Tag: Sanctions against Iran

  • Iran extends oil deal with Turkey for 2012 despite sanctions

    Iran extends oil deal with Turkey for 2012 despite sanctions

    Dec 24 (Reuters) – Iran said on Saturday it has extended its crude export contract with Turkey for 2012, state-run English Language Press TV reported, suggesting it aims to trade via Turkey to circumvent tight sanctions imposed over its disputed nuclear programme.

    Turkey has said it is complying with the sanctions, after trying unsuccessfully to mediate between Iran and the international community.

    “The National Iranian Oil Co. has renewed its crude export contracts with a number of Turkish oil companies … by the end of 2012,” Press TV said in the report.

    The report said Turkey was a potential market for the export of Iranian crude to Europe, and predicted the Islamic state’s crude exports to Turkey would rise by a third in 2012.

    “In 2011, Turkey’s oil purchases from Iran was 150,000 barrels per day which is expected to rise to 200,000 barrels in 2012.”

    The European Union is considering a ban – already in place in the United States – on imports of Iranian oil, although diplomats and traders say awareness is growing in the EU that such a ban could damage the bloc’s economy without doing much to undercut Iran.

    Iran warned that any move to block its oil exports would more than double crude prices.

    The West suspects Iran’s nuclear programme might be aimed at making atomic bombs, while Tehran denies this and says its nuclear development is entirely for peaceful ends.

    Many foreign companies with capital and modern technology have been forced to pull out from the country’s lucrative energy sector because of the international sanctions. (Writing by Ramin Mostafavi; Editing by Hugh Lawson)

    via Iran extends oil deal with Turkey for 2012 despite sanctions | Reuters.

  • Biden asks Turkey to impose more sanctions on Iran

    Biden asks Turkey to impose more sanctions on Iran

    South Asian News Agency (SANA) ⋅ December 3, 2011 ⋅

    WASHINGTON, (SANA): United States vice President Joseph Biden stressed on Turkey to impose more sanctions on Iran.

    In an interview with an American newspaper he said that he would continue his support for political solution of the Iran issue but for it, it is necessary to put pressure on Iran for dialogues and for this he wants that Turkey should impose more sanctions on Iran.

    On the other hand US is making efforts to impose more sanctions by other countries and forbade Turkey for holding business with the black listed banks of Iran.

    Meanwhile Turkey has said that it will not impose more sanctions except the sanctions imposed by United Nations.

    It is worth mentioning here that in the current weak the European Union imposed sanctions for holding business with 180 personalities and companies of Iran, while it is considering imposing sanctions on oil trade with Iran.

    via Biden asks Turkey to impose more sanctions on Iran | World | South Asian News Agency.

  • Biden Asks Turkey to Join in New Sanctions Against Iran

    Biden Asks Turkey to Join in New Sanctions Against Iran

    By MARC CHAMPION in Istanbul and CAROL E. LEE in Ankara

    Vice President Joe Biden called on Turkey to join new sanctions against Iran, testing the limits of a U.S.-Turkish alliance that has improved dramatically as fallout from the Arab Spring drives Ankara into growing competition with Tehran.

    Arriving in Ankara from Iraq, Mr. Biden also thanked Turkey for what he described as its “real leadership” in applying pressure to Syria, just days after Ankara announced its own sanctions on the regime and called for Syrian President Bashar al-Assad to step down.

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    The vice president began his two-day visit at a time when Turkey has fallen in step with core U.S. foreign policies in the region—specifically toward Syria and Iran—and has become one of Washington’s most active foreign-policy allies, despite continued differences over Israel.

    That is in stark contrast to last year, when Washington was gripped by debate over whether Turkey, a key North Atlantic Treaty Organization member, was turning east, away from its U.S. and European allies. Turkey triggered particular anger by voting in June 2010 against U.S.-backed sanctions on Iran at the United Nations Security Council.

    In a question-and-answer interview published Friday in one of Turkey’s main daily newspapers, Hurriyet, Mr. Biden invited Turkey to join another round of sanctions aimed at Tehran’s nuclear program.

    “Putting pressure on Iran’s leadership is necessary to secure a negotiated settlement, and that is why we encourage our partners, including Turkey, to take steps to impose new sanctions on Iran, as we have continued to do,” Mr. Biden told the newspaper.

    There is little sign that Turkey is ready to join the U.S. and allies such as the U.K. in applying potentially crippling sanctions.

    After meeting with Turkey’s President Abdullah Gul in Ankara on Friday, Mr. Biden flew to Istanbul. He was due to meet Saturday with Prime Minister Recep Tayyip Erdogan, who is recovering from an operation.

