Archive for January 13, 2012

Use of force tops agenda on Iran – FT.com

January 13, 2012

Use of force tops agenda on Iran – FT.com.

How close is the west getting to all-out conflict with Iran? As 2012 gets under way, the question is right at the top of the international security agenda. Hardly a day goes by without some striking news from the region – be it Iran’s decision to enrich uranium at a new underground site; or the unexplained killing of another Iranian nuclear scientist; or Iran’s threat to close the Strait of Hormuz.

It is hard to think of any moment since 2002 – the year that Iran’s nuclear programme was first uncovered – when the situation has seemed so hot. That said, the alarm can be overdone. Given the sheer number of military exercises being conducted by Iran, Israel and the US in the next few weeks, there is an outside chance that a conflict could accidentally erupt because of some misunderstanding in the Gulf. Otherwise, the big moments of decision in this long-running saga are still at least a year away.

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There is one factor which explains why the situation around Iran has suddenly become inflamed: the decision by the US and European Union to impose sanctions that ban oil imports from Iran.

Until now, sanctions have mainly been targeted at entities related to Iran’s nuclear programme, the very thing the west is trying to halt. But the move to cut off Iran’s oil exports is already seriously hitting the country’s beleaguered economy. It is also prompting Iran’s threats over the Strait of Hormuz, one of the world’s main oil trade arteries.

Many in the west still doubt whether Iran’s threat to close the Strait is serious. By closing it Iran would be blocking its own oil exports. It would also likely be defeated by US naval and air power in any conflict. Besides, the EU – like the US – will next week be careful to phase in its sanctions. This may defer the pain inflicted on Iran for up to six more months.

But even if an immediate military conflict in the Strait is averted, this still leaves a wider question: how much longer can Israel and the US wait before they bomb Iran’s nuclear sites?

Events are once again throwing a spotlight on this question. Last November, the International Atomic Energy Agency, the world’s nuclear watchdog, judged that “Iran has carried out activities relevant to the development of a nuclear device”. Iran’s decision this week to build a second uranium enrichment site at Qom – a site that cannot be bombed from the air – is also significant. It raises fears in Israel that the nuclear programme is moving to a point where it will no longer be possible to halt it by external military action.

All this is alarming. Still, there are two reasons why an attack by Israel and the US is not imminent. First, both states continue to fear that an attack would trigger serious retaliation by Iran and could only delay, not halt, the nuclear programme. Secondly, while Iran is assembling a wide range of nuclear capabilities, the leadership has still not taken the big strategic decision to construct a nuclear bomb. As Mark Fitzpatrick of the International Institute for Strategic Studies puts it: “Iran certainly seeks a nuclear weapon in the long run. But there is no evidence that they have taken the final decision to build one. If they took that decision now, it would be another year before they could conduct a test, given all the facilities we know about.”

Some western intelligence agencies believe Iran will bide its time a little longer and enrich more uranium – but will not take the big strategic decision to race for the bomb in 2012. Still, in every other respect, the auguries are not good.

Some diplomats hope that the nuclear programme can be sabotaged by killing scientists or infecting it with computer worms. But there is no sign yet that this is bringing a decisive blow. Others hope that the Iranian leadership will be forced to negotiate. But the Iranian leadership seems increasingly determined to resist international demands to stop enriching uranium. If Iran sticks to this approach, then the question of whether or not to bomb will be the overwhelming issue at the start of the next US presidential term.

False Flag – By Mark Perry | Foreign Policy

January 13, 2012

False Flag – By Mark Perry | Foreign Policy.

A series of CIA memos describes how Israeli Mossad agents posed as American spies to recruit members of the terrorist organization Jundallah to fight their covert war against Iran.

BY MARK PERRY | JANUARY 13, 2012

Buried deep in the archives of America’s intelligence services are a series of memos, written during the last years of President George W. Bush’s administration, that describe how Israeli Mossad officers recruited operatives belonging to the terrorist group Jundallah by passing themselves off as American agents. According to two U.S. intelligence officials, the Israelis, flush with American dollars and toting U.S. passports, posed as CIA officers in recruiting Jundallah operatives — what is commonly referred to as a “false flag” operation.

The memos, as described by the sources, one of whom has read them and another who is intimately familiar with the case, investigated and debunked reports from 2007 and 2008 accusing the CIA, at the direction of the White House, of covertly supporting Jundallah — a Pakistan-based Sunni extremist organization. Jundallah, according to the U.S. government and published reports, is responsible for assassinating Iranian government officials and killing Iranian women and children.

But while the memos show that the United States had barred even the most incidental contact with Jundallah, according to both intelligence officers, the same was not true for Israel’s Mossad. The memos also detail CIA field reports saying that Israel’s recruiting activities occurred under the nose of U.S. intelligence officers, most notably in London, the capital of one of Israel’s ostensible allies, where Mossad officers posing as CIA operatives met with Jundallah officials.

The officials did not know whether the Israeli program to recruit and use Jundallah is ongoing. Nevertheless, they were stunned by the brazenness of the Mossad’s efforts.

“It’s amazing what the Israelis thought they could get away with,” the intelligence officer said. “Their recruitment activities were nearly in the open. They apparently didn’t give a damn what we thought.”

Interviews with six currently serving or recently retired intelligence officers over the last 18 months have helped to fill in the blanks of the Israeli false-flag operation. In addition to the two currently serving U.S. intelligence officers, the existence of the Israeli false-flag operation was confirmed to me by four retired intelligence officers who have served in the CIA or have monitored Israeli intelligence operations from senior positions inside the U.S. government.

The CIA and the White House were both asked for comment on this story. By the time this story went to press, they had not responded. The Israeli intelligence services — the Mossad — were also contacted, in writing and by telephone, but failed to respond. As a policy, Israel does not confirm or deny its involvement in intelligence operations.

