Archive for the ‘Iran’ Category

Exporting to Iran – Scoop.co.nz

Article Chapman Tripp

The easing of United Nations sanctions against Iran in 2016 has created export opportunities for New Zealand. There is significant scope for increased trade, but care is needed.Exporting to Iran

16 March 2017 | BRIEF COUNSEL

The easing of United Nations sanctions against Iran in 2016 has created export opportunities for New Zealand. There is significant scope for increased trade, but care is needed.

The Government puts its shoulder to the wheel

Since United Nations sanctions were eased in 2016, there has been an uptick in government-to-government contact between New Zealand and Iran. The latest visit was by Minister for Primary Industries Nathan Guy early this month.

While in Iran, Minister Guy witnessed the conclusion of a Meat Agreement between the Iranian Veterinary Organisation and the New Zealand Ministry of Primary Industries and the signing of a Statement of Intent between Zespri and Irans Ministry of Agriculture.

These developments are commercially significant. Iran, with a population of over 80 million people, is the second largest economy in the Middle East-North Africa region. It was among New Zealands top five export markets for lamb in the 1980s and remains a critical market for New Zealand butter.

Other recent political contacts include:

Irans Foreign Minister Dr Mohammed Javad Zarif coming to New Zealand in March 2016

Minister of Foreign Affairs Murray McCully going to Iran in May 2016, and

Minister of Trade Todd McClay leading a trade delegation to Iran in December 2016.

During Dr Zarifs visit in 2016, the New Zealand Export Credit Office (NZECO) signed an arrangement with the Export Guarantee Fund of Iran (EGFI) designed to help facilitate economic cooperation between the two countries.

Dealing with financial institutions in Iran

The lifting last year by the US Government of secondary sanctions which constrained the engagement of non-US banks in financial transactions with Iranian individuals and entities has removed an obvious impediment to trade although problems remain.

On the plus side, there is now far greater scope for non-US banks to legally process Iranian payments. They may transact with Iranian financial institutions not on the US Treasurys List of Specially Designated Nationals and Blocked Persons (SDN List). According to the US Treasury, the institutions removed include most Iranian financial institutions.

However:

US persons are still broadly prohibited from engaging in transactions or dealings with Iran, unless the activity is specifically exempt from regulation or authorised by US Treasury Office of Foreign Asset Controls (OFAC). This means that non-OFAC approved Iran-related transactions cannot be routed through US banks or involve US persons, and

the US maintains rules with respect to US persons serving as directors or senior managers in non-US, non-Iranian entities, and concerning non-US entities that are owned or controlled by a US person.

It is also important for companies to be aware that in the event of significant non-performance by Iran of its commitments under the Joint Comprehensive Plan of Action (JCPOA) pursuant to which United Nations sanctions were lifted, those sanctions will snapback and be re-imposed. The US has committed not to retroactively impose sanctions for legitimate activity undertaken before the date of re-imposition of sanctions, and OFAC has indicated that if a snapback occurred, it would work with non-US companies to minimise any impact on that legitimate activity.

In addition, there are autonomous (i.e. non-United Nations) US sanctions related to terrorism and human rights violations, as well as questions about how aspects of the OFAC guidance relating to the lifting of the United Nations sanctions is to be interpreted.

In recent weeks, the Trump Administration has imposed new sanctions on persons or organisations which procure technology or materials to support Irans ballistic missile programme or have links to Irans Islamic Revolutionary Guard. While this is unlikely to have any real impact on New Zealand companies looking to export to Iran, it may have a cooling effect on banks already reluctant to update their risk profiles to reflect the new regulatory environment outlined above.

Chapman Tripp comment

Pursuing opportunities with Iran will not be straightforward Minister McCully noted only last week that while the Government is seeking to deepen economic ties with Iran, remaining banking restrictions make this a bit difficult.1

It has been reported that Western banks have been hesitant to deal with Iran, due in part to concerns about whether doing so might cause them to run into problems with the US Treasury. But OFAC released guidance in 2016 that should give banks some comfort that they can structure transactions so as not to fall foul of the sanctions that remain in place.

Those remaining sanctions must be carefully managed. But they should not stop businesses from working with their financial institutions to investigate ways of accessing the Iranian market or increase their exports to Iran.

