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EU sanctions on Iran violate intl. law, French lawyer says

Press TV – July 4, 2012

A French international lawyer says the European Union sanctions agreed in early 2012 against Iran raise many specific issues regarding their lawfulness under international law.

Pierre-Emmanuel Dupont made the remarks in an article entitled “Countermeasures and Collective Security: The Case of the EU Sanctions against Iran,” which was published in the latest edition of Journal of Conflict and Security Law in June.

He said that the measures, “including an embargo on imports of Iranian oil and the freeze of assets of the Iranian Central Bank, go well beyond those mandated by the successive UN Security Council resolutions.”

He argued that “the EU measures cannot be characterized as measures of retorsion or as sanctions. Rather they are to be regarded as countermeasures. However, characterizing these measures as such raises the question whether it is open to States or regional organizations to take countermeasures in circumstances where the UN Security Council has already adopted measures under Chapter VII of the Charter.”

According to the International Law Commission, a retorsion is “unfriendly” conduct “which is not inconsistent with any international obligation of the State engaging in it.”

He added that the measures enacted by the EU in January 2012, restricting or impeding trade relations with the Islamic Republic, “go beyond mere expressions of disapproval and involve the suspension of the performance of international legal obligations otherwise owed to Iran.”

Dupont then mentioned bilateral investment treaties between Iran and Germany signed in 1965 and Iran and France signed in 2003 as instances showing that the EU measures actually imply non-performance of various international legal obligations owed to Iran.

He also said that the measures taken against the Central Bank of Iran may be deemed to conflict with rules governing immunities and privileges of foreign states under international law and the 2004 UN Convention on Jurisdictional Immunities of States and their Property, adding that the measure also violates Article VIII(2)(a) of the IMF Agreement.

On July 1, under US pressure, the EU imposed a new round of sanctions on Iran’s oil and banking sectors which had been approved by the bloc’s foreign ministers on January 23.

In March, the US administration approved new embargoes on Iranian crude that penalize other countries for buying or selling Iran’s oil. The sanctions took effect on June 28.

July 3, 2012 Posted by | Aletho News | , , , , | Leave a comment

US Sanctions Policy on a Collision Course against Iran; Increasing Tensions with China

By Flynt Leverett and Hillary Mann Leverett | Race for Iran | June 27th, 2012

America’s policy on Iran-related secondary sanctions is on a collision course with itself as well as China.  Secondary sanctions violate the United States’ obligations under the World Trade Organization and are, thus, illegal.  (While a WTO signatory may decide, on national security grounds, to restrict its trade with another country, there is no legal basis for one state to impose sanctions against another over business that the second state conducts with a third country.)  If Washington actually imposed secondary sanctions on another state for, say, buying Iranian oil and the sanctioned country took the United States to the WTO’s Dispute Resolution Mechanism, the United States would almost certainly lose the case.

Given this reality, the whole edifice of Iran-related secondary sanctions is in reality a house of cards.  It rests on an assumption that no state will ever really challenge the legitimacy of America’s Iran-related extraterritorial sanctions—and this means that the United States cannot ever really impose them.  Instead, successive U.S. administrations have used the threat of such sanctions to elicit modifications of other countries’ commercial relations with the Islamic Republic; when these administrations finally reach the limit of their capacity to leverage other countries’ decision-making regarding Iran, the United States backs off.

The Obama Administration is bringing this glaring contradiction increasingly to the fore, by supinely collaborating with the Congress to enact secondary sanctions into laws that give the executive branch less and less discretion over their actual application.  This dynamic is now coming to a head in the Administration’s dealings with China.

We are currently in China, as Visiting Scholars at Peking University’s School of International Studies.  And that means we are here during the run-up to formal implementation of the United States’ newest round of Iran-related secondary sanctions, due to go into effect on June 28.

These new sanctions, at least as legislated, threaten to punish financial and corporate entities in countries that continue to purchase Iranian oil at their historic levels of consumption.  So far, the Obama Administration has issued sanctions waivers to all of the major buyers of Iranian oil, see here and here—all the major buyers, that is, except the People’s Republic of China.

Trade data indicate that China’s imports of Iranian oil declined significantly in the first quarter of this year.  It is unclear to what extent this reduction was intended as an accommodation to the United States and to what extent it was the product of a payment dispute with Tehran.  But, whatever the reason, the reduction prompted Secretary of State Hillary Clinton to note last week that “we’ve seen China slowly but surely take actions,” see here.  Clinton even seemed to hint that the Administration might be looking for an opening to waive the imposition of sanctions against China:  “I have to certify under American laws whether or not countries are reducing their purchases of crude oil from Iran and I was able to certify that India was, Japan was, South Korea was… And we think, based on the latest data, that China is also moving in that direction.”