There is no denying that there is a covert, bloody, and ongoing campaign aimed at stopping Iran’s nuclear program, though no evidence has emerged connecting recent acts of sabotage and killings inside Iran to Jundallah. Many reports have cited Israel as the architect of this covert campaign, which claimed its latest victim on Jan. 11 when a motorcyclist in Tehran slipped a magnetic explosive device under the car of Mostafa Ahmadi Roshan, a young Iranian nuclear scientist. The explosion killed Roshan, making him the fourth scientist assassinated in the past two years. The United States adamantly denies it is behind these killings.

According to one retired CIA officer, information about the false-flag operation was reported up the U.S. intelligence chain of command. It reached CIA Director of Operations Stephen Kappes, his deputy Michael Sulick, and the head of the Counterintelligence Center. All three of these officials are now retired. The Counterintelligence Center, according to its website, is tasked with investigating “threats posed by foreign intelligence services.”

The report then made its way to the White House, according to the currently serving U.S. intelligence officer. The officer said that Bush “went absolutely ballistic” when briefed on its contents.

“The report sparked White House concerns that Israel’s program was putting Americans at risk,” the intelligence officer told me. “There’s no question that the U.S. has cooperated with Israel in intelligence-gathering operations against the Iranians, but this was different. No matter what anyone thinks, we’re not in the business of assassinating Iranian officials or killing Iranian civilians.”

Israel’s relationship with Jundallah continued to roil the Bush administration until the day it left office, this same intelligence officer noted. Israel’s activities jeopardized the administration’s fragile relationship with Pakistan, which was coming under intense pressure from Iran to crack down on Jundallah. It also undermined U.S. claims that it would never fight terror with terror, and invited attacks in kind on U.S. personnel.

“It’s easy to understand why Bush was so angry,” a former intelligence officer said. “After all, it’s hard to engage with a foreign government if they’re convinced you’re killing their people. Once you start doing that, they feel they can do the same.”

A senior administration official vowed to “take the gloves off” with Israel, according to a U.S. intelligence officer. But the United States did nothing — a result that the officer attributed to “political and bureaucratic inertia.”

“In the end,” the officer noted, “it was just easier to do nothing than to, you know, rock the boat.” Even so, at least for a short time, this same officer noted, the Mossad operation sparked a divisive debate among Bush’s national security team, pitting those who wondered “just whose side these guys [in Israel] are on” against those who argued that “the enemy of my enemy is my friend.”

The debate over Jundallah was resolved only after Bush left office when, within his first weeks as president, Barack Obama drastically scaled back joint U.S.-Israel intelligence programs targeting Iran, according to multiple serving and retired officers.

The decision was controversial inside the CIA, where officials were forced to shut down “some key intelligence-gathering operations,” a recently retired CIA officer confirmed. This action was followed in November 2010 by the State Department’s addition of Jundallah to its list of foreign terrorist organizations — a decision that one former CIA officer called “an absolute no-brainer.”

Since Obama’s initial order, U.S. intelligence services have received clearance to cooperate with Israel on a number of classified intelligence-gathering operations focused on Iran’s nuclear program, according to a currently serving officer. These operations are highly technical in nature and do not involve covert actions targeting Iran’s infrastructure or political or military leadership.

“We don’t do bang and boom,” a recently retired intelligence officer said. “And we don’t do political assassinations.”

Israel regularly proposes conducting covert operations targeting Iranians, but is just as regularly shut down, according to retired and current intelligence officers. “They come into the room and spread out their plans, and we just shake our heads,” one highly placed intelligence source said, “and we say to them — ‘Don’t even go there. The answer is no.'”

Unlike the Mujahedin-e Khalq, the controversial exiled Iranian terrorist group that seeks the overthrow of the Tehran regime and is supported by former leading U.S. policymakers, Jundallah is relatively unknown — but just as violent. In May 2009, a Jundallah suicide bomber blew himself up inside a mosque in Zahedan, the capital of Iran’s southeastern Sistan-Baluchistan province bordering Pakistan, during a Shiite religious festival. The bombing killed 25 Iranians and wounded scores of others.

The attack enraged Tehran, which traced the perpetrators to a cell operating in Pakistan. The Iranian government notified the Pakistanis of the Jundallah threat and urged them to break up the movement’s bases along the Iranian-Pakistani border. The Pakistanis reacted sluggishly in the border areas, feeding Tehran’s suspicions that Jundallah was protected by Pakistan’s intelligence services.

The 2009 attack was just one in a long line of terrorist attacks attributed to the organization. In August 2007, Jundallah kidnapped 21 Iranian truck drivers. In December 2008, it captured and executed 16 Iranian border guards — the gruesome killings were filmed, in a stark echo of the decapitation of American businessman Nick Berg in Iraq at the hands of al Qaeda’s Abu Musab al-Zarqawi. In July 2010, Jundallah conducted a twin suicide bombing in Zahedan outside a mosque, killing dozens of people, including members of the Islamic Revolutionary Guard Corps.

The State Department aggressively denies that the U.S. government had or has any ties to Jundallah. “We have repeatedly stated, and reiterate again that the United States has not provided support to Jundallah,” a spokesman wrote in an email to the Wall Street Journal, following Jundallah’s designation as a terrorist organization. “The United States does not sponsor any form of terrorism. We will continue to work with the international community to curtail support for terrorist organizations and prevent violence against innocent civilians. We have also encouraged other governments to take comparable actions against Jundallah.”

A spate of stories in 2007 and 2008, including a report by ABC News and a New Yorker article, suggested that the United States was offering covert support to Jundallah. The issue has now returned to the spotlight with the string of assassinations of Iranian nuclear scientists and has outraged serving and retired intelligence officers who fear that Israeli operations are endangering American lives.

