Tuesday, January 3, 2017

Eye on Iran: BP Opts Out of Iran Deals Ahead of Trump Hard Line on Tehran


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BP has opted out of the first wave of agreements to develop oil and gas reserves in Iran after the lifting of international sanctions - setting it apart from its two biggest European rivals Royal Dutch Shell and Total... BP has not applied to take part in a forthcoming tender of exploration and production rights in Iran, according to people briefed on the matter, and has no immediate plans for separate agreements of the kind reached by Shell and Total. These people said the main reason was commercial. "It's a question of where the best returns on investment can be made and BP has plenty of attractive opportunities elsewhere," said one. However, these people acknowledged the continued existence of some US sanctions against Iran - and the prospects of a hardline stance against Tehran by the Trump administration - was a particular deterrent for BP. Although based in the UK, BP has the biggest US exposure of any European oil group; about 40 per cent of its shareholders and 30 per cent of its employees are American, including Bob Dudley, chief executive.


Iran's rial hit a record low against the U.S. dollar on [December 26] in a sign of concern about the country's ability to attract foreign money after U.S. president-elect Donald Trump takes office. The rial was quoted in the free market at 41,500 to the dollar, weakening from around 41,250 on Sunday and 35,570 in mid-September. Before this month, the record low was about 40,000, hit in late 2012, traders said... Inflows since January have been smaller than the government expected, partly because big international banks fear running into U.S. legal trouble if they deal with Iran. Many analysts think Washington will stop short of abolishing the deal, but it may apply remaining sanctions on Tehran more stringently. At the very least, uncertainty over Washington's intentions could make companies around the world more cautious about trading with or investing in Iran.


In the three years since a preliminary nuclear deal was struck with Iran, Tehran has received more than $10 billion in sanctions relief from around the world in the form of cash and gold, according to current and former U.S. officials... Some U.S. lawmakers and Middle East allies contend that the shipments of cash and gold, a highly liquid form of money, can be used to fund Iran's allies in the region, including the Assad regime in Syria, the Lebanese militia Hezbollah and the Houthi political movement in Yemen.

IRAN NUCLEAR DEAL


Dozens of the nation's top scientists wrote to President-elect Donald J. Trump on Monday to urge him not to dismantle the Iran deal, calling it a strong bulwark against any Iranian bid to make nuclear arms. "We urge you to preserve this critical U.S. strategic asset," the letter read. The 37 signatories included Nobel laureates, veteran makers of nuclear arms, former White House science advisers and the chief executive of the world's largest general society of scientists... The letter writers zeroed in on the dismantling of Iran's ability to purify uranium, a main fuel of nuclear arms that is considered the easiest to use. They said... the time it would take Tehran to enrich uranium for a single nuclear weapon "has increased to many months, from just a few weeks" during the accord's negotiation. The "many months" wording is more conservative than that of the Obama administration, which hailed the deal as keeping Iran a year away from having enough nuclear fuel to make a bomb. Still, the letter writers seemed to anticipate quibbles on the point by saying the teams of inspectors and monitoring gadgets at Iran's main enrichment plant made them "confident that no surprise breakout at this facility is possible." Breakout refers to a rush to build a nuclear weapon.

NUCLEAR & BALLISTIC MISSILE PROGRAM


New reviews of satellite images suggest North Korea may possess another missile launching site at a village once suspected of having nuclear facilities. The images, analyzed by Strategic Sentinel, a firm that deals with geospatial image processing, intelligence analysis and geopolitical research, exposed a missile silo in mountainous Geumchang-ri, North Pyongan province, where the U.S. intelligence community said in the late 1990s there was a nuclear weapons site... The silo, an underground chamber used for storing and firing missiles, seems analogous to the one at a missile base in Tabriz, Iran, with the same 7.4-meter-wide sliding cover and the same type of exhaust vents, the intelligence consultancy told VOA on Tuesday... "If this Iranian site is housing missiles and the North Korean site that we have uncovered is the exact same dimension, then it's quite possible that the site that we have uncovered is housing missiles as well," said Ryan Barenklau, founder of Strategic Sentinel. He also suggested a possible nuclear cooperation between the two countries.