Since the resolution of the payments dispute between China and Iran, however, China’s imports of Iranian oil have picked up once again, see here and here.  And the Chinese government continues to insist that the country’s purchases of oil from the Islamic Republic are “fully reasonable and legitimate,” see here.

Once June 28 comes the White House and State Department will be under enormous pressure from the Congress (Hill Democrats will provide the President no cover on the issue), the Romney campaign, and various domestic interest groups to sanction China over its continued oil buys from Iran.  The Administration’s alliance with Congress and the pro-Israel lobby on Iran sanctions, combined with its misguided assessment that the United States can somehow compel Iran’s “surrender” on the nuclear issue, have put the President and his team in a “damned if you do, damned if you don’t” position.  This is very much a problem of the Administration’s own making.

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June 27, 2012 Posted by | Economics, Progressive Hypocrite, Wars for Israel | , , , , , , , | Leave a comment

Russia: US anti-Iran sanctions against international law

Press TV – May 29, 2012

Russian Foreign Ministry Spokesman Alexander Lukashevich has criticized the US sanctions against Iran as violating international law, noting that Russia opposes such measures.

“Regarding the US unilateral sanctions against Iran, which have been enforced during the past 20 years over concerns about Tehran’s nuclear energy program, I should say that Russia does not agree with the transnational nature of these sanctions,” Lukashevich said on Tuesday.

“Moreover, we believe that these sanctions are in contradiction to international law,” he added.

On May 21, the US Senate unanimously approved a bill to extend sanctions against countries or companies that have dealings with the National Iranian Oil Company and the National Iranian Tanker Company, another attempt to restrict Iran from selling its crude oil abroad.

“The United States is abusing its position in the global financial structure and the status of dollar as the international currency, thus slapping economic and financial sanctions against Iran and forcing other countries to engage themselves in this regard,” the Russian foreign ministry spokesman pointed out.

Lukashevich further noted that Moscow has invariably expressed opposition to “excessive pressure” on Iran over its nuclear energy program.

“On all occasions and levels, we have proclaimed our opposition to [applying] excessive pressure on Iran and pointed out that such an approach will push Iran’s nuclear energy program toward a stalemate,” Lukashevich explained.

The United States and the European Union have imposed tough financial sanctions as well as oil embargoes against Iran since the beginning of 2012, claiming that the country’s nuclear energy program includes a military component.

Tehran refutes such allegations, noting that frequent inspections by the International Atomic Energy Agency have never found any diversion in Iran’s nuclear energy program toward military purposes.

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May 30, 2012 Posted by | Wars for Israel | , , | Leave a comment

Iran designs alternative system for SWIFT

Press TV – May 26, 2012

The Governor of the Central Bank of Iran (CBI) Mahmoud Bahmani says that the country has designed and implemented a new system for conducting international transactions.

Bahmani said on Saturday that the new system, which has already been activated, would replace Worldwide Interbank Financial Telecommunication (SWIFT)

On March 15, SWIFT CEO Lazaro Campos said in a statement that the society has decided to discontinue offering services to Iranian banks which are subject to financial sanctions imposed by the European Union.

On January 23, the EU foreign ministers approved new sanctions on Iran’s financial and oil sectors, which prevent member countries from importing Iranian crude or dealing with its central bank.

Experts believe that SWIFT’s new action is meant to fully enforce EU sanctions, as global financial transactions are impossible without using SWIFT.

Bahmani rejected reports about a Japanese bank freezing transactions with Iranian banks.

On May 17, the Reuters reported that Bank of Tokyo-Mitsubishi UFJ has frozen USD 2.6 billion of assets of Iranian banks under an order by the New York District Court earlier this month.

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May 27, 2012 Posted by | Economics, Wars for Israel | , , , , , , , | Leave a comment

Indian refiner MRPL secures Iranian insurance for oil shipment

Press TV – May 22, 2012

India’s refiner MRPL has received a crude cargo under the coverage of an Iranian insurance company to become the first Indian firm taking such an action in the face of oil embargoes against the Islamic Republic, sources say.

