Monday, June 11, 2012

Eye on Iran: Nuclear Talks With Tehran Falter






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WSJ: "Negotiations between Iran and the United Nations' nuclear watchdog appeared to break down over the issue of inspections Friday, imperiling hopes for a broader diplomatic effort to end the international standoff peacefully. The talks between Iran and the International Atomic Energy Agency were widely seen as a precursor to a gathering of international powers in Moscow on June 18-19. Friday's outcome fueled concerns in Washington and Brussels that the second, more far-reaching, international push to curb Tehran's nuclear work is stagnating. Underscoring the gloom, diplomats from the two sides have failed in recent days even to agree on a formal agenda for the Moscow talks. And no new date has been set for another discussion of IAEA inspections. 'After today's meeting, without any progress, there were some setbacks,' the IAEA's director general, Yukiya Amano, said in an interview with The Wall Street Journal shortly after the talks concluded. 'I cannot be in an optimistic mood.'" http://t.uani.com/LDpa2f

Reuters: "Iran's state finances have come under unprecedented pressure and the resilience of ordinary people is being tested by soaring inflation as oil income plummets due to tightening Western sanctions and sharply falling oil prices. Tough financial measures imposed by Washington and Brussels have made it ever more difficult to pay for and ship oil from Iran. Its oil output has sunk to the lowest in 20 years, cutting revenue that is vital to fund a sprawling state apparatus. Already down by more than a quarter, or about 600,000 barrels per day, from rates of 2.2 million bpd last year, shipments of crude oil from Iran are expected to drop further when a European Union oil embargo takes effect on July 1. Tehran is already estimated to have lost more than $10 billion in oil revenues this year. Causing even more pain, oil prices fell below $100 a barrel last week to a 16-month low amid a darkening outlook for economies in Europe, the United States and China. 'This is an act of economic warfare. The sanctions are having a big effect in cumulative terms: Iran is being locked out of the global financial system,' said Mehdi Varzi, a former official at the National Iranian Oil Co." http://t.uani.com/KeEVfx

Reuters: "Indian state-owned refiners will halt planned oil imports of 173,000 barrels per day from Iran when European sanctions take effect in July, unless the government permits them to use insurance and freight arranged by Tehran, industry sources said. India is the world's fourth-largest oil importer and second biggest customer of the OPEC member nation, but domestic shippers have refused to transport the oil because of a lack of cover, the sources said. Unlike private refiners, India's state-run companies need government permission to import oil on a Cost, Insurance and Freight (CIF) basis as federal policy requires refiners to favor Indian insurers and shippers by buying only on a Free on Board (FOB) basis. But Indian shipping firms say they will not lift Iranian cargoes from July as an emergency plan by state insurers to provide limited cover for Iran voyages has been delayed while the insurance regulator requests more details." http://t.uani.com/KnqQ0A

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Nuclear Program 
  
Reuters: "Lack of progress in talks between Iran and the International Atomic Energy Agency is disappointing and it shows Tehran's continued failure to abide by its commitment to the U.N. nuclear watchdog, a U.S. envoy said on Saturday. The IAEA and Iran failed at talks on Friday to unblock an investigation into suspected atom bomb research by the Islamic state, a setback dimming any chances for success in higher-level negotiations between Tehran and major powers later this month... 'We're disappointed,' Robert Wood, the acting U.S. envoy to the IAEA, told Reuters in an emailed comment. 'Yesterday's outcome highlights Iran's continued failure to abide by its commitment to the IAEA, and further underscores the need for it to work with the IAEA to address international community's real concerns,' he said." http://t.uani.com/Li0Nmn

AP: "Iran and six world powers seeking to coax Tehran into curbing its nuclear activities appear to be coming to talks later this month without resolving the differences that scuttled previous rounds, according to recent letters exchanged between the two sides. One letter, shared with The Associated Press on Friday, shows Iran seeking an expert-level meeting ahead of the June 18-19 Moscow negotiations to 'prepare the necessary ground for the Moscow talks.' In response, a senior European Union representative speaking for the six powers suggests there is no need for such preliminary talks because the six remain committed to their 'straightforward proposal' presented at the last meeting in Baghdad. Her letter instead urges Tehran to embrace that proposal, which offers a mix of incentives if Tehran reduces uranium enrichment, which can generate weapons-grade material as well as nuclear fuel." http://t.uani.com/Lup9v8

AFP: "Iran on Sunday hit out at a perceived lack of willingness by world powers to engage it ahead of crucial nuclear talks to take place in Moscow on June 18 and 19, according to reports. Ali Bagheri, deputy to Iran's top negotiator Saeed Jalili, said in a letter to Helga Schmid, deputy to EU foreign policy chief Catherine Ashton, that he was 'surprised' by issues she was raising in correspondence with him. He also complained that preparatory groundwork by experts from both sides was needed before the talks. The letter, whose Farsi translation was made public by several Iranian news agencies, showed the gulf that exists between Iran and the so-called P5+1 group (the United States, Britain, France, Germany, Russia and China) going into the negotiations." http://t.uani.com/MuEAkU