U.S.-IRAN RELATIONS


When the shah of Iran fell in 1979, the U.S. froze at least $400 million of Iranian money sitting in a Pentagon trust fund. The Islamic Republic of Iran never stopped trying to get it back... No administration agreed to surrender all the money, until Jan. 17, shortly after four American citizens were released from Iranian jails in a prisoner exchange. That is when an Iranian government Boeing 737 lifted off from Geneva's Cointrin airport carrying $400 million-stacks of Swiss francs delivered on wooden pallets earlier that day by the U.S. government. The history of the frozen money, based on interviews with U.S., Iranian and European officials involved in the negotiations over the decades, shows how it has been a constant sore point between the two countries since the 1979 Iranian revolution. That sore spot finally has been removed, although in keeping with the four-decade pattern, it has been replaced by other financial grievances and more American detainees, suggesting similar dramas may lie ahead... Over the past 18 months, Iran has detained at least three more American citizens for allegedly threatening the country's national security. Iranian President Hassan Rouhani wants the U.S. to return another chunk of Iranian money, $2 billion frozen in 2009 in a Citibank account in New York. He has suggested that a deal similar to the one involving the $400 million could resolve the issue.

BUSINESS RISK


Turkmenistan stopped gas exports to Iran on Sunday in a long-running dispute over arrears, Iran's state gas company said, days after Tehran said the issue had been temporarily resolved... Tehran said in December that Turkmenistan had threatened to stop gas exports because of arrears, which amounted to about $1.8 billion and dated back more than a decade. Iran wanted to refer the issue to arbitration.

SANCTIONS RELIEF


Iran said on Sunday it had negotiated to pay only about half the announced price for 80 new Boeing airliners in an order that the American planemaker had said was worth $16.6 billion... Despite Iran's great need for new planes to replace those from the sanctions era, it has entered the market at a time when Boeing, Airbus and smaller planemakers have all faced a downturn in orders, and are therefore expected to offer deep discounts.


Iran and European planemaker ATR are due to sign a deal next week for the purchase of 20 short-haul passenger aircraft, an Iranian official said on Saturday, weeks after Tehran finalised deals with Boeing and Airbus. ATR, co-owned by Airbus and Italy's Leonardo Finmeccanica, in February reported preliminary orders from Iran for 20 twin-engine turboprop ATR 72-600 aircraft... [the official] added that the contract for 20 planes was worth $400 million.


Iran has named 29 companies from more than a dozen countries as being allowed to bid for oil and gas projects using the new, less restrictive Iran Petroleum Contract (IPC) model, the oil ministry news website SHANA reported on Monday. The list of pre-qualified firms included Shell, France's Total, Italy's Eni, Malaysia's Petronas and Russia's Gazprom and Lukoil, as well as companies from China, Austria, Japan and other countries. Iran hopes its new IPC, part of an effort to sweeten the terms it offers on oil development deals, will attract foreign investors and boost production after years of sanctions. The list did not include oil major BP. The Financial Times said BP had opted out of the bidding because of concerns over possible renewed U.S.-Iran tensions after President-elect Donald Trump takes office on Jan. 20.


Talks between Brazil, Iran and India could result in the construction of an oil refinery and petrochemical plant in one of the South American nation's poorest states... The state of Maranhao, on Brazil's northern Atlantic coast, is offering a 5,000-acre site for the project, according to a senior official in the state's governmen... The project would require investment of at least $2.5 billion, according to [a Brazilian federal] legislator, who recently traveled to Tehran and New Delhi as part of an official delegation from Maranhão. Iranian oil officials have visited the proposed site twice already, a local Maranhao official said. Mohammad Ali Ghanezadeh, Iran's ambassador to Brazil, said in an interview that his government is "very much interested" and "ready to put money and energy" into the project. He added that the main obstacle to the deal are U.S. banking sanctions.


Imports of crude oil by Iran's four major buyers in Asia in November more than doubled for a second straight month from a year ago, with purchases by India and South Korea more than four times higher. Iran's top four Asian buyers - China, India, South Korea and Japan - imported 1.94 million barrels per day (bpd) last month, up 117 percent on a year earlier, government and ship-tracking data showed... Industry sources have said Iran has been offering discounts to buyers in return for increasing their purchases... Looking ahead, Iran's crude oil exports in December are set to fall 8 percent from November to a five-month low, a source with knowledge of its preliminary tanker schedule said in mid-December, as lower shipments to China and others in Asia offset bumper exports to Europe.


The National Iranian Oil Company has signed new spot oil export contracts with BP and the Anglo-Dutch Royal Dutch Shell to provide them with oil and gas condensates, director for international affairs at NIOC said on Wednesday... A spot contract is a deal for buying or selling a commodity for settlement (payment and delivery) on the spot date, which is normally two business days after the trade date. A spot contract is in contrast with a forward contract where terms are agreed now but delivery and payment will occur at a future date.