Undertaking thorough due diligence both on the part of exporters and financial institutions will be critical. But the potential prize may be well worth the effort. If you need guidance understanding the risks, and how to mitigate them, please contact a member of our expert team.

1Government hopeful of free-trade deal with Gulf states this year McCully, http://www.stuff.co.nz, 7 March, 2017.

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Iran After Khamenei – Commentary Magazine

Will the long knives be drawn in Iran's coming succession struggle?

Iranian politicians may already be jockeying for the Islamic Republics June presidential race, but that election remains a sideshow to the real power in Iran: the Supreme Leader and his immediate office. It has been nearly 28 years since there was a transition in that office when Ayatollah Ali Khamenei replaced Ayatollah Ruhollah Khomeini upon his death.

Ayatollahs live a long life, but they do eventually die. That day of reckoning is drawing near for Khamenei, who reportedly suffered from prostate cancer. Even if the 77-year-old Khamenei beat that episode, it amplified discussion of his mortality and what comes next.

In theory, the 86-member Assembly of Experts chooses the next supreme leader, but that clerical body is little more than a coffee klatch. Before Khomeini died in 1989, regime elites already informally gathered around a compromise candidateKhameneiwho was seen as weak and not unduly tied to any of the major competing factions, each of which worked to negate the others candidates. The Assembly approved Khamenei, but only after all other power centers informally signed off on the man.

Decades on, however, the power balance is not the same. For a variety of reasons, Khamenei unleashed the Islamic Revolutionary Guard Corps (IRGC) to cut more liberal forces down to size. IRGC influence in politics peaked under Iranian President Mahmoud Ahmadinejad (2005-2013), but Hassan Rouhanis succession did not mean ending hardline power. Rather, he merely swapped the IRGC for the Intelligence Ministry to maintain hardline rule.

The simple fact is that, with time, the range of acceptable political discourse has narrowed inside Iran. The immediate post-revolutionary years were a positive political cacophony compared to the present day. Reformists who peaked under Khatami and who once were the toast of Washington and European capitals now find themselves or their children imprisoned or under house arrest. Despite his campaign promises, Rouhani has not succeeded in winning the release of imprisoned reformists, that is, if Rouhani even sincerely tried.

Now, to the future. Iranian officials may have initially accepted Khamenei because they thought he was weak and pliable, but he showed himself to be astute. Far from being the moderate or pragmatist many American pundits believed at the time of his rise to the leadership, Khamenei proved himself very much in the hardline camp. He has a vision, and he wants his successor to share the same ideology.

Much speculation has centered on Ebrahim Raisi, a hardline cleric and official who has held a number of political and religious posts. The Council on Foreign Relations Ray Takeyh, an astute Iran watcher, penned a piece in the Washington Post last fall speculatingprobably correctlyabout Khameneis desire to see Raisi succeed him.

Heres the rub, however: When Khamenei is removed from the scene, anything can happen. Internal Iranian power struggles can make Machiavellis Florence look like a Quaker summer camp in comparison. The daggers will be out for Raisi to ensure that his hardline compatriots and supporters dont undercut the patronage networks upon which more pragmatic or reformist forces depend. In short, reformists or those who seek a more liberal future may fear that they barely survived three decades of Khamenei-ism and that they cant make it through another three decades led by his ideological twin.

The question then becomes what can Khamenei do to ensure Raisis confirmation? Khameneis word will be worthless when dead. However, he could take a page from Pope Benedict XVI and resign. If Khamenei resigns his post while still alive, he will retain significant influence over the selection process and can probably install Raisi and give Raisi time to consolidate his power. Increasingly, its a possibility about which Iranians whisper.

Iranian presidential elections have always been sideshows. In 2017, they may be even more so because the real decisions about Irans leadership will certainly come in its wake.

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The New York State Board of Regents, which supervisespublic education, hasdecided it willno longer be necessary for would-be teachers to pass anAcademic Literacy Skills Test. Thereason? The test was producing racially disparate results: Only 41 percent of black candidates and 46 percent of Hispanic candidates had passedthe exam on their first attempt, compared to 64 percent of white candidates.

With aDepartment of Education study putting the number of white public school teachers at over 80 percent with a student body hovering around 50 percent white, advocating for a diverse teaching staff is understandable. If rectifying this imbalance isa priority for the Board of Regents, its members should ensure their methods do not diminish the quality of their educators. They are doing the opposite.

