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The World Reacts to Nuclear Framework with Iran

Reaction to the recently-announced framework for a nuclear agreement between Iran and the P5+1 countries was intensely polarized, ranging from strong support and cautious optimism to skepticism and outright denunciation.  The White House has initiated a full-court press to shore up support for the agreement, while leaders around the world have weighed in.

Here are the highlights:

The Obama administration’s communications strategy has placed Energy Secretary Ernest Moniz, a nuclear physicist, front and center.  In a White House press briefing, Secretary Moniz said the agreement will block the “four pathways to a bomb in Iran.”  Moniz said the divergent accounts of the framework in the U.S. and Iran reflect different “emphases” but the “same agreement.”

Addressing concerns about the “PMD” issue, Secretary of State John Kerry, in a PBS interview, said Iran must disclose any past nuclear weapon-related efforts as part of a final agreement.

President Obama, in an interview with NPR, perhaps inadvertently drew attention to a potential weakness of the agreement, expressing the “fear” that “in year 13, 14, 15, [Iran has] advanced centrifuges that enrich uranium fairly rapidly, and at that point the breakout times would have shrunk almost down to zero.”

On this point, President Obama and Israeli Prime Minister Benjamin Netanyahu appear to have found a rare point of agreement.  In a press statement, Prime Minister Netanyahu said, “Israel shares the view that upon the expiry of the nuclear agreement with Iran the latter’s breakout time to achieve nuclear weapons will be zero.”

The White House, in turn, repurposed Israeli Prime Minister Benjamin Netanyahu’s infamous “bomb” graphic to argue that under the framework agreement, “Iran’s uranium enrichment pathway to a weapon will be shut down.”  Media outlets described this move as the Obama administration “trolling” the Prime Minister.

Meanwhile, in Iran, Supreme Leader Ali Khamenei remained noncommittal on the deal, saying he is “neither in favor nor against” the nuclear framework.  He did re-affirm his support for Iran’s nuclear negotiators and appeared to issue a red line: all sanctions must be lifted when the final agreement is signed.

Official opinion in Iran has generally been supportive, with the Commander of the IRGC expressing his support for the framework agreement and Iran’s negotiating team.

The cabinet of Iran’s chief rival in the Middle East, Saudi Arabia, meanwhile welcomed the framework agreement and drew attention to the larger regional dynamic, expressing hope for a nuclear-free Middle East.

Reaction in the Arab world more broadly ranged from support to skepticism, reports David Pollock of the Washington Institute.

Meanwhile, in the latest example of “dueling fact sheets,” media outlets reported on a French “fact sheet” on the nuclear agreement, which reportedly states that Iran would be allowed to use more advanced centrifuges in a “gradual and precisely defined increase in (enrichment) capacity between the 10th and 13th years with the introduction of advanced IR-2 and IR-4 centrifuges.”

Do We Have a Deal? Sticking Points Persist

In a Joint Statement on April 2, negotiators announced that Iran and the P5+1 countries have “taken a decisive step” and “reached solutions on key parameters” of a nuclear agreement.  But how “decisive” are the “solutions” announced with such fanfare in Lausanne, Switzerland?

Below are excerpts from the Joint Statement, followed by a description of what they could mean and what the U.S.  government says they mean.  The Joint Statement is vague; a fact sheet released by the U.S. government provides more detail, but that document has been questioned by Iranian officials.

It appears that many of the issues that have been sticking points since negotiations began remain sticking points.  They were papered over in the Joint Statement and will have to be resolved before the June 30 deadline for a final agreement.

1. Iran’s enrichment capacity, enrichment level and stockpile will be limited for specified durations, and there will be no other enrichment facility than Natanz.

Enrichment capacity:  Iran has apparently agreed to limit the number of first-generation centrifuges installed at the Natanz plant to 6,104, and to operate only 5,060.  This is down from about 15,420 installed at Natanz, of which 9,156 are enriching uranium.  So, while the U.S. says Iran has agreed to “reduce by approximately two-thirds its installed centrifuges,” it is cutting the number of operating centrifuges only by half.  As is currently the case, only first-generation IR-1 centrifuges will be installed or operating.  The 1,008 advanced centrifuges (IR-2m) at Natanz will be removed.

But what happens to all of the removed centrifuges?  According to the United States, they will remain in the country, in storage, and monitored by international inspectors.  This means that if the deal falls apart, Iran will be able to reconstitute its program rather than having to rebuild it.

According to the United States, Iran also would freeze its “centrifuge manufacturing base.”  This most likely means that no new centrifuges would be built during a period of time, though that period is not specified in any of the documents released so far.

Stockpile:  Then there is the question of enriched uranium, both the existing stockpile (about 10,000 kg of low-enriched uranium) and ongoing production.  According to the United States, Iran has agreed to limit its stockpile to 300 kg for a period of 15 years.  Even if further enriched, this is not enough to fuel a nuclear weapon.

But what happens to the rest of Iran’s stockpile?  Will it be shipped out of the country, as reported previously, or will Iran dilute the material and keep it in the country?  This is a critical question.  The stockpile is sufficient to fuel about seven nuclear weapons, with further enrichment and processing.   If the material remains in the country (especially in diluted gaseous form), it could provide Iran with the building blocks for a small nuclear arsenal.

Enrichment level:  The United States says that Iran has agreed not to enrich above 3.67 percent, “for at least 15 years.”  This is a restriction Iran has been abiding by since early 2014, under the terms of the interim accord.  It is a level that is about 70 percent of the way to weapon grade.

2. Iran’s research and development on centrifuges will be carried out on a scope and schedule that has been mutually agreed.

