Archive for the ‘Iran’ Category

ExxonMobil and Iran did business under secretary of State …

Rex Tillerson is the CEO of ExxonMobil. His ties around the globe include a close relationship with Russian President Vladimir Putin. USA TODAY NETWORK

Rex Tillerson, Donald Trump's nominee to head the State Department and former ExxonMobil chairman and CEO, addresses the World Gas Conference in Paris on June 2, 2015. President-elect Trump nominated Tillerson for secretary of State on Dec 13, 2016.(Photo: Eric Piermont, AFP/Getty Images)

ExxonMobil did business with Iran, Syria and Sudan through a European subsidiary while President-elect Donald Trumps nominee for secretary of State was a top executive ofthe oil giantand those countries were under U.S. sanctions as state sponsors of terrorism, Securities and Exchange Commission filings show.

That business connection is likely tosurface Wednesday at a confirmation hearing for ExxonMobil CEO Rex Tillerson before the Senate Foreign Relations Committee.

The sales were conducted in 2003, 2004 and 2005 by Infineum, in which ExxonMobil owned a 50% share, according to SECdocuments unearthed by American Bridge, a Democratic research group.

ExxonMobil told USA TODAY the transactions were legal because Infineum, a joint venture with Shell Corporation, was based in Europe and the transactions did not involve anyU.S. employees.

The filings, from 2006, show that the company had $53.2 millionin sales to Iran, $600,000 in sales to Sudan and $1.1 million in sales to Syria during those three years.

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Hebecame a senior vice president at ExxonMobil in August 2001,president and director in March 2004and chairman and chief executive on Jan. 1, 2006.

The SEC letter questioned ExxonMobils failure to disclose to shareholders that it had transactions with three state sponsors of terrorism. Decisions to make such disclosures should be based on the potential impact of corporate activities upon a company`s reputation and share value, and not simplythe monetary value of the transactions, the SEC said.

Compared to Exxons overall annual revenue of $371 billion, these transactions are not material by any reasonable measure, Richard Gutman, ExxonMobils assistant general counsel at the time, wrote in response to an SEC inquiry regarding the transactions. He did not address the SEC's concerns about the impact on the oil company's reputation

Infineums European affiliates manage business transactions in those three countries under a policy and procedure consistent with U.S. legal requirements and no United States person is involved in those business transactions, Gutman wrote. The subsidiary has offices in the United States, United Kingdomand Singapore.

These are all legal activities complying with the sanctions at the time," Alan Jeffers, media manager at ExxonMobil, told USA TODAY. "We didnt feel they were material because of the size of the transactions.

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They (Infineum) have an independent management that operates the entity. And its not a U.S. entity, Jeffers said.

At the time of the SEC inquiry, such indirect transactions between Iran and American companies were not unusual, said Mark Dubowitz, an expert on Iran sanctions at the Foundation for Defense of Democracies, aWashington think tank.

Its the reason Congress eventually shut down U.S. companies from doing business (with Iran) through foreign subsidiaries, Dubowitz said. Congress also requiredsuch transactions to be disclosed. TheIran nuclear deal that went into effect in early 2016 reopened the loopholeunder certain conditions, Dubowitz said.

Sen.Bob Menendez of New Jersey, the ranking Democrat on the Foreign Relations panel, said he was deeply skeptical about Mr. Tillersons actions as CEO of Exxon that were in direct contravention to express United States policies put in place to secure Americans and our country."

"Finding loopholes to make lucrative business deals with geo-political adversaries, while showing no clear regard for U.S. national interests, is not a resume builder for a prospective diplomat-in-chief," Menendez said in a statement to USA TODAY. "This is one of the many issues I look forward to hearing more about during the upcoming confirmation hearings.

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Iran says Boeing deal will cost just $8 billion – Dec. 26, 2016

The company put that figure on the Iran Air deal for 50 737 airplanes and 30 777s when it was finalized earlier this month.

But Iran's deputy transport minister said Sunday that the amount it will pay Boeing (BA) will be nearer $8 billion.

"Given the type of orders and the specifications we have chosen, the value of the deal to buy 80 planes from Boeing is about 50% of that value," said Asghar Fakhreeyeh Kashan, according to official news agency IRNA.

Boeing spokesman Doug Adler said the company would not "comment on or share details of agreements with any customer."

Boeing's deal is part of Iran's effort to modernize its fleet of airliners and is by far the biggest between U.S. and Iranian businesses since the 1979 revolution.

Related: Boeing CEO vows to keep Air Force One costs below $4 billion

Iran's fleet is among the oldest and most dangerous in the world. Years of sanctions left its carriers with outdated and unsafe aircraft.

Those sanctions were lifted after Iran agreed to curtail its nuclear program as part of an agreement with major global powers, including the U.S.

But Boeing's deal with Iran Air will find itself in the political cross hairs as President-elect Trump weighs the future of that global nuclear agreement.