Diversity is not always a good thing, and it shouldnt be political suicide to say so. There should be no diversity in the quality of our public school teachers. Students should be taught by the best and brightest, whatever color they may be. If the results of the Academic Literacy Skills Testreflect a racial disparity, the solution is not to dissolve the standard or reverse-engineer a test that exactly the same number of whites and minorities can pass. The solution should be to direct resources towards our education systemso that all students, regardless of their color, are receiving equally excellent educations and being taught by the most qualified teachersand so that those students can become those teachers later in their lives. If fewer minorities are passing the ALST, the problemis not with the exam itself, but in the comparative quality of the education minorities receive. Lowering the standards for aspiring teachers will only exacerbate, not solve, this problem.

By eliminating the test, the Board of Regents has prioritized the aim of diversity over the success of its students, and has thus blatantlyabandoned its primary responsibility. What is politically expedient is not always right, and in the case of the ALST, it seems the Board of Regents has not done its homework.

The test is predominantly made up of multiple choice questions, so heres one for those that advocated for the tests elimination:

What is the purpose of education?

a) To transmit knowledge and values to the students and to arm them with the tools and resources necessary to further educate themselves. b) To assemble a diverse teaching staff in order to satisfy the standards of what is deemed politically correct.

The Board of Regents has shamed itself with its answer.

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Cornel West favors free speech, unless it is on the subject of Israel.

Cornel West, Professor of the Practice of Public Philosophy at Harvard Divinity School, is, whatever one thinks of him, among the biggest names in American intellectual life. It was, therefore, a coup when he put himself, with Princetons Robert George, at the head of a statement articulating the principle of free thought and expression, particularly at colleges and universities. The statement arises in response to the shouting down (and worse) of Charles Murray at Middlebury College, about which I have written here.

It is an excellent statement, which reads in part, [A]ll of us should seek respectfully to engage with people who challenge our views. And we should oppose efforts to silence those with whom we disagreeespecially on college and university campuses. As John Stuart Mill taught, a recognition of the possibility that we may be in error is a good reason to listen to and honestly considerand not merely to tolerate grudginglypoints of view that we do not share, and even perspectives that we find shocking or scandalous. Whats more, as Mill noted, even if one happens to be right about this or that disputed matter, seriously and respectfully engaging people who disagree will deepen ones understanding of the truth and sharpen ones ability to defend it.

It is wonderful to know that Professor West has changed his mind. He has, until now, also been one of the biggest names behind the speech-suppressing Boycott, Divestment, Sanctions movement against Israel. Why it was just last week that Westcrowed that BDS is winning. He views Israels recently passed law empowering the interior minister to deny visas to non-citizens who have supported the boycott, defined to include boycotts of settlement product, as a sign of panic.

I think the new law is regrettable, though more a sign of disgust than panic. However that may be, West has long put his name behind a movement one of whose signature moves in the academy has been the shouting down of pro-Israel speakers. As David Greenberg and Cary Nelson both of whom have been important voices against BDS in academia have noted, there has been a disturbing surge in the number of invited campus speakers being repeatedly interrupted or actually prevented from delivering a public lecture. A startling share of these silencing efforts aredirected at Israelis or other speakers sympathetic to Israel who have run afoul of the growing anti-Israel movement on campuses.

Although shouting down speakers long preceded the rise of the BDS movement, it follows almost necessarily from BDSs quasi-theological commitment to anti-normalization. BDS holds doctrinally that Israel must be treated as a pariah state and that supporters of Israel must be treated as propagandists for evil. In episodes at the University of Minnesota, New York University, the University of Chicago, and San Francisco State University, BDS supporters certainly acted as if God was on their side as they shouted down or attempted to shout down speakers deemed pro-Israel.

Certainly Cornel West has been on their side, or, at least, he has not uttered a mumbling word about this well-known BDS tactic. To be clear, merely turning ones back on a speaker, or even encouraging people not to listen to him or her does not necessarily violate the principles enunciated in the statement to which West has put his name. Indeed, the statement explicitly calls the right of peaceful protest sacrosanct. But it certainly does strongly encourage hearing out the best representatives even of opinions one regards as dangerously misguided. Indeed, the radical West and the conservative Robert George who have joined to make this statement have taught together and engaged in a series of public discussions that, by all reports, are models of respectful disagreement.

