Category: Iran

  • Iran Sanctions Put Wrinkle in Turkish Trade Deals

    Iran Sanctions Put Wrinkle in Turkish Trade Deals

    By JOE PARKINSON

    ISTANBUL—When Yasar Kapiyoldas landed hundreds of orders worth tens of thousands of dollars in Iran, he thought his clothing company could offset losses from its slowing Europe and Middle East markets.

    Just two months later, with fresh sanctions causing a run on the currency and soaring inflation in Iran, every one of Mr. Kapiyoldas’ orders has been canceled. Some clients have defaulted on their payments. Thousands of garments made for the conservative Iranian market are now gathering dust in his company’s depot.

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    A worker in Istanbul’s Osmanbey textile district, where businesses that previously profited from Iranian trade are now coping with overstock.

    “We thought Iran would be the solution after the revolutions killed our business in Libya, Tunisia and Egypt,” says Mr. Kapiyoldas from his smoke-filled office above a clothing store in Istanbul’s Osmanbey district, where more than 4,000 textile retailers jostle for space—and market share—in an area of about one square mile. The businesses had also attracted Iran’s youthful population, which lapped up more-contemporary designs from established producers in Turkey, a regional textile hub.

    “We have thousands of long ladies’ overcoats that were ready to ship to Tehran that we can’t sell anywhere else,” he said. “Now what am I going to do with them?”

    The fresh wave of sanctions feeding panic in Iran’s economy are hitting businesses in North Atlantic Treaty Organization-member Turkey, upending a boom in bilateral trade that was underpinned by improving diplomatic ties. Turkish exports to Iran, which surged 12-fold in the past decade to top $3.5 billion last year, plunged 25% in January from December, as sanctions pushed the real value of Iran’s currency, the rial, as much as 55% lower against the dollar.

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    All Turkish banks but one have stopped processing payments for Iranian customers, while higher costs have seen the number of Iranians visiting Turkey tumble.

    Turkey has refused to adopt tougher unilateral sanctions against Iran from the U.S. and the European Union, instead stressing its commitment to the weaker United Nations measures passed in 2010, and to buying Iranian oil and gas, albeit at a declining rate. But the deteriorating trade business removes a major tie between Ankara and Tehran, which are increasingly splitting along sectarian lines over Middle East conflicts.

    “A trade relationship that has grown rapidly in recent years is now being pressured by politics,” said Arzu Celalifer, a professor of international relations at USAK, the International Strategic Research Organization, in Ankara. “That trade decline is one component of how Turkey and Iran increasingly have differences on Middle Eastern issues. They’re now just trying to preserve the minimal mutual interest,”

    Last year, the pressure being levied on Iranian traders’ rials by sanctions was offset by a sharp decline in the Turkish lira, which fell almost 20% against the dollar as investors became nervous about Turkey’s overheating economy.

    But when new U.S. sanctions targeting Iran’s central bank in January sent Iran’s currency plunging, the lira began to surge, making the relative cost of some Turkish products almost double in price in the space of a few days, traders say.

    The rapid price increase was aggravated by the refusal of Turkish banks—except for state-owned Halkbank—to process trade deals involving Iranian customers for fear of being frozen out of international markets by the new sanctions regime. Iranian businessmen now pay for orders with cash carried across the border in suitcases

    As a result, businesses across Turkey that had expected sales to surge in the run up to the Persian New Year festival this week, are now bracing for a sustained slump and, in some cases, mothballing stock.

    Travel agents report that tourist numbers and hotel bookings fell as much as 80% from last year, and tourist spending has fallen sharply.

    “Sanctions have hammered their currency, so Iranian companies are now terrified because our business is done in dollars,” said Ali Ulvi Orhan, head of Osmanbey textile traders association. “Our members are badly affected because the Iranians have basically disappeared. Even if they’re here, many can’t pay.”

    Turkey’s trade with Iran has been lopsided—Iranian exports of natural gas to Turkey made up more than 70% of the $12.5 billion total last year. But that ratio has declined in recent years as strengthening diplomatic ties and visa-free travel boosted trade in everything from textiles to flat-screen televisions.

    Data published Thursday show that trend accelerating, as Turkish imports of crude oil from Iran plunged 40% on the month in December, partially offset by an 86% rise in purchases from Saudi Arabia.

