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Developing nuclear weapons - World powers contemplate Iran sanctions

Posted by Shahid Abbas

Wednesday, 06 January 2010 18:23

The most powerful Western European nations - France, Germany and Britain, as well as the United States are convinced that Iran's regime is secretly developing nuclear weapons under the "camouflage of a civilian nuclear power program" [1]. Russia and China, which have both been unwilling in the past to take a hard stance on Iran, supported a resolution issued by the IAEA in November 2009 are indicating serious concern. The resolution called for an immediate freeze on Iran's nuclear weapons development program.[2] On December 21, 2009, France's Foreign Minister Bernard Kouchner said that the international community had no other choice than to impose new sanctions on Iran for its refusal to comply with demands from the West. "I think there is no other solution," he said, pointing out that Russia was already "on board".[3] The White House wants the new sanctions to be focused on the Islamic Revolutionary Guards Corps (IRGC),the government body believed to run Iran's nuclear program.[4]

The United States under President Obama has been working on a "menu" of sanctions that could be imposed by the UN or by the US in coordination with the EU.[5] The sanctions could include expanding travel bans for individuals and institutions that have close ties to Iran's government and the IRGC. European states however, are more in favor of sanctions that target the banking sector and Iran's financial and insurance market. Experts say discussions over what sanctions to impose were unlikely to begin in earnest within the U.N. Security Council before mid-January. Negotiations could take several months. [6] The US is trying to mobilize Arab and Asian states to join Europeans in cutting of financial transactions with front companies for the IRGC. The Obama administration suggests that a new round of sanctions would be timely as the domestic unrest would make Iran's leaders "particularly vulnerable".[7]

On January 2, 2010, Iran's Foreign Minister Manouchehr Mottaki said that Iran's government has set a deadline for February 1, 2010, for the West to accept its counter proposal to the deal proposed by the UN aimed at easing international concerns over Iran's controversial nuclear weapons development program. "This is an ultimatum. The international community has only one more month to make a decision. Otherwise, Tehran will enrich uranium to the higher purity needed for the fuel," Mottaki said [8]

Despite numerous resolutions issued by the UN Security Council as well as sanctions imposed by Europe, Iran continues to ignore all international actions designed to pressure it to stop its uranium enrichment program. Instead, the Islamic Republic called the sanctions illegal,[9] Iranian President Mahmoud Ahmadinejad dismissed them as a "childish idea and a big mistake"[10] and Iran's Supreme Leader Ayatollah Ali Khamenei said Iran has "shown world powers they cannot block its nuclear progress."[11]

On December 22, 2009, Ahmadinejad once again dismissed a deadline that was imposed by the West and supposed to expire before the end of 2009, urging Iran to ship much of its low-enriched uranium abroad for further processing. Ahmadinejad responded to the offer by saying: "Who are they to set us a deadline?"[12] In response to Ahmadinejad's non-compliance with the deadline, US Press Secretary Robert Gibbs said that the American delegation, together with the P5+1, is going to "move accordingly". He further added that "preparations have already begun since Iran is unwilling to pursue its responsibilities."[13] Officials from the P5+1 held a conference call on December 22, 2009 and Assistant Secretary of State P.J. Crowley said the group "united its resolve that Iran must either answer the questions that we have about its nuclear aspirations or face additional pressure" and that Washington would be "consulting broadly across the international community in the coming days and weeks" about its options.[14]

Iran has not totally dismissed negotiating a deal with the West though many believe Iran is negotiating in bad faith merely to buy time to produce an nuclear bomb.[15]

Significantly stronger measures than the previously issued sanction package is an effective step the international community can take at this point in order to prevent Iran's regime from going nuclear. Earlier this year, French President Nicolas Sarkozy declared: "We have only one solution left, reinforce sanctions against Iran [...]."[16] German Chancellor Angela Merkel also previously announced: "We are ready to adopt stricter sanctions: it's a must that we prevent Iran having nuclear weapons."[17]

Recent revelations that Iran is secretly working on a nuclear bomb trigger underscores the need for new, effective sanctions against the regime.[18] On November 27, 2009, the IAEA demanded that Iran immediately freeze its operations at a formerly secret nuclear facility near the Iranian holy city of Qom.[19] That same day, the IAEA Board of governors passed a resolution calling for Iran's "full cooperation" to clarify all outstanding issued involving its nuclear program. This was the IAEA's first adoption of a resolution against Iran after the one issued in 2006.[20]

Ahmadinejad said warnings by Western powers that Iran would be isolated were "ridiculous".[21] He further said: "[ ...] isolating Iran is impossible. [...] Any finger which is about to pull the trigger will be cut off."[22]

