Georgetown Security Law Brief

US imposes sanctions on those aiding Iran

05/10/13:  The New York Times reports the United States on Thursday expanded its roster of those violating Iran sanctions, blacklisting four Iranian companies and one individual suspected of helping the country enrich nuclear fuel. It also singled out two other companies, including a Venezuelan-Iranian bank, accused of helping Iran evade other Western-imposed prohibitions on oil sales and financial dealings.  The penalties announced by the Treasury and State Departments came a day after the Senate introduced legislation that could effectively deny the Iran government access to an estimated $100 billion worth of its own money parked in overseas banks, a step that proponents said could significantly damage Iran’s financial stability. That legislation, known as the Iran Sanctions Loophole Elimination Act, is expected to be integrated into a broader House measure introduced in February. The actions on Thursday appeared to signal an accelerated American effort to squeeze Iran economically over the lack of progress in negotiations on the disputed Iranian nuclear program, which Iran says is peaceful but the West has called a guise to achieve the ability to make atomic bombs. The latest round of negotiations last month ended inconclusively, and Western critics of Iran have accused it of stalling for time while it continues to enrich uranium.

China cuts ties with key North Korean bank

05/07/13:  The New York Times reports the state-controlled Bank of China said on Tuesday that it had ended all dealings with a key North Korean bank in what appeared to be the strongest public Chinese response yet to North Korea’s willingness to brush aside warnings from Beijing and push ahead with its nuclear and ballistic missile programs. Chinese analysts said the Bank of China’s move carried clear diplomatic significance at a time when the Obama administration has been urging China to limit its longtime support for the North Korean government. The Bank of China’s action also dovetails with a longstanding American effort to target the North Korean government’s access to foreign currency. Most countries’ banks already refuse to have any financial dealings with North Korea, making the Bank of China’s role particularly important. And in another sign of international pressure on North Korea, the United Nations announced Tuesday that it had appointed a prominent Australian jurist to lead a panel tasked with investigating human rights abuses and possible crimes against humanity in North Korea “with a view to ensuring full accountability.”

Report urges White House to rethink Iran penalties

04/18/13:  The New York Times reports a panel of former senior American officials and outside experts, including several who recently left the Obama administration, issued a suprisingly critical asssessment of American diplomacy toward Iran on Wednesday, urging President Obama to become far more engaged and to reconsider the likelihood that harsh sanctions will drive Tehran to concessions. In a report issued by the Iran Project, the former diplomats and experts suggested that the sanctions policy, rather than bolstering diplomacy, may be backfiring. As the pressure has increased, the group concluded, sanctions have “contributed to an increase in repression and corruption within Iran” and “may be sowing the seeds of long-term alienation between the Iranian people and the United States.” The critique comes as both Israel and Congress are urging the administration to go in the opposite direction, to put a sharp time limit on negotiations and, if necessary, to go beyond the financial and oil sanctions that have caused a tremendous drop in the value of the Iranian currency and sent inflation soaring.

Diplomats: Iran ups nuke technology

04/18/13:  The Washington Times reports technicians upgrading Iran's main uranium enrichment facility have tripled their installations of high-tech machines that could be used in a nuclear weapons program to more than 600 in the past three months, diplomats said Wednesday. They say the machines are not yet producing enriched uranium and some may be only partially installed. Still, the move is the latest sign that 10 years of diplomatic efforts have failed to persuade Tehran to curb its uranium enrichment. Instead, Iran continues to increase its capacities. The installations also suggest that Iran possesses both the technology to mass-produce centrifuges that can enrich much faster than its present machines and the ability to evade international sanctions meant to keep it from getting materials it needs to do so. Iran insists it has no interest in nuclear weapons and says it’s enriching uranium only for nuclear power and other nonmilitary applications. Iran also asserts it has a right to do so under international law.

Defiant Iran goes forth with 2 nuclear projects

04/09/13:  The Washington Times reports Iran put the finishing touch on its latest round of nuclear talks with world powers with a symbolic face-slap and on Tuesday jumpstarted two key nuclear-related projects. Iran-run media reported that the nation has started operations at Saghand and at Ardakan. The Associated Press said the sites represent two of Iran’s biggest uranium operations: Saghand is a uranium mine, and Ardakan is an ore concentrate production plant. As AP reported, Iran already has mines and processing facilities in operation. But those other facilities are much smaller than the ones at Saghand and Ardakan. And the West fears starting operations at these two central Iran sites gives the country greater ability to make the materials needed to enrich nuclear fuel - to ultimately, warhead grade levels. Iran is perceived by the United States and U.S. allies as bypassing U.N. sanctions against its purchase of nuclear materials by developing its own nuclear enrichment program to a level that allows it to construct its own — a charge that Iranian officials deny. Iran maintains its nuclear enrichment is for peaceable, energy-related purposes only.

