Friday, October 26, 2012

Eye on Iran: Iran Said to Nearly Finish Nuclear Enrichment Plant








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Top Stories

NYT:
"Intelligence officials from several countries say Iran in recent weeks has virtually completed an underground nuclear enrichment plant, racing ahead despite international pressure and heavy economic sanctions in what experts say may be an effort to give it leverage in any negotiations with the United States and its allies. The installation of the last of nearly 3,000 centrifuges at a site called Fordo, deep under a mountain inside a military base near the holy city of Qum, puts Iran closer to being able to build a nuclear weapon, or come up to the edge, if its leaders ultimately decide to proceed... While the plant is not yet fully running - fewer than half of all its centrifuges are spinning out enriched uranium - Iran could have it doing so within months, officials say. Fordo is designed to make 'medium enriched' fuel that is relatively close to bomb grade, and American officials worry that, in a relatively short amount of time, that fuel could be converted to a type suitable for weapons." http://t.uani.com/RZeQR1

Reuters: "The world's spare oil production capacity outside of Iran rose in last two months as gasoline demand waned in the United States and oil use for power generation fell in the Middle East, the U.S. government said in a bimonthly report. In September and October, spare oil production capacity was 2 million barrels per day, the EIA said, up from 1.8 million bpd in the previous two months, said the report, which is required by last year's Iran sanctions law. The slightly larger cushion gives room for the Obama administration to continue pressuring Tehran over its disputed nuclear program through sanctions that target Iran's oil revenues. The sanctions require global importers to buy less Iranian crude or risk being cut off from the U.S. financial system. Tehran has said its nuclear program is strictly for civilian purposes." http://t.uani.com/VKO3yU

AFP: "International satellite services provider Intelsat has blocked Iran's official broadcast channels in Europe, a company spokesman said Thursday. But it would not confirm or deny an Iranian report that it did so at the order of the US government. 'Intelsat confirms that we took IRIB (Islamic Republic of Iran Broadcasting) channels off the satellite,' Alexander Horwitz, a spokesman for the Washington-based company, told AFP... Horwitz declined to identify the IRIB channels that were affected by Intelsat's move. According to Press TV, Intelsat was ordered to take the action by the US Office of Foreign Assets Control (OFAC), the economic and trade sanctions arm of the US Treasury Department." http://t.uani.com/XqkLn3
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Nuclear Program

Reuters: "Iran appears to have nearly finished installing centrifuges at its underground nuclear plant, Western diplomats say, potentially boosting its capacity to make weapons-grade uranium if it chose to do so. Iran only disclosed the existence of the Fordow plant, built inside a mountain to shield it from air strikes, in 2009 after learning that Western spy services had detected it. The United States and its allies are particularly worried about Fordow because Iran is refining uranium there to a fissile concentration of 20 percent, which Iran says it needs for a medical reactor. The diplomats said they had heard of indications that Iran had put in place the last 640 or so uranium centrifuges of a planned total of some 2,800 at the site, but had not started running them yet... Iran may be able to accumulate up to four 'significant quantities' of weapons-grade uranium - each sufficient for one bomb - in as little as nine months from now, nuclear experts Olli Heinonen of Harvard University's Belfer Center and Simon Henderson of the Washington Institute said in a paper. 'This timetable will shrink as more 20 percent enriched uranium is produced, at which point potential breakout time will be measured in weeks rather than months,' they said." http://t.uani.com/XqllkK

NYT: "Israel's Ministry of Foreign Affairs sent an e-mail on Monday to its embassies and consulates around the world, sharing Prime Minister Benjamin Netanyahu's declaration that he had no knowledge about the possibility of bilateral talks between the United States and Iran, and advising others not to speak publicly about the issue. 'We remind that the P.M. asked that all requests for interviews in the matter require his approval,' read the brief e-mail, its last three words underlined for emphasis. The e-mail was part of a broader effort, including instructions to all government employees who deal with the news media and orders by the prime minister himself to his cabinet that everyone should remain silent on the matter." http://t.uani.com/Tjzlvj

