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The world’s rogue state vs Iran

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Update: On 2 November 2018, European Union foreign policy chief Federica Mogherini, along with the foreign relations and finance ministers of Germany, France, and the United Kingdom, issued a joint statement confirming their commitment to establish a ‘Special Purpose Vehicle’, such as a new system governing trade with Iran. Without such a channel, the renewed embargo against Iran by the rogue kleptocracy in power in the USA affects businesses in Europe.

This plan sees European investors and businesses being able to continue all legitimate business with Iran free from the threat of reprisal by the USA for violating its unilateral, completely illegal under international law, embargo. In the statement, European leaders also vowed to continue working with Russia and China.

On Monday 5 November, the American regime in Washington commenced its illegal embargo against Iran and with its usual cowboy bluster warned of ‘severe penalities’ against companies that continued to do business which their embargo wants to block.

More irritating, from the international point of view, is the vacuous threat by the Washington cowboys (US President Donald Trump and his top-tier psychopaths, Secretary of State Michael Pompeo, National Security Adviser John Bolton and Treasury Secretary Steven Mnuchin) that any company or individual violating the USA’s unilateral and illegal embargo may lose access to SWIFT global banking system which banks use to conduct international transactions. Even more absurd, the White House cowboys threatened SWIFT itself.


Update: The Treasury Secretary of the government of USA (equivalent to a finance minister) has said that his government is “in negotiations with Belgian-based financial messaging service SWIFT, that facilitates the bulk of the world’s cross-border money transactions, on disconnecting Iran from the network“.

[SWIFT is the Society for Worldwide Interbank Financial Telecommunication, is the financial network that provides high-value cross-border transfers for members across the world. It is based in Belgium, but its board includes executives from US banks. USA has a peculiar – unacceptable in multilateral and bilateral agreements, and illegal anywhere outside territorial USA – set of ‘laws’ that give the government of the USA permission to act against banks and regulators worldwide if they are seen to obstruct US foreign, defence or economic policy. SWIFT supports most interbank messages, connecting over 11,000 financial institutions in more than 200 countries and territories.]

The news agency report adds: “Washington has been pressuring SWIFT to cut Iran from the system as it did in 2012 before the nuclear deal. Although the United States does not hold a majority on SWIFT’s board of directors, the Trump administration could impose penalties on SWIFT unless it disconnects from Iran.”

In August, Germany’s Foreign Minister Heiko Maas said the European Union is working to protect economic ties with Iran and keep payment channels open. Maas said Europe has started work on creating a system for money transfers that will be autonomous from the currently prevailing Society for Worldwide Interbank Financial Telecommunication (SWIFT).


IT IS A MEASURE OF THE PHANTASMAGORIA that rules international relations today, that a pretend-country – one which observes only the law of the gun within its borders and uses its remaining power to impose the same kind of primitive law without – with a pretend-government, has given itself the right to label another country a ‘rogue state’.

This pretend-country is the USA, and in its macabre language, a ‘rogue state’ is any country that neither bows to the USA nor submits to its diktats and intimidations, nor permits entry to the USA’s corporations and banks, nor uses the American dollar as its medium of international exchange. There are still in 2018 a number of countries or nation-states which are neither parliamentary as the Anglo-Americans prefer, nor democracies as the Western Europeans imagine themselves to be. This does not make them “rogue states”, for that label should properly be affixed to just the one pretend-country ruled by a pretend-government: the USA.

In the pretend-government of America’s child logic, it can countenance countries pursuing their interests only provided those interests either coincide with the interests of the American pretend-government or are permitted by it. Any transgression is considered by the pretend-government of USA as being outlaw behavior. To most other countries and territories and states (there are 193 in the United Nations) outlaw behaviour means the use by the country’s government and agencies of methods contrary to accepted standards of international behavior and contrary to international law, cheating or reneging, the use of violent methods when peaceful ones are available.

Using this measure – found in the views of a majority among 193 versus the barking insistence of one – the USA is the pre-eminent rogue state (assisted by an adjutant rogue state, the rather recently invented Kingdom of Saudi Arabia). The citizens of this pre-eminent rogue state have been brainwashed to consider it normal that their country’s military installations exist in staggering numbers in other countries, on other peoples’ land – there are now around 800 US bases in foreign countries. Seventy years after World War II and 62 years after the Korean War, there are still 174 US ‘base sites’ in Germany, 113 in Japan, and 83 in South Korea, according to the Pentagon while hundreds more dot the planet in around 80 countries, including Aruba and Australia, Bahrain and Bulgaria, Colombia, Kenya, and Qatar.