Although the principles that George and West enunciate are even consistent with a degree of disruptiona walkout for examplethere can be no squaring them with shouting down speakers, as the BDS movement West supports not only tolerates but also encourages. The statement is quite clear: we should oppose efforts to silence those with whom we disagreeespecially on college and university campuses.

I look forward to Professor Wests statement opposing the BDS movement.

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Im not nave enough to think that better PR would solve all of Israels international relations problems. But theres no question that incompetent PR makes its situation much worse. As one example, consider Tuesdaysshocking revelation: Within about 24 hours of the most high-profile civilian casualty incident of the 2009 Gaza war, Israel had obtained evidence casting doubt on its responsibility for that death. But it sat on this evidence for more than eight years, finally releasing it only as part of a defense brief in a civil suit by the victims father.

The incident in question took place on January 16, 2009, when Israeli troops fighting in Gaza came under sniper fire. The troops fired two shells at an observation post that seemed to be directing the snipers. The observation post was located on the third floor of a building which, unbeknownst to the soldiers, was also the home of a well-known doctor, Izzeldin Abuelaish. Three of Abuelaishs daughters were killed, along with one of his nieces; several other family members were wounded. Abuelaish, who worked in Israel, maintained good relations with Israelis and advocated for Israeli-Palestinian peace, later became famous worldwide when he published a book about this incident and his response to it, called I Shall Not Hate.

Israel was blamed worldwide for the Abuelaish casualties and never publicly challenged the assumption of its guilt. Yet it now turns out that within a day after the incident, it had evidence indicating that its shells may not have caused the carnage.

The evidence came in the form of laboratory tests conducted on six pieces of shrapnel extracted from the two casualties treated in Israel (the other wounded werent brought to Israel, nor were any of the dead, so no shrapnel from the other victims was available). The tests showed that alongside traces of various explosives used by both the Israel Defense Forces and Hamas, at least one fragment contained an explosive called R-Salt, which isnt used by the IDF but is commonly used in improvised explosive devices in Gaza. Moreover, all six fragments contained potassium nitrate, another substance not used in IDF weaponry that is used in Hamass homemade Qassam rockets.

A follow-up report a month later, which compared the shrapnel to the specific type of Israeli shells fired, concluded that four of the six fragments could not possibly have come from those shells; a fifth may have come from an IDF shell, and apparently, no conclusions were possible about the sixth.

All of the above indicates that Hamas or a smaller Palestinian organization was using the house as a weapons cache. According to the IDF, there is no other way to account for the presence of non-IDF explosives in the shrapnel.

This in no way implies culpability on Abuelaishs part; Palestinian terrorists routinely store weaponry in civilian houses without the owners consent or even knowledge. But it does raise the possibility that the Israeli shells, which were intended to take out the observation post without significant damage to the house, would not have caused such extensive casualties had the house not contained a concealed weapons cachesomething the soldiers couldnt have knownwhich exploded when the shells hit. And if so, then Israel clearly isnt responsible for the deaths: It used a reasonable amount of force to respond to a legitimate military threat and could not have foreseen the deadly consequences.

One of the most common accusations leveled at Israel by its critics is that because it possesses precision weaponry capable of feats like destroying a single room without damaging the rest of the building, any civilian casualties it causes must be the result of criminal negligence at best and deliberate murderousness at worst. That conclusion is obviously possible only if you ignore various salient facts, such as that mistakes are inevitable in wartime when soldiers must often make split-second decisions based on imperfect information.

But one of those salient facts is Hamass habit of storing arms and ammunition in civilian houseswithout, obviously, informing Israel of the caches locations. This means that no matter how carefully Israeli troops choose their munitions, they have no way to protect against the possibility that an arms cache they didnt know about will set off secondary explosions, resulting in far more extensive damage than they intended.

This fact is essential to understanding why the blame for most civilian casualties actually rests not with Israel, which does try hard to use proportionate military force, but with Hamas, which deliberately endangers its own civilian population by hiding weapons in their houses. Yet since it is frequently not well understood overseas, Israel has every interest in publicizing high-profile examples as heavily as possible.

