Tuesday, November 22, 2016

Eye on Iran: Deal Maker or Deal Shredder: Billions Ride on Trump Iran Policy

   EYE ON IRAN
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A few days after Donald Trump's shock election victory, U.S. aviation salesman Adam Meyer took the kind of call he knew was coming -- a small Iranian airline wanted to know if its plan to repair a fleet of aging American jets would still be possible. "We have to wait and see," Meyer, Middle East and Africa managing director for Minnesota-based Brite Air Parts Inc., recalled telling the concerned executive. "Trump can definitely make it difficult for us as an American company, but I'm trying to stay on the side of optimism." Brite Air is among scores of foreign and Iranian businesses, from oil majors to car makers, whose prospects were dented when Trump became president-elect. Plans are hinged on an Iran open for business after most sanctions were lifted by last year's nuclear agreement, a deal attacked by Trump as ripe for renegotiation or shredding... Meyer at Brite Air says Europeans businesses have forged ahead in Iran as U.S. firms await export licenses. He's spent three years laying the groundwork to sell parts and engines to Iranian carriers, and was attending an international air show on Iran's Kish Island -- a free-trade zone in the Persian Gulf -- at the time of the Congress vote.

Donald Trump's victory and the war on Islamic State have given Iran's hard-line Islamic Revolutionary Guard Corps what it sees as a unique opportunity to claw back economic and political power it had lost. Sidelined after a nuclear deal was reached with Iranian reformist leaders and the administration of President Barack Obama and major nations, the IRGC is determined to regain its position in Shi'ite Iran's complex governing structure. Republican Trump said in the campaign that he would abandon the 2015 deal that curbed Iran's nuclear ambitions in return for the lifting of economic sanctions. His tough stance, in contrast to Obama's olive branch, is expected to empower hard-liners who would benefit from an economy that excludes foreign competition. In addition, the Quds force, that conducts IRGC policies overseas, has played a successful and key role on the battlefields of Iraq increasing the Guards' kudos at home. "Trump and the Islamic State militants were gifts from God to the IRGC," said a senior official within the Iranian government, speaking to Reuters on condition of anonymity like other figures contacted within Iran. "If Trump adopts a hostile policy towards Iran or scraps the deal, hard-liners and particularly the IRGC will benefit from it," a former reformist official said... "If Trump's presidency scares away foreign investors from Iran, then it is the IRGC that will regain its economic power," said a former reformist official close to Rouhani. "More economic involvement of the IRGC means a riskier market for foreign investors. It will hinder Rouhani's planned economic growth and will give more political power to the IRGC and their hard-line backers," the reformist official added.

BP has created a new executive committee to explore business in Iran which will exclude its American chief executive Bob Dudley in a bid to avoid potential violations of U.S. sanctions still in place. The new committee is headed by BP's chief financial officer Brian Gilvary, who is a British national. Gilvary will coordinate the oil major's operations in Iran and any discussions with the country's national oil company, according to industry sources. The move highlights the lengths to which multinationals will go to exploit lucrative new business in Iran, which is only slowly emerging from years of isolation that crippled the OPEC member's energy-reliant economy... BP's new executive committee also includes Bernard Looney, upstream chief executive, who is Irish, Dev Sanyal, chief executive of alternative energy and executive vice president, regions, an Indian national, and General Counsel Rupert Bondy, a Briton. "The separate governance structure does not involve Bob or any other U.S. citizens and was set up for Bob's own protection," one source said... Last month, Dudley said: "Iran is a large oil and gas province ... We're going to have to be very careful. We don't want to violate any sanctions."

NUCLEAR & BALLISTIC MISSILE PROGRAM

Iran said on Tuesday it had sent 11 metric tonnes of heavy water to Oman as part of its obligations under last year's nuclear deal with world powers. Ali Akbar Salehi, head of Iran's Atomic Energy Organisation, said the heavy water has been sold to an unnamed third country. Heavy water is not itself radioactive, but is used in certain types of reactor which can produce plutonium that is used in a nuclear bomb. "Eleven tonnes of heavy water has been sent to Oman and the other party has announced its readiness for the purchase," Salehi said, according to the IRIB news agency. In a report this month, the International Atomic Energy Agency (IAEA) said Iran's stocks of heavy water had crept 100 kilos above the 130-tonne level set out in the nuclear deal with world powers that came into force in January.

