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WSJ: "The Obama administration secretly organized an
airlift of $400 million worth of cash to Iran that coincided with the
January release of four Americans detained in Tehran, according to U.S.
and European officials and congressional staff briefed on the operation
afterward. Wooden pallets stacked with euros, Swiss francs and other
currencies were flown into Iran on an unmarked cargo plane, according to
these officials. The U.S. procured the money from the central banks of
the Netherlands and Switzerland, they said. The money represented
the first installment of a $1.7 billion settlement the Obama administration
reached with Iran to resolve a decades-old dispute over a failed arms
deal signed just before the 1979 fall of Iran's last monarch... The
settlement, which resolved claims before an international tribunal in The
Hague, also coincided with the formal implementation that same weekend of
the landmark nuclear agreement reached between Tehran, the U.S. and other
global powers the summer before. 'With the nuclear deal done, prisoners
released, the time was right to resolve this dispute as well,' President Barack
Obama said at the White House on Jan. 17-without disclosing the $400
million cash payment. Senior U.S. officials denied any link between
the payment and the prisoner exchange. They say the way the various
strands came together simultaneously was coincidental, not the result of
any quid pro quo... But U.S. officials also acknowledge that Iranian
negotiators on the prisoner exchange said they wanted the cash to show
they had gained something tangible. Sen. Tom Cotton, a Republican from
Arkansas and a fierce foe of the Iran nuclear deal, accused President
Barack Obama of paying 'a $1.7 billion ransom to the ayatollahs for U.S.
hostages... This break with longstanding U.S. policy put a price on
the head of Americans, and has led Iran to continue its illegal seizures'
of Americans, he said. Since the cash shipment, the intelligence arm
of the Revolutionary Guard has arrested two more Iranian-Americans.
Tehran has also detained dual-nationals from France, Canada and the U.K.
in recent months... The Obama administration has refused to disclose
how it paid any of the $1.7 billion, despite congressional queries,
outside of saying that it wasn't paid in dollars." http://on.wsj.com/2auk32H
WSJ: "Iran's government on Wednesday approved new
oil-field contracts designed to attract Western oil investors following
the lifting of sanctions in January, an oil-ministry spokeswoman
said. However, Iranian officials didn't disclose the terms of the
new contracts, which have long been awaited by international oil
companies that once worked there... The spokeswoman also said the
terms of the new deals would still have to be approved by a parliamentary
committee in charge of reconciling new legislation with old, and signed
off by the assembly's speaker Ali Larijani. The contracts have been
at the center of an [internal regime] struggle... [President Hassan]
Rouhani's oil ministry proposed new contracts that would allow foreign oil
companies to at least recoup their costs and last up to 20 years. The new
deals were supposed to address concerns with the pre-sanctions contracts,
called 'buybacks,' which included a fixed lump sum and, typically, a
five-year deal. After pressure from hard-liners in recent weeks,
Iranian officials have said that the contracts for working in some parts
of the country would continue to resemble the buyback deals of the
past." http://on.wsj.com/2auBkPz
AP: "Iran's President Hassan Rouhani said on Tuesday
that world powers have not fulfilled their commitments under the landmark
nuclear deal, harming Iranian economic growth. Speaking on state TV,
Rouhani said that 'if the other party had acted properly, we would be in
a better situation today.' He said Iran still cannot access its foreign
assets, although it is able to export more oil and to access the
international banking system. He said [the] U.S. [C]ongress, Israel
and other regional countries are thwarting the implementation of the
deal." http://apne.ws/2aufaqD
U.S.-Iran Relations
Washington Examiner: "Iranian Supreme Leader Ayatollah Ali Khamenei's
latest complaints about the nuclear agreement struck with the West last
year is another threat to pull out of the deal unless President Obama and
Secretary of State John Kerry drum up business for the regime, according to
a leading opponent of the pact. 'To President Obama and Secretary Kerry:
please focus on American safety and security, not on preserving this deal
at any cost,' Rep. Mike Pompeo, R-Kan., said Tuesday. 'Iran is harboring
al Qaeda terrorists, taking U.S. citizens hostage and using its forces to
foment destruction around the globe. Stop using U.S. taxpayer dollars to
purchase goods from Iran and to license the sale of potential military
tools, like aircraft. It is not your role to act as agents of the Iranian
Chamber of Commerce. America's security depends on you acknowledging that
this agreement has not changed Iran's behavior in any material
way.' Pompeo dismissed that speech as an attempt to rattle Kerry and
Obama. 'The ayatollah, and other senior Iranian leaders, continue to make
clear their hostility toward the U.S. and their intention to walk away
from the nuclear deal if we refuse to provide assistance beyond what is
required in the agreement,' he said. 'Do not come to American taxpayers
seeking additional welfare for your country, beyond the $150 billion that
was, unfortunately, provided to you as part of the deal.'" http://washex.am/2aNerVq
Congressional Action
Washington Free Beacon: "A member of the House Intelligence Committee
has launched a probe into whether a leading architect of the campaign to
sell the Iran nuclear agreement last summer coordinated with the White
House to mislead the media and the American public, according to
documents obtained by the Washington Free Beacon. The inquiry is
part of a larger effort by lawmakers to discern the origins of a shadow
campaign that top White House officials admitted to running in order to enlist
journalists and experts to boost support for the agreement. The
latest probe, launched by Rep. Mike Pompeo (R., Kan.), centers on Joe