Double-digit inflation worsens in Iran

04/02/13:  The New York Times reports Iran’s double-digit inflation rate worsened for the sixth consecutive month in March, the government said on Monday, in what appeared to be an implicit acknowledgment that international sanctions linked to the disputed Iranian nuclear program are causing some economic harm. The government’s statistics office said the rate increased in March to an annualized 31.5 percent, compared with 30.2 percent in February and 26.4 percent a year earlier, the semiofficial Mehr News Agency reported. The Mehr report did not offer an explanation for the increase except to specify that much of it was in the categories of food, beverages and tobacco. Many economists say the real rate could be at least double the official rate, partly because it does not fully take into account the prices of many imported goods, which have become prohibitively expensive. The main reason is the severe depreciation of the rial, Iran’s national currency, as the sanctions that have limited Central Bank activities and oil exports have taken hold. Some experts believe the Iranian inflation calculation deliberately understates the actual rate in order to present a public face of resistance to the coercive pressures inflicted by the sanctions, which have been imposed largely by the United States and European Union.

China punished North Korea as US asks for more

03/23/13:  The Miami Herald reports China is trying to punish ally North Korea for its nuclear and missile tests, stepping up inspections of North Korean-bound cargo in a calibrated effort to send a message of Chinese pique without further provoking a testy Pyongyang government. Freight handlers and trading companies at ports and cities near the North Korean border complain of more rigorous inspections and surprise checks that are raising the costs to doing business with an often unpredictable North Korea. Machinery, luxury goods and daily necessities such as rice and cooking oil are among the targeted products, the companies said, and business is suffering. North Korea's economic lifeline, China is showing signs of getting tough with an impoverished neighbor it has long supported with trade, aid and diplomatic protection for fear of setting off a collapse. The moves to crimp, but not cut off trade with North Korea come as Beijing falls under increased scrutiny to enforce new UN sanctions passed after last month's nuclear test, Pyongyang's third. US officials in Beijing for two days of talks to lobby China on enforcement said Friday that they were heartened by Chinese expressions of resolve. Spurring Beijing to cooperate, the US officials said, is a concern that North Korean behavior had begun threatening China's interests in a region vital to its economic and security.

China: US missile defense plan risks antagonizing North Korea

03/18/13: CNN reports China warned Monday that the United States’ plans to beef up its missile defenses against North Korea are likely to inflame tensions already running high over Pyongyang’s nuclear program.  “Bolstering missile defenses will only intensify antagonism, and it doesn’t help to solve the issue,” Hong Lei, a spokesman for the Chinese Ministry of Foreign Affairs, said at a news briefing in Beijing.  Defense Secretary Chuck Hagel announced Friday that the United States will deploy additional ground-based missile interceptors on the West Coast as part of efforts to enhance the nation’s ability to defend itself from attack by North Korea.  The announcement came after North Korea recently threatened a preemptive nuclear attack on South Korea and the United States in response to stepped-up UN sanctions over its latest nuclear test last month.

New Prime Minister says Bulgaria won't take lead in EU Hezbollah sanctions

03/17/13: Haaretz reports Bulgaria's new interim Prime Minister said Saturday he would not initiate any move to impose EU sanctions on the Islamist group Hezbollah, even though the country had implicated Hezbollah in a bombing at a Black Sea resort.  Marin Raikov did not give a reason for his decision, but it will likely be seen as a concession to Bulgarian opposition groups, who have argued the country could open itself up to more attacks if it takes the lead in blacklisting Hezbollah.  "Bulgaria will not initiate a procedure [for listing Hezbollah as a terrorist organization]," Raikov told state media.  "We will only present the objective facts and circumstances and let our European partners decide."  Last month, then-Interior Minister Tsvetan Tsvetanov said an investigation had linked Hezbollah to the Black Sea attack.

EU tightens Iran sanctions over human rights violations

03/11/13: The Miami Herald reports the European Union is tightening sanctions against Iran, concerned about alleged violations of human rights in the country.  EU foreign ministers, meeting Monday in Brussels, added nine people they said were “responsible for serious human rights violations” to the list of those subject to a travel ban and an asset freeze, bringing the number of people sanctioned in this way to eighty-seven.  The foreign ministers also decided to freeze the assets of one “entity,” meaning a company or organization.  The measures will be valid until April 13, 2014; the names of the targets will be published Tuesday.  Iran carried out at least fifty-five public executions in 2012, UN spokeswoman Cecile Pouilly has said.  Some 400 people were reportedly put to death in the country last year.