“This certainly isn’t the first time this has happened, though it’s the worst case I’ve heard of,” former Centcom chief and retired Gen. Joe Hoar said of the Israeli operation upon being informed of it. “But while false-flag operations are hardly new, they’re extremely dangerous. You’re basically using your friendship with an ally for your own purposes. Israel is playing with fire. It gets us involved in their covert war, whether we want to be involved or not.”

The Israeli operation left a number of recently retired CIA officers sputtering in frustration. “It’s going to be pretty hard for the U.S. to distance itself from an Israeli attack on Iran with this kind of thing going on,” one of them told me.

Jundallah head Abdolmalek Rigi was captured by Iran in February 2010. Although initial reports claimed that he was captured by the Iranians after taking a flight from Dubai to Kyrgyzstan, a retired intelligence officer with knowledge of the incident told me that Rigi was detained by Pakistani intelligence officers in Pakistan. The officer said that Rigi was turned over to the Iranians after the Pakistani government informed the United States that it planned to do so. The United States, this officer said, did not raise objections to the Pakistani decision.

Iran, meanwhile, has consistently claimed that Rigi was snatched from under the eyes of the CIA, which it alleges supported him. “It doesn’t matter,” the former intelligence officer said of Iran’s charges. “It doesn’t matter what they say. They know the truth.”

Rigi was interrogated, tried, and convicted by the Iranians and hanged on June 20, 2010. Prior to his execution, Rigi claimed in an interview with Iranian media — which has to be assumed was under duress — that he had doubts about U.S. sponsorship of Jundallah. He recounted an alleged meeting with “NATO officials” in Morocco in 2007 that raised his suspicions. “When we thought about it we came to the conclusion that they are either Americans acting under NATO cover or Israelis,” he said.

While many of the details of Israel’s involvement with Jundallah are now known, many others still remain a mystery — and are likely to remain so. The CIA memos of the incident have been “blue bordered,” meaning that they were circulated to senior levels of the broader U.S. intelligence community as well as senior State Department officials.

What has become crystal clear, however, is the level of anger among senior intelligence officials about Israel’s actions. “This was stupid and dangerous,” the intelligence official who first told me about the operation said. “Israel is supposed to be working with us, not against us. If they want to shed blood, it would help a lot if it was their blood and not ours. You know, they’re supposed to be a strategic asset. Well, guess what? There are a lot of people now, important people, who just don’t think that’s true.”

Russia fears Israel is pushing U.S. toward Iran war; EU tackles details of oil embargo

January 13, 2012

Russia fears Israel is pushing U.S. toward Iran war; EU tackles details of oil embargo.

Iran has threatened to block the Strait of Hormuz, which is a vital sea route for oil shipments. (File photo)

Iran has threatened to block the Strait of Hormuz, which is a vital sea route for oil shipments. (File photo)

Russia fears Israel will push the United States into a military conflict with Iran which could retaliate by blocking oil shipments from the Gulf, a confidant of Prime Minister Vladimir Putin said, as EU states are due to agree new sanctions on Iran over its nuclear program at a meeting of EU foreign ministers on Jan. 23.

“There is a likelihood of military escalation of the conflict, towards which Israel is pushing the Americans,” Nikolai Patrushev, who heads the Kremlin’s Security Council, told Interfax news agency.

Patrushev, a former head of the main successor to the Soviet-era KGB, said Tehran could respond by blocking the Strait of Hormuz between Oman and Iran, through which 35 percent of the world’s seaborne traded oil passes.

“It cannot be ruled out that the Iranians will be able to carry out their threat to shut exports of Saudi oil through the Strait of Hormuz if faced with military actions against them,” Patrushev said in an interview published on Thursday.

Tension over Iranian uranium enrichment, which has moved to a mountain bunker better protected from possible air strikes, has raised fears for world oil supplies and even of war.

Iran says its nuclear program is peaceful while Western powers believe it has military aims. Israel, which sees an Iranian atom bomb as a threat to its existence, is willing to attack Iranian nuclear sites with or without U.S. backing.

However, Patrushev said there was still no proof that Iran was on the brink of creating nuclear weapons.

“Talk about Iran creating an atomic bomb by next week we have heard for many years,” he said, adding that the United States was trying to topple the Iran’s leadership using “all available means” to make the country into “a loyal partner.”

Russia, the world’s biggest energy producer, opposes further U.N. Security Council sanctions over Tehran’s nuclear program and has sharply criticized U.S. and European Union sanctions.

The United States has said it would use force if Iran carried out its threat to block the strait and moved a new aircraft carrier strike group to the Arabian Sea this week.

EU moves towards Iran oil embargo

Meanwhile, EU states drawing up details of an oil embargo on Iran have given wide backing to a proposal to allow European entities to continue to receive repayments in oil for debts they are currently owed by Iranian firms, EU diplomats said.

The 27 states are also working towards a phased implementation of a ban on imports of oil and petrochemical products from Iran. One diplomat said a consensus was emerging that the oil import ban should come into force after six months and the petrochemical product ban after three — similar to provisions in U.S. legislation.

EU states are due to agree new sanctions on Iran over its nuclear program at a meeting of EU foreign ministers on Jan. 23. They have already agreed in principle to ban imports of Iranian oil, but details on how and when this will be implemented still have to be finalized.

Greece, Italy and Spain, three of the weakest EU economies, depend heavily on Iranian crude. They have been pushing for long “grace periods” to fulfill existing contracts to allow them to find other suppliers before implementing an embargo and reduce any shocks to their already troubled economies.

EU diplomats said the EU’s External Action Service — equivalent to the bloc’s foreign ministry — had proposed a continuation of the practice of receiving oil from Iran to repay existing debts, and there was broad support for this.

“Some Iranian companies have outstanding debts in Europe and they reimburse their debt, not with currency but in oil,” an EU diplomat said. “It is suggested that this debt could continue to be reimbursed in oil. We are talking about existing debt — no new debt can be accumulated.”