AFP: "'The only path' for world powers holding talks with Iran on its nuclear activities is to accept Tehran's position, a top military representative for the country's supreme leader said on Sunday, according to the Mehr news agency. 'Unfortunately, the P5+1 logic, especially that of America, is of bullying, which is in no way acceptable to our people and officials,' said Ali Saeedi, a senior figure in Iran's powerful Revolutionary Guards who acts as agent for supreme leader Ayatollah Ali Khamenei." http://t.uani.com/LQr4GZ

AP: "Iran's president says Iran has no intention of building nuclear weapons, but fear would not deter it if it decided to make them. Mahmoud Ahmadinejad's comments suggest a toughening of Iran's position ahead of June 18-19 talks with world powers over Tehran's nuclear program." http://t.uani.com/MBRyks

YnetNews: "Russia's government-run weapons manufacturer is supplying equipment for Iran's missile program, intelligence documents recently presented to the US Congress indicate. According to intelligence estimates, this does not represent official cooperation between Moscow and Tehran, but rather demonstrates the inability of the Russian government to prevent state firms from engaging in illegal trade with the Islamic Republic. The Russian firm in question is Rosoboronexport, which supplied Iran with defensive missile systems in 2006 and continues to maintain business ties with Iran in the missile sector." http://t.uani.com/LsEtZb

WSJ: "Yukiya Amano, director general of the United Nations' International Atomic Energy Agency, spoke exclusively with The Wall Street Journal in Vienna on Friday following the agency's talks with Iran. Here are excerpts of the interview." http://t.uani.com/KLJajN

Sanctions

Bloomberg: "The fewest supertankers in at least eight months were headed for Iran as the deadline neared for a Europe Union embargo against the nation's oil, ship-tracking data showed. The Daylam, owned by Tehran-based NITC Co., was the only very large crude carrier signaling a future destination in Iran, according to IHS Inc. data compiled by Bloomberg. That's the fewest ships since at least October, based on a weekly snapshot of the global fleet's movements. The latest signals from 23 NITC tankers are more than a week old, data showed. International tanker owners are avoiding Iran because carrying the country's crude will cause them to lose insurance under EU sanctions taking full effect July 1. Iran is under pressure to stop a nuclear program that the U.S. and Europe suspect involves weapons development and will export 1.2 million barrels a day starting next month, down from 2.2 million last year, Barclays Plc estimates." http://t.uani.com/Oi7ac7

Reuters: "Turkey steeply reduced its imports of Iranian crude oil in May, bowing to international pressure ahead of planned EU and U.S. sanctions, shipping data seen by Reuters showed. The figures show Turkey, the world's fifth-largest buyer of Iranian oil in 2011, is holding to its pledge to cut imports from the Islamic Republic after buying and stockpiling more Iranian oil from January through April than it did last year. Before May, Turkey was the only buyer in Europe to increase purchases from Iran, while other European refiners cut back on imports of the crude ahead of an impending EU oil embargo due to take effect from July 1... In the first four months of 2012, Turkey imported 210,000 barrels per day of Iranian oil on average, including a huge 270,000 bpd in March, much higher than its 2011 average of 185,000 bpd. In May Turkey's state-controlled refining company, Tupras, imported around 140,000 barrels per day (bpd), a 20 percent drop from its 2011 average, according to the latest shipping data, obtained by Reuters." http://t.uani.com/JX2qoA

Bloomberg: "Japan's Cabinet approved a bill to provide sovereign insurance to tanker operators that import Iranian oil before the full implementation of European Union sanctions against the Persian Gulf nation. The government plans to take over coverage for ship owners and petroleum refiners because they will lose access to Europe's reinsurance market after the 27-member EU embargo goes into effect July 1, the transport ministry said today in a statement. The full EU ban covers Iranian crude exports and insuring shipments of the oil." http://t.uani.com/MBULAo

WSJ: "Iran and other states are expected to press Saudi Arabia to scale back its record output when OPEC meets next week in Vienna, or face the risk of a new oil-price collapse. Much has changed since the group last met in December and managed to put aside its differences to agree to collectively produce 30 million barrels a day. For one thing, oil prices in London have fallen below $100 a barrel as the world economic outlook has worsened. For another, world powers have raised the pressure on Iran's nuclear program while urging Saudi Arabia to pump more oil to make up for any Iranian shortfall. The combination of these factors has sown discord in OPEC, with several members fretting over the current output level. Yet despite the rhetoric, few analysts expect OPEC to make dramatic shifts next week." http://t.uani.com/KvEcBy
 