Cirincione, president of the Ploughshares Fund, a left-leaning foundation
that quietly bankrolled a core part of the White House's campaign to sell
the nuclear agreement." http://bit.ly/2ai4kZl
Business Risk
Reuters: "Iran's oil contracts are not yet fit for
Austrian energy group OMV to invest in planned projects in the country,
which hopes foreign investment will revamp its ageing oil infrastructure,
OMV's chief executive told Reuters... In May, four months after most
international sanctions against Iran were lifted after it agreed to
shrink its nuclear programme, OMV signed a memorandum of understanding
with the National Iranian Oil Company for several projects there. said
in an interview that talks to fine-tune a model contract for
international oil companies have not been successful yet. 'This process
is still ongoing, this is taking quite a long time... We have not yet
defined a clean framework for the projects that are interesting for us,'
[OMV Chief Executive Rainer] Seele said when asked how long this might
take. 'We can make an investment decision only when we really know what
the framework and the conditions are'... Another hurdle for OMV to
start injecting fresh money into Iran, which needs $200 billion to return
to pre-sanctions output levels, is an outstanding debt Iran owes OMV to
reimburse it for past appraisal and exploration activities. 'If you owe
me money and you're not giving it back to me and then want to proceed
with me in the future, would you think that's a good combination?' Seele
said of the debt linked to OMV's activities before international
sanctions were imposed on Iran in 2006." http://reut.rs/2auyfsw
Bloomberg: "Iran has long been wary of outside influence,
especially when it comes to exploiting its natural resources. But now,
the government is offering international oil companies their biggest role
since 1979, when the newly-founded Islamic Republic nationalized the
country's reserves. In theory, it's an attractive proposition for both
sides. Iran needs oil revenue to revive its economy, the third-largest in
the Middle East, which was set back by years of sanctions. Foreign
companies are tempted by the potential profits that could be made even
without a rebound in the price of oil. However, there are plenty of risks
to investing in Iran, and the government has struggled to find a formula
that can entice foreign companies without provoking nationalist
outrage... Can Iran attract the top technology, hefty investments
and long-term commitments it seeks? Big oil companies won't pass up
Iran's fields lightly... But the list of risks is long. Business
regulations in Iran are complex. Investors will have to enter a joint
venture with a local partner, making it harder to comply with
international anti-corruption legislation and the remaining U.S. sanctions.
The government hasn't clarified whether it will agree to bring disputes
with companies to arbitration through international tribunals such as the
International Court of Arbitration. Longer-term contracts will offer more
opportunity to exploit difficult fields but will also lock investors into
an unpredictable environment. Elections in May 2017 could see Rouhani
replaced with a more protectionist candidate. In an extreme case,
political shifts in Iran or the U.S. could undermine the nuclear deal and
bring back sanctions." http://bloom.bg/2aBvsiz
Sanctions Relief
Reuters: "India's July oil imports from Iran rose by over
a fifth from June, surging to its highest level in five months as two
state- run refiners resumed shipments from Tehran after a gap of years,
preliminary tanker arrival data obtained by Reuters show. Hindustan
Petroleum Corp and Bharat Petroleum, India's second- and third-biggest
state-owned refiners respectively, halted Iranian oil imports after
western sanctions against Tehran's nuclear programme barred insurance
cover for plants processing Iranian oil... India's oil imports from
Iran for the fiscal year that began in April are set to surge to a
seven-year high, with the nation's state-owned and private refiners
together buying at least 400,000 bpd... Indian Oil Corp, the
country's biggest refiner, was the top buyer of Iranian oil in July,
shipping in about 158,000 bpd oil, while Essar Oil slipped to the No. 2
position with 126,300 bpd, the data showed." http://reut.rs/2ai2s2L
Human Rights
AP: "A British-Iranian woman held in Iran for months
over accusations she planned the "soft toppling" of the
government while visiting relatives with her young daughter has appeared
in court for the first time, her family said Tuesday. Nazanin
Zaghari-Ratcliffe, who works for the Thomson Reuters Foundation, the
charitable arm of the news agency, will be tried by Judge Abolghassem
Salavati in Tehran's Revolutionary Court, her husband said. Salavati is
known for his tough sentences and has heard other politically charged
cases, including where he sentenced Washington Post journalist Jason
Rezaian to prison. Zaghari-Ratcliffe's first hearing was Monday and
she was to present the name of her lawyer Tuesday for approval, husband
Richard Ratcliffe said in a statement. No trial date has been set and the
exact charges she faces remain unclear. Since Iran's nuclear deal
with world powers, hard-liners in the Islamic Republic have seized a
number of dual nationals visiting the country and accused them of a
variety of security-related charges." http://apne.ws/2aNtjne
Domestic Politics
AP: "Iran's official IRNA news agency is
reporting that authorities have arrested a hard-line theorist for
criticizing the Iranian army... Hassan Abbasi, the head of the
Centre for Doctrinal Strategic Studies, a think-tank, was arrested on
charges of 'spreading lies' and 'creating an atmosphere of skepticism
about the armed forces.' In a video published on social media
networks in Iran, Abbasi, who calls himself the 'Kissinger of Islam,'
criticizes the army for inaction, particularly when it comes to social
and political issues. He later appeared in a military court, and
defended his remarks. They drew strong condemnation from the army and the
powerful hard-line military group, the Revolutionary Guards." http://wapo.st/2azTLgB
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