The diplomat said the argument made was that if such reimbursements were not allowed, not only would EU entities not be able to recover their money, Iran would have more oil more available to sell to boost government revenues.

“So it would be counterproductive not to allow the reimbursement of this debt,” the diplomat said.

Another diplomat said the idea was based on a proposal by Italy. “It is now quite widely backed,” he said.

“Because it is such a repayment, it’s not a problem. It’s not scandalous because it achieves what we want to, which is to dry up Iran’s resources. Now work needs to be done on the details.”

Gradual application of embargo

Another diplomat said the EU was likely to agree to review points on the oil import ban prior to implementation — after three months and perhaps six to ensure the benefits in terms of maintaining pressure on Iran outweighed any impact on the EU or the wider oil market.

Speaking to Reuters in Rome, Italian Foreign Minister Giulio Terzi declined to comment on how long a grace period there should be on an embargo, but said Italy was not holding back the issue.

“We are in favor of a gradual application of the embargo but even so we are aiming for quite a rapid introduction,” he said.

Iran has been paying back Italian oil and gas group Eni for decade-old deals with oil for years and Eni CEO Paolo Scaroni has said Eni is still owed nearly $2 billion.

The EU is also planning new sanctions on Iran’s financial sector but states have been divided over whether to include Iran’s central bank in these sanctions. Diplomats said France and Britain backed this but Germany opposed the idea.

The diplomat said negotiations to finalize the sanctions are expected to continue until next week.

EU measures against Iran’s oil industry will complement U.S. sanctions announced on Dec. 31 that aim to make it impossible for most countries’ refineries to buy Iranian crude.

Iran is OPEC’s second largest oil producer after Saudi Arabia, producing around 3.5 million barrels per day.

EU countries buy nearly 600,000 barrels per day (bpd) of Iran’s 2.6 million bpd in exports, making the bloc the largest market for Iranian crude, rivaling China.

The three biggest EU importers have serious debt problems. Greece imports a quarter of its oil from Iran, Italy about 13 percent and Spain nearly 10 percent.

Russia slams Iran sanctions, holds firm on Syria

January 13, 2012

Russia slams Iran sanctions, holds firm on Syria.

Deputy Foreign Minister Gannady Gatilov’s comments came as European governments moved closer to an agreement on an Iranian oil embargo that would give companies six months to phase out contracts with Tehran. (File photo)

Deputy Foreign Minister Gannady Gatilov’s comments came as European governments moved closer to an agreement on an Iranian oil embargo that would give companies six months to phase out contracts with Tehran. (File photo)

Russia warned the West on Friday that new sanctions against Iran over its nuclear program will be seen by the world as a bid to change the Islamic republic’s regime.

Moscow also said it strongly disagreed with the West’s approach to its other regional ally Syria and would use its position in the U.N. Security Council to avert foreign military intervention in both crises.

“Additional sanctions against Iran … will unquestionably be perceived by the international community as an attempt at changing the regime in Iran,” Deputy Foreign Minister Gannady Gatilov was quoted as saying by Intefax.

His comments came as European governments moved closer to an agreement on an Iranian oil embargo that would give companies six months to phase out contracts with Tehran.

Russia has backed four rounds of U.N. Security Council sanctions against its close trading partner and this week expressed “regret and worry” at Tehran’s decision to begin uranium enrichment at a new nuclear plant.

But it has urged restraint in the current escalation and is still promoting a peace plan that rewards Iran for cooperating with foreign inspectors by gradually easing existing sanctions.

Gatilov argued that crippling punishment would only inflame conflict and hinted at Moscow’s willingness to veto any such future attempts at the Security Council.

“The adoption by Western states of unilateral measures that go outside the frameworks of Security Council decisions have a negative effect on the Iranian people and its economy,” the Russian diplomat said.

“This line of action undermines the international community’s efforts at resolving the Iranian nuclear problem,” he said.

The twin crises have highlighted the trouble the West has been facing from Moscow despite a “reset” in relations announced nearly three years ago by Washington.

The Syrian crisis has seen Russia accuse the West of setting double standards by turning a blind eye on the violence being committed by opponents of President Bashar al-Assad’s regime.

Gatilov on Friday again flatly rebuffed changes to its Council resolution on the 10-month crackdown being promoted by Western states.

“Unfortunately, the West’s approach radically differs from ours,” said Gatilov.

“Judging by the contents of their proposed amendments, their goal is clearly aimed at removing al-Assad’s regime in Damascus,” he said.

Russia and China vetoed a European resolution on Syria in October but Moscow surprised the Security Council two months later by proposing its own resolution condemning violence by both the government and opposition.

U.S. Secretary of State Hillary Clinton this week accused Russia of refusing to negotiate changes to its draft that would also suit the West.

The Russian diplomat said Moscow would hold a new round of consultation over its draft in the coming days.

But he also added that Russia fully trusted the much-criticised mission being undertaken in Syria by Arab League monitors.

“We feel their presence is a stabilising factor in Syria that promotes the chances of a peaceful settlement,” he said.

Iran agrees to U.N. nuclear inspection as oil embargo gathers support

January 13, 2012

Iran agrees to U.N. nuclear inspection as oil embargo gathers support.

International Atomic Energy Agency (IAEA) chief inspector Herman Nackaerts has been a very busy man lately. (File photo)

International Atomic Energy Agency (IAEA) chief inspector Herman Nackaerts has been a very busy man lately. (File photo)

A high-level U.N. nuclear agency delegation will visit Iran in late January to try to clear up allegations of a covert weapons program, diplomats said Friday, as U.S. allies in Asia and Europe voiced support for Washington’s drive to cut Iran’s oil exports.

The visit for talks led by International Atomic Energy Agency (IAEA) chief inspector Herman Nackaerts would last from the 28th through the first week of February, a Western diplomat told AFP.

