Category: Iran

  • Iranian firms head for Turkey

    Iranian firms head for Turkey

    By Alakbar Raufoglu for Southeast European Times — 26/05/11

    ”]The number of Iranian companies in Turkey is rapidly increasing. [Reuters]The total number of Iranian firms in Turkey reached 1,400 by the end of last year, according to the Turkish Statistical Institute. The two countries, both members of the Economic Co-operation Organisation, have ambitious plans to increase bilateral trade to $30 billion by 2015, from $10.6 billion last year.

    “Escaping the UN embargos and unilateral sanctions imposed by the US and EU, dozens of Iranian firms have flown to Turkey from European and Arab markets during recent months,” said Riza Amuzgar Eser, head of the Istanbul-based Iran Commercial and Businessmen’s Association.

    “Turkey is replacing [companies from] such countries as France, Germany and the UAE,” he said, adding that both Ankara and Tehran can benefit from this co-operation by opening to each other eastern and western markets.

    Business is also facilitated through the Azeri, a language widely spoken in Iran and mutually intelligible with Turkish.

    Settling down in various Turkish cities, the Iranian firms either transfer their investments or “start from zero”. “They don’t have any problem with doing business here, except some bank transfers,” Amuzgar mentions.

    Ignoring Western criticisms, the Turkish government has emphasised it is committed to developing relations with Iran. Ankara voted against UN sanctions on Iran last year. This spring, the two announced the completion of a “road map” detailing their investment projects in the field of energy.

    Muhsin Kar, an analyst at the Institute of Strategic Thinking, an Ankara-based think-tank, says the international economic sanctions are not “the only reason for Iranian firms to operate in Turkey”.

    “They also want to utilise the opportunities in Turkey,” Kar argues.

    “Social and political unrest in the Gulf and other Arab countries and Iran’s involvement in these events may increase the awareness of and confrontation with Iranian capital in this region and, as a result, one might expect in the near future more Iranian firms to choose to operate in a stable and emerging economy like Turkey,” he said.

    Meanwhile, Kar says, Iranian capital “is not very risky for Ankara”, because it comes in the form of FDI. “This is not hot money. For Turkey, attraction of FDI is one of the main policy agendas and it is welcomed from wherever possible.”

    Professor Omer Faruk Colak, a prominent Turkish economist and lecturer, argues that as the EU’s share of Turkish exports decreased to 45% during past years, Ankara turned to new, untapped markets such as Iran.

    “It is obvious that the ruling Justice and Development Party sees Iran close to itself ideologically,” he said, adding that money is more important for the Turkish government right now.

    Meanwhile, Eser says that rather than politics, co-operation with Iran is important for the development of some of the poorer regions in Turkey.

    “Our countries are planning to set up a joint industrial town at the border to further boost economic ties,” he added.

    According to officials, the settlement of the town may happen by the end of this year. “We have already walked the biggest part of this road,” he notes. “We are offering to settle this town in Van, Igdir or other border towns.”

    However, chairman of MUSIAD-Trabzon, a business organisation, argues “local businesses don’t priorotise co-operation with Iran anymore” because they haven’t seen the benefits.

    “There are no signs of creating stable, prosperous international trade with Iran right now,” he told SETimes.

    This content was commissioned for SETimes.com.

  • Explosion hits Iran refinery just before Ahmadinejad speech

    Explosion hits Iran refinery just before Ahmadinejad speech

    By Borzou Daragahi Los Angeles Times Staff Writer

    May 24, 2011, 3:31 a.m.

    Reporting from Beirut—

    Iranian President Mahmoud Ahmadinejad at a May 9 news conference in Istanbul. (Murad Sezer, Reuters)
    Iranian President Mahmoud Ahmadinejad at a May 9 news conference in Istanbul. (Murad Sezer, Reuters)

    An explosion blamed on a gas leak struck a newly inaugurated section of an oil refinery Tuesday just before President Mahmoud Ahmadinejad spoke at the facility’s ribbon-cutting ceremony, state media reported.

