Showing posts with label Sanctions. Show all posts
Showing posts with label Sanctions. Show all posts

Tuesday, 12 August 2014

Chrystia Freeland: Ukraine is winning the war

The fog of war, the ADHD of cable news and the smears of Russian propaganda have combined to obscure some important good news in this dismal summer. In the historic fight over the future of democracy in Ukraine, Kyiv is winning and the Kremlin is losing. That is good news for Ukrainians, but also for Europeans, for the rest of the world—and ultimately for Russians, too.
Iraq, Afghanistan, Egypt and Syria have taught us that even in conflicts where it is easy to spot the villain, virtuous actors can be much harder to find, and effective virtuous actors can be rarer still.
 
That’s why the early success of the new Ukraine is so significant.
 
Of course, it’s also true that at every stage in this crisis, Ukraine’s democratic victories have had the perverse consequence of escalating pressure from the Kremlin. That pattern has now led to possibly as many as 45,000 Russian troops once again massed on Ukraine’s border, as Moscow considers how to check the success of the Ukrainian military in re-establishing control over the eastern Donbass region where Russian-backed fighters have been trying and failing for months to create a breakaway republic. NATO and Ukraine’s leaders are warning there’s a significantly heightened threat of Russian invasion.

 
Russia’s bellicose brinksmanship has made Ukraine’s eastern border the world’s most dangerous tripwire—it is no exaggeration to worry we could be on the edge of the greatest conflict since the World War II. But in determining how to respond, it is essential to understand this standoff has been created by the surprising and growing strength of Ukrainian democracy—and by Vladimir Putin’s refusal to allow a peaceful democracy to exist on his western border.
 
This crisis is not about an American power play in the former Soviet Union— indeed, it often seems as if President Barack Obama privately wishes Ukraine’s democracy revolution would just fade away. This is entirely about the Ukrainian people’s decision that they were no longer willing to live in an authoritarian kleptocracy—and the annexation and invasion of their territory that was the Kremlin’s response. Ukraine could only have avoided this struggle by not choosing democracy, or by failing in the effort to build it.
 
No matter how hard Putin tries to spin it (or to turn from attack line into a reality), Ukraine isn’t a failed state, prey to domestic extremists and weakened by civil war. This is a young country swiftly uniting around the democratic idea in the face of foreign aggression. Ukraine’s new leaders aren’t angels. Their ranks include oligarchs with checkered biographies and politicians who were members of past, failed governments. But, after 23 years of chaotic post-Soviet independence, Ukraine now has a wired and educated civil society prepared to fight for democracy and a leadership that knows how the West works and wants to emulate it.
 
Which is why the right parallel when thinking about how the West should respond to this crisis isn’t with the West’s past decade of military misadventures in the Middle East, it is with Eastern Europe in the 1980s, where civil society overthrew communist regimes and produced leaders who were, albeit with plenty of mistakes and hardship along the way, able to build capitalist democracies in their place.
 
The first success is the consolidation, maturity and determination of Ukraine’s civil society. Remember all of those warnings from Putin and other Russians about the dangerous power of the far right and the worries that the euphoria of the pro-Europe protesters who rallied in Kyiv’s Maidan Square last winter would give way to rule by armed, brown-shirted militias?
 
The May 25 presidential election, in which Petro Poroshenko, a Russian-speaking centrist businessman from the south, won a strong majority on the first ballot in a field of 17 candidates, gave the lie to that putative threat. Ukraine’s two far-right candidates polled less than 2 percent each, far less than the hard right polled in European Union parliamentary elections held on the same day.
 
Ukrainians didn’t elect Poroshenko for his charisma or his barnstorming speeches. They voted for him because he backed the Maidan protesters from the start, he was the frontrunner, and he is competent. His most effective campaign slogan—which appeared with no photo or visual image, just words, on billboards across the country — was “to stop the war, let’s elect a president on the first ballot.” Ukraine is normally a sort of Slavic Italy—a disputatious society that revels in political disagreement and debate. It is a measure of the gravity of the moment that Ukrainians accepted Poroshenko’s argument and, for the first time since independence, chose a president on the first ballot and with strong backing from across the country.
 