“The aim of this mission is to try to get answers once and for all to all the questions raised by the IAEA’s report in November,” one of the diplomats told AFP on condition of anonymity.

The move comes as U.S. seeks to curb Iranian nuclear exports although fear of self-inflicted pain is curbing enthusiasm for an embargo that Tehran says will not halt its nuclear program.

A former U.N. inspector said a new, almost bomb-proof plant could provide Iran enough enriched uranium for an atom bomb in just a year.

Such timetables, while Iran denies all Western charges that it even wants nuclear weapons, have added to speculation that Israel and the United States could resort to a military attack on the Islamic Republic – something an aide to Russian leader Vladimir Putin said was growing more likely.

After a motorcycle hitman blew up the 32-year-old engineer during the Tehran rush hour, many Iranians directed anger over the violence, and over painful economic sanctions, at the Western powers, which have hoped to turn popular sentiment against an increasingly divided ruling elite.

Supreme Leader Ayatollah Ali Khamenei said that those behind Wednesday’s mystery killing would be punished.

Hossein Shariatmadari, whom he appointed editor-in-chief of the Kayhan newspaper, wrote: “These corrupted people are easily identifiable and readily within our reach. … Assassinations of the Zionist regime’s military men and officials are very easy.”

While declining comment on allegations it carried out the bombing on Wednesday, Israel has a history of such actions and will be on the alert for possible attacks against it.

Kremlin Security Council head Nikolai Patrushev, close to Putin, was quoted blaming Israel, which says an Iranian bomb would threaten its existence, for pushing for war.

“There is a likelihood of military escalation of the conflict, towards which Israel is pushing the Americans,” he told the Interfax news agency.

Speaking to troops in Texas on Thursday, U.S. Defense Secretary Leon Panetta said: “We have some ideas as to who might be involved but we don’t know exactly who was involved.” He said Washington was “not involved in any way.”

Former U.N. nuclear inspection chief Olli Heinonen said this week’s announced start of uranium enrichment at a bunker complex could provide Iran with the ability to have enough such material for one nuclear bomb early next year – although it was not clear it would yet have the ability to build one.

A high-level team from the U.N. International Atomic Energy Agency (IAEA) is expected to visit Iran around Jan. 28.

Asian importers

The United States on Thursday imposed sanctions on China’s state-run Zhuhai Zhenrong Corp, which it said was Iran’s largest supplier of refined petroleum products.

Secretary of State Hillary Clinton also imposed sanctions on Singapore’s Kuo Oil Pte Ltd and FAL Oil Company Ltd, an energy trader based in the United Arab Emirates, as part of what the State Department called a broadening international effort to target Iran’s energy sector and persuade Tehran to curb its nuclear ambitions.

Since President Barack Obama signed laws on New Year’s Eve that, by denying buyers access to U.S. dollars, aim to cripple Iran’s oil sales until it gives ground on the nuclear issue, major importers have been taking positions, torn between keeping in with Washington and quenching their thirst for Iranian oil.

Threats of disruption to the Gulf oil trade, from war or simply blockades, have kept crude prices firm. Benchmark Brent crude is up more than 4 percent this month.

On Thursday, Japan, whose economy is already deep in the doldrums after cuts in its nuclear power supply following last year’s tsunami, pledged to take concrete action to cut its oil imports from Iran in response to an appeal for support from visiting U.S. Treasury Secretary Timothy Geithner.

The U.S. Treasury chief welcomed Tokyo’s cooperation, an encouraging sign for U.S. foreign policy after China rebuffed his arguments for sanctions earlier on his Asian tour.

One issue affecting Asian governments’ willingness to follow the U.S. lead is the availability of alternatives to Iran, the second biggest exporter in OPEC after Saudi Arabia. While ready to help, it is not clear how far U.S. ally Riyadh can increase its own output and exports to make up for spurned Iranian crude.

Japan has already sought extra supplies from Saudi Arabia and the United Arab Emirates (UAE). Chinese Premier Wen Jiabao will visit Saudi Arabia, the UAE and Qatar in a trip beginning this weekend. The prime minister of South Korea, another major buyer of Iranian crude, is due to visit the UAE and Oman from Friday.

Korean minister Hong Suk-woo told Reuters that “it was too early to say” if Seoul would reduce oil imports from Iran. “Our basic stance is to cooperate with the U.S.,” Hong said.

China, the biggest buyer of Iranian crude, gave no hint on Wednesday of giving ground to U.S. demands to curb Tehran’s oil revenues.

U.S. officials sounded more optimistic, saying they would focus more on China’s actions than on its public statements.

But China has reduced crude purchases from Iran for January and February in a dispute over contract pricing terms.

India faces pressure to cut crude purchases from Iran, but policymakers and industry officials have sent mixed messages on future plans, with one unnamed cabinet minister saying on Thursday the country would continue to do business with Tehran.

European concerns

The European Union is more sympathetic to U.S. pressure on Iran. EU foreign ministers are expected to agree on a ban on imports of Iranian crude oil on Jan. 23.

But even Europe, whose governments largely share the concern of Israel and Washington over Iran’s nuclear ambitions, is looking for ways to limit the pain of an embargo.

“We expect a slow and gradual implementation of what will eventually become a full embargo,” said Mike Wittner from Societe Generale. “Europe has the same concerns about its fragile economy and an oil price spike as the U.S., probably even more”.

Firms in Iran’s three biggest EU oil customers, Italy, Spain and Greece, all suffering acute economic discomfort, have lately extended existing purchase deals in the hope to at least delay the impact of any embargo for months, traders told Reuters.

EU diplomats said a consensus was emerging to grant a grace period before banning new deals with Iran – six months for crude oil purchases and three for petrochemicals. Moreover, companies would be able to go on accepting Iranian oil in payment for outstanding debts – something especially helpful to Italy.