Iran’s work on more advanced centrifuges is still a sticking point.  The Joint Statement confirms that this work will continue.  The U.S. fact sheet says that Iran will be allowed to “engage in limited research and development with its advanced centrifuges,” based on as-yet-to-be-agreed-upon parameters.  These centrifuges – which are far more efficient than the IR-1 model – would not produce enriched uranium for at least ten years.  Still, the research on advanced centrifuges will continue, which is problematic.  It is important that restrictions be placed on Iran’s work in this domain or Iran will be able to perfect these machines during the period of the deal, and emerge on the other end with more efficient machines.

3.  Fordow will be converted from an enrichment site into a nuclear, physics and technology centre. […] There will not be any fissile material at Fordow.

The Fordow Fuel Enrichment Plant is a hardened uranium enrichment facility that was built in secret by Iran underneath a mountain.  It was designed to hold 2,976 centrifuges, though it currently houses 2,710 first-generation machines, of which 696 are operating.

Iran has agreed to convert Fordow into a nuclear research facility.  According to the U.S. fact sheet, Iran will remove almost two-thirds of Fordow’s centrifuges, leaving about 1,000 in place.  This would be a higher number of centrifuges than are operating at Fordow, but none would be enriching uranium.  Iran has agreed not to enrich uranium at the site for 15 years.

However, Iran will not be required to close Fordow.  After 15 years, Iran could convert the site back into an enrichment plant, at which point concerns about its protected location could reemerge.  Also, as with Natanz, the centrifuges will be dismantled and placed in supervised storage; they will not be removed from the country.

4.  An international joint venture will assist Iran in redesigning and rebuilding a modernized Heavy Water Research Reactor in Arak that will not produce weapons grade plutonium.  There will be no reprocessing and the spent fuel will be exported.

If completed, the reactor under construction at Arak could provide Iran with a source of plutonium for nuclear weapons.  According to the United States, the original core of this reactor will be either destroyed or removed from the country.  Iran will rebuild a reactor based on a design “agreed to by the P5+1.”  And Iran will not build any additional heavy water reactors for 15 years.

In addition, Iran has apparently committed not to reprocess spent fuel from this or any other reactor “indefinitely.”  Spent fuel from the Arak reactor will be shipped out of the country.

Even in modified form, however, it appears that Arak will remain a heavy water reactor, a design that poses proliferation risks and is not needed for Iran’s declared purpose of producing medical isotopes.

5.  A set of measures have been agreed to monitor the provisions of the JCPOA [Joint Comprehensive Plan of Action] including implementation of the modified Code 3.1 and provisional application of the Additional Protocol.

The Additional Protocol allows for wider-ranging nuclear inspections, similar to those Iran has agreed to as part of the interim accord.  However, Iran is not being required to ratify the Protocol.  The Joint Statement describes the Protocol’s “provisional application,” and the U.S. fact sheet only says that Iran has agreed to “implement” the Protocol.  As with the uranium stockpile and the centrifuges, this means the restriction will be reversible by Iran.  Iran could simply decide to end implementation, which it has done before.  In 2003, Iran signed the Protocol and agreed to adhere to it pending ratification.  Ratification never happened and in 2006, Iran announced that it would no longer implement the Protocol.

Under the Additional Protocol, inspectors receive information and have access to all sites related to the nuclear fuel cycle, including uranium mines and mills.  This is important, as it allows the Agency to track nuclear material at an earlier stage in the fuel cycle, and potentially to detect a diversion.  According to the United States, inspectors will have access to mines and mills for 25 years and to centrifuge production and storage facilities for 20 years.  The Additional Protocol also requires Iran to provide information about nuclear imports and domestic manufacturing, which will be crucial for verification.

However, short-notice access to some sites is limited under the Additional Protocol.  Access to additional buildings at a known nuclear site can still take time to authorize.  And access to an undeclared site is trickier.  In some cases, inspectors would need to get approval from the IAEA’s governing board before taking environmental samples at such a site.

Modified Code 3.1 imposes requirements on providing design information for new nuclear facilities to the IAEA.  Iran agreed to this requirement back in February 2003, but then reneged – a decision the IAEA contests.  The Code merely requires Iran to provide design information about new nuclear facilities “as soon as the decision to construct or to authorize construction has been taken.”  Therefore, Iran’s willingness to implement this Code is neither new nor groundbreaking.  It has little bearing on catching secret work.

Robust inspections and other types of verification are the sole means of providing assurance that Iran cannot “sneakout” and make nuclear weapons in secret.  Any good deal should therefore give international inspectors broad authority to access suspicious sites in Iran – not just declared nuclear sites.  Unfortunately, the information so far suggests that such enhanced authority will not exist.

6.  The International Atomic Energy Agency (IAEA) will be permitted the use of modern technologies and will have enhanced access through agreed procedures, including to clarify past and present issues.

This is the part of the Joint Statement that relates – obliquely – to allegations that Iran carried out nuclear weapon-related research and experiments.  The IAEA has been investigating questions about “possible military dimensions” to Iran’s nuclear program for years, and has largely failed to make progress because of Iran’s refusal to cooperate.  According to the Joint Statement, the IAEA’s investigation will proceed and Iran will presumably grant the Agency “enhanced access” in order to “clarify” these past “issues.”  But Iran has committed to do so in the past, without following through.

The U.S. government refers to the weapons work more directly but is just as vague about the cooperative measures that Iran will be required to adopt, and their timing.   According to the U.S. fact sheet, “Iran will implement an agreed set of measures to address the IAEA’s concerns regarding the Possible Military Dimensions (PMD) of its program.”

Understanding the status of past work in this area is a key to establishing how close Iran is to being able to make nuclear weapons.  Information about this work would support inspections and inform calculations related to Iran’s breakout potential.