AFP: "The EU, leading diplomatic efforts to resolve the dispute over Iran's nuclear programme, has talked to Tehran to bring it up to date on the latest discussions, officials said Thursday. The EU's Deputy Secretary-General Helga Schmid and Dr. Ali Bagheri, Deputy Secretary of Iran's Supreme National Security Council, talked on the phone Wednesday, a spokesman for EU foreign policy head Catherine Ashton said. 'The call took place in the context of ongoing diplomatic efforts ... towards a diplomatic solution of the Iranian nuclear issue which the High Representative of the European Union is leading,' he said. The call 'was used to inform Iran' about a meeting between the five permanent UN Security Council members plus Germany in New York on September 27, he said." http://t.uani.com/TeaDbs   

Sanctions  

Reuters: "Using shadowy middle men, multiple bank accounts and a fleet of ghost ships, Iran's coal trade is quietly booming as the Islamic Republic tries to sidestep Western sanctions and prevent its industrial economy from crashing... Despite the setbacks, industry sources say producers in Ukraine are providing Iran with coking coal, also known as metallurgical coal, and coke - key steel ingredients. 'Iranians used to buy a lot of coking coal from Australia to make their own coke but that has stopped now as the big companies there don't want to do it as they are too exposed,' a British-based coal trade source said. 'So Iran went to buy coke from Ukraine,' he added, referring to the concentrated coal used in blast furnaces... Lured by a trade worth nearly $25 million a month, suppliers in Ukraine are aiming to take advantage." http://t.uani.com/P8722n

Bloomberg: "International Business Machines Corp. (IBM) received a request from the Securities and Exchange Commission to describe its interactions with Iran, following reports that ZTE Corp. resold some IBM products in the country.  IBM supplied information to the SEC, which completed its investigation in September, according to documents released today. As IBM's business partner, ZTE is required to comply fully with U.S. regulations, including economic sanctions and export laws, IBM said in its response to the SEC. 'Iran is designated as a state sponsor of terrorism by the State Department and is subject to U.S. economic sanctions and export controls,' the SEC said in an August letter to IBM. 'Please describe to us the nature, duration, and extent of your past, current, and anticipated contacts with Iran, whether through subsidiaries, distributors, resellers, or other direct or indirect arrangements.'" http://t.uani.com/WN5Cxq

Reuters: "Bank of Tokyo-Mitsubishi UFJ pulled out of a bond mandate for Turkish refiner Tupras due to concerns over the issuer's supply relationship with Iran, two sources away from the deal told IFR on Thursday. The bank had been originally mandated alongside Citigroup and Deutsche Bank to lead the refiner's debut dollar issue, but decided to pull out at the last minute. Bank of Tokyo-Mitsubishi UFJ declined to comment. Tupras, Turkey's only oil refiner, has a waiver over sanctions imposed by the US government on purchases of Iranian oil. Turkey was granted a six-month exemption in June after Tupras pledged in March to cut its Iranian oil purchases by 20%." http://t.uani.com/TFp52A 

Human Rights

Reuters:
"The European Union's prize for human rights and freedom of thought was awarded to two Iranians on Friday, a lawyer and a filmmaker who have both been cut off from the outside world for defying the country's leadership. Imprisoned human rights lawyer Nasrin Sotoudeh, 49, and filmmaker Jafar Panahi, 52, were awarded the European Parliament's Sakharov Prize for their courage in defending their own and others' basic freedoms, the parliament said... 'The award... is a message of solidarity and recognition to a woman and a man who have not been bowed by fear and intimidation and who have decided to put the fate of their country before their own,' said European Parliament President Martin Schulz as he announced the winners." http://t.uani.com/RPsnvv

AFP: "A tribunal set up by victims of political crimes committed in the wake of Iran's 1979 Islamic Revolution began hearings Thursday in a bid to highlight killings ignored by international justice. Top judges and lawyers are taking part in the tribunal, which has no judicial authority, to judge those responsible for killing thousands of political prisoners after Ayatollah Ruhollah Khomeini came to power. The hope is that the tribunal, held in the library of the Peace Palace in The Hague, will force the United Nations to set up a commission of enquiry into the killings of over 20,000 people that have gone unpunished for over 25 years. 'The world doesn't investigate what it doesn't want to investigate,' said Geoffrey Nice, a member of the tribunal and former prosecutor at the UN's International Criminal Tribunal for the former Yugoslavia (ICTY). 'The most important thing is to leave a record.'" http://t.uani.com/VLikxu