Diplomats and traders say the grace period would give European companies time to find alternative sources of crude, but the process would be far from smooth.

“Some (EU members) are saying: ‘help us find alternative suppliers and find a way to sustain the discounts we currently have’,” one diplomatic source said.

The problem of replacement supplies to Europe could be partially solved with the help of Saudi Arabia. European diplomats have spoken to the kingdom’s leadership who have signaled readiness to fill a supply gap, although concerns mount about the producer’s spare capacity nearing its limit.

Postscript: Obama’s dilemma on Iran

January 13, 2012

Postscript: Obama’s dilemma on Ir… JPost – Opinion – Columnists.

 

    There are those who argue that this is the time for the US to deal fundamentally with the Iranian nuclear threat, which, in any language, means bombing Iran’s nuclear facilities.

The assassination of a scientist here, or sabotage there, is not going to solve the problem, they say. While even a military attack may not do the job completely, the Iranian nuclear program would never fully recover. For the Iranians, just living with the knowledge that if they start up again, they may be attacked again, one can assume would be a major lesson in itself.

The timing has never been better, they say. With the Americans now out of Iraq, Iran’s options for revenge are much more limited.

They can’t hit back by attacking American forces and interests in Iraq through surrogates, for example.

Also, with its forces out of Iraq, and not yet fully demobilized, America has a significant pool of battle-tested, highly trained, fully equipped and rapidly deployable reserves, that it could use to further punish Iran if it reacts to the attacks on its nuclear facilities.

The second wave would, by definition, be much more destructive than the first, which would be limited to Iran’s nuclear facilities. It would be aimed at the sources of power, the economic and military assets of the Revolutionary Guards who make it possible for the ayatollahs to continue to rule, and other targets that would hurt Iran far more than not having a bomb.

This, one suspects, the Iranians know and understand. America is no longer encumbered by its war in Iraq; its forces are no longer exposed, far away from home.

America is no longer overextended.

On the contrary, it has instantly available reserves at its disposal that could be used to settle a long open account with the Iranian regime, and this, some say, should be incentive in itself for bombing Iran’s nuclear facilities. Perhaps, if the Iranians act injudiciously, there is an opportunity here to bring the entire house down on the heads of the regime, and not just the “kitchen,” where the nuclear bomb was being cooked up.

Then there is something else to be taken into account, those who arguing for an American attack argue. US President Barack Obama cannot automatically assume that he is going to be reelected. If he loses, it will take time for the next president to catch up, to understand the technicalities involved and, crucially, have the self-confidence to make a decision that could drag America into another unwanted war. We have all been told 2012 is a crucial year, that after this the program will be so well concealed it will be impossible to effectively attack with conventional weapons, that it will have passed the point of no return.

If this is indeed the case, Obama is faced with the same dilemma that so perplexed Menachem Begin when he decided, in 1981, to bomb the Iraqi nuclear reactor shortly before a general election in Israel: to bomb and do what you have to do, or worry that people will accuse you of cheap electioneering.

Yes, if America does attack Iran’s nuclear facilities in the coming months, Obama will be accused by some of cheap electioneering. If he allows this consideration, however, to determine whether an attack on Iran is warranted or not, he will have missed the point. If in 2012 Iran does indeed pass the point of no return, if other methods such as sanctions don’t set back the program, what has to be paramount in Obama’s mind is his legacy, not what people say of his election tactics.

If 2012 is indeed a critical year, the voice of those calling for an American attack on Iran’s nuclear facilities gains credence. To do nothing would give the Iranians exactly the window they need to complete their program.

Things have changed dramatically, and not to Iran’s advantage. The US is back in the saddle, and has the power to both attack Iran’s nuclear facilities and to hit back hard if Iran is not deterred from reacting. Obama knows the score better than anyone. He knows that if he does attack, America’s allies will applaud, the world will heave a sigh of relief, his Republican foes will shout hurrah, and he will go down in history as a true and courageous leader.

If 2012 is not a critical year, as all have claimed, then better not to do anything at all. If the Iranians are about to pass the point of no return, there is no real option other than to attack. If they are not, put the idea aside. Wars are to be fought only when there is no alternative, and not because this or that strategic constellation is currently in place. You know where wars start and not where they end. That is always a risk, but nothing as risky to the general welfare of the world as the specter of a nuclear Iran,

The writer is a Senior Research Associate at the Institute for National Security Studies at Tel Aviv University. His most recent book is The Anatomy of Israel’s Survival published by Public Affairs, New York.

Syria after Assad

January 13, 2012

Savir’s Corner: Syria after Assad – JPost – Opinion – Columnists.

Syria's President Bashar Assad speaks in Damascus

    Like Mubarak, Ben Ali and Gaddafi, Bashar Assad is doomed to fall from power. Few experts would have predicted that the ironclad dictatorship would have such furious open opposition in the streets of all major Syrian cities, including Damascus. Perhaps never before in their modern history, since Syria’s independence in 1946, have its people shown such courage as in facing the brutal army and security forces, who have killed more than 5,000 of their own thus far.

The world stands idly by, with the exception of seemingly ineffective sanctions against the regime. Russia still threatens to veto any meaningful measures or intervention. The Arab world has turned against Syria – most Arab countries broke their diplomatic relations with Damascus and the Arab League has sent meaningless observers. But even this was unimaginable in dealing with the “mother of Arab nationalism.”

In many ways the Syrian rebellion is the most significant symptom of the Arab Spring, given the fully totalitarian and nationalistic nature of the Assad regime.

Bashar Assad, a member of the Alawite minority (the Alawites are roughly 10 percent of Syria’s population, Sunnis are roughly 74%), is in unsplendid isolation, left with a sole ally, Mahmoud Ahmadinejad, his dictatorial brother in Tehran. Even Erdogan’s Turkey has turned away from its alliance with Damascus, calling to “stop the massacre.”