Related: Boeing's Iran deal won't prevent production cut

Boeing's main rival, European aviation giant Airbus (EADSF), also has a major deal with Iran Air. The value of that contract came in lower than initially expected because Iran chose not to buy any superjumbo A380s.

-- Alireza Hajihosseini and Jon Ostrower contributed reporting.

CNNMoney (London) First published December 26, 2016: 12:04 PM ET

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Iran says Boeing deal will cost just $8 billion - Dec. 26, 2016

Iran says U.S. extension of sanctions act violates nuclear …

ANKARA Iran threatened on Friday to retaliate against a U.S. Senate vote to extend the Iran Sanctions Act (ISA) for 10 years, saying it violated last year's deal with six major powers that curbed its nuclear program.

The ISA was first adopted in 1996 to punish investments in Iran's energy industry and deter its alleged pursuit of nuclear weapons. The extension was passed unanimously on Thursday.

U.S. officials said the ISA's renewal would not infringe on the nuclear agreement, under which Iran agreed to limit its sensitive atomic activity in return for the lifting of international financial sanctions that harmed its oil-based economy.

But senior Iranian officials took odds with that view. Iran's nuclear energy chief, Ali Akbar Salehi, who played a central role in reaching the nuclear deal, described the extension as a "clear violation" if implemented.

"We are closely monitoring developments," state TV quoted Salehi as saying. "If they implement the ISA, Iran will take action accordingly."

The diplomatic thaw in swing between Washington and Tehran over the past two years looks in jeopardy with U.S. President-elect Donald Trump taking office next month. He said during his election campaign that he would scrap the nuclear agreement.

Iran's most powerful authority, Supreme Leader Ayatollah Ali Khamenei, had already warned in November that an extension of U.S. sanction would be viewed in Tehran as a violation of the nuclear accord.

"Iran has shown its commitment to its international agreements, but we are also prepared for any possible scenario. We are ready to firmly protect the nation's rights under any circumstances," Foreign Ministry spokesman Bahram Ghasemi said in comments reported by state news agency IRNA.

RETALIATION

The U.S. Senate vote was a blow to pragmatist Iranian President Hassan Rouhani, who engineered the diplomatic opening to the West that led to the nuclear deal, and may embolden his hardline rivals ahead of presidential election next year.

Khamenei and his hardline loyalists, drawn from among Shi'ite Muslim clerics and Revolutionary Guards, have criticized the deal and blamed Rouhani for its failure to deliver swift improvements in living standards since the lifting of international sanctions in January.

It was not immediately clear what form any eventual retaliation for the U.S. Senate vote might take.

Lawmaker Akbar Ranjbarzadeh said Iran's parliament would convene on Sunday to discuss a bill obliging the government to "immediately halt implementation of the nuclear deal" if Obama approves the ISA, the Students News Agency ISNA reported.

Another lawmaker quoted by the semi-official Tasnim news agency said Iran's parliament planned to discuss a bill that would prevent the government purchasing "American products".

Such a bill could endanger deals such as U.S. planemaker Boeing's (BA.N) tentative accord to sell passenger jets to Iran, upgrading a fleet long deteriorating due to sanctions.

The White House had not pushed for an extension of the sanctions act, but had not raised serious objections. Some congressional aides said they expected President Barack Obama to sign the extension.

The ISA had been due to expire on Dec. 31. Lawmakers said the extension would make it easier for sanctions to be reimposed if Iran violated the nuclear settlement.

Influential Friday prayer leaders, appointed by Khamenei, strongly denounced the ISA extension and called on the government to take action, according to IRNA.

Trump described Iran in campaign speeches as the world's biggest state sponsor of terrorism and dismissed the nuclear accord as "one of the worst deals I've ever seen negotiated."

(Writing by Parisa Hafezi; Editing by Mark Heinrich)

ROME Italian Prime Minister Matteo Renzi announced on Monday that he would resign after suffering a resounding defeat in a referendum over constitutional reform, leaving the euro zone's third-largest economy in political limbo.

EVRY, France French Prime Minister Manuel Valls declared on Monday that he would seek the Socialist Party's nomination for next year's presidential election and said he was quitting the government to focus on campaigning.

SEOUL The heads of South Korea's top conglomerates including the Samsung and Lotte Groups were questioned on Tuesday in an unprecedented parliamentary hearing into the political scandal that appears poised to bring down President Park Geun-hye.

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Iran says U.S. extension of sanctions act violates nuclear ...

Iran sanctions extended after Senate votes – CNNPolitics.com

The measure passed 99 to 0 just weeks after the House passed it 419-1. It will be sent to President Barack Obama, who has not said if he will sign or veto the legislation.

"Preserving these sanctions is critical given Iran's disturbing pattern of aggression and its persistent efforts to expand its sphere of influence across the Middle East," Senate Majority Leader Mitch McConnell said this week.

"Extending the Iran Sanctions Act is an important step in congressional efforts to keep Iran's feet to the fire on a host of issues. Doing so it particularly vital if the United States is to retain a credible deterrent of snap back sanctions if Iran cheats" on the nuclear accord," said Sen. Ben Cardin of Maryland, the top Democrat on the Foreign Relations Committee.