Commerce


Bloomberg: "Iran may award OAO Russian Railways, the country's rail monopoly a new contract worth about $250 million after the state-run company completed a link between Tebriz and Azarshahr, RIA Novosti reported, citing the head of the Russian Railways unit doing the work." http://t.uani.com/KnmUgq

Human Rights

NYT: "When Ebrahim Noroozi attended his first hanging, he left the scene covering his ears to shield them from the roar of the crowds. In the far distance, the body of Yaghoob Ali Jafari - who in 2010 stabbed a love rival to death in broad daylight - dangled on a rope from a crane. Police officers had just told the Iranian photographer that he wasn't allowed to take pictures of one of the first public hangings in Tehran in many years. So Mr. Noroozi, a bearlike man with a soft voice, decided not stay a minute longer... When restrictions on documenting executions were lifted by Iranian authorities last year, the photographer set out to cover several hangings in different cities in the Islamic Republic, which after China passes the most death sentences in the world... Executions are very public events in Iran, with authorities setting up building cranes at the scene of the crime or on the central square of the city where the crime took place. The executions are the highest form of punishment in Iran law, which is based on Islamic jurisprudence, which allows victims of crimes to demand retribution, but also to pardon victims." http://t.uani.com/KLLJm5

AFP: "Iran's cyber police force is poised to launch a new crackdown on software that lets many Iranians circumvent the regime's Internet censorship, media reported on Sunday. The operation will target VPNs, or Virtual Private Networks, which use a secure protocol to encrypt users' data, foiling online blocks put in place by Iran's authorities, according to the head of the specialised police unit, Kamal Hadianfar. 'It has been agreed that a commission (within the cyber police) be formed to block illegal VPNs,' he was quoted as saying in a report originally published by the Mehr news agency. 'About 20 to 30 percent of (Iranian internet) users use VPN,' or more than seven million people out of the country's 36 million web users, he added." http://t.uani.com/NsEcbF

AFP: "Women in Iran are being banned from watching live public screenings of Euro 2012 football games because of an 'inappropriate' environment where men could become rowdy, a deputy police commander said Sunday. 'It is an inappropriate situation when men and women watch football in (movie) theatres together,' said Bahman Kargar, Iran's deputy police commander in charge of social affairs, according to the ISNA news agency. 'Men, while watching football, get excited and sometimes utter vulgar curses or tell dirty jokes,' he said. 'It is not within the dignity of women to watch football with men. Women should thank the police' for the ban." http://t.uani.com/LhfciO

Domestic Politics

Bloomberg: "Iranian authorities increased the price of traditional breads by as much as 33 percent in the capital, Tehran, the official Islamic Republic News Agency reported, citing a Tehran province official. A Sangak loaf will now cost 6,000 rials (49 cents), said Nematollah Torki Tehran's governor deputy for planning. Barbari, Taftoun and Lavash loaves will cost 5,000, 3,000 and 1,600 rials respectively, he said in the report published late yesterday. The new prices will apply in Tehran bakeries from today, he said, according to the report. The government previously increased bread prices in April 2011 when the price of a Sangak loaf was fixed at 5,000 rials, Barbari at 3,750 rials and Taftoun and Lavash loaves at 2,500 and 1,250 rials respectively." http://t.uani.com/LsDZSR

Reuters: "Veteran Iranian politician Mohsen Rezaie, who lost to Mahmoud Ahmadinejad in a disputed 2009 presidential poll that sparked protests, became the first person to declare his candidacy for next year, Iran's ILNA news agency reported on Sunday. Rezaie initially filed formal complaints over the official results of the 2009 vote, but later withdrew them. At the time, he criticised the authorities for their handling of the election and the demonstrations that followed it, saying that the Islamic Republic could face collapse unless it embraced change. 'My participation in the upcoming presidential election of the Republic is certain. I'm in it to win it,' Rezaie, a former commander of the elite Revolutionary Guards, was quoted by ILNA as saying at a meeting in the capital Tehran." http://t.uani.com/KvDOmx