7.  The EU will terminate the implementation of all nuclear-related economic and financial sanctions and the US will cease the application of all nuclear-related secondary economic and financial sanctions, simultaneously with the IAEA-verified implementation by Iran of its key nuclear commitments.

The timing of sanctions relief remains a sticking point in the negotiations, as Secretary Kerry indicated in his press conference on April 2.  Sanctions are the main form of leverage that brought Iran to the negotiating table.  Iran has sought the immediate lifting of sanctions, while the P5+1 has favored the phased removal of sanctions in order to maintain leverage and ensure compliance.   The Joint Statement indicates the European Union will remove its nuclear-related economic and financial sanctions, while the United States will stop enforcing its nuclear-related sanctions on third-countries and companies that do business with Iran.

But many questions remain.  When and how will these sanctions be lifted?  When and how will the IAEA verify Iran’s “implementation … of its nuclear commitments,” which is meant to trigger the sanctions relief?   How would sanctions be re-imposed if Iran violates the agreement?

According to the U.S government, sanctions will be “suspended” only “after” the IAEA has verified Iran’s compliance.  So, Iran will receive sanctions relief “if it verifiably abides by its commitments.”  This suggests a staged process that the Iranians have rejected.

The U.S. government also describes a “snap back” mechanism, which would re-impose European and U.S. sanctions “in the event of significant non-performance”— a provision not mentioned in the Joint Statement.

Sanctions relief remains a key issue that could potentially kill a final agreement.

8.  A new UN Security Council Resolution will endorse the JCPOA [Joint Comprehensive Plan of Action], terminate all previous nuclear-related resolutions and incorporate certain restrictive measures for a mutually agreed period of time.

As expected, a U.N. Security Council resolution of some kind will endorse the deal, lift existing U.N. sanctions, and reimpose some sanctions.  However, nothing will be resolved until the U.N. Security Council hammers out the diplomatic language of a new resolution.

The U.S. government describes some promising provisions for such a resolution.  These include the creation of a dedicated and monitored procurement channel for Iran’s nuclear program and the maintenance of international restrictions on Iran’s conventional arms and ballistic missiles.  A new resolution could also maintain the right to inspect suspicious cargo to and from Iran and an asset freeze on Iranian proliferators.

CIA Hints at Secret Means to Stop an Iranian Bomb

In an interview with Fox News on Sunday, CIA Director John Brennan hinted that the United States has secret means to prevent Iran from obtaining a nuclear weapon.  Asked about a “breakout” scenario in which Iran might race toward the bomb, Mr. Brennan said: “There are a number of things that the United States has available to it to prevent Iran from getting a bomb.”  He did not describe those capabilities, but he warned the Iranians that “there will be tremendous costs and consequences and implications if they were to decide to go for a breakout.”

The CIA interview comes on the heels of a Los Angeles Times report from March 16 about a top-secret site in the United States built to replicate Iranian uranium enrichment facilities.  According to the report, U.S. technicians have modeled the workings of Iranian centrifuge cascades to understand how quickly Iran could convert uranium to bomb fuel.  The report speculated that the Obama administration may use the technical data gained from the modeling to sell a nuclear deal with Iran to the public.  Taken together, the CIA interview and the disclosures from the L.A. Times appear to be part of a domestic campaign to pre-empt technical criticism of a nuclear deal.

The Obama administration has said that any nuclear agreement would have to ensure that Iran would need at least one year to produce enough fuel for a nuclear weapon in a “breakout.”  The research at the secret U.S. site could buttress the case that the restrictions placed on Iran would achieve that goal.

The secret site was first disclosed in the New York Times, when it reported on the Stuxnet computer worm in 2011.  According to the Times, U.S. nuclear experts at the Oak Ridge National Laboratory in Tennessee built a replica of Iranian cascades using a cache of P-1 centrifuges obtained from Libya after Muammar Gaddafi gave up his nuclear program in 2003.  Wired reporter Kim Zetter, in her 2014 book on Stuxnet, Countdown to Zero Day, wrote that the secret centrifuge plant at Oak Ridge was first used simply to understand Iranian capabilities and gauge the progress of Iran’s enrichment program.  Research soon turned, however, to assessing the vulnerability of the centrifuges to various forms of attack, including the Stuxnet computer virus.

The CIA interview suggested that the United States has yet additional means, perhaps similar to Stuxnet, at its disposal should Iran attempt a “breakout.”  Mr. Brennan also touted the CIA’s “robust” intelligence capabilities and expressed confidence that “we have a good understanding of what the Iranian nuclear program entails.”  These statements appear designed to support the claim that a nuclear agreement with Iran would be verifiable.

President Obama, in an interview with the Huffington Post on March 21, acknowledged the challenge of selling an agreement with Iran to the American public and the Congress.  He said he would have “to show not just the American people or the Israeli people but the world that, in fact, we have mechanisms in place that will prevent Iran from having a nuclear weapon.  And that the deal that is made not only is verifiable, but it also makes it much less likely that Iran is able to break out than if we have no deal at all.”

Turkish Company in Procurement Ring Settles Charge of Illicit Export of Valve Parts to Iran

On March 20, 2015, AAG Makina, a Turkish equipment manufacturer, settled one charge of aiding an unauthorized export to Iran with the U.S. Commerce Department’s Bureau of Industry and Security (BIS).  According to the charge, in 2011, Satco Corporation, a Canadian company, ordered $47,334 worth of valve parts and a pressure transmitter, which were shipped from the United States to AAG Makina.  The shipped goods were subject to the Export Administration Regulations.  AAG Makina forwarded the items to two Iranian petrochemical companies without U.S. government authorization.  The Turkish company agreed to pay a civil penalty of $23,000 without either admitting or denying the allegations.

