Friday, December 23, 2016

Eye on Iran: Multibillion-Dollar Jet Deals With Iran Will Test Trump Policy


   EYE ON IRAN
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European plane maker Airbus Group SE followed Boeing Co. in completing a multibillion-dollar plane deal with Iran's state air carrier, creating another big test case for how the incoming Trump administration responds to the West's accelerating economic opening with the Islamic Republic... Uncertainty has heightened over the fate of many of these commercial inroads in Iran since the election of Donald Trump... Mr. Trump hasn't weighed in publicly on Boeing's contract with Iran, and he and his team haven't detailed their position on the nuclear deal with Iran since the election. Even though it is a European company, Airbus is vulnerable to any big shift in U.S. policy toward Iran. Airbus requires specific U.S. approval for the sales because its jets include many American parts and technology that are subject to American export controls. It received that approval, from the U.S. Office of Foreign Assets Control, earlier this year. The U.S. has other levers that could make completing the Airbus transaction more difficult-for instance, forbidding any financing or payments to be routed through institutions with access to the American banking system... In announcing its deal earlier this month, Boeing said booking the Iran Air sales in its official order book was still subject to "contingencies." That caution is common with deals involving state-owned airlines. They can include final green lights from governments and often are linked to potential financing arrangements, said people familiar with the sales process.


Iran and the major powers with which it reached a landmark nuclear accord in 2015 have agreed on clarifications that diplomats say will reduce the amount of enriched uranium that counts towards a limit set by the deal. The U.N. nuclear watchdog circulated the clarifications, laid out in eight documents, to its member states on Friday after receiving them from the office of European Union foreign policy chief Federica Mogherini, who coordinates the main forum for discussions created by the deal, the Joint Commission. The IAEA has already expressed concern to Iran about its repeated testing of one of the deal's less strictly defined limits - its stock of heavy water, a substance used as a moderator in reactors like Iran's unfinished one at Arak, which has had its core removed to make it unusable. Diplomats have said Iran has come close to exceeding other limits under the deal, particularly the 300 kg (661 pound) cap on its stock of enriched uranium, a breach of which would most likely be far more damaging than excess heavy water. There was concern during a visit to Iran this week by IAEA chief Yukiya Amano that Iran was about to go over that threshold, diplomats said. There is also great uncertainty about how U.S. President-elect Donald Trump, a vocal critic of the deal, will handle any future difficulties that arise with Iran... The 45 pages of often highly technical documents circulated on Friday specify, among other things, items that do not count towards Iran's uranium stockpile, such as some unrecoverable material left in pipes. "All current low-level solid waste contaminated with low-enriched uranium (LEU) ..., which is deemed unrecoverable, is not part of Iran's enriched uranium stockpile as specified in the JCPOA provided that Iran does not build or operate any facility or part of a facility capable of recovering LEU from solid waste for 15 years," one typically worded clause said. How much difference exactly the clarifications will make to the size of Iran's uranium stockpile is not clear.


Responding to the Lebanese government's pleas for aid in combating Islamic State and other Syrian terrorist groups, the U.S. has this year alone provided it with $220 million in military aid -- including 50 armored personnel carriers and 40 artillery pieces -- and facilitated its purchase of six Super Tucanos. Congress is also giving Beirut $150 million to improve border security.ww The problem is that while Lebanon has the hallmarks of being an independent and democratic state, the reality is very different. The Iran-backed terrorist group Hezbollah controls a large swath of southern Lebanon, including the entire border with Israel. While constrained to just 12 seats in the 130-member parliament because of bizarre quota rules, it is the de facto leader of the minority coalition. In October, former army chief Michel Aoun was elected president. Although he is a Maronite Christian, he signed a formal alliance with Hezbollah a decade ago, and the Shiite terrorist group was instrumental in his victory. Viewed as a skirmish in the ongoing proxy war in the Middle East, Aoun's victory was a win for Iran and a defeat for Saudi Arabia and its Sunni Gulf allies... On Wednesday, a top Israeli defense official told reporters that some of those American troop carriers were being used by Hezbollah, which has sent tens of thousands of fighters to back Syrian dictator Bashar al-Assad against U.S.-backed rebels. To illustrate the point, he provided a photo, taken in November, of a long line of the armored vehicles all sporting Hezbollah flags. Several such pictures made the rounds of social media over last weekend...

IRAN NUCLEAR DEAL


Before Donald Trump has even arrived in the White House, Iran says the United States has already violated the nuclear deal and threatened to build atomic-powered ships in retaliation. Is the historic accord at risk? Earlier this month, US lawmakers renewed a law called the Iran Sanctions Act (ISA), extending its provisions for another decade... So is Iran right about a violation?... Western analysts disagree, saying Iran is just trying to score political points. "If it doesn't have any practical impact, who cares about the legislation? I think the Iranians are just posturing," said Dan Newcomb, a sanctions lawyer with Shearman and Sterling in New York. Moreover, sanctions expert Sam Cutler, of consultancy Horizon Client Access, said there was "a zero percent chance" that Iran was not briefed during the nuclear talks that the Congress would re-introduce ISA. "The Iranians knew this was going to happen and for them to claim this is a violation now beggars belief," he said. So if ISA is suspended and the renewal makes no difference, why is Tehran making such a fuss? The answer lies with Iran's wider frustration that the nuclear deal has not produced many of the expected benefits, said Izadi... Top of the list are Iran's continued banking problems. Although hundreds of European companies are desperate to resume trading with Iran, major banks are still refusing to facilitate big transactions. This is because Washington still has a number of non-nuclear sanctions in place that prevent anyone doing business with a long list of Iranians it says are linked to terrorism, human rights abuses and its ballistic missile programme. The banks would have to sift through each transaction to make sure none of the money ended up with someone on this list -- a costly and time-consuming affair when dealing with a country as opaque as Iran.

