Jannati Cautions Government on Subsidy Reforms

Ayatollah Ahmad Jannati, the chairman of the Guardian Council, warned Iranians today to expect hardship when the government slashes food and fuel subsidies. Ayatollah Janati is a hardline fundamentalist and a staunch supporter of President Ahmadinejad. He made the remarks on the government’s economic plans during his sermon at today’s Friday’s Prayer in Tehran.

"We will have a period of hardship ahead of us," Ayatollah Ahmad Jannati said. "The government should be careful to minimize the tensions and negative effects on poor people." [IRIB News, 17 September].

The government’s subsidy reforms would dramatically raise the price for gasoline, food and other essential goods. The Iranian governments in the past, including the governments in the shah’s era, have heavily subsidized the essential goods, a program that is estimated today to cost the government more than $100 billion a year. Ahmadinejad’s reform package would significantly slash these subsidies. The planned reforms would also include provisions for monthly cash payments to the poor.

The reforms were to start on 21 September, but due to disagreements with the Majlis, the start date has been postponed and new dates have been announced. But observers expect the reform package to go into effect within the next eight weeks.

For a full report on Jannati’s sermon, in Farsi, please see:

http://www.iribnews.ir/Default.aspx?Page=MainContent&news_num=246691

Sanctions on Iran and Its Effects (Part II)

By Amir Taheri

Further on the effects of sanctions on Iran and Nader's recent post here are some further thoughts. On the subject of banking and its difficulties, China will pick up where other banks are not comfortable issuing L/C for oil export. Alternatively, Turkey's prime minister spoke of Iran-Turkey trade today and added how he is encourging Turkish financial instituations to start doing what Dubai banks were/are doing to facilate Iran's trade with world. On the subject of oil tankers unwillingness to dock at Iranian ports, Iran currently has the fourth largest tanker company in the world, NITC. This firm can easily pick up if there is a need for it. Its capacity is such that 60% is devoted to international non-Iran locations and has recently signed deals to purchase further VLCC tankers to increase its capacity. As most of Irans non-oil exports are destined for freindly states, impact of sanctions on these export markets are mitigated. Watch for Iranian trade delegations shutteling to Asian, Latin American, and Africian states in the months to come. Key will be opening of new local Iranian banks in export target countries to by-pass sanctions focusing on the trade financing.

Iran Oil Export: Challenges Ahead

A number of financial publications, including the Financial Times, in the past few days have examined the challenges confronting Iran in exporting its crude oil because of the recent sanctions imposed by the UN, the US, EU, Japan and South Korea. Although the US has not as of yet sanctioned Iranian oil, but a variety of financial sanctions put in place in the past two month are creating major problems for the customers to buy oil from Iran. The most serious challenges are as follow:

- L/C: European and Middle Eastern banks are not opening new letters of credit or L/C for Iranian financial institutions. The issuance of L/C is critical for large international transactions. This situation makes the payments for oil very difficult, and its effects are expected to be seriously felt in the next few months when the customers of Iranian crude need to open new L/C.

- The Asian Banks: The oil traders dealing with Iran have recently switched to Asian banks to handle their transactions with Iran. But the recent set of sanctions announced by Japan and South Korea would soon end participation of the Asian banks in Iranian transactions.

- Tankers: The oil tanker carriers have started refusing tankers to Iranian destinations.

- Insurance: Insurance companies have also become reluctant to underwrite new oil transactions/shipments involving Iran.

Note: In this post we had reported Iran's oil export at 3.7 mb/d. That was of course a mistake. The export level is around 2 mb/d. The oil production is around 3.7 mb/d. Many thanks to one of our readers for pointing out the mistake and for sending us relevant data on Iran's oil industry.

15.8 Gallons per Month

The Iranian government today announced a monthly gasoline ration of 15.8 gallons (60 liters) per car. The ration was set for the month of Mehr (21 September- 20 October). The ration for subsequent months will be set in future.

