Showing posts with label sanctions. Show all posts
Showing posts with label sanctions. Show all posts

Friday, December 4, 2009

“Rep. Berman: ‘I Intend To Pass The Iran Sanctions Bill’… That No One Thinks Will Work And Which Iranian Dissidents Oppose” - Matt Duss

Politico reports that House Democratic leaders are planning to move forward with new sanctions legislation that “seeks to cut supplies of refined petroleum products, especially gasoline, into Iran as a means of convincing that regime to end its nuclear weapons programs”:

“I intend to pass the bill by the end of this year,” Berman, chairman of the House Foreign Affairs Committee, told POLITICO. His bill has 339 co-sponsors in the House, and it might be taken up under a parliamentary process that allows quick approval of widely supported legislation.

House Majority Leader Steny Hoyer (Md.) told fellow Democrats on Thursday morning that the bill would be brought to the floor within two weeks, according to Democratic aides. The Senate Banking, Housing and Urban Affairs Committee passed similar legislation at the end of October, although it is unclear if and when Senate Majority Leader Harry Reid (D-Nev.) plans to bring that bill up for a vote. [...]

Berman and other backers of the measure hope that the economic pain caused by disruption of those imports would force Tehran to scale back its nuclear ambitions.

I don’t know of any analyst — right or left — who thinks that this legislation will be at all effective in changing Iran’s behavior. Back in August, Gal Luft wrote that “Iran is much less vulnerable to gasoline sanctions than is commonly believed on Capitol Hill, and its foreign gasoline dependence is dropping by the day.” Under President Ahmadinejad, Iran has both increased its refining capacity and enacted a more effective petrol rationing program, both of which have, according to Luft, “slashed Iran’s need to import petroleum products.”

Luft also noted that “Iran is becoming increasingly reliant on China for its refinery expansion program — and Beijing has shown little interest in abiding by any sanctions regime initiated by the United States.”

The American Enterprise Institute’s Iran Tracker website also looked at the potential impact of petroleum sanctions, concluding that “the imposition of sanctions might generate no significant change in Iranian policy in the short term.” AEI’s report also notes that “the group that should be the target of strengthened sanctions, the Islamic Revolutionary Guard Corps (IRGC), is least likely to be affected”:

Some analysts have argued that the IRGC actually benefits from a more economically isolated Iran because it no longer has to compete with foreign companies for government contracts. For example, one of the main engineering companies under IRGC control, Khatam al-Anbiya, has secured at least $7 billion in government oil, gas, and transportation contracts. Although IRGC companies do not always have the necessary technical expertise for some projects, they still generate revenue by acting as an intermediary between the government and international companies. IRGC members may continue to receive government contracts and subsidy money even if the government adjusted domestic economic policies.

Perhaps just as significantly, leaders and spokespersons of Iran’s Green Movement have rejected these sanctions, arguing that they would hurt the Iranian people while doing little to affect the regime. In September, Mir Hossein Mousavi said sanctions “will impose agonies on a nation who suffers enough from miserable statesmen.”

In a recent interview with the Washington Times’ Barbara Slavin, Iranian dissident Mohsen Makhmalbaf “specifically rejected gasoline sanctions, “saying [they] would hurt average people.” While Makhmalbaf also said that “it was better to focus on the Revolutionary Guards,” as the above reports indicate, sanctions on refined petroleum products — especially of the unilateral sort proposed in the Berman bill — are a particularly ineffective instrument for doing this. Far from forcing Iran to scale back its nuclear program, the threat of these sanctions seems only to have motivated the Iranian regime to move more quickly to harden itself against their effects.

Originally published on 12/3/09 at the Wonk Room
http://wonkroom.thinkprogress.org/2009/12/03/rep-berman-iran-sanctions/

Monday, October 19, 2009

Five Myths About Iran's Nuclear Program, By Joseph Cirincione (Washington Post)

Sunday, October 18, 2009

Iran's expanding nuclear program poses one of the Obama administration's most vexing foreign policy challenges. Fortunately, the conditions for containing Tehran's efforts may be better today than they have been in years. The recent disclosure of a secret nuclear facility in Iran has led to an apparent agreement to allow in U.N. weapons inspectors and to ship some uranium out of the country, and the United States and Europe seem to be closing ranks on the need for sanctions and engagement.

Of course, the matter is far from resolved; Russia and China are sending mixed signals on their position, while even a weakened Iranian regime remains duplicitous. But the prospects for developing a strategy with a solid chance of success improve if we dispose of five persistent myths about Iran's nuclear program:

1. Iran is on the verge of developing a nuclear weapon.

For years we've heard conflicting accounts on this issue. There have been claims since the 1990s that Iran was a few years away from a bomb. Then, two years ago, U.S. intelligence agencies concluded that Iran had discontinued its dedicated nuclear weapon efforts in 2003. Today, the consensus among experts is that Iran has the technical ability to make a crude nuclear device within one to three years -- but there is no evidence that its leaders have decided to do so.