    Traders say pockets of bilateral business continue on a small scale, but at much lower volumes. For some Turkish merchants, the dramatic collapse of a trade relationship that Ankara actively cultivated until late last year has prompted anger and frustration, as politics trump traders’ livelihoods.

    “This year we were expecting two million Iranians for New Year for the first time ever, but we won’t have anywhere near that many,” said Esadullah Renjber, owner of Tehran Tour, a tour operator based in Laleli, a district popular with Iranian tourists. “I’ve worked here for 30 years and I’ve never seen anything like this and it has all to do with politics.”

    —Ayla Albayrak contributed to this article.

    via Iran Sanctions Put Wrinkle in Turkish Trade Deals – WSJ.com.

  • Kissinger: We should ignore intelligence and assume Iran wants nukes

    Kissinger: We should ignore intelligence and assume Iran wants nukes

    By Agence France-Presse

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    Former US secretary of state Henry Kissinger said in an interview Sunday that the United States should assume that Iran is actively preparing to build nuclear weapons.

    Kissinger, 88, was asked on the CNN show “GPS” if the threat of an Iranian nuclear weapon was so dire that Israel would need to launch a military strike in the near future.

    “I am very uneasy with the so-called intelligence report that say we don’t know whether they are actually working on nuclear weapons,” Kissinger told CNN.

    “I think we should start from the premise that they are undergoing all this in order to achieve a military capability. I don’t think that is a disputable point.”

    US intelligence analysts believe there is no hard evidence that Iran has decided to build a nuclear bomb — an assessment broadly consistent with a 2007 intelligence finding that concluded that Iran had abandoned its nuclear weapons program, The New York Times reported in February, citing unnamed US officials.

    The assessment was largely reaffirmed in a 2010 National Intelligence Estimate, and that it remains the consensus view of America’s 16 intelligence agencies, the Times reported.

    The US administration maintains that tough sanctions on Iran and diplomatic efforts need to be given more time before any resort to bombing raids.

    Israeli leaders however say time is running out for any pre-emptive strike. Prime Minister Benjamin Netanyahu said on Monday that sanctions against Iran have not worked, and “none of us can afford to wait much longer.”

    US President Barack Obama has cautioned against “bluster” in talking about possible war with Iran, saying there still exists a window of diplomacy.

    www.rawstory.com, 11 March 2012

  • Midnight Express: Iran to Turkey by Train

    Midnight Express: Iran to Turkey by Train

    Iran is again catching its share of headlines. So it seemed as good a time as any to share the story of our exit from the country at the end of last year — hopping a train en route from Tehran across the border to Turkey, then all the way to Istanbul. One of the finest and most surprising segments of our around-the-world journey.
    Iranian train
    When one of our Iran-savvy friends (thanks, Masha!) put into our heads the idea of taking the train from Iran to Turkey, we couldn’t let go. We love overland journeys and we love trains, but our budget and the time allotted for our Iranian tourist visas both conspired against us. We struggled to make it work, however, and our perseverance eventually paid off.

    But there we were the night before departure, train tickets in our hands. This dream train trip of ours was actually going to happen. That’s when a pang of fear set in. Oh boy, what are we getting ourselves into?

    Waiting on Tehran

    Our train was scheduled to leave at 11:00 A.M from Tabriz in northwestern Iran. We’d arrived at the station at 9:30 A.M. just to be on the safe side. It was the last day of our Iranian visa and we absolutely needed to exit the country. We harbored no interest in reporting what happens to Americans when they overstay their Iranian visas.

    When noon arrived, even the horrible movie Orca with Farsi subtitles on the video screen couldn’t diffuse our restlessness. One of the station attendants came over and smiled, “Just relax. The train is delayed from Tehran. It’s usually like this.”

    A few hours later, it was finally time to go.
    Iran Family at Train Station

    Hanging with fellow passengers at the Tabriz train station.

    Iran’s Orient Express

    Imagine an Iranian train. I know when I envisioned one, the image resembled that of Midnight Express and harkened to something like an Indian train in the old days — dark, dank, old, and mobbed.