Ahmadinejad Appoints Special Representatives to World Regions

Iranian President Mahmoud Ahmadinejad today appointed special representatives for five regions of the world. The appointments were made amid serious concerns by the Ministry of Foreign Affairs that the move would undermine Iran’s foreign policy. The Supreme Leader Ayatollah Khamenei last week had also warned against any “duplication” of responsibility for Iran’s foreign policy. But Ahmadinejad went ahead with his plans anyway and made the appointments official today.

Among the five appointments, one is particularly controversial: Esfandiar Rahim Mashaie as the special representative for the Middle East. Mashaie has emerged as Ahmadinejad’s principle deputy and has created uproars among the clergy and traditional elements within the Islamic Republic by advocating the country’s “Iranian identity” as opposed to its “Islamic identity.” Mashaie is also serving as Ahmadinejad’s chief of staff.

Today’s appointments were as follow:

- Eskandar Rahim Mashaie, The Middle East

- Shamos-din Hosseini, Africa

- Hamid Baqaie, Asia

- Mohammad Abbasi, Latin America

- Mohammad Mehdi Akhoond-Zadeh, The Caspian Sea

Ahmadinejad did not choose any representative for Europe or America, apparently not wanting to overtly interfere with Khamenei’s dominant position regarding the country's relations with the West.

For the texts of Ahmadinejad's appointments (in Farsi), please see: http://www.isna.ir/ISNA/NewsView.aspx?ID=News-1613668&Lang=P

Israel-Palestine Peace Talks

The peace talks between the Israeli and the Palestinian leaders were held in Sharm el-Sheik yesterday. US Secretary of State Hillary Clinton and the Egyptian President Hosni Mobarak attended the talks (photo above). The talks resumed today in Jerusalem. Observers have characterized the talks as “serious.”

Photo: Al Arabiya

Assembly of Experts Supports Khamenei

Assembly of Experts

Tehran. 15 September 2010

The Fourth Session of the Assembly of Expert today reiterated its strong support for the Supreme Leader Ayatollah Khamenei as the leader of the Islamic Republic. The assembly has the authority to select the supreme leader, an authority that has been exercised only once when it chose Khamenei to succeed Ayatollah Khomeini after he passed 21 years ago. The Assembly can theoretically unseat the supreme leader as well. The Assembly has 86 members, all male senior Shia clerics, and is chaired by Ayatollah Hashemi Rafsanjani.

Photo: Mohammad Kazempour, Fars News Agency

Fars report in Farsi: http://www.farsnews.net/newstext.php?nn=8906241746

Morning Workout with the Minister

Iran’s Health Minister, Dr. Marzieh Vahid Dastjerdi (in black chador), during the morning’s exercise. Tehran, 22 September.

Photo by Nazgol Jahani of Reporters Club.

Honoring Cyrus

Honoring Cyrus the Great

Sydney Olympic Park

Iran Frees Sarah Shourd - UPDATE

Sarah Shourd with her mother, Nora, in Muscat, Oman

14 September 2010

Sarah Shourd detained for more than a year in Iran was released today. Her lawyer told reporters in Tehran that Shourd was indeed released and was undergoing formalities at the notorious Evin Prison in Tehran where she had been held in solitary confinement. Two other fellow American hikers still remain in prison.

Photos: AP

UPDATE: Sarah Shourd's flight took off from Tehran's Merabad airport following her release from prison.

UPDATE: She has reunited with her mother in Mascat, Oman.

Khamenei Accuses US of Supporting Quran Burning

Iran’s Supreme Leader Ayatollah Ali Khamenei, in the harshest language ever used, today accused the US and Israel as being behind the Quran burning acts.

“This hatred act (Quran burning) is not the beginning of a new process, but the continuation of an anti-Islam process led by the US and Zionist governments,” said Khamanie [Fars News Agency, 13 September]. “The leaders of Blasphemy are now aligned against Islam” [Fars News Agency, 13 September].