France, Israel express support for stronger Iran sanctions

03/10/13: The Space War blog reports French President Francois Hollande and his Israeli counterpart Shimon Peres said on Friday sanctions on Iran over its contested nuclear program are biting but need to be strengthened further.  “I have said how much we want the sanctions to be beefed up, which are already efficient,” Hollande said after meeting Peres.  Iran last month held talks with the five UN Security Council permanent members, plus Germany, in Kazakhstan.  “I was very glad to hear from [President Hollande] that he plans to take more measures because if we can end this danger without military use, it will be better,” Peres said.  Although Hollande and Peres both hold the title “President,” the latter is a figurehead; the real power in Israel lies with Prime Minister Benjamin Netanyahu, Peres’ former political rival.

North Korea warns of pre-emptive nuclear attack

03/07/13:  The New York Times reports North Korea on Thursday threatened for the first time to launch a pre-emptive nuclear strike against the United States and South Korea, issuing the warning as the United Nations was preparing tough new sanctions over its nuclear program.  The threat from the North Korean Foreign Ministry came hours before the United Nations Security Council was scheduled to meet on the sanctions, which are  aimed at squeezing the international financing of the already isolated regime in Pyongyang. Calling such sanctions "an act of war," North Korea has sharply escalated its threats against the United States and its allies in the last few days, declaring the 1953  armistice that stopped the Korean War null and void and threatening to turn Washington and Seoul into "a sea in flames" with "lighter and smaller nukes."

IAEA head seeks access to Iranian military facility

03/04/13: The New York Times reports the head of the United Nations’ nuclear regulatory body urged Iran on Monday to permit access by international inspectors to a military site near Tehran to ascertain whether tests have been carried out there on nuclear bomb triggers.  International Atomic Energy Agency director Yukiya Amano spoke just weeks after IAEA inspectors returned from talks in Tehran that failed to obtain access to the Parchin site, twenty miles south of Tehran.  “I request Iran once again to provide access to the Parchin site without further delay,” Amano said.  The talks about Parchin are separate from the negotiations Tehran is conducting with six global powers on the broader question of its disputed nuclear program.  Western powers suspect that Iran is seeking the technology for nuclear weapons.

Iran says it has 3,000 advanced centrifuges

03/03/13: The Miami Herald reports Iran’s nuclear chief says his country has produced more than 3,000 advanced centrifuges which are used to enrich uranium.   Fereidoun Abbasi said Sunday that the old generation of IR-1 centrifuges will be phased out soon.  Iran has more than 12,000 IR-1 centrifuges enriching uranium at its main Natanz uranium enrichment facility in central Iran.  Abbasi said last month that Iran has begun installing the newer IR-2 centrifuges, which can produce more enriched uranium in a shorter period of time.  He said the production line of the new, advanced centrifuges has been completed but did not elaborate.  The US and its allies fear that Iran may eventually be able to develop a nuclear weapon, a charge Tehran denies.  Iran has repeatedly been hit with sanctions over the program.

Pakistan-Iran pipeline work 'to begin on 11 March'

03/01/13:  The BBC reports work on a gas pipeline between Iran and Pakistan will begin on 11 March, Pakistani officials say. The project has led US officials to warn that it may fall foul of sanctions on Iran's nuclear programme. The long-delayed project is seen in Pakistan as a way of combating the country's chronic energy shortages with supplies of Iranian gas. Officials told Pakistani media they hoped the presidents of both countries would attend a ceremony on 11 March. Officials say the pipeline on the Iranian side of the border has been completed, and that this month will see the start of work on the project in Pakistan. On Wednesday, the US warned Pakistan to "avoid any sanctionable activity" in connection with the project. Power shortages have become a major issue in Pakistan, with the government ordering an investigation into a nation-wide power cut on Sunday blamed on a technical fault in a plant in south-western Balochistan province.

