missile
production and nuclear applications. Such metals are closely regulated
by the U.S. Department of Commerce to combat nuclear proliferation and
protect national security, and exporting them without a license is
illegal." http://t.uani.com/239XqH1
Sanctions
Relief
Reuters: "Iran is gradually restoring
banking links with the rest of the world by forging ties with smaller
foreign institutions, even though large global banks are still holding
back because of legal risks, Iranian officials and foreign bankers say.
Since international sanctions over Iran's nuclear programme were lifted
in January, the world's big banks have continued to stay away because
they fear being penalised by remaining U.S. sanctions over issues such
as money laundering. This has slowed Iran's efforts to rebuild its foreign
trade and lure investment. But in the last few weeks, the officials and
bankers say, Tehran has begun making a dent in its financial isolation
by forging banking channels via small institutions, many of which do
little or no business in the United States and so feel less legally
exposed when they engage with Iran. 'Two hundred small and medium-sized
international banks have started correspondent relationships with
Iranian banks,' Iran's central bank said in an emailed response to
questions by Reuters... The smaller banks cannot provide as much
financing as the top global institutions and may offer a narrower range
of services. But their activities appear to be supporting a gradual
revival of trade between Iran and Europe... 'Despite showing interest in
cooperating with Iran and having correspondent relationships, the big
banks are postponing normalisation of relations to the future,' the
Iranian central bank said in its statement to Reuters. 'They are mainly
afraid of the imposition of new sanctions since the initial (American)
sanctions still remain. They also have the fear of being fined by the
United States.' Nevertheless, the central bank said Germany-based
Europaeisch-Iranische Handelsbank AG (EIH) and two Italian lenders,
Mediobanca and Banca Popolare di Sondrio, were among the 200 with
business links to Iran. 'EIH handles the bulk of Europe's letter of
credit business, which gives European exporters an appropriate
financial instrument to get their money from Iranian clients,' said a
spokesman for EIH, a German company which is majority-owned by Iranian
interests." http://t.uani.com/1Q4oCoz
FT: "Fabrice Brégier knows he is
treading closely between challenge and opportunity at Airbus, Europe's
flagship aerospace and defence group. On the one hand, the chief
executive of the Airbus division making passenger jets believes it will
in the 'coming weeks' win US approval for a $25bn agreement to sell 118
aircraft to Iran - one of the biggest deals since certain international
sanctions were lifted in January... 'We are getting close to finalising
the purchase agreement with Iran Air,' says Mr Brégier. 'I hope we are
getting very close to the final [regulatory] decision.'" http://t.uani.com/1WNyODT
Reuters: "South Korea's imports of
Iranian crude oil jumped around 130 percent in May from the same month
a year ago, extending gains after international sanctions were lifted
in January on Iran's disputed nuclear programme. Seoul brought in 1.26
million tonnes of Iranian crude oil last month, or 297,625 barrels per
day (bpd), compared with 541,510 tonnes imported a year ago, customs
data showed. In the first five months of the year, the world's
fifth-largest crude importer shipped in 5.08 million tonnes, or 244,917
bpd, of crude from the Middle Eastern country, versus 2.46 million
tonnes in the same period in 2015, according to the data." http://t.uani.com/1rpKnn5
Terrorism
Bloomberg: "Iran may be emerging from
the grip of western sanctions, but one of the most formidable militant
groups it funds is paying the price. As Hezbollah's battlefield
casualties mount in Syria, a U.S. law passed in December that forbids
banks from dealing with the Shiite group is hitting its vast network of
social services in Lebanon like never before. The legislation aims to
prevent Hezbollah from reaping any financial benefits following Iran's
nuclear accord last year." http://t.uani.com/1S5l0wt
Syria
Conflict
Asharq
Al-Awsat:
"Reports issued from the tripartite Iranian-Russian-Syrian meeting
held in Tehran last week highlighted the decision on reinforcing
battlefronts, especially those at Aleppo and Raqqa, in Syria with more
so-called Hezbollah militants. The so-called Hezbollah, over the last
few days, has been rumored to transfer hundreds of members to Syria - a
great part of which belonging to the elite squad named by 'al-Rezwan
party'- the elite at large comprises members with Beqaa and Beirut
suburbs provenance. Well-informed sources told Asharq Al-Awsat
newspaper that Hezbollah has effectively kick-started implementing the
meeting's outcome by deploying further Iranian and Hezbollah militants
to Syria. The Tehran-held trilateral meeting brought together each of
Russian Minister of Defense Sergey Shoygu, Syrian regime chief of staff
Fahd Jassem al-Freij and Iranian defense minister Hossein
Dehghan." http://t.uani.com/262l1v1
Opinion
& Analysis
UANI
Policy Director Jason Brodsky in The Hill: "Iran's much anticipated
'moderation' made international headlines in the aftermath of
February's post-nuclear deal elections for parliament and the Assembly
of Experts. The New York Times declared the 'Iranian President
and Moderates Make Strong Gains in Elections.' The Wall Street
Journal proclaimed 'Moderates Win Key Iran Election Races.' And
the Financial Times announced 'Blow for Iran's hardliners as moderates
win key seats.' In Tehran, the Supreme Leader Ayatollah Ali
Khamenei lamented the defeat of hardliners Ayatollahs Mohammad Yazdi
and Mohammad Taqi Mesbah-Yazdi, branding them as a 'loss' for the
nation. But in the end, the mullahcracy delivered a warning shot with
the election on Tuesday of arch-conservative and regime insider
Ayatollah Ahmad Jannati as Chairman of the Assembly of Experts.
Jannati received 55 votes out of a total of 88 in the chamber, even
though he barely held on to his seat in public voting for membership to
the Assembly. The moderate former President of Iran, Ayatollah
Akbar Hashemi Rafsanjani, who won reelection by large margin and with a
clear mandate didn't even run for the top job. Jannati beat out
Ebrahim Amini, a cleric who appeared on both the Principlist and
Rafsanjani slates of candidates in February, and Mahmoud Hashemi
Shahroudi, the former head of the Iran's judiciary, a traditional conservative
and a potential successor to the Supreme Leader. So what happened
to the reformers running the table in February, delivering hope and
change? The answer lies in the fact that conservatives still have
a tight grip on the levers of real power in the deep state of the
Islamic Republic... Ayatollah Jannati has dominated Tehran's political
scene since the Iranian Revolution of 1979. He has served with
the blessing of the Supreme Leader as a member of the Guardian
Council-the body tasked with vetting candidates for state elections and
legislation-since 1980, and has led the Council since 1996.
According to a study by the Rand Institute, in the past, Jannati 'has
voiced support for suicide bombings as a means of resistance, called
for Iran to scrap its nuclear-treaty commitments, and championed
efforts to export the revolution.' He has called support for
Hezbollah a 'duty' and advocated for the assassination of then Israeli
Foreign Minister Tzipi Livni back in 2009. Jannati also is essentially
the political godfather of the more militant Iranian judiciary and
intelligence services, given his leadership of the Haqqani religious
school, whose graduates, according to Rand, are heavily represented
among their ranks. This ominous development suggests that where it
counts the most, the nature of the Iranian regime remains unchanged in
the aftermath of the nuclear deal. In fact, regime stalwarts are
doubling down, racing to protect Tehran's unelected organs-the real
power behind the throne of state." http://t.uani.com/1UjtuVh
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Eye on Iran is a periodic news summary from United Against
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