Monday, July 21, 2014

Eye on Iran: Staying the Course on Iran by Threatening Pain and Offering Relief








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NYT: "Behind President Obama's decision on Friday to extend the Iran nuclear negotiations for four more months is a calculation that the administration has the mix of pressure and incentives just about right: That by keeping the most damaging sanctions, but giving Tehran a taste of what access to its overseas cash reserves might mean, a deal is possible. Congress, and some nuclear experts pushing for a harder line, strongly disagree. It was overwhelming sanctions, and the pressure of covert action against Iran's nuclear program, that brought the country to the table, they argue. To get a final deal, they contend, the formula is simple: More sanctions, more pressure, and behind it all the lurking threat of military action... Mr. Zarif, in an interview, argued that the sanctions Congress is so proud of have been counterproductive. Before they began in earnest, he said, Iran had 200 centrifuges installed in its facilities; now it has 22,000. More pressure, he contended, will only drive Iran's leadership to more defiance. Some in the Obama administration agree, saying there is a 'sweet spot' in sanctions where the continuing, gnawing pressure of oil, gas and financial sanctions, which they vowed Friday night to continue, would take their toll, and the prospect of relief would create political pressure in Tehran for a deal. But Gary Samore, President Obama's former top adviser on eliminating weapons of mass destruction, took a harder line on Friday night. Now the president of United Against Nuclear Iran, an advocacy group, Mr. Samore and the organization's chief executive, Mark D. Wallace, argued that to get the leverage the administration needs it must 'make clear that Iran remains closed for business and that the uncertainty surrounding these nuclear negotiations makes the business climate in Iran far too risky' for Western capital to re-enter. And, they contended, the negotiating partners should go farther and 'agree on decisive sanctions that would constitute a virtual economic blockade of Iran should Iran fail to agree to an acceptable deal' in the next four months." http://t.uani.com/1wQm4L1

NYT: "Iran, the United States and the five other countries negotiating the future of the Iranian nuclear program have agreed to a four-month extension of the talks, giving them more time to try to bridge major differences over whether Tehran will be forced to dismantle parts of its nuclear infrastructure, according to a statement released early Saturday in Vienna by all seven nations. The extension was expected, but some American officials say that even the additional time may not prove sufficient. The original deadline for an accord was Sunday, though a temporary agreement that has been in effect since November had envisioned a six-month extension. Secretary of State John Kerry said that under the extension, Iran would get access to $2.8 billion in assets that have been frozen in the United States, but sanctions against oil sales and other major sources of income would not be lifted. 'Let me be clear,' Mr. Kerry said in a statement, 'Iran will not get any more money during these four months than it did during the last six months, and the vast majority of its frozen oil revenues will remain inaccessible.' Iran, in return, has agreed to dilute additional stocks of material or turn it into reactor fuel. Once the material is made into the metal plates that fit into its research reactor, it is extremely difficult to turn it into bomb-grade fuel." http://t.uani.com/1rDJF1c

LAT: "When Iran and the world powers trying to negotiate a nuclear deal announced late Friday that they would extend their five-month-old talks for an additional four months, they said they had been making 'tangible progress' toward a deal. But a former member of President Obama's inner circle on the Iran issue says Iran is actually moving further from the six world powers on the most important issue of all: how much uranium enrichment capacity the Islamic Republic will be entitled to retain. Robert Einhorn, who was a special advisor on arms control at the State Department until May 2013, says the Iranians have been quietly extending what they claim they are entitled to on enrichment -- what Einhorn calls 'rights creep.' He warns these demands could gridlock the negotiations... Instead of cutting back its capacity to a fraction of what it is today, as the six are now demanding, it wants to keep operating all the machines that are now producing; pursue unlimited research and development; limit the duration of the deal to eight years or less; and be free to expand to industrial scale once the deal lapses. If Iran sticks to these demands when talks resume, 'it will ensure continued deadlock,' Einhorn warned." http://t.uani.com/WqrAJm
   
Nuclear Program & Negotiations

Reuters: "Iran faced Western pressure on Saturday to make concessions over its atomic activities after it and six world powers failed to meet a July 20 deadline for a deal to end the decade-old dispute but agreed to keep talking... 'These few months until November could be the last and best chance for a long time to end the nuclear argument peacefully,' German Foreign Minister Frank-Walter Steinmeier said. 'Iran must show it is willing to dispel all doubts about the peaceful nature of its nuclear program,' he said." http://t.uani.com/WyvqQT