Lawmakers introduce bipartisan measure to toughen Iran sanctions

02/28/13:  The New York Times reports as Iranian negotiators spoke in positive tones about their resumed nuclear negotiations with the big powers, Congressional lawmakers in Washington introduced legislation on Wednesday that would greatly expand the sanctions on Iran, amounting to what both supporters and critics said would be like a commercial trade embargo if fully carried out. The bipartisan measure, which was expected to pass both the House and the Senate, would build on existing laws that restrict business dealings with Iran, widen the list of blacklisted Iranian companies and individuals and potentially block Iran’s access to its foreign bank assets held in euros. That access has been one of the country’s few remaining avenues for repatriating profits that are not held in dollars, which have been greatly constricted by other sanctions. The legislation, named the Nuclear Iran Prevention Act, also would penalize foreign companies and individuals that violate the American sanctions by threatening them with restrictions on doing business with the United States, a coercive tactic integrated into earlier, narrower sanctions.

Iran to be offered sanctions relief in exchange for shutting down nuclear plant

02/25/13: Reuters reports major powers will offer Iran some relief from crippling sanctions during talks in Almaty, Kazakhstan, this week if Tehran agrees to curb its nuclear program.  However, a US official said the Islamic Republic could face more economic pain if the standoff remains unresolved.  Reports indicate the United States, Russia, China, Britain, Germany, and France will offer to ease sanctions on trade in gold and precious metals if Iran closes its Fordow underground uranium enrichment plant.  Iranian officials have indicated, however, that this will not be enough.  The US hopes the Almaty meeting February 26-27 will lead to follow-up talks, and the United States may also be prepared to hold bilateral talks with Tehran if it was serious about it.

Iran: Pistachio exports suspended

02/16/13:  The New York Times reports Pistachio nuts, one of Iran’s most profitable products, appear to be latest victim of domestic inflation, so much so that the government has ordered a moratorium on exports as part of an effort to increase the supply at home and reduce the price, which has doubled just in the past month. The Associated Press quoted Vice President Mohammad-Reza Rahimi as saying the export ban would last for six months. But it was unclear whether the move, which he announced Friday, would reduce domestic prices, particularly in time for Nowruz, the coming New Year holiday when pistachios are in especially high demand. It was also unclear to what extent the higher price reflected the declining value of the rial, Iran’s currency, which has been weakened by the effects of Western sanctions and what critics call the government’s economic mismanagement. The chairman of Iran’s chamber of exports, Asadollah Asgaroladi, was quoted by the Fars News Agency as calling the export moratorium a mistake that would do little to ease the price and probably cost Iran more than $500 million in lost export revenue.

UN condemns North Korea nuclear test

02/13/13: Al Jazeera reports the UN Security Council has “strongly condemned” North Korea’s third nuclear test and vowed to take action against Pyongyang.  “The members of the Security Council strongly condemned this test, which is a grave violation of Security Council resolutions,” said South Korean Foreign Minister Kim Sung-hwan, whose country is president of the Council this month.  He said the council would now consider “appropriate measures” but did not elaborate on what those might be.  The nuclear test drew universal condemnation from several countries and organizations, including the US and Pyongyang’s usual ally China.  UN Secretary-General Ban Ki-moon said it was “deplorable” that North Korea had defied international appeals to refrain from such provocative acts.  Ban’s spokesman called the test “a clear and grave violation of the relevant Security Council resolutions.”

US increases pressure of economic war on Tehran

02/07/13:  The New York Times reports the West escalated the economic war another notch on Wednesday, imposing a new set of restrictions intended to force Iran into what amounts to a form of barter trade for oil, because payments for oil deliveries can no longer be sent to accounts inside Iran.  A senior Obama administration official called the latest step “a significant turning of the screw,” repeating the administration’s four-year argument that the mullahs here face a “stark choice” between holding on to their nuclear program and reviving their oil revenue, the country’s economic lifeblood.  But there is little confidence among American officials in Washington — and little evidence on the streets of Tehran — that even newly stringent sanctions have much chance of forcing Iran’s supreme leader, Ali Khamenei, into striking the deal that most Americans and Europeans, and even some Israelis, say could defuse the crisis.

Iran's supreme leader rejects direct talks with US

02/07/13:  The Miami Herald reports Iran's supreme leader Thursday strongly rejected proposals for direct talks with the United States, effectively quashing suggestions for a breakthrough one-on-one dialogue on the nuclear standoff and potentially other issues.  The statement posted on Ayatollah Ali Khamenei's website echoes previous remarks opposing bilateral talks with Washington in parallel with stop-and-start nuclear negotiations with world powers, including the US, which are scheduled to resume later this month.  But the latest comments marked Khamenei's first reaction since the idea of direct talks received a high-profile boost earlier this week from US Vice President Joe Biden during a security summit in Munich attended by Iran's foreign minister.