Iran will likely use the Obama administration's final weeks to try to procure nuclear-related materials in violation of last summer's landmark nuclear deal, a top lawmaker told the THE WEEKLY STANDARD. While Iran is prohibited from purchasing civil nuclear and so-called dual-use goods outside of the procurement channel set up under the deal, recent reports indicate that the country has yet to fully use the channel and has instead tried to obtain goods using unofficial means. The State Department effectively denied those reports in a statement to TWS this week. "The Procurement Channel is fully functional and we are confident that it will continue to effectively review proposals that it receives," an official said. "The United States retains a wide range of multilateral and unilateral tools to address any proscribed Iranian procurement activities - including interdiction and sanctions - and we continue to deploy those tools where needed." Lawmakers have cast doubt on the administration's assurances. House Foreign Affairs Committee chairman Ed Royce told TWS that Iran would likely intensify its attempts to import technology outside the procurement channel in coming weeks.

IRAN NUCLEAR DEAL

Senior Obama administration officials in their final days in office are seeking to cover up key details of the Iran nuclear deal from Congress, according to documents and sources who spoke to the Washington Free Beacon about continued efforts by the White House to block formal investigations into secret diplomacy with Tehran that resulted in a $1.7 billion cash payment by the United States. As leading members of Congress petition the Obama administration for answers about what many describe as a $1.7 billion "ransom" payment to Iran, Obama administration officials are doubling down on their refusal to answer questions about the secret negotiations with Iran that led to this payment. Sen. Marco Rubio (R., Fla.), a vocal opponent of last year's nuclear deal with Iran, has been seeking answers from senior Obama administration officials since at least late September. However, officials continue to stonewall the senator's inquiries, according to senior congressional sources and formal communications between Rubio and the State Department obtained by the Free Beacon.

SANCTIONS ENFORCEMENT

A former consultant to Iran's mission to the United Nations pleaded guilty on Monday to charges that he filed a false tax return substantially understating how much he was paid and conspired to violating a U.S. sanctions law. Ahmad Sheikhzadeh, 60, entered his plea in federal court in Brooklyn to charges that he conspired to violate the International Emergency Economic Powers Act and aided in the preparation of false individual income tax returns. As part of a plea deal, Sheikhzadeh agreed to not appeal any sentence of 5-1/4 years in prison or less, said Steve Zissou, his attorney. Sheikhzadeh, who has also agreed to pay over $147,000, is scheduled to be sentenced on March 30. Sheikhzadeh was arrested in March, two months after when world powers led by the United States and the European Union lifted crippling sanctions against Iran in return for curbs on Tehran's nuclear ambitions.

SANCTIONS RELIEF

The Lloyd's of London insurance market has announced plans to launch offices in Iran - a move that could help the country's efforts to open its economy to post-sanctions investments. Inga Beale, the CEO of the world's leading specialty insurer, was quoted by Iran's domestic media as saying that Lloyd's of London would establish branches in Iran's free trade zones. To the same effect, two Lloyd's directors will soon travel to Tehran to discuss the technicalities for this, Beale was quoted as saying by Iran's state news agency IRNA.  She made the remarks in a meeting with Abdolnasser Hemmati, the head of Iran's Central Insurance Company, during a visit to London on Friday. Beale further added that Lloyd's syndicates are interested in returning to the Iranian market.

The insurance regulator chief also met with Victor Peignet, chief executive of the French insurer [SCOR] in London on Friday. "[SCOR] was a leading reinsurer covering major risks for Iran, including risks in petroleum and petrochemical industries," Hemmati said... Peignet said his company is willing to start collaboration with Iran, in line with comments by the Paris government to partner with Tehran in key industries. "We are ready to start collaboration, as the leader reinsurer, in accordance with the CII framework," he said and added that [SCOR] is ready to hold training courses for Iranian insurance managers over risk management and pricing policies. Hemmati also held talks with Munir Kabban, president of UIB Group, an international insurance and reinsurance company headquartered in London. He acknowledged the firm's efforts in training Iranian insurance experts.