Instead, it sat on its information about the Abuelaish case for eight years. The lab report was kept so secret that even Abuelaishs lawyers didnt know of its existence until last week, although the suit was filed back in 2010. And then, having finally been forced to disclose the report to defend against the lawsuit, the government nevertheless made no attempt to publicize it; it came to light only because a reporter took the trouble to read the defense brief and realized that the information was newsworthy.

Obviously, information like this wont change a single Israel haters mind. But there are many people of goodwill, especially overseas Jews, who sincerely want to believe that the IDF strives to avoid civilian casualties, but cant understand why, if so, they nevertheless keep occurring.

Israel has many valid answers to that question, including the fact that its civilian-to-military casualty ratio is actually lower than that of other Western armies. But these answers are useless if it doesnt take the trouble to publicize them. Sitting on exculpatory information about a high-profile case for eight years is hardly the way to assuage its supporters concerns.

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Zarif's perversion of Iranian history.

Mohammad Javad Zarif, Irans foreign minister, took to Twitter earlier this week to castigate Israeli Prime Minister Benjamin Netanyahu for propagating what Zarif termed fake history. The offense Zarif protested was the Israeli prime ministers decision to draw allusions between the story of Purim and the present day. To sell bigoted lies against a nation which has saved Jews three times, Netanyahu resorting to fake history [and] falsifying Torah. Force of habit, the Iranian foreign minister declared.

Zarifs rebuke of Netanyahu was enough to win applause in some circles, but those who buy into the myth of an Iranian haven for Jews should think again.

Take the modern day. How often have pundits talked about the Islamic Republics supposed tolerance for Jews by citing the fact that Irans parliament has a Jewish representative or that Iran is home to perhaps 20,000 Jews, supposedly the second-greatest Jewish population in the Middle East besides Israel?

Lets put aside the fact that no one knows just how many Jews are in Iran today. The 20,000 figure has been bandied about since the 1990s, even though many Jews continue to leave Iran for Israel or the United States. And also put aside the fact that the second largest community doesnt mean anything when the difference between the first and the second are several orders of magnitude. It is akin to saying Finland is the second-largest destination for sun-and-surf beach vacations if the only other choice in the survey is Jamaica. What matters is that, under the regime that Zarif represents, Iran has lost at least 80 percent of its Jewish population. Thats generally not a sign that Iran is a welcoming and healthy place for Jews to thrive or even live.

Praise for having a Jewish representative in parliament is just as misplaced. When I attended synagogue as a student in Iran, members of the Jewish community did not trust the representative. His sole purpose seemed to be to pass pronouncements from the government to the synagogues and to be cited to deflect attention from Irans fairly horrendous human rights record.

Beyond that, though, is Iran safe for Jews? Itdepends. Pogromsas vicious as any in Eastern Europecharacterized nineteenth century Iran. Then there were the restrictive rules: In 1889, for example, the government prohibited Jews in Isfahan from going outside on wet days lest rainwater spread their impurity. Jews were also forbidden from touching food, speaking loudly, or purchasing any goods in the market. (Daniel Tsadik provides an excellent account of modern Jewish history in his 2007 book, Between Foreigners and Shiis; Habib Levys Comprehensive History of the Jews of Iran remains a masterpiece).

It is true that, at times, Iran was a relative haven for the Jews. The irony here, though, is that it was the regime that Zarif represents not only overthrew an Iranian state that allowed its Jewish minority to thrive, but also sought to close the door on the laudable regimes of the distant past. Zarif now presumes to cite that history for the expressed purpose of demonizing the democratically-elected leader of a state whose existence Zarif refuses to recognize and whose genocidal enemies he arms and encourages.

There is something very wrong in the world when Zarif is taken seriously on matters of communal harmony and religious peace.

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Iran After Khamenei - Commentary Magazine

‘Iran Is Not Ibiza,’ but Fireworks Offer an Illicit Thrill – New York Times


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'Iran Is Not Ibiza,' but Fireworks Offer an Illicit Thrill
New York Times
Iran's authorities, led by conservative Muslim clerics, strongly dislike the pre-Islamic festival of Chaharshanbe Suri, or Fireworks Wednesday, as it would be called in English. They call it dangerous and against Islam. But my neighbors, young and old ...

