Iran reports progress at talks with P5+1

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Iranian negotiators said they had made good progress in talks with experts from six world powers in Geneva Monday, but said a few further issues remain to be worked out at a follow up meeting next week.

We “reached good progress in Geneva,” an Iranian official, speaking not for attribution, told Al-Monitor by email Tuesday.

There are “still a few items [that] need to be hammered out after the holidays,” he said, without elaborating on what those are.

The two sides “achieved mutual understanding on implementation [of] the nuclear deal,” Hamid Baidinejad, the head of the Iranian delegation to the technical talks, was cited by Iran’s ISNA news agency Tuesday.

Iranian Deputy Foreign Minister Abbas Araghchi and European Union deputy foreign policy chief Helga Schmid will meet to address remaining issues next week, Araghchi told Iranian media, saying experts talks had gone til 430am in Geneva.

“Experts talks took place yesterday. Experts will now report back to capitals,” Michael Mann, spokesperson for EU foreign policy chief Cathy Ashton, said Tuesday. “Contacts will be continued in order to finalise a common understanding of implementation.”

Araghchi was photographed with numerous other Iranian officials attending the wake for the mother of Iranian Foreign Minister Mohammad Javad Zarif on Monday. Among the other Iranian personages seen at the service were Iranian Majlis Speaker Ali Larijani, foreign policy advisor to the Supreme Leader Ali Akbbar Velayati, head of the Atomic Energy Organization of Iran Ali Akbar Salehi, former Iranian nuclear negotiator Seyed Hossein Mousavian, and hardline Kayhan editor Hossein Shariatmadari who was photographed embracing Zarif.

(Photo by Mehr news agency of former Iranian foreign minister and AEOI chief Ali Akbar Salehi greeting Iranian foreign minister Mohammad Javad Zarif at the wake for Zarif’s mother held in Iran Monday, December 30, 2013. By Javad Hadi, Mehr News Agency)

The P5+1 nuclear proposal to Iran in Almaty: Document

Six world powers presented an updated nuclear proposal to Iran at a meeting in Almaty, Kazakhstan in February.

Here follows the P5+1’s Almaty confidence building proposal that was further discussed with Iran nuclear experts at technical talks in Istanbul on March 18th, and which remains on the table today.

The Christian Science Monitor’s Scott Peterson first reported on the details of the proposal, which he obtained from one of the negotiating parties, in April.

A western official, speaking not for attribution Sunday, confirmed to Al-Monitor the proposal is authentic.

The P5+1 confidence building proposal calls on Iran to suspend 20% enrichment; ship out the 20% stockpile it doesn’t require for medical use; agree to enhanced International Atomic Energy Agency (IAEA) monitoring; and suspend operations at, but not dismantle the cascades, at the fortified Fordow enrichment facility; for a period of six months. In return, it offers relief from United States and European Union sanctions on trade in gold and precious metals and petrochemical sales; the licensing of US repairs to Iran civilian aircraft; as well as to impose no new United Nations or EU proliferation sanctions.

If Iran agreed to the CBM proposal, “during the six months, negotiations would proceed on further steps, including a comprehensive long-term agreement that would restore the international community’s confidence that Iran’s nuclear program is entirely peaceful, respect’s Iran’s rights to peaceful nuclear energy, and terminate sanctions,” the proposal states. “In return for further significant action by Iran to address concerns about its nuclear program, the U.S. and the EU would be prepared to take comparable action, including proportionate relief of oil sanctions.”

Al-Monitor previously reported (March 26) that Iran expressed willingness at the Istanbul technical talks to suspend 20% enrichment and continue converting its 20% stockpile to oxide. But it raised objections to other requested measures, including suspending lower level enrichment at Fordow, shipping out its stockpile of 20% enriched uranium, and increased IAEA monitoring.

Iran issued a counter-proposal at the second day of Almaty2 talks April 6th, in which it said it would agree to suspend 20% enrichment and continue converting its stockpile of uranium hexafluoride (UF6) gas to oxide, in exchange for recognition of its right to enrich and a lifting of some banking sanctions, nonproliferation expert sources told Al-Monitor last month. Western officials characterized the Iranian counter-offer as asking for a lot, and offering very little.

Iran’s presidential candidates sharply challenged Iran’s nuclear negotiator Saeed Jalili at a televised campaign debate last week on why there had been no progress in nuclear talks. Notably, Ali Akbar Velayati, the foreign policy advisor to Supreme Leader Khamenei and former Iranian foreign minister, derided Jalili as ineffective and pedantic, saying negotiating involves more than lecturing the other side about one’s positions, but getting results.