According to experts, the most serious ideas for strong effective sanctions are:

Naval blockade targeting refined oil
While it is the second largest oil exporter within the Organization of the Petroleum Exporting Countries (OPEC) and possesses the world's second largest natural gas reserves, Iran does not have enough oil refineries, which is why Iran needs to "re-import its own oil once refined".[23] The BBC reported: "the strongest tool in the armory of the U.S. and Europe may be to impose an embargo on petrol sales to Iran."[24] A naval blockade on Iran would prevent the Islamic Republic from importing refined oil. This would have a huge impact on Iran's economy and would be "virtually crippling the Islamic Republic's infrastructure."[25] According to Olivier Guitta from the "Middle East Times", since sanctions and resolutions have not proved effective, the "only weapon that can avert a war" with Iran is to use an energy blockade as a last resort.[26] 85% of Iran's revenue comes from oil.[27] Iran therefore has two vulnerabilities within its system: Not only is the country dependent on oil for financial reasons but it also needs to get its own refined oil. Embargos or naval blockades would obviously endanger Iran's stability. A possible international export ban of "refined petroleum products to Iran, coupled with an embargo" on the oil that Iran is exporting every day, could "jeopardize the regime," writes Guitta.[28] In October 2008, US President Obama said: "If we can prevent them [Iranians] from importing the gasoline that they need, and the refined petroleum products, that starts changing their cost-benefit analysis. That starts putting the squeeze on them."[29]

On December 16, 2009, the US House of Representatives approved the Iran sanctions bill, imposing sanctions on foreign companies that help supply fuel to Iran. The bill is a measure to punish the Islamic Republic over its nuclear program and permits President Barack Obama to impose sanctions on firms that directly provide Iran with fuel.[30] Obama administration officials said that the move to impose sanctions against Iran will begin in January 2010.[31]

Freezing assets and issuing travel bans
In December 2009 Crédit Suisse was forced to pay 536 million dollars for helping clients in Iran (and elsewhere) conduct secret financial transactions. Crédit Suisse "established a business model to allow these rogue players access to U.S. dollars."[32] The Crédit Suisse fines are part of efforts to use the global financial system to pressure Iran to stop its nuclear weapons development program.[33]

In January 2009, the British Bank Lloyds TSB was fined 350 million dollars for aiding Iran and Sudan in evading US sanctions.[34] The sanctions were violated by Lloyd's TSB which deliberately falsified wire transfers to disguise their origin, channeling Iranian (and Sudanese) money into the American banking system between 1995 and 2007.The US Justice Department said that between 1995 and 2007, Lloyd's TSB routinely removed customer names, bank names and addresses from payments so that wire transfers would pass undetected through filters at US institutions.In a plea agreement,[35] Lloyd's TSB admitted a single charge of violating the US International Emergency Economic Powers Act. The bank will serve a form of probation for two years. This was the biggest penalty ever issued for a breach of US sanctions.[36]

According to The Financial Times and Il Reformista, an Italian newspaper, the EU3 have issued a list of 34 Iranian entities and 10 individuals allegedly linked to Iran's nuclear or biological weapons program. The list includes state-run organizations like the Sharif University of Technology, Iran Insurance Company, Iran Air Cargo, Iran Space Agency and Razi Institute for Serum and Vaccine Production. Six banks are also named, including Bank Tejarat.[37]

On March 13, 2009, U.S. President Barack Obama extended one of the many sanctions against Iran imposed in 1995 under the Clinton administration because Tehran "dealt in terrorism and sought weapons of mass destruction."[38] The sanctions prohibit US companies from helping the development of the Iranian oil industry, trading or investing with the Islamic Republic.[39] Furthermore, Iran faces UN Security Council sanctions over its refusal to halt its uranium enrichment program, which the Islamic regime ignored over the past five years.[40]

In March 2009, US Treasury Department imposed sanctions on 11 companies linked to Iran's Bank Melli, which play a major role in Iran's nuclear and ballistic missile programs.[41] Bank Melli is labeled as a "proliferator" by the US, the EU and Australia for its role in Iran's nuclear and ballistic missile program. "The international community has recognized the proliferation risks posed by Iran's Bank Melli. We will continue to take steps to protect the integrity of the international financial system by exposing the banks, companies, and individuals supporting Iran's nuclear and missile programs," Under Secretary for Terrorism and Financial Intelligence Stuart Levey said.[42] Bank Melli provides financial services for Iranian front companies and entities engaged in proliferation activities. Bank Melli has also facilitated the purchase of sensitive materials used by Iran's nuclear and missile industries and has handled transactions for other designated Iranian entities, such as Bank Sepah, Defense Industries Organization and Shahid Hammat Industrial Group.[43]