Khamenei identified the leadership in the US, the Zionist think tanks and some European governments as the “command center” of the anti-Islam projects, including military operations in Afghanistan, Iraq and Pakistan, as well as operations against Islamic forces in Lebanon and Palestine. He even pointed his fingers at the US and Israel as possible perpetuators of the 9/11 attacks in New York and Washington, paving the way for attacks on Afghanistan and Iraq.

Khamenei asked all Muslims to refrain from revengeful acts against the holy books or religious symbols of other religions. He also called upon the US government to punish the people engaged in Quran burning. Khamenei did not explain why a government accused by him for perpetuating such acts needs to punish those involved in such acts.

For the full text of Khamenei’s message in Farsi, please visit: http://www.farsnews.net/newstext.php?nn=8906221662

Turkish Referendum

The Turkish people on Sunday approved a referendum on sweeping changes to their country’s constitution. The key provisions:

EQUALITY - Strengthens gender equality and bars discrimination against children, elderly, the disabled and veterans.

PRIVACY - Recognizes the right to protection of personal information and access to official personal records.

FREEDOMS - Restricts travel bans imposed on individuals.

LABOR - Allows membership in more than one union in a workplace. Recognizes the right to collective bargaining for civil servants and other state employees. Removes bans on politically motivated strikes.

MILITARY - Gives officers fired by the military the right to appeal. Empowers civilian courts to try military personnel for crimes against state security and the constitutional order. Opens the way for the prosecution of Turkey's 1980 military coup leaders.

JUDICIARY – Gives power to parliament to appoint some of the members of the Constitutional Court. A panel of judges had selected all members until now. The secular parties strongly opposed this provision fearing the selection of non-secular judges by the parliament.

Source: AP

Cyrus Cylinder in Tehran

Iranian President Mahmoud Ahmadinejad visiting the Cyrus Cylinder in Tehran on Sunday. Cyrus the Great created the Cylinder after the Persian conquest of Babylon in 539 BC. The Cylinder depicts Cyrus’s efforts to improve the lives of the citizens of Babylonia; repatriate displaced peoples and restore temples across Mesopotamia. It has become a historic charter on human rights and freedom of thoughts and religion.

The Cylinder was discovered in the ruins of Babylon in 1879 and is kept in the British Museum. It is on loan to Iran’s National Museum in Tehran and will be on display for the next four months.

Photo: Press TV

Sarah Shourd to be Released – Prosecutor

The Tehran prosecutor today reversed course and announced that Sarah Shourd will be released on bail. Abbas Jafari Dolatabadi had earlier cancelled a scheduled release of Ms. Shourd, and today criticized the government for interfering with the Judiciary in the case of the three detained American hikers.

Sarah Shourd, 32, Shane Michael Bauer and Joshua Felix Fattal, both 28, were arrested in July 2009 after apparently crossing the Iranian border in the mountainous region of Iraqi Kurdistan. The prosecutor identified Ms. Shourd’s illness as the reason for her release.

Gasoline @ $2.40 per Gallon

The Iranian government will set the gasoline price at 670 toumans per liter, or $2.40 per gallon, a 67 percent increase over the current prices. The new prices are expected to go into effect by next week.

The government will also set the price of subsidized gasoline to 400 toumans per liter, or $1.44 per gallon. This is a 400 percent increase over the current subsidized prices. There will be a cap of one car per family for this subsidy.

The government announced last week that Iran has become self-sufficient in gasoline production. But these dramatic price increases indicate that the self-sufficiency plan is primarily based on forcing lower demand for the expensive fuel.

9/11: In Memoriam

In memory of the people who lost their lives during the terrorist attack on 9/11, and in memory of our fallen heroes- our firefighters and other first responders who sacrificed their lives to save others. May their memories live forever!

Photo: The Sun, a poster with pictures supplied by victims relatives and friends: http://www.thefurniture.com/store/s11poster.htm

Eid Mubarak!

Eid Mubarak!