Gaz [s]ays signs [m]emorandum of understanding with municipal authorities of four cities in Iran for supply of 900 LIAZ buses. Delivery is scheduled to begin in 2017.

FOREIGN AFFAIRS


German prosecutors have indicted a Pakistani man on charges of spying for an Iranian intelligence agency. Federal prosecutors said Monday that the 31-year-old, identified only as Syed Mustufa H. due to German privacy rules, was in contact with the unnamed spy agency since 2011. In a statement, prosecutors said the man began spying on the former head of a group that promotes German-Israeli relations by July 2015 at the latest. He is alleged to have received money in return for passing on information obtained about the ex-head of the German-Israeli Society.

MILITARY MATTERS


An Iranian general said Wednesday that his country's air defenses have warned off several fighter jets and drones during an ongoing military drill... the semi-official Tasnim news agency... which is close to Iran's military, said the aircraft included U.S. fighter jets and drones. In recent months, the [U.S.] 5th Fleet has complained about interactions with Iran's military at sea and in the air.

REGIONAL DESTABILIZATION


Allegations over Russia and Iran's deepening ties with the Taliban have ignited concerns of a renewed "Great Game" of proxy warfare in Afghanistan that could undermine US-backed troops and push the country deeper into turmoil.

SYRIA CONFLICT


Syria would be divided into informal zones of regional power influence and Bashar al-Assad would remain president for at least a few years under an outline deal between Russia, Turkey and Iran, sources say. Such a deal, which would allow regional autonomy within a federal structure controlled by Assad's Alawite sect, is in its infancy, subject to change and would need the buy-in of Assad and the rebels and, eventually, the Gulf states and the United States, sources familiar with Russia's thinking say... Assad's powers would be cut under a deal between the three nations, say several sources. Russia and Turkey would allow him to stay until the next presidential election when he would quit in favor of a less polarizing Alawite candidate. Iran has yet to be persuaded of that, say the sources... Iran's interests are harder to discern, but Ali Akbar Velayati, Iran's Supreme Leader Ayatollah Ali Khamenei's top adviser, said Aleppo's fall might alter a lot in the region. By helping Assad retake Aleppo, Tehran has secured a land corridor that connects Tehran to Beirut, allowing it to send arms to Hezbollah in Lebanon. Russian and Western diplomatic sources say Iran would insist on keeping that corridor and on Assad staying in power for now.


When Islamic State collapses in Iraq, a lot will ride on whether the Iraqi Shiite militias taking part in that campaign will stop at the international border or will cross into Syria and open a new phase of that country's war. The Hashed al-Shaabi or Popular Mobilization Forces, which unite several of Iraq's powerful Shiite militias, were established to combat Islamic State in mid-2014. At the time, the regular Iraqi army collapsed as the extremist group seized the country's second-largest city of Mosul and advanced all the way to the outskirts of Baghdad, the capital. While technically under the control of the central government in Baghdad, most of these militias have been trained and armed by Iran and don't hide their close links with Iran's Revolutionary Guard Corps. On their tanks and armored vehicles, they often fly banners with portraits of the Islamic Republic's Supreme Leader Ayatollah Ali Khamenei. Some officials of the Popular Mobilization Forces have already said that they won't stop at the border and that they received the blessing of Syrian President Bashar al-Assad to go after his enemies across the frontier. Iranian officials, too, have openly spoken about using these battle-hardened Iraqi militias in the Syrian conflict once Mosul is finally freed from Islamic State. While Iraqi forces suffered serious casualties in Mosul, they have already reclaimed a significant part of the city... Injecting Iraq's Shiite militias into this overwhelmingly Sunni region would be a recipe for disaster, cautioned Monzer Akbik, a senior member of the Tayar al-Ghad Syrian opposition group which is allied with the Kurdish forces. "Sectarian Shiite militias coming into a Sunni area will ruin everything," he said. "If that happens, maybe people in the area will join Daesh so they can go and fight against the Hashed al-Shaabi."


Russian President Vladimir Putin and Iran's President Hassan Rouhani agreed in a telephone conversation on Saturday to continue their close coordination in trying to end the Syria crisis, the Kremlin said in a statement. The two men agreed on the importance of a new ceasefire agreement in Syria brokered by Russia and Turkey and plans for peace talks in the Kazakh capital Astana, the Kremlin said.