According to BIS, AAG Makina operated as part of a larger procurement ring led by Saeed Talebi.  Talebi was the individual who purchased the controlled items from U.S. companies and sent them, via transshipment through Germany and Turkey, to Iran.  Talebi established businesses in the U.A.E., Germany, and Canada to facilitate his scheme.  AAG Makina employee Murat Paeker worked with Talebi to facilitate the shipments by providing false end-user information to the U.S. government.

On September 26, 2012, Talebi pleaded guilty to one count of conspiracy to violate the International Emergency Economic Powers Act in connection with the export of $390,000 worth of electrical components and industrial hardware to Iranian petrochemical companies.  He was sentenced to 12 months and 1 day in prison on February 13, 2013.  In his plea allocution, Talebi identified one of the end-users in Iran as Fajr Petrochemical, a subsidiary of Iran’s state-owned National Petrochemical Company.

In December 2013, seven members of this procurement ring—Talebi, Satco, Satco Corporation, Satco GmbH, Kadin Satco FZE, AAG Makina, and Peker—were added to the BIS Entity List.


Sources:

[1] “Order Relating to AAG Makina,” United States Department of Commerce, Bureau of Industry and Security, March 20, 2015, available via PACER.

[2] Addition of Certain Persons to the Entity List; Amendment of Entity List Entries; and Removal of One Person From the Entity List Based on a Removal Request, United States Department of Commerce, Bureau of Industry and Security, Federal Register, 78 FR 75458, December 12, 2013, available at https://federalregister.gov/a/2013-28663

[3] Information – Felony, United States of America v. Saeed Talebi, United States District Court, Southern District of New York, Case Number 1:12-cr-00295-LTS, September 26, 2012, available via PACER.

[4] Transcript, United States of America v. Saeed Talebi, United States District Court, Southern District of New York, Case Number 1:12-cr-00295-LTS, September 26, 2012, available via PACER.

[5] Amended Judgment, United States of America v. Saeed Talebi, United States District Court, Southern District of New York, Case Number 1:12-cr-00295-LTS, May 29, 2013, available via PACER.

Grappling with U.N. Sanctions

Last week, negotiators in the ongoing nuclear talks grappled with how quickly to lift United Nations sanctions on Iran if a deal is reached.  Reuters reported on March 12 that negotiators were discussing a U.N. Security Council resolution to lift these existing sanctions.  The sanctions underpin the economically taxing energy and financial restrictions adopted by the European Union and the United States.  U.N. resolutions also restrict Iran’s nuclear and missile programs and Iran’s arms exports and imports.

The U.N. sanctions under discussion were passed in four rounds between 2006 and 2010 in response to Iran’s refusal to suspend sensitive nuclear work.   Taken together, these resolutions bar Iran from importing or exporting most conventional weapon systems, as well as items related to uranium enrichment, reprocessing, heavy water and nuclear weapon delivery systems, including dual-use nuclear and missile items.  They also prohibit states from providing Iran with financial or technical assistance aimed at acquiring these items, and they impose an asset freeze on some 120 Iranian entities supporting nuclear and missile work.  Resolution 1929 of June 2010 broadened the asset freeze to companies related to the Iranian Revolutionary Guard Corps and Islamic Republic of Iran Shipping Lines.  It also required Iran to cooperate fully with the International Atomic Energy Agency, including the Agency’s ongoing investigation of the “possible military dimensions” of Iran’s nuclear program.

Official statements over the past week confirmed that negotiators on both sides foresee a new U.N. Security Council resolution of some kind.  White House Chief of Staff Denis McDonough, in a March 14 letter to Senator Bob Corker, said that the administration anticipated a Security Council resolution “to register its support for any deal and increase its international legitimacy.”   French Ambassador to the United States, Gérard Araud, posting on Twitter on March 12, said that in the event of an agreement, a Security Council resolution would endorse the deal by lifting some of the U.N. sanctions and authorizing some level of uranium enrichment by Iran.

Iranian Foreign Minister Javad Zarif also told the Iranian magazine Seda on March 7 that any nuclear agreement should be endorsed by a U.N. Security Council resolution.  Such a move, Zarif said, would make the deal “an international agreement, the enforcement of which would be mandatory for all states.”   However, Obama administration officials have insisted that any nuclear agreement with Iran would be a non-binding executive agreement that would not impose any legal obligations on future U.S. administrations.  In a March 12 blog post, Harvard Law Professor Jack Goldsmith wrote that depending on the specific wording, a U.N. resolution under Article 41 of Chapter VII of the U.N. Charter could nonetheless impose an obligation under international law on “the nations of the world to not impose certain sanctions on Iran as long as it complies with the deal.”

The speed of sanctions relief is another sticking point.  During the talks, Tehran has demanded that all sanctions be lifted immediately.  The United States has insisted that sanctions be removed only gradually.  Ambassador Araud, in a March 13 Twitter post, reiterated the P5+1 position that the lifting of any sanctions be “incremental, reversible, [and] conditional.”

If a deal is reached, negotiators will also face the challenge of maintaining restrictions on proliferation-sensitive goods that could support secret nuclear work or enhance Iran’s nuclear-capable missiles.  According to the findings from a 2014 Wisconsin Project roundtable discussion, an effective nuclear deal must include a means of monitoring and controlling all of Iran’s procurement activities with possible nuclear applications.  Iran imported materials relevant to its nuclear enterprise illicitly for many years and continues to do so.  A final deal must prevent such imports and limit Iran’s ability to improve its missiles.  The best way to accomplish this would be to set up an agreed channel for nuclear and missile imports that would be exclusive.  No import outside the channel would be permitted, and such a channel would include a mechanism for regulating what Iran is allowed to buy.  Without this monitored channel, there would be a great risk that Iran could divert newly-permitted imports to secret sites.