Ukraine’s second success is its unprecedented degree of national unity. That reality is obscured by the lazy shorthand that often frames the conflict in eastern Ukraine as a Yugoslav-style civil war, driven by ancient cultural, linguistic and religious divisions. In fact, the fight in Ukraine is almost entirely a political and even ideological struggle. This isn’t about Russian speakers vs. Ukrainian speakers—an absurd idea in a country so at ease with its nearly universal bilingualism that everything from television interviews to jokes to parliamentary debates are conducted in an easy back-and-forth between Ukrainian and Russian.
 
The dividing line in what Ukrainians call their “dignity revolution” is instead the choice between Western liberal democracy and the Kremlin’s neo-authoritarianism. What has been striking is how determinedly most of Ukraine has chosen democracy. For Ukrainians, this isn’t about the reshaping of the world’s geostrategic chessboard—who would chose to be a pawn in someone else’s power play? But Ukrainians have now seen both Western democracy and Putin’s post-Soviet kleptocracy up close. They have made the same choice all of us would, and they are proving they are willing to fight, and to die, for it.
 
We saw that first with the Maidan, where Ukrainians defied freezing weather, tanks and finally snipers to bring down their authoritarian regime. The next proof points came in the fraught months between the flight of President Viktor Yanukovych and the presidential election won by Poroshenko, which gave Ukraine the stability of a democratically elected leader.
 
During that fragile interregum, Russia worked hard to undermine the new Ukraine. The Kremlin started by sending in “little green men,” as the Russian troops infiltrating Ukraine wearing uniforms but no official government ID have come to be called, to Crimea. The little green men swiftly took control of the government and military infrastructure there. Moscow followed up with the unexpectedly aggressive step of explicitly annexing the peninsula. Russia then attempted to replicate the Crimean scenario in the geographic arc running from its satrap Transniestria in the southwest, along the Black Sea coast, then north to Kharkiv in the east. These efforts had some success in the Donbass, but it is important to appreciate how completely they failed in the rest of what Putin has named “Novorossia,” or New Russia.

Even in the Donetsk and Luhansk regions, where civil society has historically been weakest, the Russian-led and -armed separatists haven’t managed to take over the local government, as their peers did in Crimea. Their reign is a partial occupation, based on individual buildings their gunmen have seized and camped out in, and roadside checkpoints. Another important point to note is that Ukraine’s national consolidation includes its business elite. Most of Ukraine’s oligarchs are Russian-speaking, all of them are economically dependent on Russia, and many of them are from the east. But not a single significant business leader anywhere in the country—including the Donbass—is backing the Russia-led rebels.
 
Ukraine’s third success is the consolidation of its post-revolutionary government. Putin has sought to portray Ukraine as a failed state, and in his collaboration with Yanukovych he came close to making that rhetoric reality. The regime was hollowed out by corruption, infiltrated by Kremlin agents, and its coffers emptied by theft from the top.
 
Yet in just five months, and in the face of occupation and annexation of its territory by its nuclear-armed neighbor, the Ukrainian state has started to rebuild and to develop an ambitious program of economic and political transformation. Less than 48 hours after Malaysia Airlines Flight 17 was shot down, an international group of some 200 experts was gathering in Kyiv to work on a comprehensive reform plan. Its goals include identifying structural ways to reduce corruption—Estonia’s e-governance innovations, which offer fewer opportunities for individual apparatchiks to demand bribes, are one inspiration—and streamlining the tax system. On July 31, President Poroshenko signed a new education law, drafted in large part by professors and students, many of whom were active on the Maidan, granting universities more autonomy from the central government and introducing a Western-style system of graduate degrees.

 
Passing laws about academic freedom while your country is being invaded might seem like fiddling while Rome burns, but this double act is at the heart of what is happening now in Ukraine. Ukrainians aren’t fighting only for their sovereignty—which would be good enough cause—they are fighting for what they call the new Ukraine, which they are simultaneously trying to build.
 
These three elements—civil society, state and national unity—account for Ukraine’s fourth success: since May 15, when the steel workers of the eastern city of Mariupol took to the streets to force would-be separatists to leave, Ukraine has steadily been pushing back the Russian-led insurgents.
 
Already, Kyiv has recaptured about 75 percent of the territory once held by the separatists. Ukraine’s leaders predict that, absent further Russian escalation, they will be fully back in control of their country by the end of the month.
 