The regime's most likely path to the bomb begins in Natanz, in central Iran, the site of the nuclear facility where over the past three years about 1,500 kilograms of uranium gas has been enriched to low levels. Iran could kick out U.N. inspectors, abandon the Non-Proliferation Treaty and reprocess the gas into highly enriched uranium in about six months; it would take at least six more months to convert that uranium into the metal form required for one bomb. Technical problems with both processes could stretch this period to three years. Finally, Iran would need perhaps five additional years -- and several explosive tests -- to develop a Hiroshima-yield bomb that could be fitted onto a ballistic missile.

Of course, the United States and others would see Tehran moving in this direction, and exposure or inspection of suspected facilities would complicate Iranian objectives. We can further lengthen this timeline by ridding Iran of the essential ingredient for a bomb: low-enriched uranium. On Oct. 1, Iran agreed to ship most of this uranium to Russia for fabrication into reactor fuel; we will know in the next few weeks if it will keep that pledge. If it does, Iran's "break-out" capability -- the ability to produce a bomb quickly -- would be eliminated, at least for the two years it takes to enrich more uranium.

2. A military strike would knock out Iran's program.

Actually, a military attack would only increase the possibility of Iran developing a nuclear bomb.
"There is no military option that does anything more than buy time," Defense Secretary Robert Gates said last month. "The estimates are one to three years or so." And that's if the United States struck hundreds of targets. A less powerful Israeli attack could only damage, not destroy, Iran's facilities.

Worse, after such a bombing, the Iranian population -- now skeptical of its leadership -- would probably rally around the regime, ending any internal debates on whether to build a bomb. Iran would put its nuclear program on fast-forward to create weapons to defend itself. It could also counterattack against Israel or other U.S. allies. This month, a top official of Iran's Revolutionary Guard threatened to "blow up the heart of Israel" if the United States or Israel attacks first.

On the merits of a U.S. strike, Adm. Mike Mullen, chairman of the Joint Chiefs of Staff, has said he worries about "the possible unintended consequences of a strike like that . . . having an impact throughout the region that would be difficult to predict."

Attacking Iran would not end the problem; it could start a third U.S. war in the region.

3. We can cripple Iran with sanctions.

Sanctions rarely, if ever, work on their own. There is no silver bullet that can coerce Iran into compliance or collapse.

Some mix of sanctions -- whether restricting travel, making it harder for Iranian banks to do business, further limiting foreign investment or even denying Iranian citizens basic needs, such as gas -- may be necessary if Tehran does not restrain its nuclear program or live up to its pledges. But the key is to couple such pressure with a face-saving way out for the Iranian leadership. As the 2007 National Intelligence Estimate on Iran put it, a sanctions strategy must feature "opportunities for Iran to achieve its security, prestige, and goals for regional influence in other ways." These could include Iran's inclusion in regional security talks, the suspension of sanctions and a secure supply of reactor fuel, leading up to normalized relations with the West.

No nation has ever been forced to give up nuclear programs, but many have been persuaded to do so, including Brazil, Argentina, Ukraine, Belarus, Kazakhstan, South Africa, Iraq and, most recently, Libya.

4. A new government in Iran would abandon the nuclear program.

Some believe that an irrational, apocalyptic government now rules Iran and that regime change is the only solution. But there is broad support across Iran's political spectrum for the right to peaceful uses of nuclear energy.

Recall that the country's nuclear program began with the shah, a U.S. ally who had plans to build 20 nuclear reactors, similar to the plans the mullahs promote today. The shah also started covert work on nuclear weapons. The U.S. government knew about this research but looked the other way, going as far as selling Iran its first nuclear reactor.

Even with a reformist government, it is unlikely that Iran would quickly end its nuclear program. But its leaders might be persuaded to limit the program's nuclear weapons capabilities. "Tehran's decisions," according to the 2007 National Intelligence Estimate, "are guided by a cost-benefit approach rather than a rush to a weapon irrespective of the political, economic, and military costs."

5. Iran is the main nuclear threat in the Middle East.

The real threat posed by Iran's nuclear program is that other states in the region feel they must match it. The race has already begun.

While Israel's possession of nuclear weapons has not spurred other countries in the area to develop their own, over the past three years a dozen states in the Middle East, including Turkey, Egypt, Saudi Arabia, the United Arab Emirates and Libya (again), have begun civilian nuclear programs. These programs, alas, are not about reducing the countries' carbon footprint -- they are a hedge against Iran. These states have begun the decades-long process of developing the technical, commercial and engineering capabilities to build nuclear weapons, should they decide to do so. At this point, it is not clear that stopping Iran would stop these programs.