Reuters: "Iran rejected criticism from a U.N. human rights investigator over its tighter cyber security rules, saying they are necessary to protect it against cyber attacks and have nothing whatsoever to do with freedom of expression. In his latest report, U.N. special rapporteur on the human rights situation in Iran, Ahmed Shaheed, said he was concerned about reports of government activities 'that seemingly infringe on freedom of expression and the right to information.' He said authorities have reportedly targeted websites they see as promoting terrorism, espionage, and economic or social crimes." http://t.uani.com/Xqk4u9

Foreign Affairs

WSJ:
"Iran is funding aid projects and expanding intelligence networks across Afghanistan, moving to fill the void to be left by the U.S. withdrawal from Afghanistan by the end of 2014, according to U.S. and Afghan officials. While Iran's spending here is nowhere near the billions the U.S. spends, Tehran's ability to run grass-roots programs and work directly with Afghans is giving its efforts disproportionate clout-something it could wield against American interests should the U.S. military strike Iran's nuclear program. 'Iran is the real influence here. With one snap of their fingers, they can mobilize 20,000 Afghans,' said a high-ranking official in Afghanistan's presidential palace. 'This is much more dangerous than the suicide bombers coming from Pakistan. At least you can see them and fight them. But you can't as easily see and fight Iran's political and cultural influence.'" http://t.uani.com/U0c7ac

Opinion & Analysis

Dennis Ross in Al-Hayat:
"Regardless of who is elected on November 6th, Iran's nuclear program is going to be one of the most important challenges the next president is going to have to confront. Unless Iran's leaders shift course and suddenly decide to suspend their ongoing enrichment of uranium, the continuing progress of the Iranian nuclear program will require additional moves by the United States and the international community. From an American standpoint, it is important to remember that both President Barack Obama and Governor Mitt Romney have committed themselves to preventing Iran from acquiring nuclear weapons and not containing it after it has done so. At the current pace of Iran's nuclear efforts, the Iranian nuclear program will reach a point some time before the end of 2013 where the accumulation of low and medium enriched uranium will make it difficult for the United States to know with confidence that it could prevent Iran's leaders from presenting the world with a fait accompli -- meaning the Iranians might well be able to produce a nuclear weapon so quickly that we would not have time to prevent it. To be sure, the Iranians could decide to slow the pace of their efforts either because they fear a military response or to try to gain sanctions relief given the economic pain they are experiencing. But that would require a change in Iran's behavior. Barring that, either a re-elected President Obama or a newly elected Governor Romney will have to decide what else needs to be done to fulfill their objective of prevention. For President Obama, this is probably an easier task. He has lived with this issue for the last four years and thought it through. He has developed a strategy of increasing the pressure on the Iranians and the cost they pay for their continuing defiance of the international community, while also leaving them a diplomatic way out if they choose to take it. And there is no doubt that the Iranians are paying a terrible economic price: crippling sanctions have been imposed and led to a dramatic reduction in Iran's oil production and sales -- the principal source of revenue for the Iranian government. Iran's currency by some estimates is being devalued by half every two months, meaning that inflation is raging upwards, goods are dramatically more expensive and savings are losing their value. Doing business internationally has been made nearly impossible. Iran's Supreme Leader, while maintaining a posture of defiance, recently described the sanctions as 'brutal.' Previously, he always spoke of how the sanctions would make Iran stronger and more self-sufficient. Now he calls on Iran's officials to stop blaming each other for the economic maladies sanctions are imposing. None of this means that Khamenei, the Supreme Leader, is about to change course, but it does mean that for President Obama, the strategy of pressure is having an effect. Still, the Iranian centrifuges keep spinning and the Iranians keep accumulating enriched uranium. As a result, President Obama is likely to look for ways to intensify the pressure economically and coercively -- further emphasizing that the time for diplomacy is running out and all options are on the table. Governor Romney has not lived with the issue for the last four years. Should he be elected, he will need time to establish his Administration and conduct a review of the issue. He is far less likely than President Obama to be able to move quickly on the issue, but like the President, he probably will see the value of increased economic and military pressure as a way of not simply raising the costs to the Iranians but also conveying to them that if diplomacy fails we will be prepared to use force." http://t.uani.com/Vs94IJ

