WarSclerotic

Iran Nuclear Talks Fail to Bridge Gaps; No Resumption Date – Bloomberg.

Iran and world powers remain “far apart” after the latest round of talks on the Islamic republic’s nuclear program, the European Union’s foreign policy chief said. No date was immediately set for their resumption.

“Both sides will go back to their capitals” to consult on next steps, Catherine Ashton said at a press conference in Almaty, Kazakhstan today after two days of negotiations. “We’ve talked in greater detail than ever before” and there was a “real back and forward between us,” she said. “However, what matters at the end is substance.”

Iranian negotiator Saeed Jalili said the negotiations of the past two days were “substantive, intensive, comprehensive,” though the other countries “weren’t ready” for Iran’s proposal. He said it’s up to Iran’s interlocutors to demonstrate their sincerity.

Failure to advance the talks may add to pressure on Iran, which is already subject to sanctions aimed at restricting its nuclear program, including curbs on oil sales and financial transactions that are squeezing its economy. The world powers say they imposed the measures to prevent Iran from obtaining atomic weapons, and the U.S. and Israel have threatened military strikes to achieve that goal if diplomacy doesn’t work. Iran says its nuclear program is peaceful.

No Breakthrough

Jalili and Ashton said they would contact each other over the next stage. The lack of a date for new talks is a break from the procedure of previous rounds of negotiations. After the last one, also in Almaty six weeks ago, officials from both sides had expressed optimism they may be nearing a breakthrough.

Russia’s deputy foreign minister, Sergei Ryabkov, said today there was little progress and the sides “need to do their homework.”

Ali Vaez, senior Iran analyst at the Washington-based International Crisis Group, said the latest talks represented “neither a breakdown, nor a breakthrough.” He said Iran may have “underestimated the other side’s resolve in increasing the pressure, tightening the screws,” while the P5+1 may have been surprised by Iran’s insistence that the endpoint of negotiations should be clearly set out at this stage.

Iran’s interlocutors in the talks, known as the P5+1, are the five members of the United Nations Security Council — the U.S., U.K., Russia, China and France — plus Germany.

Gold Trade

They have offered a partial easing of sanctions in return for Iran halting its enrichment of uranium to 20 percent purity, while Iran has sought a broader easing and recognition of its right to enrich. Ryabkov said today that lifting curbs on Iranian access to precious metals was part of the offer.

There was positive engagement and “some traction” in the latest talks, though the P5+1 were disappointed not to get a more concrete response from Iran, especially after Jalili had described the previous round as a “turning point,” said a U.S. official, speaking anonymously because of the issue’s sensitivity. The official said Iran is only offering “minimal” steps and expecting too much in return.

Jalili said that recognition of Iran’s right to enrich uranium under the nuclear Non-Proliferation Treaty would help move the talks forward.

Splits have emerged over whether to acknowledge that right. While Ryabkov today reiterated Russia’s position that Iran does have the right to enrich uranium once broader nuclear inspections are in place, the U.S. and Europe have so far declined to do so.

The UN Security Council has ordered the country to suspend production of the heavy metal, which can be used to generate nuclear power or atomic bombs. Iran has so far declined to do so before its enrichment rights are recognized.

Hormuz Threat

“We are not opposed to taking a step but we must know upon what foundations it rests,” Jalili said in response to a question about whether Iran would consider suspending enrichment. “When we talk about building trust this is not an abstract issue.”

Iran has the world’s fourth-largest proven oil reserves and has threatened to stop crude shipments through the Strait of Hormuz, a key trade route, if attacked. After reaching a nine-month high of $119 a barrel in February on concern over a conflict with Iran, Brent crude has declined as the tensions eased. It closed yesterday at $104.12, the lowest since July.

To contact the reporters on this story: Indira A.R. Lakshmanan in Almaty, Kazakhstan at Or ilakshmanan@bloomberg.net; Jonathan Tirone in Vienna at jtirone@bloomberg.net

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