Monday, April 22, 2013

Eye on Iran: Arms Deal with Middle East Allies Signal to Iran: Hagel









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Top Stories

Reuters: "Defense Secretary Chuck Hagel said on Sunday a $10 billion arms deal planned with Arab and Israeli allies sent a 'very clear signal' to Iran that military options remain on the table over its nuclear program. 'The bottom line is that Iran is a threat, a real threat,' Hagel, who arrived in Israel on Sunday on his first visit there as defense secretary, told reporters on his plane. 'The Iranians must be prevented from developing that capacity to build a nuclear weapon and deliver it,' he said. Hagel was due to meet Israeli Defence Minister Moshe Yaalon on Monday and Prime Minister Benjamin Netanyahu on Tuesday, with little progress reported at talks this month between Iran and world powers. The first stop on Hagel's week-long Middle East trip came two days after the Pentagon said it was finalizing a deal to strengthen the militaries of Israel and two of Iran's key rivals - Saudi Arabia and the United Arab Emirates. The deal includes the sale of KC-135 aerial refueling tankers, anti-air defense missiles and tilt-rotor V-22 Osprey troop transport planes to Israel as well as the sale of 25 F-16 Fighting Falcon jets to the UAE." http://t.uani.com/15A6t9p

Guardian: "One of Britain's biggest companies has made millions of pounds selling goods to Iran, including to a state-owned firm that supplies the regime's nuclear programme. Glencore, a commodity trading house run by the billionaire Ivan Glasenberg, traded $659m (£430m) of goods, including aluminium oxide, to Iran last year, the Guardian has established. The company, which is one of the biggest businesses in the FTSE 100 and has a market value more than three times that of Marks & Spencer, has admitted that some of its aluminium oxide ended up in the hands of Iranian Aluminium Company (Iralco). Trafigura, another commodity trading house, has also admitted to trading an unspecified aluminium oxide (also known as alumina) with Iralco in the past... Mark Wallace, a former US ambassador to the UN, said Glencore's dealings with Iran were 'completely unacceptable', adding: 'We might expect this from a Russian or Chinese company, but the truth is that even those companies usually stay away from this sort of exposure' ... The Guardian has learned that Glencore traded $659m worth of metals, wheat and coal with Iranian entities during 2012. Buried deep in its annual report, one of Glencore's US affiliates, Century Aluminium, 46% owned by Glencore, states: 'During 2012 non-US affiliates of the largest stockholder of the company [Glencore] entered into sales contracts for wheat and coal as well as sale and purchase contracts for metal oxides and metals with Iranian entities, which are either fully or majority owned by the GOI [government of Iran].'" http://t.uani.com/17R7rgL

WSJ: "Iran is accelerating its efforts to buoy its non-oil trade and to find new markets in Asia, Africa and the Middle East as it struggles for economic survival amid an intensifying U.S. financial war on Tehran and its allies, the country's chief economic manager said in an interview. U.S. and European sanctions targeting Tehran's oil exports and central bank have contributed to an 80% depreciation of the Iranian currency, the rial, over the past two years, said Shamseddin Hosseini, Iran's minister of economic affairs and finance. He also said the blacklisting of virtually all of his country's banking system by Washington and Brussels has significantly raised the cost for Iranians conducting international trade, forcing them to seek alternative payment methods or to resort to barter trade. Still, Mr. Hosseini said Iran's economy is adapting to the West's sanctions as the government promotes non-oil exports and businesses not conducted in dollars or euros. He also said the country's foreign-exchange reserves remain above $100 billion, keeping Tehran's finances stable despite hopes inside the Obama administration that Iran is on the brink of an economic collapse." http://t.uani.com/15xMyHO
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Nuclear Program