Sanctions Relief

WSJ: "China imported a record amount of crude oil from Iran in the first half of the year amid a loosening of U.S. sanctions, further increasing the importance of Middle East supplies for the world's No. 2 economy... Chinese customs data Monday showed that Iranian oil imports in the first six months of 2014 were 630,000 barrels a day, up 48% from the same period last year. That is the most crude China has ever imported from Iran in any first half in history, according to Li Li, head of research and analytics at consultancy ICIS C1 Energy. Iran now represents about 10% of China's foreign crude purchases in the first half. Maziar Hojjati, managing director of the China office of National Iranian Oil Co., or NIOC, said he believes the easing of U.S. sanctions has contributed to the surge in imports. 'The American government has put less pressure on the Chinese due to a deal between Iran and the West,' Mr. Hojjati said. 'There is an opportunity to export more to the Chinese market.'" http://t.uani.com/1mw8R4r

Bloomberg: "Iran's oil exports will remain near the highest level in two years as talks with six global powers over the Persian Gulf state's nuclear program are extended for four more months, according to six analysts in a survey. Sales of crude and condensates by Iran to six main buyers averaged 1.27 million barrels a day in the first six months of the year, according to data compiled by Bloomberg from customs statistics and International Energy Agency estimates. Shipments will stay near that level in the second half, according to the analysts Bloomberg surveyed on July 16 and 17. 'Iran's going to want oil exports to keep edging up, and the U.S. has been willing to allow some wiggle room,' Robin Mills, an analyst at Manaar Energy Consulting & Project Management, said by phone from Dubai yesterday." http://t.uani.com/1nNtGZh

Sanctions Enforcement & Impact

WSJ: "Sanctions have nearly halved Iran's petroleum export revenue in the past two years, OPEC data showed Friday, as the impact of international restrictions on its oil deepens... In its annual statistical report, the Organization of the Petroleum Exporting Countries said revenue generated by Iranian petroleum exports fell to $61.92 billion in 2013, down 46% from $114.75 billion in 2011. International sanctions banning sales of Iranian oil to the European Union and limiting them in Asia cut the country's petroleum exports by 42% in 2013 compared with the previous year. Though oil sales had already fallen in 2012, the drop in volumes had been largely compensated by higher oil prices." http://t.uani.com/1mw92MZ

Terrorism

Free Beacon: "American adversaries in the Middle East continue to work together across sectarian and religious divides to harm U.S. interests and security, requiring a more nuanced response from U.S. officials to address the turmoil in the region, experts say... Iran, led by a Shiite government, is typically viewed as opposing hardline Sunni groups such as the Taliban and al Qaeda as part of an intra-religious dispute among Muslims. However, Iran has a long history of harboring and supporting al Qaeda. European intelligence reports indicate that Abu Musab al-Zarqawi, founder of the group al Qaeda in Iraq (AQI) that eventually morphed into ISIL, operated from Iran after the U.S. invasion of Afghanistan in 2001. Zarqawi used protection from the Iranian Revolutionary Guard Corps (IRGC) to rebuild the terrorist group's network and prepare for its expansion into Iraq. The U.S. Treasury Department has called Iran 'a critical transit point for funding to support al Qaeda's activities in Afghanistan and Pakistan.' The department in February sanctioned three IRGC officers for allegedly providing support to the Taliban as well as to a senior member of al Qaeda who allegedly used Iran to move Sunni fighters into Syria. 'Iran has a long history of fomenting violent conflict and inflaming sectarian divides throughout the Middle East including in Lebanon, Syria and Iraq,' said the group United Against Nuclear Iran (UANI) in recent press release. 'Depictions of Iran as a source of stability are therefore erroneous and short-sighted, as are assertions that increased Iranian involvement in Iraq will serve American and Iraqi interests,' UANI added." http://t.uani.com/1sEE7Gd