Opinion & Analysis

Jackson Diehl in WashPost: "From one point of view the connection between our troubles with Syria and Iran is pretty straightforward. The Syrian regime of Bashar al-Assad is Iran's closest ally, and its link to the Arab Middle East. Syria has provided the land bridge for the transport of Iranian weapons and militants to Lebanon and the Gaza Strip. Without Syria, Iran's pretensions to regional hegemony, and its ability to challenge Israel, would be crippled. It follows that, as the U.S. Central Command chief Gen. James N. Mattis testified to Congress in March, the downfall of Assad would be 'the biggest strategic setback for Iran in 25 years.' Making it happen is not just a humanitarian imperative after the slaughter of more than 10,000 civilians, but a prime strategic interest of Israel and the United States... But the calculus about Syria and Iran is also more complicated than it looks at first. The two are not just linked by their alliance, but also by the fact that the United States and its allies have defined a distinct and urgent goal for each of them. In Syria, it is to remove Assad and replace him with a democracy; in Iran it is to prevent a nuclear weapon. It turns out that the steps that might achieve success in one theater only complicate Western strategy in the other... At the root of this trouble are confused and conflicting U.S. aims in the Middle East. Does Washington want to overthrow the brutal, hostile and closely allied dictatorships of Assad and Iran's Ali Khamenei - or strike bargains that contain the threats they pose? The answer is neither, and both: The Obama administration says it is seeking regime change in Syria, but in Iran it has defined the goal as rapproachment with the mullahs in exchange for nuclear arms control. Obama tries to square this circle by pursuing a multilateral diplomatic approach to both countries. But if regime change in Syria is the goal, Security Council resolutions and six-point plans from the likes of Kofi Annan are doomed to failure. Only a combination of economic and military pressure, by Assad's opposition or outsiders, will cause his regime to fold. A collapse, in turn, could undermine the same Iranian regime with which Obama is seeking a bargain. So it's no wonder Tehran sought to add Syria to the topics for discussion at the last session of negotiations - or that Annan wants to include Iran in a new 'contact group' to broker a settlement in Syria." http://t.uani.com/KvuXmP

Nikolas Gvosdev in WPR: "As international negotiators prepare for the next round of talks with Iran over its nuclear program, scheduled in Moscow for June 18-19, the United States faces a 21st century version of a 'Stevenson moment.' In 1962, in a forceful presentation backed by compelling photographic evidence at the United Nations, Ambassador Adlai Stevenson made the case that the Soviet Union was installing nuclear weapons in Cuba. In addressing Soviet Ambassador Valentin Zorin in the chamber of the Security Council, Stevenson pointedly declared, 'Let me say something to you, Mr. Ambassador. We do have the evidence. We have it, and it is clear, and it is incontrovertible.' When it comes to Iran, however, there is no equivalent of the clear and compelling evidence Stevenson was able to produce. Moreover, the credibility of the U.S. intelligence community is no longer sterling when it comes to such matters. In 2003, in the run-up to the invasion of Iraq, then-Secretary of State Colin Powell was able to take a series of devious Iraqi actions that suggested deception and subterfuge and, with the addition of evidence that was later proven to be unreliable or even fabricated, build a case for an Iraqi weapons of mass destruction program. Yet after the subsequent invasion, the United States did not find the 'retroactive evidence,' as Charles Krauthammer called it, that would have validated the prewar arguments. As a result, Washington has long found it more difficult to argue that Iran's lack of compliance with the International Atomic Energy Agency combined with its failure to disclose all of its atomic assets is itself ipso facto proof that Tehran is actively developing nuclear weapons. This is why Russian President Vladimir Putin's statements to Iranian President Mahmoud Ahmadinejad on the sidelines of the Shanghai Cooperation Organization summit in Beijing are so interesting. Putin told Ahmadinejad, 'We have always supported the right of the Iranian people to modern technologies, including the peaceful use of atomic energy. But I want to emphasize that it is peaceful we are talking about. You know our position.' At first glance, this position exposes a major chasm with the preferred U.S. position, which is for Iran to have no nuclear program at all, or at least not to have indigenous capabilities such as the ability to enrich uranium. But Putin's willingness, in Beijing, to stress the importance of Iran's program being for peaceful use only is important, as is his explanation of what is informing Russia's policy. 'We are very strong supporters of the nonproliferation of nuclear weapons,' he said to Ahmadinejad. 'But we know your position and the position of the Iranian leadership, which is that Iran is not working on the creation of a nuclear weapon. We are proceeding based on this.' Here then is the opening for a Stevenson moment. Russia may be willing to allow Iran to develop its civilian nuclear infrastructure, itself problematic for the United States because it allows Iran to maintain, in reserve, a 'breakout capability.' But Moscow continues to publicly draw the line at any effort on the part of Iran to weaponize nuclear technology or to take the technical steps that would be needed to convert conventional weapons platforms, including missiles, into platforms capable of delivering nuclear arms. If, at the Moscow talks, the U.S. and other Western countries were able to deliver convincing proof that Iran's program is geared toward weaponization, Russia, China, India and other states would likely withdraw their support for Iran's right to nuclear technology. The problem, of course, is that the United States has been unable to deliver convincing proof of weaponization at the level of certainty that these other states demand, and it seems unlikely that such evidence will be available for the next round of talks either." http://t.uani.com/KYPGTU

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

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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