German Linde Group has received green lights from Euler Hermes, a credit insurance company to become the greatest contractor of Iran's LNG projects. New round of Iranian officials and Germany's Linde Group sat to discuss the LNG projects. The former had signed a deal to provide technical support for Kian Petrochemical Complex earlier and signaled its participation in country's greatest petrochemical projects during new round of talks with the Imam Khomeini Petrochemical Complex. New investments, technology transfer, training, and research and development projects constituted the topics of discussion. The new rise in German company's willingness is attributed to assurances Euler Hermes Credit Insurance Co., which would provide insurance coverage to enterprises acting in Iranian setting, which would have been impossible without provisions of JCPOA.

Officials of German Linde Company in a meeting with directors of Iran's Bandar Imam Petrochemical Company voiced their willingness to cooperate with Iran. Bandar Imam Petrochemical Managing Director Reza Amiri said that Linde has opened up its office in Iran. "The officials of the two companies got together to consider opportunities of investment, transfer of technology and partnership in Iran's projects," Amiri added. Amiri said Linde had launched activity in various domains like petrochemical section after the Joint Comprehensive Plan of Action (JCPOA).

Iran and Poland held negotiations in Tehran over launching a joint shipping line for transport of crude oil, petrochemical products as well as liquefied gas. A fresh round of talks was conducted in Tehran between National Iranian Tanker Company (NITC) and Poland's Ciech Trading S.A. to establish a joint company to transport petrochemicals and liquefied gas in addition to development of bunkering industry. Tomasz Grzela, Managing Director of Ciech Trading S.A., said at the meeting that his company eyes expansion of ties with NITC in the post-JCPOA era; "accordingly, we are eager to begin joint investment in a wide variety of fields like bunkering as well as carrying of petrochemical products and liquefied natural gas (LNG)." The Polish official asserted that a joint firm will be formed by NITC and Ciech Trading S.A. in order to bolster relations.

The executive vice president of the Finnish Outotec sees the prospect of relationships with Iranian companies in the field of mineral industry. The Finnish company has been present in the Iranian market as of the 1970s and today, ties with Iranian companies is strengthening, Adel Hattab told the Tehran Times. Outotec Oyj is a Finland-based company active within the mineral industry, providing process solutions, technologies, and services for the mining and metallurgical industries. "We have been here working in Iran since 1976. We are working within the steel and copper value chain. We look forward to working the within zinc, aluminum, gold and many other commodities," he said.

EXTREMISM

Commander of Iran's Basij (Volunteer Force) Brigadier General Mohammad Reza Naqdi underlined that the Palestinian territories will be freed from Israel's occupation in the next 10 years. Addressing elite students in Alborz province near Tehran on Monday, Naqdi expressed the hope that the notions, thoughts and ideology that led to Iran's Islamic Revolution would help Palestinians get rid of Israel in the next 10 years. Elaborating on his reasons for predicting the liberation of Palestine and annihilation of Israel by 2025, he said that the Islamic Revolution helped Iran get rid of the US over 35 years ago, rescued the country from Saddam Hussein's aggression and helped the Lebanese to get rid of the Americans. "Considering these developments, liberation of Palestine by the Islamic Revolution is not unlikely at all," Naqdi said. In relevant remarks earlier this month, General Naqdi underlined that the US will collapse in less than 20 years, adding that President-elect Donald Trump will speed up the process.