Reuters: "Pope Francis called for justice to be served in his native Argentina on Friday, the twentieth anniversary of the deadly bombing of a Buenos Aires Jewish commuity center that local courts blamed on Iran. Investigations into the attack in which an explosives-laden truck exploded outside the Argentine Israeli Mutual Association (AMIA) building, killing 85, have advanced little in two decades. No suspect has ever been detained or taken to court. 'We tend to archive things in order not to burden ourselves with history, with suffering,' the pope said in a video address in Spanish that was screened during an anniversary event organized by the Jewish community in Buenos Aires. 'Today, together with my solidarity and my prayers for all the victims comes my desire for justice. May justice be done!'" http://t.uani.com/1wQvKoQ

Human Rights

NYT: "The mother of Amir Hekmati, an American of Iranian descent imprisoned in Tehran for nearly three years, has written to President Obama, asking him to 'please remember my Amir' in the negotiations with Iran over its disputed nuclear program. The letter from the mother, Behnaz Hekmati, appeared timed to convey the family's wish that the United States use its leverage in the nuclear talks to win his release... The incarceration of Mr. Hekmati, a former Marine from Flint, Mich., who turns 31 this month, has been festering as an irritant in the estranged relationship between Iran and the United States. His family had harbored hopes a year ago that he would be freed after the election of President Hassan Rouhani, who wants improved relations, but that optimism proved premature." http://t.uani.com/1pvaJxg

Trend: "A local court in Iran's northern Mazandaran province has sentenced a defendant to death by stoning. The head of Qaem Shahr city judiciary, Javad Borhani said that the 32-year old defendant has been sentenced to death by stoning, hanging and 15 years imprisonment, Iran's Mehr News Agency reported. The person is charged with such crimes as adultery, rape, possessing of weapons, alcohol and satellite receiver equipments, the official said." http://t.uani.com/1u7OmEN

Opinion & Analysis

UANI Advisory Board Member Sen. Joseph Lieberman in Reuters: "Rather than being a defeat for the United States, a refusal to accept a bad deal in Vienna could strengthen the Obama administration at home and abroad. It would help rebuild its bruised credibility and influence in the Middle East and hopefully increase the odds that the administration can ultimately achieve the goal of peacefully, verifiably bolting the door on Iran's illicit nuclear ambitions. If the talks in Vienna end in failure because of Iranian intransigence, it should be seen as a foreign policy success for the Obama administration on multiple levels. First, by holding firm on key issues under dispute, the administration can start to unwind a corrosive narrative about its global leadership. A perception has built up over the past year among many of our friends and partners - especially in the Middle East - that the White House is so averse to the prospect of foreign entanglements that it is willing to shirk both historic U.S. security commitments and its own explicit policy pledges. This suspicion has been fed by administration missteps elsewhere, in particular the last- minute shift against the use of military force against Syrian President Bashar al-Assad after he used chemical weapons against his own people. In the case of Iran, these suspicions have led many to fear that the Obama administration's declaration that 'no deal is better than a bad deal' will prove no more enduring than its 'red line' against Assad. By sticking to its principles at Vienna, the White House can counter this belief - and reestablish that it means what it says. Second, the White House has said the only reason the Iranians have come to the negotiating table is because of crippling economic pressure imposed on them. Much of the credit for that pressure goes to Congress, which repeatedly pushed the previous two administrations to accept more severe sanctions, more quickly, than the executive branch wanted. The Obama administration made critical contributions to making sanctions work and has shown unambiguously, through its persistent diplomacy, that responsibility for the confrontation rests exclusively with leaders in Tehran, not Washington. This has made it far harder for ambivalent countries to oppose sanctions. In the wake of a deadlock in Vienna, the Obama administration should seize on this dynamic. This would mean determining quickly if a new United Nations Security Council resolution is achievable, which would impose tangible costs on Tehran for its refusal to accept the good-faith offers made by the international community. It also would mean working in parallel with our key allies and partners in Europe and Asia-Pacific to prepare multilateral measures that could be deployed against Tehran, as we have done successfully before. And it would mean that the Obama administration should make clear its readiness to embrace congressional legislation imposing a new level of sanctions... We should remember that one way Iran wins is if it is able to divide the diverse coalition of countries and interests that has mobilized against it - to drive a wedge between the United States and its foreign partners; between Democrats and Republicans in Washington, and between Congress and the executive branch. Conversely, the way to defeat Iran's nuclear ambitions is by standing united, both at home and abroad." http://t.uani.com/1p7rj7U