The end of Bashar’s rule is a matter of time, and the real question is what will follow? Such an analysis is necessary to define the implications of a possible shift in the balance of power in the Middle East.

It is likely that after the fall of Assad, we will witness a coalition of forces taking over. Mostly Sunni leaders, relatively liberal opposition groups and the elements of the army who defected from Assad.

Syria’s two main opposition groups have already signed an agreement for setting up a democracy. The first aim of the transitional powers will be to recreate social cohesion, which may be possible given the vast Sunni majority and Syrian-Arab nationalism. There does not seem to be any real danger from Syrian fundamentalism, as such elements are less significant in Syria than in Egypt, for example.

Syria is a more secular country. Iran’s chief allies in Damascus, the Hamas leadership, are already on the run.

The real challenge, as in all post-revolution countries, will be dealing with the economic crises, exacerbated by political crisis. The Bashar Assad regime did in a very limited and insufficient way try to introduce minor reforms, such as privatizing the banks, but will be leaving the country in shambles with declining oil production and tourism revenues, and high unemployment of about 15%. At the core of the problem is that Syria under the Assads, which as opposed to Egypt, does not suffer from overpopulation, is a pariah state.

Unlike Sadat in Egypt and his successor Mubarak, the Assads did not opt for peace; as a result they had no economic relations to speak of with the United States, and limited relations with the EU.

Most of Syria’s income comes from the Arab world, mainly Iraq. Thus, the main challenge for a new Syrian regime is to turn to the West by adhering to greater social openness and respect for human rights, and opening the road to peace talks with Israel.

Syria has two powerful neighbors, to the east Iran, and to the north Turkey.

The Assad regime made a clear choice – the mullahs of Tehran. As recently as 2010, Assad had a summit with his allies, Ahmadinejad and Hezbollah’s Nasrallah, creating an Iran-Syria-Hezbollah axis and emphasizing “brotherly ties.”

Syria was the route through which Iran armed Hezbollah in order to rule Lebanon. At the time, the other fundamentalist partner in policy and ideology, Khaled Mashaal of Hamas, also belonged to that axis. Mashaal has already understood that this axis is broken, and intends to move to Jordan. The Iranians too understand that the balance of power in the region is gradually shifting.

The new Syrian regime will most probably try to restore relations with the West, initially through Ankara and without breaking completely with Tehran. From there it will find itself approaching France, its former colonizer, and the EU, and ultimately the United States.

This challenge should be welcomed by a West shamefully paralyzed despite the brutal butchering carried out by the Assad regime. Such a turn may very well have the support of Syria’s young generation, who after Assad may “discover” social media (with which some are already illegally familiar).

The median age of Syrians is 21.9 years. This is a young population seeking employment and modernity, among them many young women who have played an important role in the demonstrations, such as 32-year-old humanrights activist Catherine al-Talli, who was detained by the regime and has many young followers and supporters.

This may very well be the trend, but it risks being a gradual and unstable process.

It is a cardinal challenge for the Western powers to strengthen the young forces of democratization in the Arab world. The main support from the West should be economic and aimed at the young generation. In the same way an aid mechanism was established for the Palestinians after Oslo, one should be structured in the aftermath of the Arab Spring, advancing nation-building projects and high-quality and affordable education for the young of the region.

Syria also has a neighbor to the south, Israel. I have had the the privilege to lead our negotiation team during the Wye Plantation talks with Syria in 1995- 1996, under the courageous leadership of then-prime minister Peres. My impression then, and my opinion today, is that while the Syrians are obsessed with the the full return of the Golan Heights, they are fairly pragmatic when it comes to future “normal peaceful relations,” as defined by them, emphasizing trade and tourism. Thus, Israel should prepare itself for the possible shift in power in the region, keep quiet for the moment, and keep all options open, including a return to the Rabin formula, according to which “Israel is ready for a full withdrawal from the Golan, provided that all our peace, security and water needs are met.”

We tend to say, “From the north an evil shall break forth…” (Jeremiah, 1:14), yet this time, the fall of Assad may result in opportunity breaking forth from the north. When it does, we should not miss it, despite Netanyahu’s traditional alarmism over shifting sands. Israel can and must become a strong and peaceful player in the new balance of forces in the Middle East in the years to come. We must prepare for the worst, and work for the best.

The writer is president of the Peres Center for Peace and served as Israel’s chief negotiator for the Oslo Accords.

‘Russian-operated arms ship reaches Syria’

January 13, 2012

‘Russian-operated arms ship reaches Syria’ – JPost – Middle East.

[illustrative photo]

   

MOSCOW – A Russian-operated ship with “a dangerous cargo” has reached conflict-torn Syria, a source at the vessel’s St. Petersburg-based firm said on Friday, after being temporarily halted during a refueling stop in Cyprus.

The source declined to comment on Russian and Cypriot media reports that the ship Chariot, which set sail from St. Petersburg on Dec. 9, was carrying cargo from Russia’s weapons exporter Rosoboronexport. The Cyprus newspaper Politis reported the ship was carrying 60 tonnes of ammunition.

Russia has long been a major arms supplier to Syria, where President Bashar Assad is trying to crush a 10-month-old wave of unrest by military force, prompting Western and Arab sanctions against Damascus that Moscow has not joined.

“The ship was carrying a dangerous cargo,” the source at St. Petersburg-based Westberg Ltd. said by telephone on condition of anonymity. “It reached Syria on Jan. 11,” he said.

Rosoboronexport spokesman Vyacheslav Davidenko said on Friday that the arms exporter would neither confirm nor deny the report.

Cypriot media had said on Wednesday that the Mediterranean island state’s authorities had intercepted a cargo of ammunition bound for Syria for checks after the ship carrying it put into the port of Limassol for refuelling.