    At least one person was killed and up to 25 were injured by the explosion in Abadan, in Iran’s oil-rich southwest, according to accounts by domestic Iranian news agencies. One Abadan resident quoted by the Associated Press said he saw rescue vehicles rushing to the site.

    The incident did not disrupt Ahmadinejad’s speech, which included fairly typical denunciations of U.S. relations with Middle East autocrats and the course of Israeli-Palestinian peace talks, according to news agencies.

    Officials quickly insisted that blast was the result of an industrial accident and not an act of sabotage. Iran’s industrial sector has long been riddled by deadly accidents, with train and plane crashes, troubles at petrochemical facilities and other incidents.

    According to the semi-official Mehr news agency, the explosion and fire were caused by a gas leak, which poisoned oil workers.

    An uprising by the country’s ethnic Arab minority, which was inspired by pro-democracy movements across the Middle East and brutally crushed by authorities, has also been smoldering in the country’s southwest.

    At least one official all but accused Ahmadinejad, who had recently appointed himself caretaker oil minister amid howls of protest by his many political rivals, of rushing to open the plant too early in order to ingratiate himself with Iranians. The refinery will eventually produce 1.5 million gallons of gasoline a day to satiate Iran’s energy-hungry consumers.

    Hamid-Reza Katouzian, head of parliament’s energy committee, told the semi-official Fars news agency that experts had warned officials that Abadan was not ready to launch.

    “There was a technical fault at the refinery,” he was quoted as saying. “The incident was not deliberate sabotage.”

    daragahi@latimes.com

    via Iran, Ahmadinejad: Explosion hits Iran refinery just before Ahmadinejad speech – latimes.com.

  • tehran times : President declares Iran-Turkey pact in fighting terrorism, drugs

    tehran times : President declares Iran-Turkey pact in fighting terrorism, drugs

    President declares Iran-Turkey pact in fighting terrorism, drugs

    Tehran Times Political Desk

    TEHRAN – The president declares the implementation of an agreement signed between Iran and Turkey which obliges the two sides to cooperate in their campaign against terrorism, drugs, and organized crimes.

    The agreement had already been ratified by the Majlis and endorsed by the Guardian Council, IRNA reported on Monday.

    According to the agreement, each side will have to help the other in fight against terrorism, organized crimes, narcotics as well as illegal production of weapons, explosive and nuclear materials, radioactive, biological, and chemical weapons.

    The two countries will also cooperate to eradicate the production of psychoactive drugs, human trafficking and counterfeiting documents

    via tehran times : President declares Iran-Turkey pact in fighting terrorism, drugs.

  • Iran’s Aras Free Zone, Turkey to Ink Trade Agreement

    Iran’s Aras Free Zone, Turkey to Ink Trade Agreement

    Iran’s Aras Free Zone, Turkey to Ink Trade Agreement

    iran turkey flag freezoneTEHRAN (FNA)- The officials of Iran’s Aras Free Trade Zone (FTZ) and Turkey’s Northeast Anatolia Development Agency announced that they plan to sign a trade agreement to increase economic cooperation between the two sides.

    During a meeting between the Iranian and Turkish officials, Head of Turkey’s Northeast Anatolia Development Agency Rifaat Alten stressed that the Aras Free Trade Zone enjoys noteworthy and proper facilities and infrastructures for investment and endorsement of joint cooperation deal in the field of trade.

    The Turkish delegation described the infrastructures and investment facilities and opportunities of the Aras Free Trade Zone as beyond his expectations, and announced its readiness to sign trade agreements with the Iranian side.

    Some $8.19 million worth in goods were exported from the Aras Free Trade Zone in the first five months of the last Iranian year (March 21, 2010 to August 21, 2010).

    Aras Free Trade Zone’s exports showed over 3,445 percent of increase in value compared to the same period in 2009.

    The zone’s exports are mostly destined for Azerbaijan, Germany, Armenia, Turkey, Russia, Iraq, Georgia and Nakhichivan.