US urges lifting of UN arms embargo against Somalia

02/06/13: Reuters reports the United States is urging fellow members of the UN Security Council to agree to demands by the government in Mogadishu to lift the arms embargo on Somalia, which has been in place for the past twenty-one years.  Washington’s push comes after UN Secretary-General Ban Ki-moon said last week that the Council should consider lifting the embargo to help rebuild Somalia'’ security forces and consolidate military gains against al-Qaeda-linked al-Shabaab militants.  The Security Council imposed the embargo in 1992 to cut the flow of arms to feuding warlords.  “I think we’ll come down in terms of having probably a political lift of the arms embargo but retaining some controls,” said a senior Western diplomat.  Britain and France have been reluctant to support ending the arms embargo.

EU proposes Iran nuclear talks in Kazakhstan

02/03/13: Al Jazeera reports a spokesman for the European Union’s foreign policy chief said Sunday that world powers have proposed holding a new round of talks with Iran over Tehran’s nuclear program the week of February 25 in Kazakhstan.  But Catherine Ashton’s team, which coordinates diplomatic contacts with Iran on its nuclear program on behalf of the United States, Russia, China, France, Germany and Britain, is still hoping for confirmation of the date and venue from Tehran.  Earlier on Sunday, Iranian Foreign Minister Ali Akbar Salehi confirmed the proposal for the new round of talks but stopped short of pledging Iran’s attendance.  Iran and the six nations held three rounds of talks last year aimed at resolving the standoff over Iran’s nuclear activities.

Iran seeks "authentic" bilateral talks with US

02/03/13: BBC News reports Iran’s Foreign Minister says the country welcomes an American offer of bilateral nuclear talks, but wants the US to show an “authentic … fair and real intention to resolve the issue.”  Ali Akhbar Salehi said the US should stop threats to take action against Iran as it offers talks.  He was speaking at a security conference in Germany a day after Vice-President Joe Biden told the gathering Iran had to be “serious” on the issue.  International talks on Iran’s nuclear program are due later this month.  Iran is under an array of UN-imposed sanctions.  Western countries suspect it wants to develop nuclear weapons, but Tehran says its nuclear program is for energy generation and research.

Iran 'steps up Syria support'

02/01/13:  The BBC reports Iran has stepped up its military and financial aid to the Syrian government, departing US Secretary of State Hillary Clinton has warned.  Mrs Clinton said there were also signs that Russia continues to supply Syria with money and "equipment".  A spilling-over of the conflict into neighbouring countries was "within the realm of the possible now", she said.  Her comments came amid contradictory claims of an Israeli strike in Syria.  The Syrian army said Israeli war planes had bombed a military research centre north-west of Damascus, but the US and others said lorries carrying weapons bound for Lebanon were hit.  Israel has maintained silence about the incident, but Syria has made a formal complaint to UN, saying it reserves the right to defend itself. Meanwhile, Russia and Iran have strongly denounced the attack.

US urges North Korea to scrap possible nuclear test

01/28/13: The Miami Herald reports a US envoy says North Korea is playing a dangerous game with the international community by threatening a nuclear test.  Glyn Davies, US Special Representative for North Korea Policy, urged Pyongyang on Monday to return to its international obligations and abandon its nuclear programs.  Davies met with Japanese Foreign Ministry officials in Tokyo to discuss the anticipated nuclear test, after visiting Seoul for similar talks over the weekend.  North Korea said Sunday that leader Kim Jong Un had ordered top security and foreign affairs officials to take “substantial and high-profile important state measures.”  The move fueled speculation that North Korea is going ahead with a threat to explode a nuclear device in defiance of the United Nations.

South Korea uncovers trillion-dollar transfer of frozen Iran cash

01/25/13:  The Washington Times reports South Korean legal authorities have arrested a Korean-American on charges related to the illegal transfer of $1.09 trillion in Iran funds that had been frozen due to international sanctions.  The suspect, a 73-year-old unnamed man, began the alleged fraudulent transfers in 2011, authorities said, in a Reuters report.  The scale of the transfer is what’s most alarming, prosecutors are saying. It’s not yet clear whether the money was to be used to bolster Iran’s nuclear program.  The suspect had contacts in Iran and in the United Arab Emirates, and was alleged to have moved the money from a South Korean bank using fake invoices into third-country accounts.