Cypriot officials had no comment but state radio reported then that the vessel would be allowed to sail onwards.

Ahmadinejad: Iran not developing nuclear bomb

January 13, 2012

Ahmadinejad: Iran not developing nuclear bomb –.


Iranian president in Ecuador: “We don’t believe in making atom bombs, we believe it’s immoral.”

  Iranian President Mahmoud Ahmadinejad on Friday denied claims that the Islamic Republic was trying to develop a nuclear bomb, AFP reported.

Ahmadinejad, who is currently on an official visit to Ecuador, said that Iran would continue its resistance against Western pressure over its nuclear program, according to the report


“They insult our country and our citizens, of course we’ll resist pressure, Ahmadinejad said during a press conference. “The nuclear question is a political excuse. They all know full well Iran isn’t interested in producing nuclear bombs. We don’t believe in making atom bombs. We believe it is immoral.”

Ahmadinejad visited Cuba on Wednesday where he said Iran had done nothing to warrant enmity from its enemies.

He said nothing about the bomb attack that killed an Iranian nuclear scientist in Tehran earlier in the day, which his government blamed on Israel and the United States, the leaders of international opposition to Iran’s nuclear program.

Shortly after arrival in the Cuban capital he told students in veiled remarks at the University of Havana that Iran was being “punished” for no good reason.

“Have we assaulted someone? Have we wanted more than we should have? Never, never. We have only asked to speak about and establish justice,” Ahmadinejad said.

Earlier, he declined to comment upon landing at Havana’s Jose Marti International Airport, where he smiled and flashed the victory sign several times at reporters as he was met by Esteban Lazo, one of Cuba’s vice presidents.

Iranian Vice President Mohammad Reza Rahimi, in charge while Ahmadinejad travels, told Iranian state television “this terrorist act was carried out by agents of the Zionist regime (Israel) and by those who claim to be combating terrorism (the United States) with the aim of stopping our scientists from serving” Iran.

He said Iran’s nuclear program would go on.

The White House denied any US role in the car bomb attack and Israel has declined to comment. But the controversy overshadowed the display of Iran’s ties with Cuba, which is just 90 miles (145 km) from the United States, its longtime ideological foe.

Before his speech, the University of Havana awarded Ahmadinejad an honorary doctorate in political science, saying he had strengthened relations with Cuba and other Latin American countries and “valiantly defended the right of his people to self-determination” in the face of international pressure.

It was not yet known if Ahmadinejad would visit former Cuban leader Fidel Castro, who is now mostly retired at age 85 but still meets occasionally with visiting foreign leaders.

Iran preparing a nuclear test?: Voice of Russia

January 13, 2012

Iran preparing a nuclear test?: Voice of Russia.

Jan 13, 2012 14:29 Moscow Time

Photo: AFP
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Iran is ready for serious talks with the five permanent members of the UN Security Council, plus Germany, on its controversial nuclear program, speaker of Iran’s parliament Ali Larijani said Thursday during his visit to Turkey. Mr. Larijani stressed that Iran’s nuclear program is for purely peaceful purposes.

In the meantime, Israeli open source military intelligence web site, Debka.com, claims that Iran is preparing an underground test of a one-kiloton nuclear device during 2012 or in early 2013, much like the test carried out by North Korea in 2006.

Assessing the likelihood of such a nuclear test is quite a challenging task. To develop a nuclear warhead, Iran needs to have uranium enriched to 90% purity. Meanwhile, Iran`s technology is not that sufficient to ensure the implementation of this test. Although chances are still there for the country to receive enriched uranium from abroad, says Pyotr Topychkanov, a scientist at the Russian Academy of Sciences:

“In the 1990s or in the early 2000s Iran could have illegally received enough uranium from abroad. There are international networks smuggling nuclear technology and materials, like the one in Pakistan, named after prominent nuclear scientist Abdul Qadeer Khan.”

It is worth mentioning, however, that unlike Israel or Pakistan, Iran signed the Comprehensive Nuclear Test Ban Treaty, and insists on its adherence to the nuclear non proliferation regime. So, if Tehran is really preparing an underground nuclear test, it should first quit several international agreements it had previously signed. But Iran may choose an alternative way to go, believes Pyotr Topychkanov…

“It is possible that Iran decides not to quit these international agreements and carry out a test secretly, saying it is for peaceful purposes, or stage it abroad, say, in Pakistan or North Korea.”

The expert admits, however, that Iran’s nuclear test would by all means result in the Arab states and Turkey also willing to seek nuclear technology and weapons. As far as Israel, the U.S. and Europe are concerned, their reaction to the test is going to be very tough, and a military attack on Iran should not be excluded.

Yevgeny Satanovsky,President of the Middle East Institute, has a different point of view…

“As soon as the test will have taken place, attacking Iran won`t make any sense. Remember North Korea: nobody is going to invade it now precisely because it possesses one or even two nuclear bombs. At the same time, Muammar Gaddafi, who renounced a nuclear program, did not survive. Saddam, who failed to implement his nuclear program, was executed. It is very simple: you will survive only if your have nukes.”

In view of this, the statement released by Israel on Debka.com can be interpreted as a provocation from Iran, Mr. Satanovsky believes…

“Such kind of statements may be made on purpose, even by Iran itself, for example, to threaten Israel and the West. By doing so, Tehran might want to warn everyone that it is about to become a nuclear state.”

Both experts interviewed by the VoR agree that although the information on the Israeli web site is difficult to verify, it is hardly a provocation since there exist other media outlets where such statements can be made, and using a different tone, too. This very report appears to be a leak created on purpose amid the continuing aggression against Iran. The task of world powers now is to prevent this information from becoming a reality, and this is where Russia and China, who have always insisted on a peaceful solution to the Iranian nuclear issue, come in.