The Islamic Republic of Iran does not have a military base in the USA, nor in any country near the USA. On the other hand, the pretend-government of the USA maintains 12 military bases in Iraq, 8 in Kuwait, 6 in Afghanistan, 2 in Bahrain and 2 in Turkey, that is, all around Iran. This is how the pre-eminent rogue state threatens and seeks to intimidate other countries.

This is the background against which a remarkable joint editorial published on 15 October by the editors of four of Iran’s leading newspapers must be considered. The four newspapers – Iran, Hamshahri, Etelaat, and Sazandegi – decried the reimposition by the USA of what are called ‘sanctions’ (a misuse of the word that has become commonplace, the correct words should be embargo or blockade) as a violation of the ‘unalienable rights’ of the Iranian people to ‘life, liberty and the pursuit of happiness’, quoting in fact from the American Declaration of Independence which has long been consigned to ashes in the USA itself.

The joint editorial explained that the “access to medicine, drugs and medical equipments” offers “obvious proof” that it is “children, women and men” who are “actually targeted by blind sanctions.” The recession caused by sanctions will see “many job opportunities lost” in industry and agriculture, effects that will “subsequently provoke escalation of poverty among the households, and these households are just those who constitute Iranian people.”

The joint editorial has as its immediate reference point the abandoning by the USA in early May 2018 of the six-party Joint Comprehensive Plan of Action (JCPOA) which was signed in 2015, granting Iran sanctions relief in exchange for the curbing of its nuclear activities:

“Whereas leaving JCPOA is a non-diplomatic immoral behavior, imposing tyrannical sanctions against a great nation will certainly be an antagonistic, discreditable measure. The US government claims that its sanctions are targeted on Iranian governance, not on Iranian people, while Iranian government believes that the sanction would come to no harm. However, we as the freethinker freestanding journalists with an attitude independent of any government believe that contrary to what governments claim, the US tyrannical sanctions have brought about destructive repercussions for the lives of millions of Iranian citizens who legitimately enjoy the right of life under optimal conditions.

“The US government obviously tells a lie when claiming that the sanctions are not imposed on the Iranian people. Indeed, the pressure and economic blockade of Iran have left harmful and in some cases, terrible impact on the life of Iranian people, not least the poor, entirely inconsistent with any reading of human rights. Difficulty in having access to medicine, drugs and medical equipments is an obvious proof for this statement that it is the people, children, women and men, who are actually targeted by blind sanctions, and so is when the price of goods are skyrocketed far beyond the purchasing power of ordinary people, and when the cost for health, education and even nutrition for the people are disproportionately increased, when many job opportunities are lost as the immediate effects of the sanctions on the industry and agriculture, all these subsequently provoke escalation of poverty among the households, and these households are just those who constitute Iranian people.”

Yesterday (16 Oct) the pretend-government of the USA blacklisted some 20 Iranian companies, including banks, steel mills, zinc mines, and manufacturers of cars, buses and tractors – on the spurious grounds that they support recruitment of child soldiers for Iran! As has been the practice of the pretend-government of the USA, it employs brazen lies to justify its intention to see destroyed those countries that do not pay it tribute. It lied about the so-called weapons of mass destruction in Iraq, it has lied repeatedly about the use of chemical weapons in the Syrian conflict, it has supplied Saudi Arabia and the United Arab Emirates in their genocidal war against Yemen, it has lied to its own citizens about the origin of the 11 September 2001 attacks in the USA.

Resisting the usual attempts at arm-twisting by the pretend-government of the USA, earlier this month, the International Court of Justice ordered the USA to lift the sanctions on humanitarian goods and civil aviation, saying that they endanger civilian lives. The US “must remove any impediments” to the free exportation of food and medicines to Iran and to the safety of civil aviation, the ICJ said, to no avail however. As pointed out by Iranian experts on international law, the American withdrawal from the JCPOA and the measures it has taken to defy its implementation, the re-imposition of embargos and blockades on Iran and its commercial partners in the world, are a material breach of its international obligations and responsibilities.

It is the pre-eminent rogue state of the world (and its adjutant rogue state) which is the towering threat to peaceful and mutually beneficial co-existence, shared security, amity and understanding, sustainable development and the removal of impediments to the betterment of humans and the environment. Iran must have all our support.

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Written by makanaka

October 17, 2018 at 13:54

Iran’s oil, Europe’s oil imports, many threats, upward prices

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Iranian President Ahmadinejad punches the air in front of a banner of Iran's Supreme Leader Ali Khamenei during rally to mark the anniversary of Islamic Revolution in Tehran. With its threat to block the Strait of Hormuz, Iran is responding to the United States' decision to impose sanctions on financial institutions that deal with Iran's central bank. Photo: Der Spiegel / Reuters

The concern about the multi-bloc confrontation with Iran (the Islamic Republic of, to use the official name) has continued from December 2011 into January 2012. Oil prices and petroleum products markets have been affected. There have been oft-repeated and serious concerns that there could be some armed confrontation, especially involving Israel and Iran. There has also been speculation that Iran’s government would block the Strait of Hormuz, through which about a third of all crude oil shipped worldwide passes. Some of these concerns have abated in the last week, but only partially.