    A senior U.S. administration official said the issue of Iranian sanctions didn’t come up in Mr. Biden’s two-hour meeting with President Gul. Neither did the two men discuss the possibility, floated by France, of creating an internationally protected buffer zone inside Syria along its border with Turkey.

    Mr. Biden told Mr. Gul he believes Iran’s influence is declining across the region because of its nuclear ambitions, as well as other recent perceived missteps, such as Tuesday’s assault on the British Embassy in Tehran.

    Analysts say Turkey’s increased cooperation with Washington is in large part due to fallout from the Arab Spring that continues to roil the Middle East and has pushed Ankara into increasingly open competition with Tehran.

    Turkey and Iran have chosen opposite sides in Syria as the country has descended into violence, with Tehran continuing to back the Assad regime and Turkey, the opposition. At the same time, a tacit competition for markets and influence in common neighbor Iraq also threatens to become more acute as U.S. troops leave.

    Related Video

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    • What Are U.S. Options on Iran? (11/10/2011)

    “In a month’s time, the U.S. will leave Iraq. To have three of your neighbors as either Iran, or [in the case of Iraq and Syria] supported by Iran, should not be comforting for Turkey,” said Soli Ozel, professor of international relations and political science at Bilgi University, in Istanbul.

    The U.S. administration official said Mr. Biden had said in his meeting with President Gul that he didn’t believe Iraq would fall under Iranian control once U.S. troops leave.

    Iran was particularly angered—and the U.S. gratified—by Ankara’s decision in September to agree to host a radar for NATO’s anti-missile defense system, which is directed primarily at Iran. On Saturday, a general in Iran’s Revolutionary Guard, Amir Ali Hajizadeh, warned that should any military strike be made on Iran, Tehran would target Turkey’s NATO radar.

    Turkey this week also appeared to choose sides in Iran’s dispute with Britain, condemning Tuesday’s semiofficial sacking of the British Embassy in Tehran by hard-line students.

    But Turkey is wary of escalating actions against Tehran. It shares a long border with Iran and is potentially exposed to a revival of support, from Tehran and Damascus, for Kurdish rebels battling Turkish troops.

    Ankara also doesn’t want to fuel a Shiite-Sunni confrontation on its borders. Iran and Iraq are majority Shiite, while Turkey is mainly Sunni. Syria, meanwhile, is governed by a minority elite of Alawites, a Shiite sect.

    “There are limits to what Turkey can do,” said Mr. Ozel. “You still get 20% of gas from Iran, you still ship your goods to Central Asia through Iran and there are still about 1 million Iranian tourists coming over the border.”

    The storming of the British embassy appears to have been triggered by Britain’s decision to ban U.K.-based banks from doing business with Iran’s central bank, creating potential difficulties for Tehran in financing energy exports. On Thursday, the U.S. Senate voted in favor of a ban that would penalize foreign banks operating in the U.S. that do business with Iran’s central bank.

    Corrections & Amplifications
    On Thursday, the U.S. Senate voted in favor of a ban involving foreign banks that do business with Iran’s central bank. An earlier version of the story said it was Tuesday.

    Write to Marc Champion at marc.champion@wsj.com and Carol E. Lee at carol.lee@wsj.com

  • US Wary of Turkey’s Financial Dealings With Iran

    US Wary of Turkey’s Financial Dealings With Iran

    US Wary of Turkey’s Financial Dealings With Iran

    Dorian Jones | Istanbul

    Turkey and its U.S. and European allies could be on a collision course over Iran. Despite international efforts to isolate Iran over its disputed nuclear program, Turkey has deepened trade and financial relations with Tehran. A Turkish state bank recently helped transfer a multi-billion-dollar payment to Iran. The deal comes in the face of Washington’s calls on Ankara to stop cooperation.

    The Turkish state-owned Halkbank recently has helped India transfer part of a $5 billion payment to Iran for oil deliveries. The intervention of the Turkish bank is a major boost to Tehran, according to Turkey-Iran expert Mehrdad Emadi.

    “This money was very badly needed and it actually had caused shortage of hard currencies in Tehran,” said Emadi. “So in that sense, it actually gives a new lease of life to regime.”

    The Indian payment had been delayed by increasingly tightening Western sanctions on Iran. The West suspects Iran is developing nuclear weapons. Iran says its program is for peaceful energy development.

    Jamshid Assadi of France’s Burgundy Business School says Washington is increasingly successful in stopping Western financial dealings with Tehran.

    “The sanctions is much harder for Iran, in the financial flows because the financial networks are much globalized. And when it’s globalized, American banks are very powerful on it. For financial transactions, it’s very difficult,” said Assadi.