    Some $97.9 million worth in goods have also been imported to Aras FTZ in the mentioned period, down by 17 percent compared to the approximately $119.3 million of 2009.

    via Fars News Agency :: Iran’s Aras Free Zone, Turkey to Ink Trade Agreement.

  • Joshua W. Walker: One Year After Tehran: Can Turkey still be a ‘model partner’ in resolving the Iran nuclear impasse?

    Joshua W. Walker: One Year After Tehran: Can Turkey still be a ‘model partner’ in resolving the Iran nuclear impasse?

    This post was co-authored by Dr. Philipp C. Bleek

    Exactly one year ago this week, Turkey and Brazil unveiled an agreement they had jointly negotiated with Iran, intended to be a significant step toward resolving the international community’s concerns regarding Tehran’s nuclear activities. Instead of being the diplomatic triumph Ankara and Brasilia had sought, the response in the West ranged from tepid to dismissive, and the agreement went nowhere. What went wrong, and what does it suggest about Turkey’s potential future role as an intermediary on the Iran nuclear issue?

    The so-called “Tehran Agreement” would have provided Iran with fuel for a small research reactor used to make medical isotopes in exchange for an equivalent quantity of Iranian uranium. The United States and its European allies had previously unsuccessfully sought to negotiate just such a deal with Iran. Both Turkey and Brazil chafed at Western dismissal of their deal, all the more so because they perceived Washington as having encouraged their efforts.

    At first blush, Turkey appears well positioned to mediate between Iran and the West. On the one hand, it has strong ties, rooted in decades of Cold War cooperation and bolstered by its NATO membership, with the United States and European states eager to persuade Iran not to pursue a nuclear weapons capability. On the other hand, Turkey has an increasingly robust relationship with Iran in the context of deepening energy, trade and political ties. Finally, Turkey has sought to position itself as a broker or mediator between the West and Iran as part of its broader aspirations as a regional power broker, a role that has only become more important given current turmoil in much of the Middle East.

    So what went wrong? Based on conversations with officials in Washington, the lukewarm reception for the Turkish-Brazilian accord a year ago was a function of both timing and tone. Especially after Iran had balked at similar negotiations with Washington, U.S. officials do not appear to have expected the Turkey-Brazil negotiations to succeed, and assumed Turkey was merely posturing and would eventually get in line with the U.S. push for more robust sanctions on Tehran. U.S. officials saw Iran’s agreement as a last-ditch effort to avert tougher sanctions, rather than a good-faith effort to open a path toward more robust engagement. Since the fuel swap agreement did not address most of the core underlying concerns about Tehran’s nuclear activities, but was instead intended to be a confidence-building foundation on which more substantive agreements could be built, a disingenuous last-minute Iranian agreement was viewed as bringing little to the table.

    Washington’s stance

    Relatedly, Washington was put off when the agreement was framed as though it addressed the international community’s concerns regarding Iran’s nuclear activities, rather than merely being an initial, confidence-building step. In unveiling the agreement, Turkish Foreign Minister Ahmet Davutoğlu argued there was “no ground left for more sanctions or pressure,” and Prime Minister Recep Tayyip Erdoğan said the West was merely “envious” of Turkey and Brazil’s achievement.

    At the same time, U.S. officials acknowledge that the United States sent Turkey mixed signals, in part because of disagreement within the administration about whether the Iran nuclear issue can be effectively tackled via engagement. Key U.S. officials appear to regard neither engagement nor sanctions as likely to stem what they view as a determined Iranian push for at least a nuclear weapons option. As a result, both engagement and sanctions are intended primarily as delaying tactics, buying time for internal changes in Iran or, in the worst case, eventual military action.

    But others in Washington wonder whether the Turkish initiative might not have been a missed opportunity for the U.S. to support Turkey’s negotiated deal and thereby support those within Iran who argue for greater engagement. Although officials in Washington often express concerns about Turkey being too closely aligned with Iran, many still acknowledge that Ankara is not interested in a nuclear-armed Iran and that the key difference between Ankara and Washington is over tactics, not strategy.