Iran Displays New Missile; Nuclear Warhead Questions Still Unanswered

In a ceremony on March 8, Iran’s defense minister unveiled what he called a new, indigenously developed cruise missile, the Soumar, and announced the delivery of two medium-range ballistic missile systems to Iran’s Revolutionary Guard Corps.  This event comes as the late March deadline for reaching a long-term agreement on Iran’s nuclear program approaches and raises the question whether Iran’s alleged efforts to mate a nuclear warhead to a missile will be covered by an eventual agreement.

In remarks at the ceremony, Defense Minister Brigadier General Hossein Dehqan described the Soumar as a “long-range ground-to-ground cruise missile system” that was developed by the Aerospace Industries Organization (AIO).  AIO oversees the development and production of both liquid and solid fueled ballistic missiles.  It has been sanctioned by numerous countries, including the United States, and is subordinate to the Ministry of Defense and Armed Forces Logistics (MODAFL), which was sanctioned by the United Nations in 2010.

The Soumar appears to be either a re-purposed, or reverse engineered, version of the Soviet-era KH-55 (AS-15) missile, which has a range of between 2,000 and 3,000 km and is capable of carrying a nuclear warhead.  Iran obtained – illegally – twelve of these missiles from Ukraine in 2001, according to a 2005 statement by Ukraine’s prosecutor-general.  Iran’s Missile Industries Group and CSIG, two entities subordinate to AIO, reportedly were involved in the reverse-engineering work.  The strategic version of the missile used by Russia’s air force could carry a 410 kg payload beyond 2,000 km, according to a March 8 military intelligence report from a European government.  This range could encompass Israel, the Gulf, and Southeastern Europe.

The March 8 ceremony in Tehran also saw the delivery of the Qadr and Qiam liquid-fueled ballistic missiles to the IRGC Air Force, or IRGC Aerospace Force, an entity sanctioned by the United States, European Union, and several other governments.  The Qadr is a medium-range, nuclear-capable missile that Iran claims to be an upgraded version of its Shahab-3, while the Qiam is a short-range missile (700-800 km).  Iran has said both missiles are equipped with “multiple reentry vehicle” payloads – most likely conventional cluster munitions.

The relative inaccuracy of Iran’s ballistic missiles (making them of limited use when armed with conventional warheads) raises the question: why invest in these systems, unless you are seeking to mate them with nuclear warheads?  The U.S. Intelligence community has assessed that ballistic missiles would be Iran’s preferred method of delivery for nuclear weapons.  And in a November 2011 report, the IAEA described evidence that Iran had conducted engineering studies on integrating a nuclear payload into the reentry vehicle for the Shahab-3 missile.

Iran, however, has steadfastly denied any connection between its missile program and its nuclear efforts.  During the March 8 ceremony, the head of IRGC Aerospace Force, Brigadier General Amir Ali Hajizadeh, warned that “ballistic missiles will never be negotiable at all.”  And last month, Iranian negotiator and Deputy Foreign Minister Seyed Abbas Araqchi said that “raising and negotiating the country’s defensive and missile capability in Iran’s nuclear talks with the Group 5+1 […] has never been allowed in the past nor at present nor in future.”  However, the U.S. State Department has insisted that Iran’s ballistic missile capabilities are indeed part of the ongoing talks.

Another contentious topic that may – or may not – be an explicit part of the talks relates to allegations that Iran conducted nuclear research and experiments with “possible military dimensions.”  On March 9, Iran and the International Atomic Energy Agency (IAEA) met yet again to discuss the Agency’s long-standing investigation of these allegations.  Information was exchanged and a mid-April date was set for the next round of talks – after the P5+1 negotiating deadline.  Still, no progress was made in resolving the specific allegations, deemed “credible” by the IAEA, related to experiments with high explosives and studies on neutron transport calculations.  And these are only two of about a dozen topics related to weaponization about which the IAEA is seeking more information from Iran.

A March 7 piece in the New York Times summarized the weaponization-related allegations under investigation by the IAEA.  The Times’ piece is based on information in an annex to the IAEA’s November 2011 report, which described these allegations in detail, including:

  • computer modeling of implosion, compression, and nuclear yield, as recently as 2009;
  • high explosive tests simulating a nuclear explosion but using non-nuclear material, in order to see whether an implosion device would work;
  • the construction of at least one containment vessel at a military site, in which to conduct such high explosive tests;
  • studies on an initiation system used in nuclear detonation, in order to ensure uniform compression of an implosion device, including at least one large scale experiment in 2003, and experimental research after 2003;
  • support from a foreign expert, reportedly a former Soviet weapon scientist named Vyacheslav Danilenko, in developing the initiation system and a crucial diagnostic system to monitor the detonation experiments;
  • manufacture of a neutron initiator, which is placed in the core of an implosion device and, when compressed, generates neutrons to start a nuclear chain reaction, along with validation studies on the initiator design from 2006 onward;
  • the development of exploding bridgewire detonators (EBWs) used in simultaneous detonation, which are needed to initiate an implosive shock wave in fission bombs;
  • the development of high voltage firing equipment that would allow a new payload to be detonated in the air, above a target, which would only make sense for a nuclear payload;
  • testing of high voltage firing equipment to ensure that it could fire EBWs over long distances, which is needed for nuclear weapon testing, when a device might be located down a deep shaft;
  • a program to integrate a new spherical payload onto Iran’s Shahab-3 missile, of a size that would accommodate the high explosive and detonation packages described above;
  • preparatory work (without nuclear material) on the fabrication of natural and high-enriched uranium metal components; and
  • access to at least one implosion bomb design.