Now, Der Spiegel has reported that although the European Union embargo on Iranian oil will only come into effect in six months, the leadership in Tehran wants to act first: Exports to Europe are set to be halted immediately. It is a move which could mean added difficulties for struggling economies in southern Europe. The Iranian government wants to present a bill to parliament this weekend calling for an immediate halt to oil deliveries to Europe. The move, with most reports citing the Iranian news agency Mehr, has come about in response to the EU agreement to impose sanctions against Iran, which were announced earlier this week.

The sanctions banned any new contracts for buying oil from Iran, but allowed existing deals to continue until July in order to give countries time to find other sources. But that process is now at risk after the latest move from Tehran, a step the Iranian government had already threatened. “If this bill is passed, the government will be forced to stop selling oil to Europe before the actual implementation of their sanctions,” said Emad Hosseini, spokesman for the Iranian parliament’s energy commission, reportedly said. The bill is set to become law on Sunday.

An oil tanker is seen docked next to Iraq's vital al-Basra oil terminal, in Persian Gulf waters. Four decades after the 1973 oil shock, Iran and the West are once again embracing oil as a weapon. Tehran is threatening to block the Strait of Hormuz, while the industrialized countries are considering a boycott of Iranian oil. Photo: Der Spiegel / AP Photo/Kamran Jebreili

The EU sanctions allow for oil deliveries from Iran until July 1. Any pre-empting of this timescale by Tehran could prove problematic for countries like Italy, Greece and Spain, who would need to urgently find new suppliers. China, meanwhile, a major importer of Iranian oil, has also criticized the EU sanctions. The Xinhua news agency quoted the Chinese Foreign Ministry on Thursday as saying: “To blindly pressure and impose sanctions on Iran are not constructive approaches.” Many members of the EU are now heavily dependent on Iranian oil. Some 500,000 barrels arrive in Europe every day from Iran, with southern European countries consuming most of it. Greece is the most exposed, receiving a third of all its oil imports from Iran, but Italy too depends on Iran for 13 percent of its oil needs. If this source were to dry up abruptly, the economic conditions in the two struggling countries could become even worse.

Iran holds around 137 billion barrels of proven oil reserves, or nearly 10 percent of the world total, according to the BP Statistical Review of World Energy 2011. Despite sitting on the world’s second largest reserves of natural gas, Iran’s growing appetite for its own gas, combined with tightening international sanctions that have throttled its fledgling liquefied natural gas (LNG) programme, have made it a net gas importer for most of the last decade. Natural gas accounts for 54 percent of Iran’s total domestic energy consumption, while most of the remainder of energy consumption is attributable to oil, according to the U.S. Energy Information Administration (EIA).

Graphic: Der Spiegel / Reuters

The Gloria Center’s Barry Rubin has said that the claim of Israel being about to attack Iran repeatedly appears in the media (see his article, ‘Israel Isn’t Going to Attack Iran and Neither Will the United States’). “Some have criticized Israel for attacking Iran and turning the Middle East into a cauldron of turmoil (not as if the region needs any help in that department) despite the fact that it hasn’t even happened,” he said. “On the surface, of course, there is apparent evidence for such a thesis. Israel has talked about attacking Iran and, objectively, one can make a case for such an operation. Yet any serious consideration of this scenario—based on actual research and real analysis rather than what the uninformed assemble in their own heads—is this: It isn’t going to happen.”

Rubin said that the main leak from the Israeli government, by an ex-intelligence official who hates Prime Minister Benjamin Netanyahu, has been that the Israeli government already decided not to attack Iran. Israeli Defense Minister Ehud Barak has publicly denied plans for an imminent attack as have other senior government official. “Israel, like other countries, should be subject to rational analysis. Articles being written by others are being spun as saying Israel is going to attack when that’s not what they are saying.”

So why are Israelis talking about a potential attack on Iran’s nuclear facilities, Rubin has asked. Because that’s the only way Israel has to pressure Western countries to work harder on the issue, to increase sanction and diplomatic efforts, is his answer.

A satellite image of the Persian Gulf. About a third of all the crude oil shipped worldwide passes through the Strait of Hormuz between Iran and Oman. Photo: Der Spiegel / DPA / NASA / The Visible Earth

Bloomberg provided a round-up of Iran-related oil and prices news – oil declined a second day in New York as rising U.S. crude inventories countered data showing gasoline demand increased last week in the world’s largest oil consumer. Futures fell as much as 0.9 percent after dropping 0.6 percent yesterday. Crude stockpiles probably rose last week as imports rebounded, according to a Bloomberg News survey before an Energy Department report today. U.S. gasoline demand grew for a second week, MasterCard Inc. data showed yesterday. The European Union embargo on Iranian oil supplies will “bear bitter fruit,” Iran’s Foreign Affairs Ministry said this week.