Meir Javedanfar in Al-Monitor: "The Iranian regime is currently facing tough open-ended sanctions. Judging by the recent presidential foreign-policy debate, there is no end on the horizon as neither candidate would be willing to reduce sanctions unless Iran Supreme Leader Ali Khamenei backs down. The economic challenges posed by the current sanctions are by far the biggest foreign-induced challenge that Khamenei has faced since assuming the role in 1989. Should the current sanctions and isolation regime imposed by the West against Iran continue in their current format, in my opinion it is highly likely that Khamenei will be forced to make a new set of compromises at the nuclear talks. This could happen within two to  three years, at most. Compromises are likely to include the following: 1. Closing Iran's nuclear site at Fordow near Qom 2. Agreeing to ship all of its 20%-enriched uranium abroad for conversion into nuclear fuel 3. Agreeing to answer all outstanding IAEA questions regarding its past nuclear activities 4. Agreeing to a tougher inspection regime for Iran's nuclear facilities 5. Dropping the demand that the West recognize Iran's right to enrich uranium as a precondition (This recognition is likely to be postponed until all other outstanding issues have been resolved.) The Iranian regime is likely to offer these compromises as part of a step-by-step program. After each step is taken, part of the current sanctions against Iran would be lifted and nuclear fuel would be supplied, at stages agreed on by both parties. Khamenei is also very likely to insist that ultimately Iran be allowed to enrich at lower levels on its soil. It is likely that the Israeli government would accept such a proposal, as its biggest concern is enrichment at Fordow and Iran's current unwillingness to answer IAEA questions. A clean bill of health for Iran's nuclear program from the IAEA, as well as a subsequent tough inspection regime by it, would alleviate many of Israel's major concerns. These compromises would be in contrast to Khamenei's current prposal to the P5+1, which does not show any willingness on Iran's part to compromise on its enrichment facility at Fordow or to answer questions about its previous activities to the IAEA. Although president Ahmadinejad has in the past offered to stop enrichment at 20% if nuclear fuel is supplied to Iran, this offer was not pursued as he has no authority over Iran's nuclear program. Khamenei would need to offer new compromises in order to secure his regime's survival. By allowing the sanctions to continue, Khamenei could ultimately face the economic collapse of his regime. This is a price which Iran's most powerful man would be unwilling to pay. Nothing is worth more to him than the stability of his government." http://t.uani.com/VKQNfx

David Albright, Andrea Stricker, and Christina Walrond in ISIS: "Iran Press TV reported on October 2, 2012 that the deputy head of the Iranian Majli's (Parliament's) Foreign Policy and National Security Committee, Mansour Haqiqatpour, said that if talks between the P5+1 and Iran over its nuclear program fail, Iran will enrich uranium to 60 percent for use in nuclear submarines.  Any uranium enriched to 20 percent or greater is classified as highly enriched uranium (HEU).  Press TV quotes him as saying, 'In case our talks with the P5+1 group - including the US, the UK, France, China, Russia and Germany - fail to pay off, Iranian youth will master enrichment up to 60 percent to fuel submarines and ocean-going ships.' He added, 'Iran cannot guarantee it would keep its enrichment limited to 20 percent,' and, 'They should not think that we will stay calm in the face of threats, sanctions and pressure.' Haqiqatpour's threat to make highly enriched uranium likely has more to do with this influential parliamentarian attempting to exert political pressure on the P5+1 to seek agreement at negotiations. His claim should not be seen as having any official standing for policy unless repeated or announced by senior executive or nuclear officials.  However, it is time to consider the implications of such statements, before Iran makes any official announcements about making highly enriched uranium. The United States and the international community should prepare for the possibility that Iran may officially announce that it has decided to make highly enriched uranium, including enriching up to 60 percent, under a civilian or naval nuclear rationale.  The production of 60 percent enriched uranium would put Iran significantly closer to having weapon grade uranium, (WGU, a form of highly enriched uranium that is enriched to 90 percent or more) compared to its current stockpile of 19.75 percent enriched uranium and would significantly shorten the amount of time Iran would need in a breakout scenario. Moreover, Iran does not require 60 percent HEU despite the parliamentarian's claims.  The production of highly enriched uranium would be an important precedent, which Iran could later use to justify the production of weapon-grade uranium. Because 60 percent enriched uranium production is an important step towards the production of WGU and has no civilian justification, such a move will be widely viewed as Iran starting to break out to build nuclear weapons.  The United States and other members of the P5+1 should ensure, ideally in a quiet manner, that Iran understands that its production of highly enriched uranium is unacceptable, regardless of the pretext." http://t.uani.com/P85CF1

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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