Netanyahu and White House Talk Past Each Other on Iran

Yesterday in Washington, the showdown between the White House and Israeli Prime Minister Benjamin Netanyahu over the Iranian nuclear talks came to a head.  In a controversial address before a joint meeting of Congress, Prime Minister Netanyahu criticized the terms of the agreement now taking shape and urged the United States to walk away from “a very bad deal.”  President Barack Obama dismissed the speech as “nothing new,” and said that the Prime Minister “didn’t offer any viable alternatives” to a compromise deal, which the President called “the best way” to prevent Iran from obtaining nuclear weapons.

This contentious back-and-forth has shed more heat than light, with both sides continuing to talk past each other.  Prime Minister Netanyahu raised two main objections to the prospective deal in his speech.  First, he argued that the restrictions under discussion would not roll back Iran’s nuclear program far enough.  Because Iran would still retain “thousands of centrifuges” and other elements of its nuclear infrastructure, Iran’s break-out time—the time needed to produce enough fuel for a nuclear bomb—“would be very short—about a year by U.S. assessment, even shorter by Israel’s.”

Second, the Prime Minister questioned the so-called sunset clause, which would lift these restrictions after a set period of time, reportedly about ten years.   After that, Iran could legally pursue industrial-scale uranium enrichment, which “could make the fuel for an entire nuclear arsenal and this in a matter of weeks.”  According to the Prime Minister, the proposed deal “doesn’t block Iran’s path to the bomb; it paves Iran’s path to the bomb.”

Even if Prime Minister Netanyahu’s speech did not offer much in the way of new arguments, he did grab the world’s headlines and forced the Obama administration to defend its position in public.  The White House dispatched both U.N. Ambassador Samantha Power and National Security Advisor Susan Rice to address the AIPAC Policy Conference on March 2.  President Obama, on the same day, discussed the Iran nuclear negotiations in an interview with Reuters, and returned to the topic yesterday, in remarks from the Oval Office.

In her AIPAC speech, Ambassador Rice stated that “a good deal” would extend Iran’s current break-out time from two-to-three months to one year, and maintain restrictions on Iran’s nuclear program for a decade—far longer than any setback that could be dealt to the program by military action.  President Obama, in his Reuters interview, said that an agreement of “double-digit years” would be “far more effective in controlling their nuclear program than any military action we could take, any military action Israel could take and far more effective than sanctions will be.”

The Israeli Prime Minister failed to acknowledge these arguments.  Left unsaid in his address was the risk that if talks collapse, Iran could immediately ramp up its nuclear program and reduce cooperation with inspectors.  That might happen more quickly than new sanctions could be imposed and have any meaningful effect.   A ten-year agreement would at least delay this outcome and buy time, during which the Iranian regime might moderate its behavior.

For its part, the Obama administration has remained vague on two crucial questions: how would the agreement be enforced and what happens after it expires?  In her AIPAC speech, Ambassador Rice said that the administration will rely on inspections: “any deal must last more than a decade—with additional provisions ensuring greater transparency into Iran’s program for an even longer period of time.”  But what, specifically, would this “greater transparency” entail?

In his remarks yesterday, President Obama said that the deal “would subject Iran to the most vigorous inspections and verifications regimes that have ever been put in place.”  To date, the “anywhere, anytime” inspections in Iraq in the 1990s have been the most intrusive.  But these were put in place following Iraq’s defeat in the first Gulf War.  Iran has given no indication that it is prepared to accept a similarly intrusive regime.

For example, will Iran allow inspectors into what it deems non-nuclear sites, such as the Parchin military complex?  Ambassador Rice stated that “any deal must ensure frequent and intrusive inspections at Iran’s nuclear sites.”  Yet this formulation—“Iran’s nuclear sites”—leaves open the possibility that other sites could remain off-limits, or at least subject to time-consuming arguments over access.

During the period of the agreement, inspections will be critical to ensuring that Iran is not operating any secret nuclear sites—as North Korea did after signing the Agreed Framework in 1994.  And once the agreement expires, inspections would be a primary way to detect both secret work and diversion from an expanded uranium enrichment program.

Will inspections be able to accomplish these tasks?  Unlike the administration, Prime Minister Netanyahu does not think so.  “Inspectors,” he observed during his Congressional address, “ document violations; they don’t stop them.”

German Authorities Sentence Four Men for Supplying Iran with Valves for Heavy Water Reactor

German authorities sentenced four men to punishments ranging from four years in prison to 18 months’ probation for illegally supplying Iran with over one thousand valves for its Arak heavy water reactor.  The case began in 2007, when Iranian national Hossein Tanideh contacted Rudolf Mayer, the owner of a German custom fittings company called MIT-Weimar.  Tanideh was seeking to purchase valves on behalf of Modern Industries Technique Company (MITEC), an Iranian firm responsible for the design and construction of the Arak reactor.  MITEC has been sanctioned by the United Nations, the European Union, and the United States.  After successful negotiations between Tanideh and Mayer, a first shipment of valves was sent from Germany to Iran via Turkey in October 2010.  Mayer reportedly created a fictitious customer for the goods in Azerbaijan in order to conceal this transaction.

Procurement continued in 2011, when Tanideh reportedly sought over 600 valves from Halle-based Bekasar Industrietechnik GmbH, with help from Gholamali Kazemi and his son Kianzad.  The Kazemis supported Tanideh’s procurement efforts from their base in Germany, where Gholamali Kazemi reportedly ran a company specialized in exporting valves and pumps.  Fifty-five valves from this order are believed to have reached Iran, again via Turkey.

Also in 2011, the Kazemis reportedly facilitated an order for 856 valves that were forged and cast in India, and then sent to Iran via Turkey.  This third shipment of valves was reportedly supplied by an Indian firm called “Bell-o-seal,” and met the material and design standards necessary for use in a heavy water reactor.