In July 2009 the EU announced that it will not release the assets of Bank Melli because of the sanctions imposed against Iran. A Luxembourg-based court on behalf of the EU said : "Freezing of the funds of entities owned or controlled by an entity engaging in nuclear proliferation is necessary and appropriate in order to ensure effectiveness of the measures adopted."[44]

More than 2 billion US dollars allegedly held on behalf of Iran in Citigroup Inc. accounts were ordered frozen by a US court in 2008. This appears to be the biggest seizure of Iranian assets abroad since the Islamic Revolution in 1979. US Defense Secretary Robert Gates on December 11, 2009 said: "I think that you are going to see some significant additional sanctions imposed by the international community."[45]

Prevent arms sales to Iran
Iran has an "antiquated missile defense system, dating back to the 1960's and 1970's".[46] Iran has therefore decided to increase its military capabilities through domestic and international sources. In 2006, the United States called on all countries to stop arms exports to Iran.[47]

In March 2007, the UN Security Council imposed a round of sanctions against Iran, leading to a ban on arms sales and expanding the freeze on assets. The resolution imposes a strict import and export ban on Iranian weapons, stating that: "Iran shall not supply, sell or transfer directly or indirectly from its territory or by its nationals or using its flag vessels or aircraft any arms or related materiel, and that all States shall prohibit the procurement of such items from Iran by their nationals, or using their flag vessels or aircraft, and whether or not originating in the territory of Iran."[48]

UN diplomats have said that since Iran is already under sanctions, the most the UN committee could do at this time was try to embarrass Tehran as much as possible.[49]

In November 2009, Jacques Monsieur, a Belgian arms dealer faced maximum prison sentence for illegally exporting jet engines and parts from the US to Iran.[50]

On March 18, 2009, a defense official in the Federal Military-Technical Cooperation Service confirmed that Russia and Iran signed a contract enabling Russia to sell S-300 air-defense missiles to Iran. One month before, Russia froze the sale of S-300 anti-aircraft missiles to Iran.[51] Russian media had previously reported that Iran sought to buy Russian surface-to-air S-300 missiles.[52] The S-300 is one of the most sophisticated missile systems in the world[53] and supplying it to Iran would "markedly change the military balance in the Middle East."[54]

Global Arab Network

References:

* Source: Réalité-EU

[1] „Sensitive points added to Iran’s nuclear issue”, Xinhua, March 19, 2009,  http://news.xinhuanet.com/english/2009-03/19/content_11034413.htm

[2] „Russia, China back U.S. on Iran resolution,“ Uinted Press International, November 27, 2009, http://www.upi.com/Top_News/International/2009/11/27/IAEA-resolution-rebukes-Iran-over-facility/UPI-71161259324813/

[3] „France: Iran sanctionsa must,“ Agence France Presse, December 21, 2009, http://www.ynetnews.com/articles/0,7340,L-3823194,00.html

[4] Sanger, David E.; Broad, William J.: „U.S. Sees An Opportunity to Press Iran on Nuclear Fuel,
“ The New York Times, January 2, 2010, http://www.nytimes.com/2010/01/03/world/middleeast/03iran.html?pagewanted=1

[5] „U.S.eyeing more targeted sanctions against Iran,“ Reuters, December 30, 2009, http://www.reuters.com/article/politicsNews/idUSTRE5BS3X920091230

[6] U.S.eyeing more targeted sanctions against Iran,“ Reuters, December 30, 2009, http://www.reuters.com/article/politicsNews/idUSTRE5BS3X920091230

[7] Sanger, David E.; Broad, William J.: „U.S. Sees An Opportunity to Press Iran on Nuclear Fuel,

“ The New York Times, January 2, 2010, http://www.nytimes.com/2010/01/03/world/middleeast/03iran.html?pagewanted=1

[8] „Iran Sets Deadline for West to Accept Nuclear Counter Proposal,“ RTT News, January 2, 2010, http://www.rttnews.com/ArticleView.aspx?Id=1169193&SMap=1

[9] „Iran brands UN resolution illegal”, BBC Online, September 25, 2005,  http://news.bbc.co.uk/2/hi/middle_east/4279824.stm

[10] “Iran dismisses ‚childish’ sanctions”, AlJazeera Online, March 13, 2009,  http://english.aljazeera.net/news/middleeast/2009/03/200931318342784460.html

[11] Hosseinian, Zahra: “Iran leader says world can’t Stopp nuclear progress”, Reuters, March 20, 2009,  http://www.reuters.com/article/newsOne/idUSTRE52J31420090320?sp=true