SANCTIONS RELIEF


Treasury said Thursday it amended transactions regulations to expand the scope of medical devices and agricultural commodities authorized for export to Iran. The amendment included new or expanded authorizations related to an array of administrative concerns such as training, replacement parts or issues concerning broken items or product recalls. Treasury also amended a key definition in the regulations.

SYRIA CONFLICT


President Vladimir Putin said on Friday that Russia, Iran, Turkey and Syrian President Bashar al-Assad had all agreed that the Kazakh capital of Astana should be the venue for new Syrian peace talks. Russia, Iran and Turkey held talks in Moscow on Tuesday after which they said they were ready to help broker a Syrian peace deal. Putin has proposed holding the negotiations in Kazakhstan, a close Russian ally... The next step for Syria would be a nationwide ceasefire, he said.

DOMESTIC POLITICS


Iran's anti-aircraft forces shot down a drone in central Tehran on Friday as it approached the offices of the president and the supreme leader, but the unmanned aircraft later appeared to have been operated by a film crew shooting aerial footage for a documentary... The commander of Tehran air defence forces said in August that the capital's airspace was under full control and "no aircraft can enter it without permission."

OPINION & ANALYSIS


The carnage in Aleppo is a much stronger reminder than we should have ever needed about the importance of a change in Western foreign policies. President Obama's attempt to "reorient" U.S. foreign policy has in practice turned into the outright abandonment of the U.S. role in the Middle East. And the people of Aleppo are only some of those who have suffered or might suffer as a result. Through its withdrawal from Middle Eastern affairs, the Obama administration has had a devastating impact on Western interests in the region. But perhaps more importantly, it has had a devastating effect on the civilian populations of the region, chiefly those of Syria and Iran... in Iran, the theocratic regime that came to power after the 1979 Islamic revolution is harvesting the fruits of a misguided nuclear agreement. The regime has sought to enrich itself with new Western partnerships, but has by no means diminished its anti-Western rhetoric or its threats against other nations in the region. Quite the contrary, that rhetoric and those threats have increased, and Iran has used its newfound wealth to deepen its involvement in the affairs of nearby countries, with Syria being especially prominent among them... The crisis in Iran is far less obvious to those who aren't closely watching the country. But those who are understand that public discontent is at an all-time high, necessitating a persistent crackdown on political and civil activism, labor rights movements, and so on... There is a need for a shift not only toward reengaging with the Middle East, but also toward engaging with the popular sentiment in those countries, often for the first time. That sentiment isn't difficult to understand. The people of Iran want to be free of the repressive theocratic government that jails people for dissent or for being in the same room as someone of the opposite sex. And of course they also want their government to cease wasting Iranian resources in supporting the Assad regime and shedding innocent blood on foreign soil.


As the world recently marked International Human Rights Day, it should be known that the regime in Iran considers its deplorable human rights dossier as its main weakness... For years the international community has been forced to believe in the existence of "moderates" and "hardliners" in Iran. Those advocating such a point of view have been calling for support of "moderates" to improve the human rights situation in this country. This accord with Iran was presented as the beginning of a new era which would lead to respect for human rights in Iran and an end to the mullahs' meddling in the region. That assumption has been at the heart of Western policy vis-à-vis Iran for decades. However, a very close look is needed at the record of the last three or so years during the tenure of Iranian President Hassan Rouhani, dubbed as a "moderate." More have been executed under his watch than during the entire eight years of firebrand Mahmoud Ahmadinejad's reign. Rouhani has never expressed any criticism regarding these executions and indeed he defends the death sentence as the rule of God. Religious and ethnic minorities in Iran are suppressed more than ever before, and Iran has increased its participation in supporting Syrian dictator Bashar Assad, especially massacring innocent people of Aleppo and other cities. The world has been watching in horror scenes of women and children victimized to horrendous Iran-backed bombings and shelling. However, western policymakers have been completely ignoring these realities. Horrendously, more trade and business deals have been advocated with the Iranian regime. Let us not forget that most of Iran's economy is run by the Revolutionary Guards, not by ordinary Iranian businessmen. Therefore, Western policy has actually encouraged the mullahs' regime to continue their domestic crackdown and carry on atrocious crimes in Syria without any concern of being held accountable... Iran's past and present atrocities, inside the country and outside its borders, need to be condemned as crimes against humanity. The West must place firm conditions on future relations with Iran and take serious actions against this regime. One good start was the adoption of the Iran Sanctions Act by the U.S. Congress, sending a strong message to Tehran that the tides are changing. The West must also demand a stoppage of the execution of minors, justice for women and respect for human rights in general. The people of Iran expect it from the West to stand up for them. U.S. President Barack Obama failed to do so back in 2009 and the Iranian people have paid the price heavily ever since.







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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