SAUDI-IRAN TENSIONS


Saudi Arabia should not be allowed to take part in the Syrian peace process, Iranian Defence Minister Hossein Dehghan told Russia's state-backed RT TV station in an interview, according to the RIA news agency... He was cited as saying that he thought Saudi Arabia's insistence that President Bashar al-Assad should step down meant Riyadh should not participate in future Syrian peace talks.


Oman told Saudi Arabia it will join a Saudi-led military alliance, the kingdom's official news agency reported, a sign that Iran's closest ally in the region is ready to improve its ties with the kingdom... Oman's ties with Saudi Arabia and its allies in the Gulf Cooperation Council have been strained because of its close relationship with Iran, the kingdom's biggest regional rival.

HUMAN RIGHTS


Female sex workers and homeless drug addicts in Tehran should be "convinced" to undergo sterilisation to prevent social problems, a deputy provincial governor in the Iranian capital said on Sunday... Last week, when images of homeless men and women sleeping in open graves outside Tehran shocked Iranian society, a cartoonist said on social media that the women must be sterilised because they give birth to children with "weak genes". The suggestion by Bozorgmehr Hosseinpour to "block the misery of poor humans who enter this world with many diseases, pain and addiction" outraged many people. Some said it reminded them of "Nazi cleansing" projects. He later apologised and said the women should be given consultation for sterilisation "with their own approval." The controversy quickly turned into a political football with conservative media accusing Shahindokht Molaverdi, vice president for women's affairs, of advocating the sterilisation of homeless women -- which she denies... In recent years, there has been a growing crisis in Tehran where street children are born and sold by homeless or poor women living in and around the capital. Thousands of such children are put to work as beggars or street vendors.


The fate of a hunger-striking activist imprisoned in Iran has sparked a rare unauthorized protest near the prison where he's being held. Videos posted online show dozens of people taking part in a protest Monday supporting Arash Sadeghi... Sadeghi is serving a 15-year sentence. Amnesty International says he was convicted of "spreading propaganda against the system" and "insulting the founder of the Islamic Republic." Sadeghi began his hunger strike after his wife, Golrokh Ebrahimi Iraee, was arrested in late October. Amnesty says she is serving a six-year prison sentence over an unpublished fictional story found in her home about a woman burning a Quran in anger over another woman being stoned to death for adultery.


A British-Iranian woman being held in an Iranian prison has been released from solitary confinement, her husband has said. Nazanin Zaghari-Ratcliffe, 37, was sentenced in September to five years in prison on secret charges related to a "soft overthrow" of the country's government that were not revealed in open court. She had been restricted from any contact with fellow inmates at Tehran's Evin prison until a week ago, when she was moved to a general ward, Richard Ratcliffe, her husband, told the BBC.


Iran has put limits on who can play the popular Clash of Clans mobile game. A government committee called for restrictions citing a report from psychologists, who said it encouraged violence and tribal conflict... Iran has a history of taking action against popular video games.

DOMESTIC POLITICS


Mehdi Karroubi, a leading member of the Iranian opposition who has been under house arrest for almost six years, announced he is quitting his party, Iranian media reported on Tuesday. Karroubi and Mir Hossein Mousavi were reformist candidates during the 2009 presidential election, and questioned the shock victory of conservative Mahmoud Ahmadinejad which led to mass protests. Two years later, both leaders ended up under house arrest for their part in the protests, which regime leaders still call "the sedition". "Considering my situation since (2011) and given that I do not know how long this will last, I ask my friends to accept my resignation," Karroubi, 79, wrote in a letter to his party, according to reformist newspaper Shargh... Karroubi said his resignation was aimed at preserving the unity of his party, National Trust, ahead of the presidential election in May -- despite it being banned since his arrest... President Hassan Rouhani, a moderate who allied with the reformists to win power in 2013, has failed to secure the release of Karroubi and Mousavi as he promised during his campaign.


Photographs of homeless people sleeping in empty graves outside Iran's capital shocked even the country's president on Wednesday, and pointed to the continuing economic struggles gripping the nation... a Persian-language newspaper... said some 50 men, women and children, many of them drug addicts, live in the cemetery... Rouhani said the government cannot accept seeing the homeless living in such conditions. His comments come ahead of Iran's presidential election in May, in which Rouhani is expected to seek a second four-year term.