“You want to take three steps and you expect the other side to take 100 steps, this means that you don’t want to make progress,” Velayati chided Jalili in the June 7 debate, the Christian Science Monitor reported. “This is not diplomacy…. We can’t expect everything and give nothing.”

“What people are seeing, Mr. Jalili, is that you have not gone forward even one step, and the pressure of sanctions still exists,” Velayati added.

Jalili, who has served as Iran’s nuclear negotiator since 2007, refuted the criticism, saying that the Supreme Leader, briefed on the Almaty discussions, had approved of his negotiating stance.

The Almaty Confidence Building Proposal below the jump:

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Protests erupt in Iran amid panic over rial drop


Protests erupted in central Tehran Wednesday after police closed black market currency exchange shops amid panic over the steep plunge in the value of the Iranian currency.

The protests in Tehran’s central Bazaar district, some calling for the resignation of Iran’s President Mahmoud Ahmadinejad, come as the value of the rial to the dollar has plummeted by over 40% in the past week, as Iranians rushed to buy hard currency.

According to purported video of the protests posted to YouTube, some of the protesters shouted chants calling on Tehran’s “dignified” merchants to “support us, support us.” Other chants called on the Iranian regime to “leave Syria, think of us“–a reference to Iran’s efforts to prop up its ally, Syrian President Bashar al-Assad.

The value of the rial continued to fall after Ahmadinejad gave a speech Tuesday in which he blamed international sanctions and a handful of Iranian speculators for the rial’s drop, and urged Iranians to stop selling their rials to buy foreign currency.

But external factors alone do not account for the rial’s latest dive, some economists said.

Djavad Salehi-Isfahani, an economist at Virginia Tech, attributed the precipitous fall of the rial over the past week to the government’s decision to put more funds into a central exchange for approved importers and exporters. “Because they moved it suddenly,” he told an audience at the Woodrow Wilson International Center for Scholars on Tuesday, there was a shortfall in the free market.

Secretary of State Hillary Clinton, speaking to reporters Wednesday, also said internal Iranian government decisions–“having nothing to do with the sanctions”–had played a role in the rial’s dive. “Of course the sanctions have had an impact as well,” she said, adding, “but those could be remedied in short order if the Iranian Government were willing to work” with the international community to resolve concerns over Iran’s nuclear program.

While ostensibly fueled by economic anxiety, rumors swirled that the rial protests Wednesday may also have been spurred in part by rival political factions hostile to Ahmadinejad, some Iran analysts said.

“I think we must be careful before jumping into any kind of conclusion about this particular protest,” Nazila Fathi, a journalist previously based in Iran for the New York Times and currently a fellow at the Harvard Belfer Center for International Security, told Al-Monitor by email.

“It might be part of the attack against Ahmadinejad to bring him down before his term is over,” Fathi said, noting the hostile tone of speeches this week by Ahmadinejad and one of his chief political rivals, Iran parliament speaker Ali Larijani.

Iranian media reports said over 100 people were arrested in the protests Wednesday. Meantime, journalists with the BBC and RFE/RL Persian services reported that their satellite broadcasts into Iran had been jammed Wednesday, to impede Iranians seeing news of the protests.

Iran watchers said the economy-fueled unrest was unlikely to be a one-off affair, given Iran’s economic predicament is likely to only get worse in the months ahead because of its dispute with the international community over its nuclear program.

“Iran’s economic outlook is more limited than at anytime in 50 years,” Suzanne Maloney, an Iran expert at the Brookings Institution, said at the Woodrow Wilson forum Wednesday.

“There are tremendous opportunity costs” to Iran for refusing to budge on its nuclear program and other policies, she said. “These are revenues and markets that will never be recaptured” and Iran’s ambitions for economic development and trade will be “clipped in the long term in a way that is degrading for the country.”

While Iran can weather sanctions, “the average citizen is very distressed,” and “in the short term, Iranian industry is suffering,” Bijan Khajehpour, another specialist on the Iranian economy, told the Wilson Center forum.

“The Iranian regime is going to face immense pressures in the months ahead,” agreed Alireza Nader, a senior policy analyst at the Rand Corporation, in an email to Al-Monitor. “President Ahmadinejad, in particular, is in big trouble.”

“This is not just about the currency crisis,” Nader added, predicting greater instability in the country. “This is about everything that’s wrong with Iran today.”

–With Barbara Slavin  (@barbaraslavin1), Al-Monitor’s Washington correspondent, and Eskander Sadeghi-Boroujerdi (@eborujerdi), of Al-Monitor’s Iran Pulse news blog.