Robert Einhorn in Brookings: "Iran has insisted that it must have sufficient enrichment capacity to produce enriched fuel for the Bushehr nuclear power reactor when the Russia-Iran contract to supply fuel for that Russian-built reactor expires in 2021. That would require Iran to expand its current enrichment capacity by a factor of ten or more and would reduce the amount of time it would need to produce enough weapons-grade uranium for a bomb to a matter of a few weeks, should it decide to do so. The United States and its P5+1 partners have called for a sharp reduction of Iran's current enrichment capacity (i.e., around 19,000 centrifuges, less than 10,000 of them operating) - to perhaps a few thousand first-generation centrifuges or a smaller number of more advanced centrifuges. They point out that such a limited enrichment capacity would nonetheless enable Iran to meet its realistic, near-term practical needs for enriched uranium - to provide enriched fuel for the Tehran Research Reactor, a modified Arak reactor, and perhaps a small light-water research reactor - and that Russia is eager to continue supplying fuel for Bushehr beyond 2021 (and could do so reliably and more competently, cheaply and safely than Iran could do on its own). This gap has been apparent for several months, but seemed to widen when Supreme Leader Khamenei stated, in a July 7 speech, that Iran has a 'definite need' for 190,000 SWUs - or 'separative work units,' a measure of centrifuge performance equivalent to well over 100,000 first-generation centrifuges or smaller numbers of more advanced centrifuges. Ali-Akbar Salehi, head of the Atomic Energy Organization of Iran, elaborated the following day that new-generation centrifuges would be tested, mass-produced, and phased in over the next eight years so that, by the scheduled expiration of the Russia-Iran fuel supply contract in 2021, Iran would be able to produce the 190,000 SWUs the Supreme Leader said was necessary to fuel Bushehr. The evolution of Iranian positions on enrichment might be called 'rights creep.' For several years, while the United States held that no enrichment program should be permitted in Iran, the Iranians argued that a central negotiating goal was simply gaining recognition of a 'right to enrich.' Although the United States still does not recognize a 'right to enrich,' it agreed last year that, in the context of an otherwise acceptable deal, Iran could pursue a limited enrichment program. Having won that major concession, the Iranians have begun talking as if the ability to produce sufficient enriched uranium independently to fuel its power reactors - a capability even advanced nuclear-energy state Japan does not possess - is a right and minimum requirement that must be guaranteed and exercised. They now seem to be reaching even further, arguing that they must have that capability in place by 2021. In an interview with The New York Times a week ago, Iranian Foreign Minister Javad Zarif revealed some elements of his government's position that were presumably intended to be seen as movement toward the P5+1, particularly the notion that Iran would not insist on ramping up its enrichment capacity right away, but would defer an expansion for a number of years and in the meantime would remain at current centrifuge levels. But Zarif's comments, together with those of the Supreme Leader and Salehi, suggest an Iranian strategy on the enrichment issue that is sharply at odds with the approach of the United States and its partners... If Iran pursues such an approach when the talks resume, it will not be acceptable, certainly not to the United States and several of its partners, and it will ensure continued deadlock. Iranian officials like to say that the United States and its P5+1 partners must show greater 'realism' - meaning Western negotiators must accept the reality of Iran's declared nuclear plans. But it is Iran that must show greater realism if it truly wants the negotiations to succeed and sanctions to be removed.  The Iranian approach fails the realism test at several levels. Iran has no compelling need to produce fuel indigenously for the Bushehr power reactor post-2021. The Russians are more than happy to extend their fuel supply contract for the life of the reactor, and to provide fuel for any additional reactors that Iran buys from Russia. Citing disappointing past experience - especially the failure of the 'Eurodif' enriched uranium consortium to meet its obligations to Iran - Tehran asserts that it cannot afford to rely on foreign suppliers and must ensure independence in fuel production. But Russia has proven to be a reliable partner to Iran for decades, defying strong U.S. pressure to abandon the Bushehr project. And even if Iran does not trust Russia or the well-supplied enriched uranium buyers' market, it can pursue a variety of means to ensure against a fuel-supply disruption, including purchasing from Russia a continually renewable, five-year supply of spare fuel that could be stored on Iranian territory. Iran is also not being realistic about its ability to take over Bushehr fuel production from Russia in 2021. As Carnegie Endowment nuclear expert Mark Hibbs points out in the July 7 Iran Fact File, 'Iran has no experience and no infrastructure for making commercially significant quantities of VVER [Bushehr's reactor type] fuel and no intellectual property agreement with Russia giving Iran access to design data for core internals including fuel, which it would need to make the fuel by itself. Were Iran to go ahead without Russian cooperation, a bilateral agreement assigning Russia liability in the case of safety issues arising at Bushehr would be automatically terminated.' So Iran's declared plan to produce Bushehr fuel independently by 2021 is not only unnecessary and uneconomical, it is also technically unfeasible, legally questionable, and highly unrealistic in terms of timeframe. If Iran somehow managed on its own to fabricate and load fuel into Bushehr, major safety issues could arise." http://t.uani.com/1o05bwM