    Instead, we found a plush, clean four-person compartment with free water, snacks, and functioning electrical outlets. We continued exploring and landed in a nicely decorated dining car with a full Iranian menu flush (read: kebabs). Sure, the décor reeked of the 1970s and lost hopes to be the Orient Express, but this vessel was downright civilized.
    Iran Train
    Oh, and did I mention that the cost of this 2.5 day train journey in a 4-person sleeper cost $75 per person?

    Our Train Guardian

    “I would like to speak with you.” A few minutes after boarding a young Iranian man with a briefcase stood upright in the door of the compartment we’d schemed to carve out for ourselves. His posture and tone suggested he was reporting for duty.

    We thought, “Uh oh. Where’s this gonna’ go?”

    Formalities out of the way, Abbas introduced himself and we quickly covered the basics — where we had traveled in Iran (a lot of places), where he was going in Turkey (Ankara to study) how often he had taken the train (he was a pro).

    When it came time for lunch, we pulled out our feed bag — you know, that ratty plastic bag full of random edible bits and bobs like pistachios, apricots, sunflower seeds, dried pomegranate wraps, a stash of Iranian trail mix, loaves of fresh flat bread, and nomadic Iranian cheese.

    Abbas took one look at the snacks and offered an alternative: “I’ll make lunch for us. Don’t worry, I have enough food and tea for all of us.”

    He pulled the curtains closed, locked the door, and took out a camping stove. “You’re not supposed to use these on the train, so I need to hide it from the conductor,” he explained.

    I made note of his butane canister: “Made in Israel” was plastered across it in big letters.

    I joked, “Your camping gas is from Israel. Isn’t that illegal in Iran?”

    “You can buy anything in Kurdistan (an area in western Iran),” he smiled. “Everything gets smuggled over the border from Iraq.”
    Iran train
    Americans in Iran, on our way to Turkey, eating cans of tuna warmed over Israeli butane. Aren’t we worldly?

    Abbas finished the can of tuna over the flame, bubbling, and we stabbed at it with bits of flatbread. It’s true what they say of breaking bread. Surprisingly satisfying on so many levels.

    In reality, Abbas didn’t have a lot of extra food, but it was clear he wished to take care of us. He shared whatever he had and he shared generously.

    “I will make a tea,” he would say, assembling his arsenal of trainbound tea-making: electrical heating element tongs (also forbidden), a bottle of mineral water, tea bags, cubes of sugar and a thermos.

    His mantra: “Tea is very important!”

    And it was.
    Train Iran to Turkey

    Our last of many teas together just before arrival in Ankara.

    Iranian border crossing fears

    As the train approached the border with Turkey, my fear and anxiety grew. We were the only two Americans on the train and we were by ourselves, unescorted.

    Cue footage of the detained American hikers fresh from an Iranian jail that had scrolled endlessly on the international news just weeks before.

    I had expected an interrogation and bag search and was prepared. The night before boarding the train, I cleared my browsing history to erase any sign of blogging, Tweeting and Facebooking, all of which are censored in Iran. I wiped the call records clean on our mobile phones, eliminating any history of contact with Iranian friends during our visit. (I blame my spy novel paranoia on growing up as a daughter of diplomats and having lived in the former Soviet Union).

    The border-clearing process began. We were called to the dining car, a few people at a time. Inside a queue formed and we worked our way from dining table to dining table until it was our turn.

    The border guard looked up from his reading glasses, over his computer screen and a pile of registry books and papers.

    He eyed my entrance stamp to Iran and finger-counted the number of days we’d been in the country. Assured we had not overstayed our visas, he asked where we’d visited and how our trip had been. As I rattled off all the names, I noticed a smile. He was clearly proud.

    “Did you enjoy your visit to Iran?”

    “Definitely.”

    “Good. Enjoy your trip. Please return.”

    And that was it. Polite and friendly.

    Iran to Turkey: No Man’s Land

    The Iran-Turkey borderlands are flush with mountainous landscapes, tiny rural villages, endless contours and the occasional shepherd tending a flock. Through one tunnel to the next, we climbed higher. In this no man’s land, it was impossible to tell exactly where we were. Let’s just say there’s no big “Welcome to Turkey” sign along the way.
    Iran-Turkey Border
    As we descended to civilization, Abbas remarked: “We’re in Turkey now. You can tell by the apartments.”

    I was confused. The buildings didn’t look any different to me than the ones we’d seen just 30 minutes before.

    “The satellite dishes are out in public. That’s how I know we are in Turkey.”