    Going forward, for now there is little enthusiasm among senior Washington policymakers for a substantive Turkish role on the Iran nuclear issue. And despite grudging support from Ankara for the sanctions against which it voted, there is growing concern over Turkey’s role as a transit point for Iranian sanctions-evading trade and financial transactions.

    But if there is any chance of negotiations defusing the nuclear issue with Iran, there may be a future role for Turkey to play. US officials chafe at the fact that Turkey is no longer entirely in the U.S. camp on this issue, but it is not clear it would be an effective intermediary if it were. The rift between Washington and Ankara may help bolster Turkish credibility in Tehran, and in the long term, that may present an avenue that skillful US diplomacy could exploit.

    This post was originally published in Today’s Zaman

    Dr. Philipp C. Bleek is an assistant professor at the Monterey Institute of International Studies and fellow at the James Martin Center for Nonproliferation Studies. Dr. Joshua W. Walker is an assistant professor at the University of Richmond and fellow at the German Marshall Fund.

    via Joshua W. Walker: One Year After Tehran: Can Turkey still be a ‘model partner’ in resolving the Iran nuclear impasse?.

  • Iran’s Bank Mellat: All Turkey banks have cut links with us

    Iran’s Bank Mellat: All Turkey banks have cut links with us

    Iran’s Bank Mellat cannot do business in Turkey as all Turkish banks have cut links with it due to U.S. sanctions over Tehran’s nuclear programme, the head of the bank’s Turkish unit, Younes Hormozi, said on Wednesday.

    His comments came a day after the United States blacklisted another Iranian state-owned bank for its role in what Washington sees as an increasingly sophisticated campaign by Tehran to evade international sanctions.

    Ahmadinejad and Erdogan, May 9 2011, Reuters

    3498226258Iran’s President Mahmoud Ahmadinejad (R) shakes hands with Turkey’s Prime Minister Recep Tayyip Erdogan in Istanbul May 9, 2011.

    Photo by: Reuters

    David Cohen, U.S. Treasury acting undersecretary for terrorism and financial crimes, said last week that Turkish banks which persist in dealing with local branches of Bank

    Mellat were risking U.S. sanctions.

    Mellat was first sanctioned by the United States in 2007 for helping finance Iran’s nuclear activities, which the West says is aimed at developing nuclear weapons. Iran denies this.

    Cohen, the U.S. Treasury’s top financial intelligence official, told Reuters that Mellat’s Turkish branches are “key conduits” for Iran’s international transactions, including potentially dangerous weapons proliferation activities.

    The Treasury could cut off some Turkish banks’ access to the American financial system if they violate a 10-month-old law U.S. law that implements the U.N. resolution, the Comprehensive Iran Sanctions And Disinvestment Act, or CISADA.

    Asked in a telephone interview if there were Turkish banks still doing business with it, Hormozi said: “There are none left unfortunately. That is, all banks have cut links with us as of today. We know this stems from America and we condemn it.”

    “We have come to a point where we are unable to do business,” he said.

    Hormozi denied any of its activities were illicit.

    “All business we have done until now has been legal and in line with Turkish and international law. If America has documents to prove Bank Mellat has done illegal business, it should show them,” he said.

    The European Union has also blacklisted Mellat, but a UN Security Council resolution approved last year does not specifically order the bank to be cut off.

    Turkey, which opposed the latest round of UN sanctions against its fellow Muslim neighbour, is taking a narrower view of the Iran resolution and has allowed Mellat branches in Istanbul, Ankara and Izmir to continue operating until now.

    Turkish Prime Minister Tayyip Erdogan’s government, facing re-election next month, has steadily increased trade with Iran since taking power in 2002 as part of a strategy to make Turkey the regional business and finance hub.

    via Iran’s Bank Mellat: All Turkey banks have cut links with us – Haaretz Daily Newspaper | Israel News.