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'Iran Is Not Ibiza,' but Fireworks Offer an Illicit Thrill - New York Times

Iran starts building unit 2 of Bushehr plant – World Nuclear News

Construction and installation work formally started yesterday at the site of unit 2 of the Bushehrnuclear power plant in Iran, Atomproekt, the reactor design subsidiary of Russian state nuclear corporation Rosatom, announced today. The first foundation stone for units 2 and 3 of the plant was laid in a ceremony held at the construction site in southern Iran in September last year.

AtomStroyExport (ASE) - another Rosatom subsidiary and the general contractor for the Bushehr project - and Nuclear Power Production and Development Company (NPPD) of Iran signed an EPC turnkey contract for construction of the units at Bushehr in November 2014. The two VVER-1000 units will be built with Generation III+ technology, including the latest safety features, and have a combined capacity of 2100 MWe, ASE has said. During the ceremony held on 10 September, the two sides signed a protocol on the start of work on the project to build units 2 and 3, known as Bushehr II.

Russian-built Bushehr1 was connected to the national grid on 3 September 2011 and became the first nuclear power plant in the Middle East.

A ceremony to launch construction work yesterday was attended by representatives of the customer for the Bushehr II project, Iran's NPPD. They were project manager Mahmoud Jafari, Bushehr Nuclear Power plant director-general Hossein Ghaffari, the head of the Bushehr project Ali Reza Moradian, and members of parliament from Bushehr Province. ASE representatives included the director for the construction of the Bushehr plant, Suren Ambartsumyan.

Ambartsumyan said a "technologically competent" team of Russian and Iranian specialists had been formed for the first phase of the Bushehr project that had been able to "quickly navigate complex technical issues and contingencies", according to the Atomproekt statement. "The high potential of Iranian specialists will be actively involved in the construction of Bushehr II," he added. Ambartsumyan also said he was confident the new unit would be built to a high standard and according to schedule.

Bushehr units 2 and 3 are to be completed in 2024 and 2026, respectively.

Last September, ASE director Valery Limarenko said Rosatom is keen on the "wide use" of Iranian-made materials and would therefore invite Iranian manufacturing companies to compete to work on the project via contract tenders.

Rosatom has said previously that Bushehr II is expected to cost about $10 billion to build, and that the physical start-ups of unit 2 and unit 3 are planned for October 2024 and April 2026, respectively. Provisional acceptance of unit 2 by the Iranian customer is scheduled for August 2025 and that for unit 3 in February 2027.

Researched and written by World Nuclear News

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Iran’s Jewish lawmaker: Netanyahu an ‘insane vampire’ – Jerusalem Post Israel News

Benjamin Netanyahu. (photo credit:MARC ISRAEL SELLEM/THE JERUSALEM POST)

The Jewish member of Irans parliament called Israeli Prime Minister Benjamin Netanyahu an insane vampire for saying that Iran seeks the annihilation of the Jews, just as ancient Persia did in the Purim story.

Netanyahu is an insane vampire drowned in crimes from head to toe, and the recent remarks made by the racist Israeli prime minister is not surprising to me, Siamak Mareh Sedq, who represents the Jews of Iran in the government, said Tuesday during an open session of parliament, the semi-official Fars News Agency reported.

Mareh Sedq also asserted that in contradiction to Netanyahus statements against Iran, anti-Semitism and racism have never been witnessed in the Iranian culture.

On Saturday night, the start of the Purim holiday, Netanyahu visited an Israeli synagogue, where he told children celebrating Purim that Iran seeks to kill the Jews just as the Persians did.

Mareh Sedq followed his nations foreign minister in castigating Netanyahu.

To sell bigoted lies against a nation which has saved Jews 3 times, Netanyahu resorting to fake history & falsifying Torah. Force of habit, Mohammed Javad Zarif tweeted in English on Sunday.

Earlier Sunday, the speaker of Irans parliament, Ali Larijani, also attacked Netanyahus statement, saying that apparently, [Netanyahu] is neither acquainted with history, nor has read the Torah, according to Fars.

Netanyahu has distorted the Iranians pre-Islam historical era and attempted to misrepresent events, Larijani said. Of course, nothing more than presenting such lies is expected from a wicked Zionist.

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