Mangalore Refinery and Petrochemicals (MRPL) “recently got a cargo insured by an Iranian firm and other cargoes can also be insured from Iran. The company will do that on a case-by-case basis,” Reuters quoted one of the sources on Monday.

The Iranian insurer provided coverage for MRPL’s crude cargo of about 707,500 barrels, which arrived at India’s Mangalore Port last week.

Another source said, “As long as we can avail of Iranian cover we will continue to import cargoes on that basis.”

India is one of the biggest customers for Iranian crude. The Asian country accounts for more than 10 percent of Iran’s annual oil exports, worth about $12 billion.

Earlier in May, Indian General Insurance Corp. (GIC) said it planned to provide third-party liability coverage up to $50 million for ships importing Iranian crude in a bid to prevent the oil embargoes from disrupting Iranian crude shipments to India.

The European Union approved new sanctions on Iran’s oil and financial sectors on January 23. The sanctions are meant to prevent member states from buying Iranian crude or doing business with its central bank. The sanctions will come into force as of July 1.

Additionally, the embargo banned European companies from transporting, purchasing or insuring crude and fuel originating in Iran and intended for anywhere in the world.

The US and the EU have imposed new financial sanctions as well as oil embargoes against Iran since the beginning of 2012, claiming that the country’s nuclear energy program includes a military component, a claim Iran has strongly rejected.

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May 22, 2012 Posted by | Economics, Wars for Israel | , , , , , , | Leave a comment

White House sets sights on evaders of Iran, Syria sanctions

By Peter Schroeder – The Hill – 05/01/12

President Obama is beefing up the administration’s sanctions on Iran and Syria, issuing an executive order targeting anyone who tries to skirt the crackdown.

The order, issued Tuesday, would allow the government to punish any individuals who either violate current sanctions against the two countries or help facilitate such an evasion by others.

Violators would be publicly outed by the government and effectively barred from entering the United States or participating in the U.S. financial system.

The order “provides Treasury additional means to impose serious consequences on foreign persons who seek to evade our sanctions and undermine international efforts to bring pressure to bear on the Iranian and Syrian regimes,” said David Cohen, the Treasury’s undersecretary for terrorism and financial intelligence. “Whoever tries to evade our sanctions does so at the expense of the people of Syria and Iran, and they will be held accountable.”

Once the Treasury identifies someone who is trying to avert the sanctions, anyone under U.S. jurisdiction would be prohibited from doing business with them. The Treasury said the new order helps ensure that Americans do not accidentally undercut the sanctions.

Obama notified Congress of the move in letters sent to the Speaker of the House and the President of the Senate.

The move marks the latest attempt by the White House to put pressure on the two nations. In February, another executive order levied new sanctions on Iran and its central bank.

Under that order, any Iranian assets held by U.S. citizens or companies were effectively frozen, and any transactions conducted by U.S. citizens with Iranian entities would be seized or frozen. … Full article

May 1, 2012 Posted by | War Crimes, Wars for Israel | , , , , | Leave a comment

‘Iran oil sanctions bad idea if they work’

Press TV – December 25, 2011

Any sanctions on Iran’s oil sector imposed over the country’s nuclear program will backfire on the United States, regardless of their outcome, says an energy economist and columnist.

“Oil sanctions are a bad idea if they work, and a bad idea if they fail,” wrote Robin M. Mills.

If the sanctions work, American allies will be punished and some economically vulnerable countries, such as Greece, will suffer a cutoff of oil just at the time they can least afford it, he explained.

Or, if they “succeed” more dramatically, and Iran’s exports are really interrupted, oil prices will soar, “plunging the world back into renewed recession,” Mills added.

“But most likely, oil sanctions would fail, and a great deal of diplomatic capital will have been expended to no avail,” the energy economist asserted.

He cited the examples of Japan and South Korea as evidence of the failure of the sanctions, saying both countries rely on Iran for 10 percent of their crude imports, and have waived oil sanctions.

The columnist further mentioned the case of Turkey which renewed its long-standing crude contract with Iran on December 21.

“Iran should be able to find ways round tightened oil sanctions,” Mills stressed.

Mills further reiterated the repeated assertions of Iranian officials that the sanctions have served as opportunities for the country.

“The United States’ last secret weapon — embargoing gasoline shipments to Iran — inspired Tehran to make its long-overdue subsidy reform and step up domestic refining capacity,” he said.

Mills who has authored The Myth of the Oil Crisis said domestic Iranian oil and gas companies have also been encouraged to develop shared fields with production potential of 1.1 million barrels per day.