    I looked again with fresh eyes. It was a subtle difference.

    As time passed, I noticed women’s headscarves coming off, mine included. The corridors came alive with new sounds as passengers began playing music on their phones and radios.

    We were still on an Iranian train, but you could tell we were no longer in Iran.

    Across Lake Van: The Turkish Train

    Lake Van. Yes, the lake of the same name as the town hit by a devastating earthquake just a month earlier. It’s a wonder the train tracks hadn’t been affected.

    Our train was supposed to stop at the eastern edge of the lake at 9:00 P.M. In reality, it was close to 2:00 A.M. when we bade farewell to our Iranian train and boarded the ferry to take us across the lake. The crowd of passengers, we included, looked weary and laden, bags dragging. The ferry was terrifically uncomfortable. The chairs were certainly big enough, but their shape was uniquely designed for torture.

    A few hours later, with the sun poised to rise, we arrived on the western shore of Lake Van.
    Ferry Across Lake Van, Turkey
    We boarded the Turkish train that would take us the rest of the way. It was more modern than our Iranian train, not quite as plush or roomy, but clean and comfortable enough.

    We and Abbas crashed instantly. It was some of the best sleep we’d ever enjoyed on a train.

    Iranians Prefer Americans?

    When we’re asked how Iranians responded to us as Americans, people are often surprised to hear that we were treated like rock stars. But if we were Elvis on the streets of Iran, we were The Beatles on that train.

    Just about every visit to the dining car turned into social hour, as we were engulfed in Iranians hoping to chat, take photos with us, and just hang out. We’d leave with hands and pockets full of nuts and dried fruits as gifts.
    Iranian People on Train
    During one dining car interlude, as we were swamped with visitors, a French traveler sat all by himself just a few tables away. He was perfectly nice (we’d talked with him earlier), but to the Iranians on that train, “French” did not hold the same appeal as “American.”

    Embarrassing. Almost.

    Proud of Iran, Searching for Opportunities Abroad

    Later that evening we ventured back into the dining car. After all, we didn’t want to eat all of Abbas’ food. We also secretly wanted a beer. Never had a mediocre not-quite-cold enough Efes tasted so good. (Iran was bone dry when it came to alcohol.)

    Amin and Parisa, an Iranian couple we’d met at the Turkish border invited us back to their compartment for a nightcap of more snacks. As we cracked open pistachios (Iranian pistachios are truly among the best in the world) and talked about our travels through Iran, they shared photos of various Iranian historical sites they had visited. You could tell they were proud of their heritage. As graphic designers, they drew from traditional Persian design and calligraphy for their modern creations.

    They told their story: “We are on this train to go to the American Embassy in Ankara. We want to apply for a student visa or maybe refugee status. It is impossible for us to live in Iran anymore. During the Green Revolution, Facebook really helped us. But we can’t survive now economically, socially.”

    This sort of tale was common. We’d met so many Iranians headed to Turkey to apply for American visas.

    Earlier when we had gathered in the dining car, we noticed a man with his young son. He noticed us, too. He’d sit and listen, and when the time was right, he would sit in the booth next to Dan and ask questions, non-sequitur.

    “Is Texas good for job?” he asked.

    “We won American green card lottery.” (To this day, I don’t understand how such an immigration program exists.)

    He left, only to return 30 minutes later.

    “If we go to Los Angeles, how do I get driver’s license?” he asked.

    “Is Los Angeles good for job? Good life?”

    Dan explained how to get a driver’s license and that in some cities, there are probably many Iranian immigrants who can provide practical information and support. To address the more difficult question Dan added, “There are opportunities in America. But success is not guaranteed. And at the moment, jobs are difficult.”

    The man quickly left.

    He returned once more. “Maybe I think about whether I take my family to America.”

    This train, it seemed, was the American Embassy Express.

    Goodbyes

    Early on our third afternoon together, the train pulled into Ankara. We could feel a shift.
    Trans-Asya Express
    We were aboard all the way to Istanbul, but all our trainmates were getting off — Abbas with his generosity and insight, the dissident artists hoping to make their way to the United States, the woman who’d transcribed a poem for me in the middle of the night, the winner of the green card lottery weighing Los Angeles and Austin, the high school student who paired her unaccented English from watching Friends with dreams of studying in the United States.