German authorities licensed the export of the valves to Tanideh despite concerns raised on several occasions by U.S. authorities since at least 2009.  Specifically, in both April and September of that year, the State Department warned the German government about MITEC’s attempts to procure valves from German companies, including MIT-Weimar.  1,163 of the 1,767 valves ordered by Tanideh were reportedly delivered to MITEC.  The nearly 1,800 valves ordered were reportedly worth $7.7 million and would have been enough to equip the entire Arak reactor.

Tanideh was sanctioned by the United States in July 2012 for procuring distillation columns that were probably intended for use in the Arak reactor.  He reportedly posed as a “refinery manager” in Germany, as valves often have applications in the petrochemical industry.  Tanideh has served on the Board of Directors of Pentane Chemistry Industries and as Managing Director of the Sherkate Sakhtemani Rahtes Sahami Company (also known as the Rahtes Company).  Pentane was also sanctioned by the United States in July 2012 for its role in building the Arak reactor.

In January 2013, Tanideh was arrested by Turkish authorities acting on an Interpol Red Notice.  Documents seized from the Istanbul office of Tanideh’s IDI trading company revealed that Tanideh and an accomplice, Mesut Atasoy, had sent nuclear materials from Germany and India to MITEC in Iran and declared them as plumbing fixtures.  German authorities requested Tanideh’s extradition in 2013.   Turkish authorities denied Germany’s extradition request and also declined to prosecute Tanideh in Turkey, instead releasing him from custody in 2014.   Western governments believe that Tanideh has returned to Iran.

In November 2013, Tanideh’s four German accomplices were sentenced in a German court.  Rudolph Mayer, the owner of MIT-Weimar, received a three-year suspended sentence and a fine of 106,000 euros.  Gholamali Kazemi received a four-year prison sentence and a fine of 250,000 euros.   His son, Kianzad, received a two-year, nine-month suspended sentence.  Hamid Khouran, who acted as a middleman between the Kazemis and Mayer, was given 18 months probation.


Sources:

[1] “German Men Sentenced for Smuggling Nuclear Components to Iran,” Jewish Telegraphic Agency, November 15, 2013.

[2] “Turkey Halts Iranian Spy’s Extradition to Germany,” Today’s Zaman, August 6, 2013.

[3] Daniel Salisbury, “Illicit Procurement of German and Indian Valves for Iran’s Arak Heavy Water Reactor,” Project Alpha, June 20, 2013.

[4] “Final Report of the Panel of Experts Established Pursuant to Resolution 1929 (2010),” S/2013/331, U.N. Security Council, June 3, 2013.

[5] “Covert Iranian Nuclear Dealings via Turkey Revealed,” Today’s Zaman, March 12, 2013.

[6] Cathrin Gilbert, Holger Stark, and Andreas Ulrich, “Nuclear Technology for Iran: German Investigators Uncover Illegal Exports,” Spiegel Online, October 1, 2012.

[7] “Increasing Sanctions Against Iran,” Fact Sheet, U.S. Department of the Treasury, July 12, 2012.

[8] “Council Regulation (EU) No 267/2012 of 23 March 2012 concerning restrictive measures against Iran and repealing Regulation (EU) No 961/2010,” Official Journal of the European Union, March 24, 2012.

[9] “E.O. 13382 Designations on Iran,” Fact Sheet, U.S. Department of State, November 21, 2011.

[10] “U.N. Security Council resolution 1929 (2010),” S/RES/1929, U.N. Security Council, Annex I, June 9, 2010.

[11] Huseiyn Ozkaya, “Spy Crisis With Germany,” Taraf Online, August 5, 2013.

[12] Mark Hibbs, “Turkey’s Interests and Tanideh,” Carnegie Endowment for International Peace,  February 23, 2015.

[13] “Haftstrafen fuer Embargo-Verstoss: Gericht verurteilt vier Geschaeftsleute,” Die Welt, November 9, 2013.

UN Report Shows Need for Honesty and Improved Inspections

There was not much news in the International Atomic Energy Agency’s latest report on Iran, which was distributed on February 19:  Iran continues to respect the restrictions of an interim nuclear deal struck with the United States and its partners; Iran also continues to stonewall the Agency’s long-standing investigation of “possible military dimensions” to the country’s nuclear program.  Yet the Agency’s report did highlight two essential elements of any acceptable nuclear agreement: intrusive inspections and genuine cooperation from Iran.

Iran has not offered such cooperation to the IAEA, despite a November 2013 agreement in which Iran promised to provide “timely information […] aimed at ensuring the exclusively peaceful nature” of its nuclear program.  According to the latest report, the Agency has been waiting since last August for Iran to explain “credible” allegations that it experimented with high explosives and conducted studies on neutron initiators – work which is “relevant to the development of a nuclear explosive device.”  Iran’s only response has been to call the Agency’s concerns “mere allegations” that “do not merit consideration.”  These questions remain unanswered to this day.

The reason is that, for Iran, talks with the United States are the center of gravity.  An agreement struck with the United States would dictate the degree to which Iran is required to come clean about any past weapon-related work.  Iran perceives no need to address weaponization questions separately with the IAEA, and has not been required to do so by the terms of the interim accord.

A “good deal” should compel Iran to account for its nuclear history and explain its past weaponization efforts.  This accounting requires genuine cooperation – the opposite of the obstructionist attitude Iran has had vis-à-vis the IAEA.  Such cooperation would be a sign of good faith from the Iranians.  And as a practical matter, the international community must understand the progress Iran has made in weaponization.  This progress is critical to estimating how long it would take Iran to “breakout” of any agreement and build nuclear weapons.  The time for “breakout” is central to the P5+1’s negotiating position.