OPINION & ANALYSIS


Iran's clerical leaders today possess a nuclear infrastructure that is gradually expanding and is blessed by the international community. For the first time in its modern history, Tehran is in a commanding position from the Persian Gulf to the Mediterranean. Iran's leaders continue to castigate the United States from their platforms while their Revolutionary Guards taunt the American armada patrolling international waters. The incoming Trump administration should not just tinker with this legacy but cast it aside altogether... Should the Trump team wish to revisit or even abrogate the JCPOA, they have sufficient domestic political authority to justify their moves. The question then becomes: To what type of civilian nuclear program is Iran entitled? At the moment, Iran is on the path of not just enriching uranium domestically but industrializing that capacity once the JCPOA's restrictions expire. The United States should set aside the agreement's sunset clauses and insist that Iran is entitled only to a modest and largely symbolic program. Whatever uranium Iran enriches must be permanently shipped abroad for processing into fuel rods that are difficult to convert for military purposes. And Iran may never have advanced centrifuges but must limit itself to small cascades of primitive machines. An oil-rich Iran does not require an elaborate nuclear network operating thousands of advanced centrifuges while accumulating tons of enriched uranium... But revising the JCPOA should not be the sole objective of a revamped Iran policy. During both the Obama and George W. Bush administrations, the United States did not have an actual Iran policy, but rather only a series of arms-control formulations. The most sensible contribution the Trump administration can make to regional stability is to conceive a strategy that stands up to Iran in the region and puts its domestic regime under stress... Economic sanctions are a critical aspect of any policy of pressuring the Islamic Republic. The experience of the past few years has shown that the United States has a real capacity to shrink Iran's economy and bring it to the brink of collapse. It was this leverage that the Obama administration forfeited for the sake of a deficient arms-control accord. And it is this leverage that must be reestablished and redeployed. Instead of imploring Europeans to invest in Iran, as John Kerry is doing, we must return to the days of warning off commerce and segregating Iran from global financial institutions. Designating the Revolutionary Guards as a terrorist organization and reimposing financial sanctions could go a long way toward crippling Iran's economy. Once deprived of money, the mullahs will find it difficult to fund the patronage networks that are essential to their rule and their imperial ventures. One of the best ways of threatening the theocracy is through the power of the purse.


Santa Claus is a familiar face in Tehran this time of year, at least in the neighborhoods where people have enough money to share the excitement of Christmas shopping. But many of those in Iran wanting to share the Gospel have been living this season in fear, painfully aware that anyone working to win converts to Christianity, and those Muslims who embrace its message of salvation, may find themselves charged by the Islamic Republic with nebulous religious and secular crimes, some of which carry the death penalty... There are about 150,000 Christians in Iran, mostly Armenians who live in relative peace with the regime. They were born Christians, as Iran sees it, and within limits their rights are respected... But there are also Christians who worship in what are called "house churches" and are part of congregations that may include large numbers of people who were born to Muslim families and converted to Christianity-people whom the Islamic Republic does not accept and actively persecutes. Altogether, according to activists, there are about 90 Christians being held in various Iranian prisons... One of the most infamous cases at the moment involves Yousef Nadarkhani, a house church pastor of the Church of Iran, whose tribulations and trials have begun to take on epic proportions... On May 13 of this year, Nadarkhani was arrested with three other men-Yasser Mossayebzadeh, Saheb Fadaie and Mohammad Reza Omidi-converts to Christianity (so, still Muslims as far as the regime is concerned). Nadarkhani was released on bail, but the other three remain in prison and were sentenced to 80 lashes for drinking alcohol. Specifically, they had sipped wine, symbolic of the blood of Christ, during church services... The latest hearing in the case of Nadarkhani and the three others was on Dec. 14, and inconclusive. Their tribulations and their trials will continue-a warning to all in Iran that the only freedom of religion is the very narrow version allowed by the Islamic Republic.


[R]ecent days have seen the addition of a new tool to America's "soft power" arsenal - one that is liable to prove very useful to the incoming Trump administration as it crafts its policy toward Iran and other rogues. On December 6th, the U.S. Senate passed the Global Magnitsky Human Rights Accountability Act as part of its authorization for 2017 defense spending. The law, championed by Sen. Ben Cardin, D-Md., is an outgrowth of a 2012 sanctions law designed to penalize Russian authorities for the untimely death of Russian lawyer Sergei Magnitsky... The Global Magnitsky Act, however, has a substantially broader scope. It expands the menu of penalties envisioned in the original act - visa bans, asset freezes and commercial blacklists - beyond Russia, and applies them to any foreign officials found to be responsible for human rights violations or "significant" instances of corruption. By doing so, it effectively weaponizes human rights as a tool of U.S. foreign policy. Iran is a logical test case for these new restrictions. The Islamic Republic, after all, has long been a human rights abuser on a global scale. But over the past two years, the regime's domestic practices have become more repressive than ever before.






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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