North Korea turns its combativeness toward the South

01/25/13:  The New York Times reports North Korea threatened on Friday to take “physical countermeasures” against South Korea if it helps enforce sanctions against the besieged North, calling the United Nations-endorsed penalties a “declaration of war” and warning of a prolonged chill in the relations between the two Koreas.  North Korea’s confrontational posture was likely to significantly limit room for the South’s incoming conservative president, Park Geun-hye, to make overtures for reconciliation with the North.

Defiant North Korea hints at new nuclear test

01/23/13: The New York Times reports North Korea said on Wednesday that its nuclear weapon program was no longer negotiable, and indicated that it might conduct its third nuclear test to retaliate against the United Nations Security Council’s tightening of sanctions against the isolated yet highly militarized country.  Although it was not the first time North Korea issued such strident rhetoric, its posture, coming under the new leadership of Kim Jong-un, threw a direct challenge to President Barack Obama as he starts his second term, and Park Geun-hye, who will be sworn in as president of South Korea next month.  Simultaneously, Washington reaffirmed its policy of punishing North Korea for moving toward the development of long-range missiles tipped with a nuclear warhead when it spearheaded international backing for a unanimous Security Council resolution on Tuesday.

Russia warns Israel, West against attacking Iran

01/23/13: Reuters reports Russia warned Israel and the West on Wednesday against any military strikes on Iranian nuclear facilities but suggested Tehran should be quicker to cooperate over inspections of its nuclear sites.  Russian Foreign Minister Sergei Lavrov mixed words of caution over attacking Iran with a gentle nudge to Tehran over the inspections by the International Atomic Energy Agency (IAEA).  “Attempts to prepare and implement strikes on Iranian nuclear facilities and on its infrastructure as a whole are a very, very dangerous idea.  We hope these ideas will not come to fruition,” Lavrov said.  Israeli Prime Minister Benjamin Netanyahu has hinted strongly at possible military action to stop Iran from developing an atomic bomb.  Lavrov added that he hopes Tehran will agree to inspections by the IAEA and should act “a little bit faster.”

Iran finding some ways to evade sanctions, Treasury Department says

01/11/13:  The New York Times reports despite onerous sanctions that have basically shut Iran out of the global financial system, the country is still finding some ways to bypass them, the Treasury Department said Thursday, describing what it called a small but  “emerging threat” to the effectiveness of the sanctions effort.  Adam Szubin said the Iranians were using private exchange houses and trading companies in other countries, masking transactions with fake identities and relying on the paperless practice known as hawala, common in parts of the Middle East and Asia, in which money is transferred informally and often illegally through trustworthy couriers. Mr. Szubin’s office issued an advisory on Thursday aimed at informing American financial institutions about what it called Iranian evasion techniques to circumvent the sanctions, which have been greatly intensified partly in response to Iran’s disputed nuclear program.

Iran annual inflation hits 27.4 percent

01/10/13:  The Miami Herald reports Iran's central bank says the annual inflation rate hit 27.4 percent at the end of 2012, one of the highest rates ever quoted by Iranian authorities.  The soaring rate is attributed to Western sanctions over Iran's suspect nuclear program and government mismanagement.  The figure was posted on the bank's website Wednesday. It reflects worsening economic conditions under President Mahmoud Ahmadinejad, who has come under criticism both from reformist opponents and conservatives, former allies who helped him win a disputed election in 2009.  Besides rampant inflation, Iran's currency faces collapse. In October, the Iranian rial lost about 50 percent of its value within a week.

Iranian oil revenues 'drop 45%' because of sanctions

01/08/13:  The BBC reports Iranian oil revenues have fallen around 45% in the last nine months because of Western sanctions, a leading Iranian politician says. Gholam Reza Kateb, an MP on the national planning and budget committee, said the country's economy as a whole was in trouble. In a further sign of the crisis, the oil ministry has stopped selling fuel to some airlines over unpaid bills. Oil exports account for a majority of the Islamic republic's revenue. In recent weeks, the oil minister has insisted that Iran has successfully bypassed oil sanctions.

Penalties on Iran sanction strengthened by US and Europe

12/22/12:  The New York Times reports the United States and Europe announced strengthened sanctions against Iran on Friday, increasing the number of blacklisted companies and individuals linked to the Iranian nuclear program, in coordinated actions that underscored the failure to resolve one of the most intractable international disputes.   Under the expanded sanctions, the Treasury Department blacklisted fourc ompanies and one person, and the Eurpean Union blacklisted 18 companies and one person.  The Treasury said one of the four companies was also involved in supplying weapons to the military of Syria’s president, Bashar al-Assad, Iran’s Middle East ally, who has been fighting an insurgency for nearly two years.