TERRORISM

Iran is smuggling weapons and ammunition to Hezbollah through commercial flights from the Islamic Republic to Lebanon, according to intelligence information revealed by Israel's UN ambassador to the Security Council, which was cleared for publication on Tuesday. UN Ambassador Danny Danon sent an urgent letter to the Security Council members in which he revealed the smuggling route from Iran's Revolutionary Guards to Hezbollah: "The Iranian Al-Quds Force packs weapons, ammunition and missile technology to Hezbollah in suitcases and puts them on Mahan Air flights." Danon added that "these planes fly directly to the airport in Lebanon or Damascus and from there the weapons are transferred on the ground to Hezbollah." The UN envoy wrote that "Iran continues to violate Security Council resolutions, including Resolutions 1701 and 2231." Iran arms terrorist organizations in the Middle East and works to undermine stability in the entire region, he added.


SYRIA CONFLICT

More than 1,000 soldiers deployed by Iran to Syria to back the government side in its civil war have been killed, an Iranian official said, underlining Tehran's increasing presence on front lines of the conflict. It was a major increase in the reported death toll from just four months ago, when the Islamic Republic announced that 400 of its soldiers had died on Syria's battlefields... Although many of the soldiers the Shi'ite Muslim Iran sends are its own nationals, it is casting its recruitment net wide, training and deploying Shi'ites from neighboring Afghanistan and Pakistan as well. Half of the death toll reported in August were Afghan citizens. "Now the number of Iran's martyrs as defenders of shrine has exceeded 1,000," Mohammadali Shahidi Mahallati, head of Iran's Foundation of Martyrs, which offers financial support to the relatives of those killed fighting for Iran, was quoted as saying by Tasnim news agency.

IRAQ CRISIS

These are the Shiite militias, and their goal is Tal Afar, on the main road to the Syrian city of Raqqa, the capital of IS' self-declared caliphate... Officially, the Iraqi government and top militia leadership say that only Iraqi army units will enter Tal Afar, once dominated by Shiites but now primarily Sunni Turkmen, a minority in the country with cultural and historic links to nearby Turkey to the north. But some of the militias' most powerful units, as well as field commanders and troops - all backed by a newly empowered Iran - tell a different story. Jaafar al-Husseini, spokesman for Iraq's Hezbollah Brigades, said it is the militias backed by Shiite-heavy army units and Iranian weapons that will lead the charge into Tal Afar to drive out IS extremists. "The Iranians are with us," he said, adding that Tehran was supporting the militias directly, including strategy from Revolutionary Guards commander Gen. Qassem Soleimani, who is in charge of a crescent of Shiite power stretching from Tehran to Beirut. "Our mission and that of the (Iraqi Shiite) Badr Brigades is to encircle Tal Afar from the east. Then we will storm it," he said, adding that Soleimani visited a nearby staging ground three days ago.

HUMAN RIGHTS

Dozens of businesses in Iran owned by members of the Baha'i faith have been indefinitely shut down by the authorities after some owners closed their establishments to honor the birthdays of two of the faith's holiest figures... Between November 6-10, 2016 the police closed down several Baha'i shops in Karaj, the Campaign has learned. The Baha'i World News Service also reported that 104 Baha'is shops in the cities of Noshahr, Shahsavar, Tonekabon, Amol, Bahmanir, Kerman, Bandar Abbas, and Sari "were sealed by Iranian authorities after they were temporarily closed to observe Baha'i holy days on 1 and 2 November."  According to the Baha'i calendar, November 1 is the birthday of the Bab, the faith's prophet, and November 2 is the birthday of Bahá'u'lláh, the faith's founder.

At first, it sounds like a charming love story: Playmates who grow up side by side in an Iranian village go on to get married. But when Leila was wedded to Ali, she was 10 years old. He was 15. "It was nighttime and I was asleep. My neighbors rang the doorbell and came in and put a ring on my finger," Leila, whose name has been changed to protect her privacy, told RFE/RL's Radio Farda in an interview. "That's how I got married." At 22, Leila has been married more than half her life. In a way, she's not alone. There are tens of thousands of child brides in Iran, where the legal age of marriage for girls is 13 with parental consent -- and girls even younger can be married with permission from a judge. For boys, the age is 15... The UN Committee on the Rights of the Child warned this year that the number of child brides in Iran is increasing and called on the Islamic country to change laws that allow girls as young as 9 to be married.