Reuters: "Israel suggested on Monday it would be patient before taking any military action against Iran's nuclear program, saying during a visit by U.S. Defense Secretary Chuck Hagel there was still time for other options. With Iran's presidential election approaching in June there has been a pause in hawkish rhetoric by Israel, which has long hinted at possible air strikes to deny its arch-foe any means to make an atomic bomb, while efforts by six world powers to find a negotiated solution with Tehran have proved fruitless so far. 'We believe that the military option, which is well discussed, should be the last resort,' Israeli Defence Minister Moshe Yaalon told reporters at a news conference with Hagel. 'And there are other tools to be used and to be exhausted,' Yaalon said, listing diplomacy, economic sanctions and 'moral support' for domestic opponents of Iran's hardline Islamist leadership." http://t.uani.com/10994z1

AP: "An Iranian nuclear negotiator is saying that Iran's coming presidential election will not affect its stance in nuclear talks with world powers. The Sunday report by the official IRNA news agency quotes Abbas Araghchi as saying 'changes in domestic politics in Iran will not affect the trend in nuclear talks.' Araghchi, a deputy foreign minister, also said Iran is ready for further talks." http://t.uani.com/17R8GwD

Reuters: "Iran and the United Nations nuclear watchdog will have further talks over Tehran's disputed nuclear program on May 21 in Vienna, Iranian media said on Monday. There was no immediate confirmation from the International Atomic Energy Agency (IAEA), leaving unclear whether a firm date for the next meeting had already been agreed. The IAEA-Iran talks are separate from, but have a bearing on, diplomatic negotiations between Tehran and six world powers aimed at a broad settlement to the decade-old dispute to head off the risk of a new Middle East war... If it were to take place, it would be the 10th round of negotiations between the two sides since early 2012, so far without a deal that would enable the U.N. watchdog to resume its long-stalled investigation into Iran's nuclear facilities." http://t.uani.com/13qt981

AP: "Ahead of a round of global nuclear talks, five major powers labeled North Korea and Iran as 'serious challenges' to the world's nuclear security Friday, citing their repeated defiance of U.N. sanctions. Senior diplomats with the U.N. Security Council's five permanent members singled out North Korea's nuclear test in February and Iran's 'continued pursuit of certain nuclear activities' as among the biggest threats to the 1970 Nuclear Non-Proliferation Treaty, the world's most important pact on preventing the spread of nuclear arms." http://t.uani.com/XZaOQV

Reuters: "The U.N. nuclear watchdog said on Sunday that the resignation of one of its top officials who have been leading talks with Iran would not change its policy in dealing with Tehran over its disputed atomic program. The message of continuity came two days after diplomats said that Rafael Grossi would quit as assistant director general of the International Atomic Energy Agency (IAEA), a post which made him one of the U.N. agency's most influential people... Grossi is one of two senior IAEA officials who have been leading the agency's efforts since early 2012 - so far in vain - to persuade Iran to give its inspectors access to sites, officials and documents for their inquiry. His resignation means that both of them will leave the agency this year: the IAEA said last month that a senior Finnish official, Tero Varjoranta, would succeed chief IAEA nuclear inspector Herman Nackaerts when he retires in the early autumn." http://t.uani.com/11tMpBp

Sanctions

AP: "Iran's oil ministry says the country is considering exporting oil to North Korea as a way to improve its battered economy. The official IRNA news agency quoted on Saturday Oil Minister Rostam Ghasemi as saying talks are underway between Tehran and Pyongyang on oil exports. An oil deal would bring the two nations deeply at odds with the U.S. and the West closer together. In September, they signed a scientific and technological cooperation agreement. A delegation from North Korea's oil ministry is currently visiting Iran. Iranian and North Korean officials have said in the past that their nations are in 'one trench' in the confrontation with Western powers." http://t.uani.com/13JHO1T

AFP: "Iran is owed $4 billion for oil sales to customers who have been unable to pay because of sanctions imposed on the Islamic republic over its nuclear programme, a top Iranian oil official said on Sunday. 'We have been unable to get paid around four billion dollars due to the sanctions,' National Iranian Oil Company chief Ahmad Qalebani told reporters when asked about the amount owed by customers, mostly Western, to Iran. 'There is a possibility that it could be paid either as medicine, food or barter of commodities,' he told a press conference on the sidelines of an oil and gas trade fair in Tehran. Qalebani did not give details on these customers. But on Saturday, Oil Minister Rostam Qasemi said that Anglo-Dutch energy giant Shell was among the firms that owes Tehran petro-dollars which the Islamic republic can not repatriate due to sanctions." http://t.uani.com/11CePXe