[12] „Iran: Leader Dismisses Deadline for Deal on Shipping Nuclear Fuel,“ Reuters, December 22, 2009, http://www.nytimes.com/2009/12/23/world/middleeast/23briefs-Iran1bf.html

[13] „Press Briefing by Press Secretary Robert Gibbs,“ The White House Office of the Press Secretary, December 22, 2009

[14] Labott, Elise: „World powers discuss options should Iran miss nuclear deadline,“ CNN Online, December 23, 2009, http://edition.cnn.com/2009/WORLD/meast/12/22/iran.nuclear.program/

[15] Rivers, Tom: “British PM Warns of Tougher Sanctions for Iran Nuclear Program”, Voice of America, March 17, 2009,  http://www.voanews.com/english/2009-03-17-voa21.cfm

[16] “Germany mulls more sanctions against Iran, Merkel says”, DPA, February 7, 2009,  http://www.earthtimes.org/articles/show/254639,extra-germany-mulls-more-sanctions-against-iran-merkel-says.html

[17] Salhani, Claude: “SPECIAL REPORT: Kuwait Readying for War in Gulf?”, Middle East Times, August 11, 2008,  http://www.metimes.com/International/2008/08/11/special_report_kuwait_
readying_for_war_in_gulf/7724/

[18] Reid, Tim; Whittell, Giles; Philp, Catherine: „Tough sanctions against Iran are needed urgently, Washington says,“ Times Online, December 15, 2009, http://www.timesonline.co.uk/tol/news/world/middle_east/article6956623.ece

[19] Cooper, Helene; Broad, William J.: „Russia and China Endorse Agency’s Rebuke of Iran,“ The New York Times, November 27, 2009, http://www.nytimes.com/2009/11/28/world/28nuke.html

[20] „Russia should respond why it votes for IAEA resolution against Iran: spokesman,“ Xinhua, December 1, 2009, http://news.xinhuanet.com/english/2009-12/01/content_12571398.htm

[21] „Ahmadinejad says UN sanctions on Iran will not work,“ BBC Online, December 1, 2009, http://news.bbc.co.uk/2/hi/8389639.stm

[22] „Ahmadinejad says UN sanctions on Iran will not work,“ BBC Online, December 1, 2009, http://news.bbc.co.uk/2/hi/8389639.stm

[23] Leyne, Jon: “Iran economy facing ‚perfect storm’”, BBC Online, October 24, 2008,  http://news.bbc.co.uk/2/hi/middle_east/7687107.stm

[24] Salhani, Claude: “SPECIAL REPORT: Kuwait Readying for War in Gulf?”, Middle East Times, August 11, 2008,  http://www.metimes.com/International/2008/08/11/special_report_
kuwait_readying_for_war_in_gulf/7724/

[25] Guitta, Olivier: “Use of the Energy Weapon to Avert War”, Middle East Times, July 14, 2008,  http://www.metimes.com/International/2008/07/14/use_of_the_energy_
weapon_to_avert_war/3764/

[26] Guitta, Olivier: “Use of the Energy Weapon to Avert War”, Middle East Times, July 14, 2008,  http://www.metimes.com/International/2008/07/14/use_of_the_energy_
weapon_to_avert_war/3764/

[27] Guitta, Olivier: “Use of the Energy Weapon to Avert War”, Middle East Times, July 14, 2008,  http://www.metimes.com/International/2008/07/14/use_of_the_energy_
weapon_to_avert_war/3764/

[28] “EU trio propose tougher list of Iran sanctions: report”, Reuters, February 27, 2009,  http://www.ibtimes.com.hk/articles/20090227/iran-nuclear-program-sanctions-france-germany-and-britain_all.htm

[29] Klare, Michael; Feffer, John: „Iran Gas Ban: Step toward War with Iran,“ Foreign Policy in Focus, August 20, 2009, http://www.fpif.org/articles/iran_gas_ban_step_toward_war_with_iran

[30] „US House passes Iran sanctions bill,“ AlJazeera, December 16, 2009, http://english.aljazeera.net/news/americas/2009/12/2009121643857535504.html

[31] Garrett, Major: „U.S. to push for Iran Sanctions in January,“ Fox News Online, December 22, 2009, http://www.foxnews.com/politics/2009/12/22/white-house-says-push-iran-sanctions-likely-january/

[32] Lucchetti, Aaron; Solomon, Jay: „Credit Suisse’s Secret Deals,“ The Wall Street Journal, December 17, 2009, http://online.wsj.com/article/SB10001424052748704541004574600032631634884.html