After North Korean rocket launch, call for new sanctions

12/13/12:  The New York Times reports the US and its Asian allies began an effort on Wednesday to impose additional sanctions on North Korea after its largely successful rocket launching, but this time Washington added a warning to China: Failure to rein in Kim Jong-un, the North’s new leader, will result in an even greater American military presence in the Pacific.  The Chinese government, which sent a delegation to Pyongyang last month to warn against the missile test, said it “regrets” the launching, which put a 200-pound earth surveillance satellite into orbit.

Thousands of Iranian troops will participate in 'biggest ever' military drill

11/13/12:  NPR reports Iran has initiated a massive week-long air defense drill amidst growing international pressure over its nuclear ambitions and last week's firing on a U.S. drone they claim entered Iranian air space. Iran will test its air defense system, named "Mersad," meaning ambush in Persian. While Iran routinely conducts such exercises, the Iranian government's official English-language news outlet dubbed the endeavor the biggest military drill in Iran's history. The defense exercise includes around 8,000 troops covering roughly 330,000 square miles across Iran, equipped with fighter jets, bombers, unmanned aircraft, and missile systems. Mersad has the power to hit a flying object up to 30 miles away.

To combat sanctions, Iran buys up gold

11/10/12:  NPR reports Iran is stockpiling gold. That's the way David Cohen sees it. He's undersecretary of the Treasury, and the Treasury's point man for the banking sanctions the U.S. has imposed on Iran. "Iran is attempting to hoard gold, both by acquiring it and by preventing the export of gold from Iran, in a somewhat desperate attempt to try and defend the value of its currency," Cohen says. Iran faces an oil embargo from many Western countries, and the U.S. has also imposed tough banking sanctions. Iran still manages to sell some oil, although a reduced amount, to neighboring Turkey. Turkey is paying Iran in Turkish lira, which is not a strong currency, notes Muhammad Sahimi, who writes for the website Tehran Bureau.

Iran, UN nuclear agency plan December talks

11/09/12:  Reuters reports the UN nuclear agency said it would hold a new round of talks with Iran on its atomic program next month, in the latest push to resolve a dispute that has raised fears of war in the Middle East. The United Nations' International Atomic Energy Agency (IAEA) said it hoped the talks in Tehran would produce an agreement that would allow it to resume a stalled investigation into possible military aspects of Iran's nuclear program.

UN adds Haqqani network to Taliban sanctions list

11/06/12:  The BBC reports the UN Security Council's Taliban sanctions committee has added the Pakistan-based Haqqani network, accused of attacks in Afghanistan, to its blacklist. A travel ban, arms embargo and asset freezing are part of the sanctions. It comes after the US said it had decided to designate the group a terror network, subjecting it to sanctions.

US designates Haqqani chief as global terrorist

11/06/12:  CNN reports the chief of suicide operations for a Pakistan-based terror organization has been officially listed as a "terrorist" by the United States, coinciding with a similar action by the United Nations on Monday. Qari Zakir, chief of suicide operations for the Haqqani Network, was labeled a specially designated global terrorist under the authority of an executive order. The designation blocks Zakir from all of his property that is subject to US jurisdiction and prohibits any US nationals from engaging in any transactions on behalf, or for the benefit, of Zakir.

Iran sanctions take unexpected toll on medical imports

11/03/12:  The New York Times reports Iranian doctors, patients and officials say that, in particular, a ban on financial transactions is so effective that even medicines and other critical supplies that are exempted from the sanctions for humanitarian reasons are no longer exported to the Islamic Republic.

Iran bans export of 50 goods as sanctions bite: report

10/30/12:  Reuters reports Iran banned the export of around 50 basic goods, its media said on Tuesday, as the country takes steps to preserve supplies of essential items in the face of tightening Western sanctions. The Islamic Republic is under intense financial pressure from U.S. and European trade restrictions imposed over its disputed nuclear programme.  Iranian traders will no longer be able to export goods including wheat, flour, sugar, and red meat, as well as aluminium and steel ingots, according to a letter from Deputy Industry Minister Seyyed Javad Taghavi published in Iranian media on Tuesday.

Iran said to nearly finish nuclear enrichment plant

10/26/12:  The New York Times reports intelligence officials from several countries say Iran in recent weeks has virtually completed an underground nuclear enrichment plant, racing ahead despite international pressure and heavy economic sanctions in what experts say may be an effort to give it leverage in any negotiations with the United States and its allies.  The installation of the last of nearly 3,000 centrifuges at a site called Fordo, deep under a mountain inside a military base near the holy city of Qum, puts Iran closer to being able to build a nuclear weapon, or come up to the edge, if its leaders ultimately decide to proceed.