    In a recent a visit to Turkey, senior U.S. treasury official Roger Cohen spelled out Washington’s concerns. “As trade increases, as financial ties expand, it runs counter to the international community’s desire to constrain Iran and to ensure the choice that has been put to the Iranian leadership between continued defiance and integration with the international community, is as sharp as possible,” he said.

    Cohen cited Iran’s Mellat bank, which operates in Turkey, as helping to foster Tehran’s nuclear program. Despite Western calls for its activities to be restricted, the Turkish branch recently announced increased profits and growth.

    Washington has reportedly warned Turkish banks operating in the U.S. that they could face prosecution if they violate Iran sanctions. According to a diplomatic source, at least one Turkish bank is under investigation by U.S. authorities.

    But Ankara has mostly refused to abide by sanctions on Iran. Bilateral trade has continued to grow.

    Turkish politician Volkan Bozkir, who heads the parliamentary foreign affairs committee, dismisses U.S. threats.

    “Countries should be careful in warning Turkey [that] it’s the not the country of 10 years ago. Is there any rule in the world that the U.S. can impose any sanctions without any U.N. support or legal institutions? It’s only the U.N. which can impose sanctions. We will abide with the U.N. sanctions.”

    Still, Ankara is wary of harming relations with Washington, says former Turkish diplomat Murat Bilhan, especially when it come to military alliances.

    “Turkey does not feel any threat from Iran, but I would definitely say Turkey would not hurt Turkish-American relations just for the sake of Iran. Because Turkey does observe the interest of the United States, as you have seen that in the missile shield,” said Bilhan.

    Bilhan is referring to Ankara’s decision to allow the placement of U.S. radar on its territory as part of NATO’s anti-ballistic missile system aimed at detering Iran. The decision was praised by Washington this week and condemned by Tehran.

    via US Wary of Turkey’s Financial Dealings With Iran | Middle East | English.

  • Turkey and Iran: a delicate balance

    Turkey and Iran: a delicate balance

    While the West adopts a more punitive policy, Turkey has sought to address the Iranian nuclear crisis through political and economic engagement. Are its efforts paying off?

    By Aaron Stein for Southeast European Times in Istanbul – 20/06/11

    As Iran advances its nuclear programme, questions remain over Turkey’s continuing engagement with the Islamic Republic. [Reuters]

    A. With the latest signals from Tehran causing renewed alarm, officials in Turkey agree with their Western counterparts that a nuclear Iran would adversely affect regional security. But differences remain over how best to resolve the problem.

    A nuclear Iran “would change the balance of power in the region. Turkey would not like to see this happen because that will mean there will be a categorical difference between Iran and Turkey,” said Nuh Yilmaz, director of the Foundation for Political, Economic and Social Research (SETA) in Washington.

    At the same time, however, Ankara is eager to maintain regional stability, and hesitant to pursue coercive diplomacy. Turkish officials argue that sanctions will disproportionately impact the Turkish economy, while doing little to prevent Tehran from moving ahead with its nuclear programme – and perhaps even strengthening the position of hardliners in the Iranian regime.

    “Turkey’s interest is to engage with Iran to prevent it from obtaining nuclear weapons, while at the same time, defending Iran’s right to pursue a peaceful nuclear programme,” Yilmaz explained, adding that Turkey opposes foreign military intervention that may further unsettle the region.

    The United States and many of its Western allies have been working diligently to pressure Iran to give up key components of its nuclear programme that could contribute to a nuclear weapon. A key aspect of this strategy involves the enforcement of US and European unilateral sanctions, which seek to cut off Iran from international financial institutions.

    Turkey, by contrast, has opted to gradually tackle the problem through confidence-building negotiations.

    Iranian President Mahmoud Ahmedinejad visited Istanbul on May 9th [Reuters]

    “[The Turks] rely on what they believe to be amicable relations and the AKP government’s policy of befriending its neighbours,” said Henri Barkey, a visiting scholar in the Carnegie Middle East Programme. “Turks believe that economic integration helps overcome political differences.”

    Deputy Prime Minister Ali Babacan told reporters in 2010 that Turkish companies were free to “make their own decisions” about whether to abide by US and European unilateral sanctions, according to The Los Angeles Times. As reported by SETimes, many Iranian front companies in Turkey are also active in the procurement of dual-use materials and technology.

    “The Turkish government and opinion elites aren’t monolithic, any more than their American counterparts. But in general, Turks seem to be both less convinced that Iran is in fact pursuing a nuclear weapons capability — a judgment in which they are hardly unique — and less threatened by the prospect of a nuclear weapons-capable or nuclear-armed Iran,” said Dr Philipp Bleek, a nonproliferation expert and assistant professor at the Monterey Institute.