“In a way, the US Congress did Iran a favor,” Mills said.

The economist said the proposed sanctions “make even less sense” on a geopolitical level as the embargoes are a gift on a plate to two US rivals, China and Russia.

“The lengths to which the United States will go to shoot itself in the foot are sometimes astounding,” Mills said.

He went on to draw attention to the deliberately concealed cost of the sanctions on the US economy, saying decades of sanctions resulting in expensive oil have set the United States back half a trillion dollars.

“Still unanswered is the rather important question of how the U.S. plans to turn any tactical gains from sanctions into strategic success — or, indeed, even to define what realistic “success” looks like.”

Mills also touched upon the resolve of the Iranian nation in overcoming the sanctions, saying they “have seen their country survive even tougher times than today, and emerge … with revolutionary fervor strengthened.”

“For them to bow to sanctions by making significant concessions on the nuclear issue would be political suicide.”

As an alternative to sanctions, Mills proposed the “acknowledgement of Iran’s legitimate interests, with removal of some sanctions as carrots for cooperation.”

“My advice? Ignore all the crowing coming from Washington,” he concluded.

April 19, 2012 Posted by | Economics, Timeless or most popular, Wars for Israel | , , , , , | Leave a comment

Oil Abstinance for Israel

Is an oil shock looming? – A Simple Question

Twice in the last 4 years, oil prices have surged causing major disruption in the global economy. In 2008 oil prices went up to $147 per barrel, and last year, disruptions in the supply of oil from Libya sent the price of oil rocketing up to $127. The sharp increase in the price of oil has had a worrying impact on the global economy, and the US as well as Europe has felt the effect. Oil prices are up around 15% since the beginning of the year and rich-country oil stocks are at a 5-year low. Oil prices rose by 80% at the start of the first Gulf War. Now that global oil prices are on the rise again, at a time when the financial crisis is only starting to recover, there is more pressure on western governments to act. Economic sanctions on Iran have the potential to make the situation much worse for the west – but by their own doing. Iran – a major contributor to the world’s oil economy – exports 20% of the world’s oil needs. With oil embargoes already on Syria disruption to this supply of oil from Iran could be disastrous for the West.

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April 19, 2012 Posted by | Deception, Economics, Timeless or most popular, Video, Wars for Israel | , , , , | Leave a comment

In Europe, 69% express opposition to banning Iran’s oil

Press TV – March 18, 2012

Majority of respondents to a public survey conducted in eight European countries have expressed opposition to banning Iranian oil imports.

European Union foreign ministers agreed on January 23 to ban oil imports from Iran and to freeze the assets of the Iranian Central Bank across the EU.

The sanctions will become fully effective on July 1, 2012 in efforts to give EU member states sufficient timing leverage to adjust to new conditions emerging from the cutoff of Iran’s oil and find alternative crude supplies.

German Marshall Fund carried out a phone survey between January 25-28 by using a sample of more than 3,000 adults from Austria, Britain, France, Germany, Italy, Poland, Sweden and Spain.

According to the survey, 69 percent of respondents were opposed to imposing sanctions on Iran’s oil exports, while 30 percent said they agreed with the latest measures by the EU.

Global oil prices have continually climbed this year following Iran’s retaliatory measure in halting oil sales to British and French firms reacting to EU’s anti-Iran embargos.

Iran announced on February 21 that it will only continue its oil exports to the European Union if the member states make guaranteed payments and commit to medium- and long-term oil purchase contracts.

Tehran has also announced that it may further halt its oil exports to other European countries.

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March 18, 2012 Posted by | Wars for Israel | , | Leave a comment

SWIFT cuts financial ties with Iran over EU sanctions

Press TV – March 16, 2012

The Society for Worldwide Interbank Financial Telecommunication (SWIFT) says it has decided to discontinue services to Iranian banks which are subject to financial sanctions imposed by the European Union.

“Disconnecting banks is an extraordinary and unprecedented step for SWIFT. It is a direct result of international and multilateral action to intensify financial sanctions against Iran,” the Associated Press quoted SWIFT CEO Lazaro Campos as saying on Thursday.

The Financial Times described the service as “one of the key bits of plumbing in the world’s interbank payment systems,” adding that 30 Iranian banks will be cut off from the service as of Saturday, March 17.

The US and EU charge Iran with pursuing military goals under the cover of its civil nuclear energy program and have imposed several rounds of international and unilateral sanctions against Iran to force the country give up its nuclear energy program.