Chinese rare earths producer suspends output

10/25/12:  PhysOrg reports China's biggest rare earths producer has suspended output in an effort to shore up slumping prices of the materials used by makers of mobile phones and other high-tech products.  It gave no indication when production would resume and phone calls to Baogang were not answered. The suspension comes amid efforts by China's government to tighten control over rare earths mining and exports to capture more of the profits that flow to Western makers of lightweight batteries and other products made of rare earths.

Iran arrests 50 over currency slide

10/24/12: The Miami Herald reports Iran’s intelligence chief says up to fifty people have been arrested in connection with the decline in the value of the national currency and the chaos that followed the slide.  Heidar Moslehi says those detained have been accused of cooperating with the country”s enemies to create currency “disruptions” and economic instability.  He spoke after a Cabinet meeting Wednesday.  Iran’s rial has lost nearly 40 percent of its value against the US dollar this month.  The rate Wednesday – about 31,500 rials to the dollar – was a bit better than the record low of 35,500 rials to the dollar earlier this month.  The rial’s decline has been blamed on a combination of government mismanagement and the bite from Western sanctions imposed over Iran’s nuclear program.

Commentary: The limits of deterrence with Iran

10/23/12:  In an article by Ruth Hanau Santini the Brookings Institute argues the logic behind Western sanctions targeting several economic sectors (but far yet from being a full trade embargo) in Iran is straightforward: economic and financial isolation, the devaluation of the national currency, the rising inflation and unemployment will increase domestic pressure on the government and lead it either to capitulation in nuclear negotiations or to regime change if domestic unrest will be massive. The diplomatic window will likely close next spring, with the upcoming Iranian presidential elections scheduled for June.

Iran says it might stop oil sales if sanctions tighten

10/23/12:  The New York Times reports Iran said on Tuesday it would stop oil exports if pressure from Western sanctions got any tighter and it had a "Plan B" contingency strategy to survive without oil revenues.  If sanctions intensify we will stop exporting oil," Iranian oil minister Rostam Qasemi told reporters in Dubai. Qasemi's statement is the latest in a series of threats of retaliation by Tehran in response to the sanctions, which have heightened political tensions across the Middle East and, analysts say, led to a sharp drop in Iranian oil exports.

EU agrees to new sanctions on Iran

10/15/12: Reuters reports European Union governments agreed to major sanctions against Iran’s banking sector, shipping, and industry on Monday, tightening financial pressure on Tehran over its nuclear program amid foundering diplomacy. “Restrictive measures and conclusions on Iran [were] adopted,” said an EU statement from a meeting of foreign ministers in Luxembourg. The new sanctions mark one of the toughest pushes against Iran by Europe to date and a significant change of policy for the 27-member bloc, which has so far focused on targeting specific people and Iranian companies with economic restrictions. The measures include a ban on financial transactions, with some exceptions for those involving humanitarian aid, food and medicine purchases and provisions for legitimate trade.

Iran budget under pressure

10/09/12: Reuter reports Iran's state budget is under pressure and the government has cut spending in some areas, President Mahmoud Ahmadinejad was quoted as saying as the country struggles to cope with Western economic sanctions. "Right now in terms of the budget we are under pressure," Ahmadinejad said in a speech on Tuesday, according to the Iranian Students' News Agency. "In many places the budget has become zero or has been cut by 25 percent," he said without elaborating. Ahmadinejad did not mention reasons for the pressure but his remarks appeared an indirect acknowledgement that the sanctions, imposed over Iran's disputed nuclear program, are having a major impact on state revenues.

Iran offers plan, dismissed by US, on nuclear crisis

10/05/12:  The New York Times reports with harsh economic sanctions contributing to major protests in Iran, Iranian officials have begun to describe what they call a “nine-step plan” to defuse the nuclear crisis with the West by gradually suspending the production of the uranium that would be easiest for them to convert into a nuclear weapon. But the plan requires so many concessions by the West, starting with the dismantling of all the sanctions that are blocking oil sales and setting off the collapse of the Iranian currency, that American officials have dismissed it as unworkable. Nonetheless, Iranian officials used their visit to the United Nations last week to attempt to drum up support, indicating that the country’s supreme leader, Ayatollah Ali Khamenei, is finally feeling the pressure.