The real danger is not a nuclear-armed Iran but a Middle East with more nuclear-armed nations and unresolved territorial, economic and political disputes. That is a recipe for disaster, and that is why there is no country-specific solution; we cannot play nuclear whack-a-mole.

A comprehensive plan must build barriers against acquiring nuclear weapons and must reduce the motivation to do so. This means dealing with the regional security and prestige issues that motivate most countries to start nuclear programs. It requires a global approach that deals with both sides of the nuclear coin: disarmament and proliferation. Reducing existing nuclear stockpiles creates the support needed to stop the spread of the weapons; stopping the spread creates the security needed to continue reductions. We must keep flipping that coin over. Each flip, each step, makes us a little safer.

joe@ploughshares.org

Joseph Cirincione is president of the Ploughshares Fund and the author of "Bomb Scare: The History and Future of Nuclear Weapons." He is an expert adviser to the Congressional Commission on the Strategic Posture of the United States.

http://www.washingtonpost.com/wp-dyn/content/article/2009/10/15/AR2009101503476.html

Tuesday, August 18, 2009

Don't throw Ahmadinejad a Lifeline - why a gasoline embargo is a terrible idea, By Hossein Askari and Trita Parsi

In an effort to squeeze Iran into submission over its nuclear policy, Congress and the White House are edging toward a gasoline embargo. This would do nothing to force Iran into submission. In fact, it would be a blessing for the hard-line government to once again be able to point to a foreign threat to justify domestic repression and consolidate its base at a time when opposition to President Mahmoud Ahmadinejad is increasing among conservatives.

An effective gasoline embargo can only be implemented through a naval blockade. This would require U.N. Security Council approval — a tortuous process with no certain outcome. An embargo without U.N. approval is an act of war according to international law, and Iran has declared that it would be met with force.

But even if the Security Council were to miraculously unite, success would still be out of reach. The economics of a gasoline embargo simply doesn’t make sense. Iran imports roughly 40 percent of its domestic gasoline consumption at world prices and then sells it along with domestically refined gasoline at a government-subsidized price of about 40 cents per gallon. As a result, domestic gasoline consumption is high. It is also smuggled and sold to neighboring countries.

Over the past 10 years, this policy has cost Iran in the range of 10 to 20 percent of its G.D.P. annually, depending on world prices and the government-mandated pump price. Yes, a whopping 10 to 20 percent of G.D.P. In need of additional revenues, the regime has wanted to eliminate this subsidy, raise the price to world levels and reduce consumption, but has been paralyzed by the specter of a domestic backlash.

Even assuming that a gasoline embargo would be effective, what would be its result? Consumption would decline by 40 percent and government revenues would go up, because no payment would be needed for gasoline imports.

If Tehran allowed the reduced supply of gasoline to be sold at a price that would equate demand to supply, the price would increase to a level that would eliminate the subsidy, meaning no subsidy for imported gasoline and no subsidy for domestically refined gasoline. The government would have more revenue to spend elsewhere. The sanctions would have done what Tehran has wanted to do for years and the government would not be held responsible!

What about the political fallout? Proponents of the embargo believe that increased economic pressure would cause Iranians to revolt against their unpopular rulers. This is a fundamental misreading of the psychology of an embargoed people.

Iranians have suffered tremendous hardships under the Islamic Republic. And while the Iranian economy is in tatters today, Iranians have seen much worse times. During the Iran-Iraq War, they faced unprecedented economic hardships. This did not ignite a popular uprising.

What caused Iranians to rise up two months ago was not economic hardship, but dashed hopes in anger over the fraudulent election.

If the back of the Iranian economy is broken, the first casualty will be hope. Economic misery will kill people’s faith in a better future. The result will be political apathy. And rather than blaming Mr. Ahmadinejad, Iranians are likely to blame the United States.

Moreover, Iran’s ruling hard-liners are in disarray. The politics of fear is their bread and butter; they have long benefited from invoking foreign plots and Washington’s discredited regime-change policy. But now — with President Obama’s new outreach to Iran — the hard-liners have lost their 9/11. President Obama has deprived them of their perennial boogeyman.

This has helped the opposition find the maneuverability to challenge Iran’s vote-robbers. The hard-liners have no credible threat to rally around. Their disgraceful show trials on Iranian TV reveal their desperation. This has not only allowed fissures between various factions in Iran to grow, but also increased tensions among the conservatives themselves.

Mr. Ahmadinejad is desperately in need of a threat to help consolidate his conservative base and lend credibility to accusations of conspiracy against his moderate opposition. Imposing a gasoline embargo could be his last, best hope. Congress and the White House should think long and hard before throwing a lifeline to Iran’s vote-robbers.

Hossein Askari is professor of international business and international affairs at the George Washington University. Trita Parsi is president of the National Iranian American Council and author of “Treacherous Alliance — The Secret Dealings of Israel, Iran and the United States.”

NY Times Op-Ed, Aug. 14, 2009