On January 23, the EU foreign ministers approved new sanctions on Iran’s financial and oil sectors, which ban member countries from importing Iranian crude or dealing with its central bank.

Experts believe that SWIFT’s new action is meant to fully enforce EU sanctions, as global financial transactions are impossible without using SWIFT.

Despite tightening sanctions, some analysts have noted that Iran is still able to skirt the sanctions in a few ways. The country, they say, may exchange oil for cash, gold or other commodities directly. Also, Iranian banks that have not been targeted by EU sanctions can still sell oil.

“Throughout the history of the oil trade, someone always gets around trade embargoes one way or another,” said Jim Ritterbusch, a veteran oil trader and analyst.

SWIFT is a clearing system, which oversees the network used by most of the world’s largest banks to conduct financial wire transfers.

SWIFT handles cross-border payments for more than 10,000 financial institutions and corporations in 210 countries. It enables users to exchange financial information securely and reliably, thereby lowering costs and reducing risks.

Established in 1973, the system has been overseen by major central banks, including the US Federal Reserve and the European Central Bank.

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March 16, 2012 Posted by | Economics, Wars for Israel | , , | Leave a comment

India, South Korea increase oil purchases from Iran: IEA

Press TV – March 15, 2012

India and South Korea have increased oil imports from Iran despite the United States’ plea for the two countries to reduce their dependence on the Iranian crude, says the International Energy Agency (IEA).

According to an IEA report, released on Wednesday, both Seoul and New Delhi sharply raised their oil purchases from Iran in January.

The rise in the purchase of the Iranian crude comes despite Washington’s appeals for a reduction of oil imports from Iran by around 15 percent in volume.

The White House is now concerned that it may have to impose sanctions on New Delhi for its refusal to cut back on crude purchases from Tehran.

Earlier on Tuesday, Turkey’s Minister of Energy and Natural Resources Taner Yildiz announced that Turkey is continuing to purchase crude oil from the Islamic Republic.

Oil prices have remained high following Iran’s decision to cut oil sales to some European countries in response to the EU’s sanctions on the country.

On January 23, EU foreign ministers approved sanctions against Iran, including a ban on Iranian oil imports, a freeze on the assets of the Central Bank of Iran within the bloc’s states and a ban on selling diamonds, gold, and other precious metals to Tehran.

The US, Israel and some of their allies accuse Tehran of pursuing military objectives in its nuclear energy program.

Iran has repeatedly refuted the Western allegations regarding its nuclear energy program, arguing that as a signatory to the nuclear Non-Proliferation Treaty and a member of the International Atomic Energy Agency, it is entitled to develop and acquire nuclear technology for peaceful purposes.

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March 15, 2012 Posted by | Economics, Wars for Israel | , , | Leave a comment

Iran oil ban to hit 10 main crude importers hardest

Press TV – March 10, 2012

The Business Insider news website says in an article that if the flow of Iran’s oil exports is disrupted, the main importers of the country’s crude will be hit hardest.

According to the article, main importers of Iran’s crude including China, India, Japan, South Korea, Turkey, Italy, Spain, Greece, South Africa and France will be adversely affected by any disruption in Tehran’s oil exports.

The article says when European Union (EU) sanctions are put into place on July 1, nearly 600,000 barrels of oil per day will come off the market as a result of which the price of Brent Crude would rise to about USD 138 per barrel.

If Iran’s crude exports are halted entirely as a result of an attack against the country, 2.5 million barrels per day of supply will be lost and Brent Crude prices will reach USD 205, the report adds.

Global oil prices have continually climbed this year following Iran’s move to cut oil sales to British and French firms in reaction to the EU’s anti-Iran embargos. Tehran has also announced it may halt oil exports to more European countries.

EU foreign ministers approved sanctions against Iran on January 23, including a ban on Iranian oil imports, a freeze on the assets of the country’s Central Bank within EU states and a ban on selling diamonds, gold, and other precious metals to Tehran.

The move is aimed at putting pressure on Iran to force the country into abandoning its nuclear energy program based on allegations that Tehran is seeking to weaponize its nuclear technology.

Iran has refuted the allegations, arguing that as a signatory to the nuclear Non-Proliferation Treaty and a member of the International Atomic Energy Agency, it has the right to develop and acquire nuclear technology for peaceful purposes.

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March 10, 2012 Posted by | Economics, Wars for Israel | , , , , , , | Leave a comment

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