[33] Lucchetti, Aaron; Solomon, Jay: „Credit Suisse’s Secret Deals,“ The Wall Street Journal, December 17, 2009, http://online.wsj.com/article/SB100014240527487045410
04574600032631634884.html

[34] Lucchetti, Aaron; Solomon, Jay: „Credit Suisse’s Secret Deals,“ The Wall Street Journal, December 17, 2009, http://online.wsj.com/article/SB1000142405274870454100
4574600032631634884.html

[35] Clark, Andrew: „Lloyds forfeits $350m for disguising origin of funds from Iran and Sudan,“ The Guardian, January 10, 2009, http://www.guardian.co.uk/business/2009
/jan/10/lloyds-forfeits-350m-to-us

[36] Clark, Andrew: „Lloyds forfeits $350m for disguising origin of funds from Iran and Sudan,“ The Guardian, January 10, 2009, http://www.guardian.co.uk/business/2009/jan/10/lloyds-forfeits-350m-to-us

[37] “Obama extends Iran sanctions”, Agence France Presse, March 13, 2009,  http://www.france24.com/en/20090313-barack-obama-extends-iran-sanctions-usa-oil-trade

[38] “Obama Extends U.S. Sanctions Agianst Iran”, Radio Free Europe/Radio Liberty, March 13, 2009,  http://www.rferl.org/Content/Obama_Extends_US_Sanctions_Against_Iran/1509261.html

[39] “Obama extends Iran sanctions”, Agence France Presse, March 13, 2009,  http://www.france24.com/en/20090313-barack-obama-extends-iran-sanctions-usa-oil-trade

[40] “U.S: sanctions 11 companies tied to Iranian bank”, Xinhua, March 3, 2009,  http://news.xinhuanet.com/english/2009-03/04/content_10937883.htm

[41] “Treasury Designates Companies Tied to Iran’s Bank Melli as Proliferators”, U.S. Department of the Treasury, March 3, 2009,  http://www.treas.gov/press/releases/tg46.htm

[42] “Treasury Designates Companies Tied to Iran’s Bank Melli as Proliferators”, U.S. Department of the Treasury, March 3, 2009,  http://www.treas.gov/press/releases/tg46.htm

[43] “US warns Russia against selling missiles to Iran”, Chinadaily BBS, December 23, 2008,  http://bbs.chinadaily.com.cn/viewthread.php?gid=2&tid=623517&extra=page%3D2

[44] „EU refuses to ease freeze on Melli Bank,“ PressTV, July 9, 2009, http://www.presstv.ir/detail.aspx?id=100231&sectionid=351020102

[45] Solomon, Jay: „U.S. Freezes $2 Billion in Iran Case,“ The Wall Street Journal, December 12, 2009, http://online.wsj.com/article/SB126057864707988237.html

[46] Katz, Yaakov; Keinon, Herb: “Israel warns Russia on Iran arms sale”, The Jerusalem Post, January 16, 2007,  http://www.jpost.com/servlet/Satellite?c=JPArticle&cid=1167467745535&pagename=JPost%2FJPArticle%2FShowFull

[47] “Security Council tightens sanctions against Iran over uranium enrichment”, UN News Center, March 24, 2007,  http://www.un.org/apps/news/story.asp?NewsID=21997&Cr=Iran&Cr1

[48] “UN Committee Accuses Iran Of Violating Arms Embargo”, Reuters, March 10, 2009,  http://www.rferl.org/Content/UN_Committee_Accuses_Iran_Of_
Violating_Arms_Embargo/1507598.html

[49] “Reports: Russia confirms Iran missile contract”, Associated Press, March 18, 2009,  http://www.google.com/hostednews/ap/article/ALeqM5iBLHJGdHUD
5xKiB9QYH6NlZhfTXgD970C8A01

[50] „Belgian pleads guilty to US-Iran arms sales,“ BBC Online, November 24, 2009, http://news.bbc.co.uk/2/hi/8375560.stm

[51] “Report: Moscow freezes sale of S-300 to Iran”, The Jerusalem Post, February 18, 2009,  http://www.jpost.com/servlet/Satellite?pagename=
JPost/JPArticle/ShowFull&cid=1233304818025

[52] “US fails to derail Iran-Russia arms deal”, Press TV, March 7, 2009,  http://www.presstv.com/Detail.aspx?id=87790§ionid=351020101

[53] “Report: Moscow freezes sale of S-300 to Iran”, The Jerusalem Post, February 18, 2009,  http://www.jpost.com/servlet/Satellite?pagename=JPost/
JPArticle/ShowFull&cid=1233304818025

[54] “Reports: Russia confirms Iran missile contract”, Associated Press, March 18, 2009, http://tinyurl.com/d6pfn4