Photo: Guardian

Iran to Release Sarah Shourd, One of Three American Hikers - UPDATES

The Iranian Ministry of Culture and Islamic Guidance announced in Tehran that one of the three American hikers arrested near the Iraqi Kurdistan border in July 2009, would be released on Saturday. According to reports by various news agencies, the Iranian Mission to the UN has identified the American to be freed as Sarah Shourd.

Joshua Fattal, Shane Bauer and Sarah Shourd are being held in Tehran’s infamous Evin prison.

UPDATE: Tehran's Prosecutor General has told Iranian news agency ILNA that the Judiciary will NOT release Ms. Shourd on Saturday. Abbas Jaffari Doulatabadi, the prosecutor, said, "the judiciary dossier of the accused is not yet complete." Sarah Shourd was to be released on Saturday morning local time during a ceremony attended by senior officials of the Islamic Republic. The senior leaders in Iran have not confirmed or denied Tehran prosecutor's assertion that Ms. Shourd would not be released as planned.

UPDATE II: Iran’s official news agency IRNA has confirmed the reports that Sarah Shourd’s release has been called off. The cruel handling of Sarah’s release again brings into question of who’s in charge in Iran.

Iran launches Arabic iFilm channel

The Islamic Republic of Iran Broadcasting has launched a 24/7 Arabic-language network that airs Iranian-made movies and TV dramas to the viewers in the Arab World.

The new channel, named iFilm, was officially inaugurated on Thursday, marking Eid ul-Fitr, the celebration marking the end of the holy month of Ramadan. The channel's programs are currently being dubbed into Arabic in Syria, Lebanon and United Arab Emirates. The new satellite network will broadcast live quizzes on arts, backstage documentaries on films and ongoing productions, film reviews, short-length films and documentaries. The channel's target viewers would be around 300 million across the globe.

iFilm's film editing equipment and systems and archive of film records as well as its broadcasting equipment have been assembled by the IRIB World Service engineers and are totally automated.

The iFilm international channel will broadcast on Badr 4 (Arabsat), frequency: 12169 MHz, vertical polarization, symbol rate: 27500, FEC 3/4. It can also be received on Atlantic Bird 4A (Nilesat), frequency: 11393 MHz, vertical position, symbol rate: 27500, FEC 3/4; and Eutelsat W6, frequency: 11564 MHz, vertical position, symbol rate: 3214, FEC 3/4.

Source: PressTV

Turquoise Launches First Domestic Fund in Iran

Iran has launched its first domestic fund. Turquoise has posted this public statement below:

We are delighted to announce the launch of our first domestic equity fund, Firouzeh Mutual Investment Fund. The fund's focus is on investing in the Tehran Stock Exchange (TSE), and it is licensed and regulated by the Securities and Exchange Organisation (SEO) of Iran.

Over the past 4 years, we have succeeded in raising and managing approximately $150 million of foreign capital. We currently manage over 90% of all foreign investment in the TSE. Domestically, our goal is to combine our international expertise with our successful track record of the past 4 years (over 100% return on investment) in order to offer world-class services to Iranian investors. The launch of our new fund is a major milestone in achieving this goal.

Firouzeh Mutual Investment Fund was launched on 1st August. $2.8 million was raised during the 10 day subscription period, which set a new record for a fund of this type. 90% of the capital was raised from individual investors which is the highest of any fund in Iran. The Iranian fund management industry is in its infancy. We believe that the industry contains tremendous potential, and look forward to contributing to its development.

Source: www.firouzehfund.com

Stoning Sentence Suspended

Iran has suspended the sentence of death by stoning for Sakineh Mohammadi Ashtiani, a woman convicted of adultery.

"The verdict regarding the extramarital affairs has stopped and it's being reviewed," Foreign Ministry Spokesman Ramin Mehmanparast told the state-run Press TV [Press TV, 8 September].

The suspension of the sentence comes after weeks of condemnation from around the world for the barbaric nature of the sentence.