OPINION & ANALYSIS

In summer 2015 Congressman Mike Pompeo and Senator Tom Cotton visited the International Atomic Energy Agency (IAEA) in Vienna, where they learned of two secret codicils to the Iranian nuclear deal. The Obama Administration had failed to disclose these side agreements to Congress. When pressed on the details of the codicils, Secretary of State John Kerry claimed never to have read them. We're reminded of this episode on news that Donald Trump has asked Congressman Pompeo to lead the Central Intelligence Agency. The Kansas Republican is being denounced by liberals as a "hardliner," but the truth is that he has shown an independent streak that has allowed him to raise thorny questions and gather vital information that Administration officials want suppressed. Isn't that what Americans should expect in a CIA director? That goes double regarding the Iranian nuclear deal, which Mr. Pompeo opposed in part because of the diplomatic legerdemain he and Sen. Cotton uncovered in Vienna. Of the two secret deals, one concerned the nuclear agency's inspection of the Parchin military facility, where the Iranians were suspected of testing components of a nuclear deal. The other concerned Iran's non-answers to questions about the possible military dimensions of its nuclear program... Undoing the strategic damage of the Iran deal won't happen overnight, and the Trump Administration will have to move carefully to avoid diplomatic missteps with allies and adversaries. Having Mr. Pompeo at CIA gives more confidence that at least the U.S. will be honest when Iran is breaking its commitments.

As President-elect Donald Trump prepares to take office over the coming months, one of the thorniest foreign policy questions he will have to address is what to do about the Iran nuclear deal... Yet, while the JCPOA is imperfect, tearing up the agreement during Trump's first few weeks in office would carry significant consequences. Although the president could walk away from the agreement and re-impose sanctions, Iran has already received approximately $100 billion. Walking away would allow Iran to continue its work on the nuclear program while enjoying this significant financial windfall... However, there are still actions Trump can take to strengthen U.S. leverage over Iran, which has become more aggressive since agreeing to the nuclear deal. On day one of his presidency, Trump can take at least three steps that will make it more difficult for Iran to continue its support of terrorism, engage in human right abuses, test ballistic missiles in contravention of United Nations sanctions, and ensure that, if Iran continues to see economic relief from the nuclear deal, such relief does not end up in the coffers of terrorist organizations like the Islamic Revolutionary Guard Corps (IRGC).

Supporters of Obama's Iran diplomacy should respond to its prospective unravelling with introspection as well as outrage. The administration managed a historic feat in achieving a negotiated resolution to the nuclear crisis, and its officials then waged and won an epic, innovative battle to sell the deal to a skeptical Congress and to the American people. However, the deal's architects failed in one difficult but vital task: Ensuring the agreement's sustainability beyond the administration's lifespan. Thanks to entrenched Republican opposition to the negotiations, the American commitment to the JCPOA hangs from the narrow thread of executive authority: The president's power to temporarily waive or suspend economic sanctions on Iran. The presumption was that the deal's success in deferring Iran's nuclear ambitions would persuade any future administration to retain it-a proposition that is proving uncomfortably iffy. It may be tempting to cast blame for this scenario on Republican obstructionism, but the hyperpartisanship of the Obama era wasn't entirely a one-way street. And since the negotiators realized the deal would not have a broad domestic mandate, greater attention to resilience in the framework for implementation might have avoided the current precarious outcome. Instead, as many observers noted at the time of its signing, the deal incorporated sufficient ambiguity on sanctions to ensure that every future application of American pressure on Iran would be strenuously contested by Tehran-and that concerns about eroding Iranian commitment to the deal would compromise Washington's vigilance in enforcing the residual measures. In this respect, the JCPOA contains the seeds of its own subversion from both Washington and Tehran.







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@uani.com.

United Against Nuclear Iran (UANI) is a non-partisan, broad-based coalition that is united in a commitment to prevent Iran from fulfilling its ambition to become a regional super-power possessing nuclear weapons.  UANI is an issue-based coalition in which each coalition member will have its own interests as well as the collective goal of advancing an Iran free of nuclear weapons.

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