Ria Novosti, the Russian news agtency, quoting a CNN report, said the United States will use all available options to prevent Iran from getting a nuclear weapon, President Barack Obama said in his State of the Union address on Tuesday. “Let there be no doubt: America is determined to prevent Iran from getting a nuclear weapon, and I will take no options off the table to achieve that goal,” Obama said.

The New York Times reported that as the Obama administration and its European allies toughened economic sanctions against Iran on Monday — blocking its access to the world financial system and undermining its critical oil and gas industry — officials on both sides of the Atlantic acknowledge that their last-ditch effort has only a limited chance of persuading Tehran to abandon what the West fears is its pursuit of nuclear weapons. “That leaves open this critical question: And then what?”

Fox Business has reported that the International Monetary Fund warned on Wednesday that global crude prices could rise as much as 30 percent if Iran halts oil exports as a result of U.S. and European Union sanctions. If Iran halts exports to countries without offsets from other sources it would likely trigger an “initial” oil price jump of 20 to 30 percent, or about $20 to $30 a barrel, the IMF said in its first public comment on a possible Iranian oil supply disruption.

Graphic: Der Spiegel / Reuters

Impacts on refining in Europe was reported by Bloomberg – the European Union’s embargo on Iranian oil threatens to accelerate refinery closures in Europe, the head of Italy’s refiners’ lobby said. “Asian countries not applying the embargo could buy the Iranian oil at a discount and sell cheap refined products back to us,” Piero De Simone, general manager of Unione Petrolifera, said in an interview in Rome. “Italy already risks the closure of five refineries and at a European level we’re talking about 70 possible shut downs.”

Brinksmanship over Iran’s threat to close the Strait of Hormuz sparked a rally in oil prices at the end of last year, The National of UAE reported, with sabre-rattling by Iran and the US sending the price of Brent crude futures to highs of US$111.11 per barrel. Saudi Arabia looks set to benefit from sanctions against Iran as the kingdom is one of the few oil producers with capacity to make up any shortfall they will cause. Meanwhile India’s oil minister said Wednesday the energy-hungry nation was continuing to import oil from Iran and was not bound by new sanctions imposed by the European Union.

Reuters provided a factbox about Iran’s oil exports as OPEC’s second largest producer. Iran sells large volumes of oil to China, India, South Korea, Japan and Italy. But Greece, Turkey, South Africa and Sri Lanka rely most heavily on Iranian oil as a percentage of imports. Sri Lanka imported 39,000 bpd in the first half of the year, IEA data shows. It is completely reliant on Iranian oil.

EU figures show imports of Iranian crude were up more than 7% in the third quarter of 2011 compared to the second quarter. The EU says it imported about 700,000 bpd of Iranian crude oil in the third quarter of 2011, compared to about 655,000 bpd in the second quarter.

The European Union agreed on Jan. 23 to ban Iranian oil imports, but the embargo will not be fully implemented until July 1, to avoid harming economies to whom Iran has been a major supplier. The EU move follows new financial sanctions signed into law by U.S. President Barack Obama on Dec. 31, which aim to make it difficult for countries to buy Iranian oil in an attempt to discourage Tehran’s nuclear programme.

Iran produces about 3.5 million barrels per day (bpd) of crude with another 500,000 bpd of condensate – light hydrocarbon liquids. Iran exports about 2.6 million bpd, of which about 50,000 bpd is refined products, the International Energy Agency (IEA) estimates. The top 10 buyers of Iranian crude last year were as follows:

An Iranian oil technician makes his way at the oil separator facilities in Azadegan oil field, near Ahvaz, Iran. Photo: Der Spiegel / AP Photo/Vahid Salemi

Country – Imports (bpd) – % Imports
1. China – 543,000 – 10
2. India – 341,000 – 11
3. Japan – 251,000 – 5.9
4. Italy – 204,000 – 13.2
5. South Korea – 239,000 – 7.4
6. Turkey – 217,000 – 30.6
7. Spain – 170,000 – 16.2
8. Greece – 158,000 – 53.1
9. S.Africa – 98,000 – 25
10.France – 75,000 – 6.0

[Figures for EU countries are from the bloc’s Eurostat office and are for the third quarter. Figures for other OECD countries are from the IEA and for the second quarter. Figures for China, India and South Africa are for the first half of 2011 from the U.S. Energy Information Administration (EIA).]