Wednesday, October 4, 2017

Eye on Iran: Trump Prepares to Wound Iran Deal - and Then Save It


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Donald Trump's national security team has unanimously recommended that he decertify the Iran nuclear deal - but that he stop short of pushing Congress to reimpose sanctions on Tehran that could unravel the agreement. Trump's team plans to work with Congress and European allies to apply new pressure on the Iranian regime, according to a strategy developed in an Iran policy review led by national security adviser H.R. McMaster. But the strategy assumes the nuclear deal will remain intact for now. The deliberations ahead of an Oct. 15 deadline to certify Iran's compliance with the deal, a centerpiece of President Barack Obama's foreign policy agenda, were described by a half-dozen sources inside and outside the administration who have participated in the internal debate.


The future of the Iran nuclear deal may hinge on a face-saving fix for President Donald Trump so he doesn't have to recertify the Islamic republic's compliance every 90 days, according to U.S. officials. Several officials familiar with internal discussions say the periodic reviews mandated by Congress have become such a source of embarrassment for Trump that his national security aides are trying to find ways for him to stop signing off on the seven-nation accord without scuttling it entirely. The president has called the agreement one of America's "worst and most one-sided transactions" ever. Officials say what Trump hates most, however, is a provision in a 2015 U.S. law - known as the Iran Nuclear Agreement Review Act - that requires him to tell Congress every three months if Iran is meeting promises to scale back its nuclear program in exchange for broad international relief from oil, trade and financial sanctions.


Days before President Trump has to make a critical decision on whether to hold up the Iran nuclear deal, Defense Secretary Jim Mattis openly split with him on abandoning the agreement, the second senior member of the president's national security team to recently contradict him. Mr. Mattis told senators on Tuesday that it was in America's interest to stick with the deal, which Mr. Trump has often dismissed as a "disaster." "Absent indications to the contrary, it is something that the president should consider staying with," Mr. Mattis told members of the Senate Armed Services Committee after being repeatedly pressed on the issue.

IRAN NUCLEAR DEAL


A key U.S. senator long opposed to the 2015 nuclear agreement with Iran offered a path for President Donald Trump to distance himself from the accord without immediately quitting it, imposing new sanctions or carrying out military action. Arkansas Republican Tom Cotton, a member of the Armed Services Committee, said Trump should "decertify" Iran's compliance with the agreement in a report required by Congress every 90 days and next due on Oct. 15. That, Cotton said, would let Congress approve a list of demands that the president could then press European allies who are part of the accord -- and reluctant to leave it -- to accept. "The Congress and president should lay out how the deal should change and the consequences for Iran," Cotton said Tuesday evening in Washington at an event hosted by the Council on Foreign Relations. "The world needs to know we are serious, we are willing to walk away, we are willing to impose sanctions and a lot more than that. And they'll know that when the president declines to certify the deal, and not before."


As President Donald Trump considers whether to withdraw from the Iran nuclear deal, Secretary of State Rex Tillerson is working behind the scenes with Congress to head off the possibility of an international crisis ahead of the agreement's looming October 15 certification deadline, several US officials and Western diplomats told CNN. Tillerson and congressional lawmakers are spearheading efforts to amend US legislation regarding Iran to shift focus away from the nuclear issue -- a move that could allow the US to stay in the multilateral nuclear deal forged in 2015 and also push back against Iran's other destabilizing behavior, officials and diplomats said.  "Tillerson has said the problem with the JCPOA is not the JCPOA," one senior administration official said, using the acronym for the 2015 nuclear deal, known as the Joint Comprehensive Plan of Action.


President Donald Trump has railed against a deal to curb Iran's nuclear program, but officials say that far from scrapping it, he is considering kicking the decision to Congress. Ahead of an October 15 deadline, several officials familiar with White House deliberations told AFP Trump has made it clear he does not want to certify Iran's compliance with the accord. The 2015-era Obama agreement offered Tehran relief from punitive economic sanctions, in return for limits to uranium enrichment and intrusive inspections. Every 90 days Trump must decide whether the Iran is living up to its end of the bargain, something that has already caused him political pain on two occasions. The Trump administration has publicly accused Iran of violating the "spirit" of the accord -- known as the JCPOA -- although some officials privately admit there is a thin line between testing the limits and a material breach. Trump's top military advisor, the chairman of the joint chiefs of staff, General James Dunford, has told Congress the briefings he has received "indicate that Iran is adhering to its JCPOA obligations."


Sen. Tom Cotton (R., Ark.) on Tuesday said President Donald Trump should deny certification of the Iran nuclear accord when it comes up for renewal later this month, regardless of whether or not Tehran is in technical compliance, given its failure to prevent a nuclear Iran. "Even if they were complying with it-even if it was fully verifiable they were complying with it, which it's not and which they aren't, it is still not in our viable national security interests because it does not block Iran's path to a bomb," Cotton said in an evening address before the Council on Foreign Relations.

CONGRESSIONAL ACTION


European governments fear a concerted effort to persuade Donald Trump to continue to certify the Iran nuclear deal may have failed and are now looking for other ways to try to salvage the two year-old agreement. European lobbying efforts are now focused on Congress which will have two months to decide - in the absence of Trump's endorsement of the 2015 deal - whether to reimpose nuclear-related sanctions. Fresh sanctions could in turn trigger Iranian withdrawal and a ramping up of its now mostly latent nuclear programme, taking the Middle East back to the brink of another major conflict. When Trump threatened to withhold certification by a congressional deadline of 15 October, the UN general assembly in mid-September was seen by the European signatories of the agreement - the UK, France and Germany - as the last best chance to convince Trump of the dangers of destroying it.