    While we’d enjoy the space to decompress, we could feel a void. We waved goodbye to our newfound friends as they made their way across the platform.

    Our journey was coming to an end, but theirs was just beginning.

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  • Government issues travel advisory to Turkey; ‘Iran seeking out Israelis’

    Government issues travel advisory to Turkey; ‘Iran seeking out Israelis’

    Counter Terrorism Bureau issues alert announcing terror groups’ intention to carry out attacks against Israeli, Jewish targets in coming days

    Attila Somfalvi

    Published: 03.13.12, 21:43 / Israel News

    The Counter Terrorism Bureau issued a travel advisory advising Israelis to avoid visiting Turkey on Tuesday. The bureau said that terrorists are planning to carry out attacks against Israelis or Jews in the country in the coming days.

    Last week, a Turkish TV report said that Israel warned Ankara that Iran had sent terrorists to Turkey in order to target Israelis.

    Israeli security establishment officials told Ynet on Tuesday that Iran was behind the plot to attack Israelis and Jews.

    “Iranian elements will try to seek out Israeli businessmen and Jews in other locations around the world – not just in Turkey,” one official told Ynet.

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    Airport in Istanbul. Turkey not safe for Israelis (Photo: AFP)

    The NTV network reported that a letter from the Mossad sent to Turkey’s National Intelligence Organization (MIT) said that the Iranian Revolutionary Guards are planning a terrorist attack “using bombs” against Israeli targets in Turkey.

    The report also stated that four people from Iran have already arrived in Turkey carrying weapons and materials to be used in the attack.

    Israel’s travel advisory was issued several hours after Turkish Prime Minister Recep Tayyip Erdogan made harsh statements against Israel in the backdrop of the current round of violence with Gaza terror groups.

    via Government issues travel advisory to Turkey; ‘Iran seeking out Israelis’ – Israel News, Ynetnews.

  • ‘West won`t punish Turkey over Iran sanctions’

    ‘West won`t punish Turkey over Iran sanctions’

    Ankara: The West is angered about Turkey’s refusal to go along with it on Iran sanctions, but unlikely to try to punish Ankara as it needs help with neighbouring Syria, say analysts.

    barWhile Washington and Brussels are ardent supporters of sanctions to force Iran to abandon its contested nuclear programme, Turkey believes tough measures will backfire and instead backs the policy of engagement and diplomacy.

    Turkish officials have refused to join the latest US and EU sanctions against Iran, which include a ban on oil imports, and are only bound by UN Security Council measures.

    But analysts said that while Turkey has come pressure from Washington, it will be protected from its wrath largely because of the Syrian crisis on its doorstep.

    “First of all, the Obama administration needs Turkey’s help in contending with the Arab political uprisings, especially the difficult situation in Syria,” said Barbara Slavin, senior fellow at the Atlantic Council of the United States.

    Since the outbreak of the uprisings in mid-March last year, Ankara and Washington have been coordinating policies on how to respond to President Bashar al-Assad’s deadly crackdown on dissent which has claimed over 7,600 lives according to UN estimates.

    Both have called on Assad to step down, and also worry the unrest could deepen in a region already jolted by last year’s Arab Spring uprisings.

    Indeed, the Turkish government “is taking the opposite side from Iran on the Syrian crisis,” said Slavin. As Syria’s closest ally in the region, Iran has stood behind the regime in Damascus while Turkey accused it of “mercilessly murdering” its own people.

    The unrest in Syria is not the only divergence in Turkish-Iranian ties.

    Ankara’s decision to allow a early radar system to be stationed on its soil as part of a NATO missile defense scheme is another source of tension in the two neighbours’ relationship.

    Turkey, a member of NATO since 1952, has insisted that Iran is not target of the radar but Turkish pleas fell on deaf ears in Tehran which warned that Ankara’s consent would create tension and lead to “complicated consequences.”

    Turkish willingness to get tough with Syria’s brutal crackdown and to host NATO radar system on its soil have proved Turkey is still anchored to the West.

    Only two years ago, a Turkish veto of a UN Security Council resolution calling for tougher sanctions against Iran shocked Washington, rekindling debates over EU hopeful Turkey’s East-West orientation.

    PTI

    via ‘West won`t punish Turkey over Iran sanctions’.