The sanctions, which target Iran's energy, military and banking sectors, were first put in place in 1996 and have been extended and added to since then. Many lawmakers believe it was these congressionally-mandated sanctions that forced Iran to the bargaining table and led to an eventual nuclear agreement.

The sanctions are actually not in effect at the moment since the Obama administration is allowed to waive them as long as Iran is in compliance. But lawmakers were still anxious to keep the sanctions -- which otherwise would expire at the end of the year -- in law so Iran understands how serious Congress is that the Islamic state not try again to develop nuclear weapons.

The action comes weeks before the end of the Obama administration, which spent years negotiating the deal, and the beginning of the Trump administration, which has warned it might scrap the deal altogether. There have been signs in recent days Trump might not ditch the accord but might use other steps to apply pressure on Iran to stop its support of international terrorism, its development of ballistic missiles, and its human rights abuses.

"I expect that next year the new Congress and new administration will undertake a review of our overall policy toward Iran, and these authorities should remain in place as we address how best to deal with Iranian missile tests, support to Hezbollah and the Syrian regime," McConnell said.

Iran is not happy about the extension, believing it violates the international accord. Supreme Leader Ayatollah Ali Khamenei said last week his country would respond.

"If this sanction is implemented, this is definitely a violation of the agreement, without any doubt," Khamenei said in an address on state television. "And they should know that the Islamic Republic will definitely react towards it."

The White House has argued against Congress extending the sanctions, arguing it has the authority already to unilaterally re-impose the sanctions if needed. The White House has stopped short of saying if the President will veto the measure. If he did, based on the vote counts in each chamber, Congress could easily override the veto.

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Iran sanctions extended after Senate votes - CNNPolitics.com

Iran Travel Warning

The Department of State warns U.S. citizens of the risks of travel to Iran.This replaces the Travel Warning for Iran dated March 14, 2016, to reiterate and highlight the risk of arrest and detention of U.S. citizens, particularly dual national Iranian-Americans. Foreigners, in particular dual nationals of Iran and Western countries including the United States, continue to be detained or prevented from leaving Iran. U.S. citizens traveling to Iran should very carefully weigh the risks of travel and consider postponing their travel. U.S. citizens residing in Iran should closely follow media reports, monitor local conditions, and evaluate the risks of remaining in the country.

Iranian authorities continue to unjustly detain and imprison U.S. citizens, particularly Iranian-Americans, including students, journalists, business travelers, and academics, on charges including espionage and posing a threat to national security. Iranian authorities have also prevented the departure, in some cases for months, of a number of Iranian-American citizens who traveled to Iran for personal or professional reasons. U.S. citizens traveling to Iran should very carefully weigh the risks of travel and consider postponing their travel. U.S. citizens residing in Iran should closely follow media reports, monitor local conditions, and evaluate the risks of remaining in the country.

The U.S. government does not have diplomatic or consular relations with the Islamic Republic of Iran and therefore cannot provide protection or routine consular services to U.S. citizens in Iran. The Swiss government, acting through its Embassy in Tehran, serves as protecting power for U.S. interests in Iran.The range of consular services provided by the Foreign Interests Section at the Swiss Embassy is limited and may require significantly more processing time than at U.S. embassies or consulates.

The Iranian government does not recognize dual citizenship and will not allow the Swiss to provide protective services for U.S. citizens who are also Iranian nationals.The Iranian authorities make the determination of a dual nationals Iranian citizenship without regard to the dual nationals personal wishes. Consular access to detained U.S. citizens without dual nationality is often denied as well.

The Iranian government continues to repress some minority religious and ethnic groups, including Christians, Baha'i, Arabs, Kurds, Azeris, and others. Consequently, some areas within the country where these minorities reside, including the Baluchistan border area near Pakistan and Afghanistan, the Kurdish northwest of the country, and areas near the Iraqi border, remain unsafe. Iranian authorities have detained and harassed U.S. citizens, particularly those of Iranian origin. Former Muslims who have converted to other religions, religious activists, and persons who encourage Muslims to convert are subject to arrest and prosecution.

The U.S. government is concerned about the risks to civil aircraft operating into, out of, within, or over Iran due to hazards from military activity associated with the conflicts in Iraq and Syria. TheFAA has advised U.S. civil aviation to exercise caution when flying into, out of, within, or over the airspace over Iran. For further background information regarding FAA flight prohibitions and advisories for U.S. civil aviation, U.S. citizens should consult the Federal Aviation Administrations Prohibitions, Restrictions and Notices.

The U.S. governments ability to assist U.S. citizens in Iran in the event of an emergency is extremely limited. U.S. citizens in Iran should ensure that they have updated documentation at all times and make their own plans in the event of an emergency. For more information, see "What the Department of State Can and Can't Do in a Crisis" at theDepartment's website.

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