Reuters: "Britain has blocked efforts by oil major Royal Dutch Shell to settle a $2.3 billion debt it owes Iran by paying in kind with grains or pharmaceuticals, industry sources said. Shell has been trying for months to find a way to work around international sanctions that prevent it paying in currency for crude it bought from the National Iranian Oil Company before a European Union embargo on Iran that started last July. The sources said the British government was reluctant to provide relief for the Iranian economy when Western powers are using sanctions to apply financial pressure on Tehran to dismantle its nuclear programme. 'The view is that doesn't make sense to smooth the way for a payment that helps Iran when government is trying to press Iran to negotiate,' said an industry source." http://t.uani.com/13qwkMT

Reuters: "South Korea's imports of Iranian crude in March fell 16.2 percent from a year ago to 4.02 million barrels, data from the state-run Korea National Oil Corp showed on Monday, after its biggest refiner SK Energy shut a crude unit for maintenance. The world's No.5 crude oil buyer and one of Iran's top four customers bought 129,710 barrels per day (bpd) in March, down 8.6 percent from a month ago although more than double the volume projected earlier based on loading data. But imports from sanctions-hit Iran should surge month-on-month to 190,000 bpd in April as SK Energy's 110,000-bpd crude distillation unit returned to operation on April 16 after 30 days of maintenance." http://t.uani.com/XZHCtb

Terrorism

JPost: "Bulgarian police officers last summer arrested a Canadian citizen linked to the Iranian government who engaged in surveillance of the local Chabad center in the capital of Sofia, a well-placed and reliable local source told The Jerusalem Post last week, on condition of anonymity due to security reasons. An Iranian-sponsored female agent in her 50s, holding a Canadian passport, traveled from Istanbul to Sofia several weeks after the bombing of the Israeli tour bus in the Black Sea resort town of Burgas in July 2012. She was arrested on her first day in Sofia after the Bulgarian police, on high alert, noticed she was monitoring the Chabad center. Her mission was to survey the Chabad center - which houses a synagogue - and not the main Sofia Sephardi synagogue, as first reported." http://t.uani.com/11ef9fZ

Human Rights

WT: "A number of the globe's most powerful countries 'continued to repress or attack the means by which individuals can organize, assemble, or demand better performance from their rulers,' according to the State Department's annual review of human rights worldwide released Friday. 'From Iran to Venezuela, crackdowns on civil society included new laws impeding or preventing freedoms of expression, assembly, association and religion,' according to the assessment, officially titled the Country Reports on Human Rights Practices for 2012... The summary takes aim at Iran, asserting that the Islamic republic's government is 'supporting the Assad regime and terrorist organizations outside its borders,' as well as continuing to 'severely restrict the rights of its own citizens.' 'According to NGO reports, the government [of Iran] executed a total of 523 persons in 2012, many after trials that were secret or did not provide due process,' the summary states." http://t.uani.com/17H4Tz8

France 24: "An unusual punishment has shocked many in Iran. On April 15, police paraded a convicted criminal through the northwestern city of Marivan dressed in traditional Kurdish women's clothing. This has prompted protests in the streets, online, and even in Iran's parliament... On Thursday, the movement spread online, via a Facebook page titled 'Being a woman is not humiliating and should not be considered punishment.' By Friday, it had gained over 3,800 fans. Men living both inside Iran and abroad have posted photos of themselves dressed as women to express solidarity with the women of Marivan. A few women, too, have posted photos of themselves -- this time, dressed as men. Meanwhile, 17 members of Iran's parliament have signed a letter sent to the Justice Ministry condemning this sentence as 'humiliating to Muslim women.' One MP even spoke up to criticize it during a session of parliament." http://t.uani.com/14IfL3F