BUSINESS RISK


Uncertainty over what US President Donald Trump will do with the Iran nuclear deal hung over a conference here on Europe-Iran business that showcased both progress as well as continuing internal Iranian obstacles to foreign trade and investment. European diplomats have put forward a tough and united front against any US reimposition of nuclear-related sanctions at a time when the International Atomic Energy Agency has repeatedly confirmed Iranian compliance with the 2015 agreement. But European executives appear less confident about their ability to shield Iran deals from a potential resumption of US penalties if Trump decides not to certify that Iran remains in compliance with the deal later this month.

SANCTIONS RELIEF


Total has indicated that it plans to use the same solutions it employs for doing business in Russia under US sanctions, for a key gas project in Iran in case Washington reimposes sanctions against the country. Total Chief Executive Officer Patrick Pouyanné told The Financial Times that his company had successfully used an alternative basket of foreign currencies in providing funds for the development of a key gas project in Russia which faces US financial restrictions.   He said the solution for providing funds for the development of the second phase of Arctic natural gas liquefaction project involved using currencies like the euro and China's yuan instead of the US dollar.  "The impact was that we cannot use dollars, so we have been obliged to put in place a gigantic project financing, $19 billion, with Chinese banks," he said about Arctic 1. "Thanks to the US sanctions we discovered the world of Chinese finance. It is possible, and it is legal."

FOREIGN AFFAIRS


Iranian Oil Minister Bijan Zanganeh said on Wednesday it is his understanding that all OPEC members want to do everything necessary to stabilise oil markets. Asked by reporters in Moscow whether an oil production-cutting deal should be extended beyond March, he said: "We have not discussed with each other in this regard. But it seems that all the OPEC members believe that to make stability on the market ... it's my sense that all are ready to do everything needed for this situation."


Iran's oil minister said on Wednesday he saw no objection within OPEC to extending or even deepening an OPEC-led deal to cut oil output get rid of a supply glut. The deal by the Organisation of the Petroleum Exporting Countries and non-OPEC producers including Russia to cut supply by about 1.8 million barrels per day runs until March 2018. "It depends on collective decision and consensus within OPEC, but I think there is no objection against this proposal," Iran's Bijan Zanganeh told Reuters, asked whether there were talks to deepen the cut or extend it. Asked to specify if he meant no objection to deeper cuts, he replied: "Yes. I'm discussing."

IRAQ CRISIS


Iran devoted enormous energy to try to prevent Iraqi Kurds from holding their Sept. 25 independence referendum, accusing the Kurdish leadership of recklessness and endangering the stability of the region. Having failed in that endeavor, officials in Tehran are now at a loss as to what punitive measures they can realistically take to punish the Kurds without causing further instability on their doorstep.  As the pressure mounts on Iraqi Kurds following the plebiscite in which nearly 93% of voters cast ballots in favor of seceding from Iraq, Iran as a historical ally of the Iraqi Kurds appears to be hesitant to take extreme measures against its western neighbor, fearing further instability that could easily spill over into Iran's own Kurdish areas. Nonetheless, Tehran has taken some half measures against the Iraqi Kurds, seemingly mainly for domestic consumption.


Iran's state TV is reporting the Turkish President Recep Tayyip Erdogan is visiting Iran as Tehran and Ankara weigh how to respond to the Kurdish independence referendum in Iraq. Erdogan arrived in Tehran on Wednesday and was greeted at the Mehrabad airport by Mohammad Shariatadari, minister of industry and mining. Iranian President Hassan Rouhani will welcome him officially at the Sadabad complex later in the day. Iran and Turkey are among many countries that opposed the Kurdish referendum in Iraq. Turkey already has several thousand ground forces stationed in northern Syria and Erdogan has stated he will not accept a Kurdish state along his borders. Ahead of the vote in Iraq, Iran's army and powerful Revolutionary Guard launched a military exercise in Iran's northwestern Kurdish region.

GULF STATES & IRAN


Iran's foreign minister held talks with the emir of Qatar Tuesday aimed at strengthening "co-operation," nearly four months into a Saudi-led blockade against the Gulf emirate. Sheikh Tamim bin Hamad al-Thani and Iran's Mohammad Javad Zarif met at a time of heightened Gulf tensions, with Qatari officials warning the ongoing Arab blockade would only drive Doha towards regional powerhouse Iran. Qatar's state news agency said the pair discussed the impasse in the region, which has seen Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut ties with Doha over its ties with Iran and accusations that it supports extremists.

DOMESTIC POLITICS


Iranian authorities sentenced a member of the country's nuclear negotiating team to five years in jail, Tasnim news agency reported on Wednesday.  The agency did not name a source for the information and gave no further details.  Reports last year in Iranian media said a nuclear negotiator with dual nationality was arrested after being accused of providing sensitive economic information to Iran's enemies.


The recurring debate in Iran over reviving the position of prime minister has been resumed. This time, however, the discussion appears to be taking a somewhat more serious turn, with a number of parliamentarians preparing to obtain the backing of Supreme Leader Ayatollah Ali Khamenei to proceed from talk to action. For a decade after the 1979 Islamic Revolution, Iran had a parliamentary political system. Mehdi Bazargan served as the country's first post-revolutionary prime minister, before his government resigned following Ayatollah Ruhollah Khomeini's endorsement of the US Embassy takeover in November 1979. The last prime minister was Mir Hossein Mousavi, who held the office from 1981 to 1989, concurrent with much of the Iran-Iraq War. Mousavi is currently under house arrest stemming from protests against the disputed 2009 presidential elections.






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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