Samih Maaytah in Asharq Al Awsat: "When we talk about a possible agreement between Iran and the P5 +1, not only are we talking about a technical military agreement regarding the Iranian nuclear program, but we are also implicitly engaging with Iran's expansionist ambitions, which are part and parcel of its foreign policy. It is this expansionism, in the context of Iran's nuclear program, that raises concerns in Israel and the West. But these concerns do not include fears of Israel being wiped off the map or Iran championing Arab interests in Palestine. Iran is not interested in developing a full nuclear program. Rather, it wants to control certain levers of power that will allow it to realize its expansionist ambitions. Its incomplete nuclear program is one of these levers, as is Hezbollah, which has high levels of influence in Lebanon, on Israel's northern border. Iran is aware that expanding its influence in the region requires posing a risk, albeit theoretically, to Israel. This means doing some saber-rattling and calling for the liberalization of Arab land, but in reality its aim is to force the major powers to placate Iran by ceding to its demands on regional issues. This allows Iran to interfere in the Gulf and even infringe upon those countries' internal affairs. Coming to an agreement on the nuclear program is not, in and of itself, a goal for Iran. Resolving the matter through a definitive agreement does not advance Iran's expansionist platform. This is because the nuclear program must remain a tool Iran can use to exert pressure and further its wider interests. Iraq, for example, occupies a special place in Iranian foreign policy. It will be decades before it has disentangled itself from Iraq's internal affairs. Iran, which aligned itself militarily with the United States on the 2003 invasion of Iraq, has achieved a remarkable amount of influence in that country. But the situation in Iraq has now changed, to the detriment of Tehran. Iraq has relapsed into chaos and its Sunni minority has reclaimed some clout, and Iran continues to engage with the Iraqi Kurds and their ambitions for statehood. Then there's Syria, where Iran has waged war as though its own existence depended on the outcome. It has provided extensive financial support to the Syrian regime and has dispatched advisors with field experience in Iraq. It continues to exploit the presence of the Islamic State of Iraq and Syria (ISIS) in its fight against opposition forces. This has all been done in order to preserve Iranian influence, which would suffer a fatal blow if the Syrian regime-its key ally-were to fall. Tehran knows that change in Syria means a change in the landscape in Lebanon. This in turn would affect Hezbollah's influence and increase the strength of those opposed to Iranian expansionism. If Iran becomes mired in political and military conflicts on two fronts-Syria and Iraq-its influence will be threatened, just as it lost influence along the Lebanese-Israeli border when Hezbollah committed to Security Council Resolution 1701. Iran's commitment to the Syrian regime has weakened its relationship with Hamas, which has taken an anti-regime stance after having previously benefited from the regime's political and security cover. Iran is aware that the most important aspects of its expansionist toolkit are located close to the Israeli border. It must be close geographically, through Hezbollah and Hamas, and close politically, through the influence of its nuclear program. This is why I do not foresee any future agreement between the major powers and Iran regarding its nuclear program-not because the agreement would be difficult to reach, but because Tehran wants the project to act as a platform from which it can advance its interests in Syria, Iraq, Lebanon, the Gulf, and elsewhere in the region. Iran wants to force the international community to accept that it will always be a presence on the regional stage. This is why Iran will draw out the talks for years and years, until, finally, negotiations reach an impasse. All the while, it will have been pursuing its actual goals." http://t.uani.com/1rvQXGx

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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