The IAEA’s report also highlighted the need for intrusive inspections.  Iran is still barring the IAEA from visiting the site at Parchin, which has been linked to high explosives testing.  Also off limits has been Mohsen Fakhrizadeh, a military scientist considered an essential source of information about alleged weaponization work.  And Iran is only providing “managed access” to key sites such as plants for producing centrifuges and heavy water.

Such inspections must also provide a way to find any secret sites, ones Iran could use in a “sneakout” attempt to make bomb fuel as well as the components of a nuclear device.  Most analysts believe that an Iranian “sneakout” is a greater threat than an overt “breakout,” which would be detected more quickly.  In its report, the IAEA re-iterated that it “is not in a position to provide credible assurance about the absence of undeclared nuclear material and activities in Iran, and therefore to conclude that all nuclear material in Iran is in peaceful activities.”  In order to provide such a credible assurance, IAEA inspectors must have prompt access to any sites they suspect of forbidden activity and to any Iranian engineers and scientists they wish to question.  This would be a far more intrusive inspections regime than exists now.

Meanwhile, four days of nuclear talks wrapped up in Geneva on February 23 with momentum moving in favor of an agreement on general principles.  The New York Times reported yesterday that the two sides are discussing a “phased agreement,” in which Iran’s “breakout” capacity would be constrained for the first ten years of the deal, with the restrictions relaxed in the deal’s second phase.

Pennsylvania Man Pleads Guilty to Attempting to Ship Industrial Machine to Iran via Dubai

On May 20, 2014, Pennsylvania businessman  Helmut Oertmann pleaded guilty to attempting to ship a horizontal lathe (also known as a bar peeling machine or “peeler”) to Iran via Dubai without obtaining a necessary license from the U.S. Commerce Department.  These machines are used, among other things, in the production of high-grade steel for aircraft.  Oertmann, 76, is the CEO of Hetran, Inc., an engineering and manufacturing firm incorporated in New York and located in Orwigsburg, Pennsylvania.  Oertmann received a sentence of twelve months’ probation from U.S. District Court Judge Yvette Kane on December 3, 2014.  He and his company were fined $337,500, while an additional penalty of $500,000 was suspended by the judge for two years and will be waived if neither Oertmann nor Hetran commit further violations during that period.

According to court documents, in June 2009 Hetran was contacted by both FIMCO FZE, an Iranian company with offices in Iran and the United Arab Emirates (UAE), as well as Crescent International Trade and Services FZE, an affiliated company based in the UAE.  FIMCO describes itself as working in the oil, gas, and petrochemical industries.  In 2009, FIMCO representatives sought a price quote for the peeler from Hetran.  A group of Hetran employees then traveled to Dubai in mid-June 2009 to meet with Iranian representatives of FIMCO and Crescent.   During this meeting, the Iranian representatives told Hetran that they intended to buy the peeler and transship it to Iran via Dubai.  Given the U.S. embargo against Iran, Hetran employees suggested handling the transaction through the company’s Indian or German offices, with non-U.S. personnel providing the necessary training.

About a week after this meeting, Oertmann met with Suniel Malhotra, a sales at Hetran India.  The two agreed that a Dubai company would be listed as the end-user for the peeler and that the purchasers could then “do with it what they want.”  Oertmann also directed that the contract for the order should be executed through Hetran India rather than the company’s Pennsylvania headquarters.  Discussion about how to disguise the end use destination continued between 2009 and 2012, while the peeler was being built.  In July 2011, Crescent issued a purchase order for the peeler in the amount of $895,000.

In June 2012, Hetran attempted to export the peeler from Pennsylvania to the UAE with Crescent International in Dubai falsely identified as the machine’s end-user.  However, the peeler was reportedly intercepted by authorities and returned to Hetran, which apparently later sold it to a Russian firm.

A 2012 indictment against the Iranian individuals involved in this scheme was unsealed at the time that charges were filed against Oertmann.  These defendants are Khosrow Kasraei, a FIMCO manager; Mujahid Ali, FIMCO’s financial manager; and Reza Ghoreishi, a FIMCO senior sales engineer.  All three men are charged with conspiring to violate U.S. export laws and could receive up to 10 years imprisonment and a fine of up to $250,000.  Their corporations could also be fined $1 million each.

Helmut Oertmann could have faced up to 10 years in prison and a fine of $250,000, while Hetran Inc. could have been fined up to $1 million.

Suniel Malhotra, Hetran’s sales representative in India, was initially also a defendant in this case, but the charges against him were dropped in 2013.


Sources:

[1] Amended Information, United States of America v. Helmut Oertmann and Hetran, Inc., Case Number 1:14-cr-00111-YK, U.S. District Court, Middle District of Pennsylvania, May 21, 2014.

[2] “Schuylkill County Firm and Chief Officer Charged with Shipping Machinery to Iran In Violation of U.S. Export License Requirements,” Press Release, U.S. Department of Justice, April 23, 2014.

[3] Tom Fontaine, “Pa. Men To Plead Guilty to Smuggling Equipment to Middle East,” Pittsburgh Tribune-Review, April 23, 2014.

[4]  Indictment, United States of America v. Mujahid Ali, Khosrow Kasraei, Reza Ghoreishi, FIMCO FZE, Crescent International Trade and Services FZE, and Suniel Malhotra, Case Number 1:12-cr-00306-YK, U.S. District Court, Middle District of Pennsylvania, December 5, 2012.

[5] “Chief Officer of Engineering Firm Sentenced for Attempted Illegal Shipment to Iran,” Press Release, U.S. Department of Justice, December 3, 2014.

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