    When talking about relations, Turkish officials are quick to point out that ties between these two ancient regional powers have been relatively stable since the signing of the Kasr-i Shirin in 1639, which delineated the modern border of Turkey and Iran. Since the end of the Cold War, mutual concerns over the rise of Kurdish nationalism, as well as Turkey’s growing dependence on imported natural gas have solidified the partnership.

    But Turkey’s Western partners are taking a different tack. According to Dr Steven Cook, a senior fellow for Middle Eastern Studies at the Council of Foreign Relations, the West has “moved progressively away from a policy of engagement on Iran, concluding that a more punitive policy may have a better chance of changing Iran’s course”.

    A key part of that policy is to isolate the Islamic Republic economically in order to raise the cost its nuclear programme, with the hope that these costs will prompt officials to reconsider the merits.

    According to Cook, the West would be “less concerned about Turkey’s engagement if there were a sense that Ankara’s outreach to Iran was not open ended. Currently, it seems like it is engagement for engagement sake.”

    Ankara fears applying economic sanctions next door could damage its own economy. [Reuters]

    “Both Bleek and Cook argue that bridge building by itself will not be sufficient to resolve the current diplomatic impasse. They also contend that Ankara does not seem to have a plan beyond negotiations and diplomatic engagement.

    In spite of the Turkish and Western efforts to defuse the ongoing diplomatic impasse, Iran has remained defiant, vowing to continue its enrichment programme.

    Iran recently announced that it will install 164-machine cascades of advanced centrifuges at a previously hidden enrichment plant in Fordow.

    These new centrifuges “would triple [Iran’s] enrichment output of 19.75% low enriched uranium (LEU) by the end of the year,” according to a report by David Albright, Paul Brannan, and Andrea Stricker for the Institute for Science and International Security.

    The P5+1 — which includes the US, Germany, France, Britain, Russia and China — has already issued a joint statement condemning Iran for its failure to co-operate fully with the IAEA.

    In a development that has further raised concerns, the Iranian website Gerdab.ir — operated by the powerful Iranian Revolutionary Guards Corp — reposted a blog post written by Seyed Ali Pourtabatabaei, a 30-year-old from Qom, who writes a blog called Kheyrazanonline.

    The article, entitled “The Day after the First Iranian Nuclear Test is a Normal Day”, discusses the implications of an Iranian nuclear weapons test. It was released shortly before the latest IAEA Director General Report chastising Iran for deflecting questions about the possible military dimensions of its nuclear programme.

    This content was commissioned for SETimes.com.
  • US warns Turkey against trade with Iran

    US warns Turkey against trade with Iran

    US Treasury's Acting Undersecretary for Terrorism and Financial Intelligence David Cohen
    US Treasury's Acting Undersecretary for Terrorism and Financial Intelligence David Cohen

    Washington is pressuring Turkey to limit its trade transactions with the Islamic Republic of Iran, a senior official in the US Treasury has said.

    “I have urged the Turkish government to assist Turkish banks in protecting themselves from Iran’s attempts to abuse its existing trade and financial relations with Turkey,” US Treasury’s Acting Undersecretary for Terrorism and Financial Intelligence David Cohen said on Thursday.

    Cohen recently visited Turkey to discuss implementing the US-engineered sanctions imposed against Iran and Libya.

    The UN Security Council adopted a fourth round of sanctions against Tehran in June 2010, under intense pressure from the US, which claims Iran’s nuclear program may have potential military applications.

    Shortly after the UN sanctions, the United States imposed fresh unilateral sanctions on Iran’s financial and energy sectors and persuaded Europe to follow suit. Washington also urged other countries to abandon investment in the Iranian market.

    Iran maintains that as a member of the International Atomic Energy Agency and a signatory to the Nuclear Non-Proliferation Treaty, it has a right to peaceful nuclear energy and the technology required for electricity generation and medical research.

    The US attempts to mar Tehran-Istanbul ties continue while trade volume between Iran and Turkey has reportedly increased by more than 70 percent, surpassing USD 2.1 billion in the first two months of 2011.

    According to a report released by the Turkish Statistical Institute, the volume of trade between the two neighboring states hit USD 963.5 million in February, showing a 43.65 percent increase compared with the same period last year.

    In mid-February, Iranian President Mahmoud Ahmadinejad underlined the Islamic Republic’s firm determination to increase the value of annual trade ties with Turkey to USD 30 billion.

    MYA/MRS/AKM

    via PressTV – US warns Turkey against trade with Iran.