Domestic Politics

FT:
"No football match was scheduled for Thursday afternoon, but President Mahmoud Ahmadi-Nejad still expected large crowds at the Azadi, Iran's biggest football stadium. The national stadium can hold 100,000 people, and Mr Ahmadi-Nejad, due to step down after presidential polls on June 14, was widely expected to use the rally to back a close ally in his race for the presidency. But the fact that the stadium was little more than half-empty suggested that he had made a mistake - one that might cost him dearly. If he has no popular support, then his opponents at the elite Revolutionary Guards, parliament and judiciary know they have little to lose by opposing him or his favoured candidate, Easfandiar Rahim-Mashaei, his former chief of staff. 'Mr Ahmadi-Nejad should actually be allowed to have his best candidate in the election so it becomes a public fact that he has little popularity,' observed one political analyst." http://t.uani.com/ZfvRhQ

AP: "Iranian newspapers warn that a new wave of price hikes could stir greater discontent less than two months before presidential elections. The press commentaries also suggest disputes within Iran's ruling system over how to cope with an economy battered by international sanctions imposed because of Tehran's controversial nuclear program. Monday's reports include the influential conservative daily Kayhan, which often supports the policies of the ruling clerics. Prices of staples such as cooking oil, chicken and red meat have jumped up to 60 percent in recent days after authorities increased the special exchange rate for importers. Businesses now pay 24,500 rials for $1, nearly double from the 12,260 rials before." http://t.uani.com/11eec7g

Opinion & Analysis

Meir Javedanfar in The Guardian: "The Iranian government has claimed on numerous occasions that sanctions can't influence its nuclear policies and will not do so in the future. However, its own behaviour tells a different story. In the two sets of negotiations between Iran and the P5+1 (United States, Russia, China, United Kingdom, France and Germany) in 2010 and 2011, the Iranian negotiations team refused to even address confidence-building proposals made by the P5+1. What Iran did instead was to demand that existing sanctions be lifted and that the P5+1 recognise Iran's right to enrich uranium. But things changed after the EU announcement on 23 January 2012 that it will impose an oil embargo against Iran this July. After the announcement, the Iranian regime - despite its previous rhetoric - did change its stance by starting to show willingness to address and discuss what it had ruled out during negotiations with the P5+1 in 2010 and 2011, namely proposals and suggestions from the P5+1. This was first evident in the letter that Iran's chief nuclear negotiator Saeed Jalili sent to the P5+1's chief nuclear negotiator Catherine Ashton, on 15 February, three weeks after the EU declared its oil sanctions plan. A senior diplomat who had dealt with Iran for more than a decade described the letter as a 'breakthrough' because 'it directly mentions willingness to focus talks on the nuclear issue and avoided past versions' lengthy diatribes against perceived international double standards'. This is in fact one of the reasons why the Istanbul negotiations, which took place afterwards in April last year, were described as 'positive'. Meanwhile, at the next negotiations in Baghdad in May 2012, both sides continued to discuss specific proposals. This continued in the next set of negotiations in Moscow where, according to the New York Times: 'Iranian negotiators for the first time delivered a detailed response to a set of proposals first presented to them at a meeting last month in Baghdad. A senior American official, speaking on the condition of anonymity because of the delicacy of the talks, said this had happened for the first time in many years.' At the next meeting in Istanbul on 19 September 2012, according to Iran's ambassador to the IAEA, Iran offered to suspend uranium enrichment at 20% 'if the west lifts sanctions against Tehran'. Although this offer was only for a suspension, this was nevertheless a breakthrough, as prior to the EU oil sanctions announcement, the Iranian government had refused to even address its 20% enriched uranium process. Iran's new willingness also influenced the next sets of talks in Almaty, Kazakhstan, that took place in February and another round that started earlier this month. Although an agreement has not yet been reached, at both meetings the two sides discussed each other's proposals in more detail than before. This included talking about Iran's 20% enrichment. Had it not been for the sanctions, the Iranian government would have had little incentive to change its strategy of the 2010 and 2011 negotiations with the P5+1, which focused solely on its own demands. This could have led to the eventual breakdown of the diplomatic process." http://t.uani.com/ZJ66Bm

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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