Further Russian escalation is, of course, the great uncertainty, particularly this week, as Ukrainian forces close in on the Russian-led separatists in Donetsk and Luhansk and the Kremlin has masses troops on Ukraine’s border. The biggest question in world affairs today is whether Russia will take the immense gamble of explicitly invading Ukraine rather than allow its proxies to be defeated.
 
To understand if Putin will roll the dice and what that would mean, begin with one central fact—since November, when this crisis began, Putin has repeatedly misread Ukraine. (With the single exception of his takeover of Crimea, where Ukraine’s post-revolutionary disorganization, Putin’s unexpected lightning attack and the presence of the Black Sea Fleet made for a deceptively fast and easy victory.)
 
Start with Yanukovych, Putin’s would-be authoritarian junior partner. The erstwhile Ukrainian president proved too weak and too unpopular to do the job, eventually opting to flee the country that had elected him less than four years earlier.
 
Next, Putin underestimated Ukrainian civil society. The increasing pressure that he thought would disperse the Maidan instead inspired ever greater resolve, ending with a willingness to march directly into sniper fire.
 
Then, Putin believed his own myth of an ethnically divided Ukraine. His efforts to provoke the Russian speakers of “Novorossia” into rebellion have instead strengthened their support for Ukraine, particularly in the crucial regions of Dnipropetrovsk, Odessa and Kharkiv. Finally, as with Yanukovych, Putin has tragically overestimated his proxies in the separatist leadership of the Donbass.
 
Putin’s mistakes have the virtue of intellectual consistency—he really does seem to believe that Ukrainians are Russians and that he will likewise succeed in bringing them to heel. That, of course, is what makes Ukraine doubly important. Putin isn’t the only Russian who thinks Ukrainians are part of his Slavic tribe. This is conventional wisdom in Russia, even among liberals. But the same logic that makes Ukraine a tempting morsel for irredentists makes it a powerful example for democrats.
 
Here’s how Max Skibinsky, a Russian Silicon Valley venture capitalist, describes it. “The differences between Ukrainian and Russian people are cosmetic,” he wrote in a recent blog post. “They [the Ukrainians] are the first large group of ethnic ‘Russians’ who become free on their own power and valor. To understand the scale of that achievement, here is the last group of Russians who were not ruled by khans, czars, communist chairmen, or KGB generals: the Free Novgorod Republic. That was over 1000 years ago. Ukraine was a cradle of Russian civilization—they might become a source of rebirth yet again.”
 
Few Ukrainians would agree. Ukraine’s political culture has no messianic or imperialist strain, and today building democracy at home is more than enough to keep the country’s leaders busy. Unfortunately for all of us, the Kremlin’s unrelenting aggression against Ukraine shows that Putin sees Ukraine’s democratic renaissance the way Skibinsky does. In seeking to destabilize the new Ukraine, Putin isn’t trying to protect Russian speakers from the Ukrainian language. The fight in the Donbass is a continuation of the battle against a liberal Russia that Putin began when he arrived in the Kremlin in 2000.
 
If the Russian forces massed on Ukraine’s border invade, it will be because Putin has decided to show Russians, Ukrainians and the world that he has the power and the will to impose autocracy not just at home, but at gunpoint in foreign, sovereign states. The tragic paradox for Kyiv is that each democratic success has made it more vulnerable to a further Russian escalation. Will the world’s democracies stand by and let Putin have his way?

Chrystia Freeland is the federal member of parliament for Toronto Centre and the author of Plutocrats: the Rise of the New Global Super-Rich and the Fall of Everyone Else

Sanctions prompt Russia to turn to China for precision components

A rocket carrying the GLONASS-K satellite at Russia's Plesetsk Cosmodrome.
 
Russia is looking to acquire electronic precision components worth several billion dollars from China in light of economic sanctions from Europe and the United States, reports Global Times, a tabloid under the auspices of the Communist Party mouthpiece People's Daily.
 
Citing Russian media reports, Global Times said Russian manufacturers will struggle to meet demand for electronic components required for the country's aerospace and military fields over the next two years due to ongoing sanctions over the Ukraine crisis.
 
As a result, Russia is turning to China to fill the gap, with one source from the Russian Federal Space Agency telling media outlets that they are currently working with the China Aerospace Science & Industry Corporation, the main contractor for the Chinese space program. The Chinese company's research and development center has already offered several dozen proposals on how their products can replace those previously acquired from the US, the source said, adding that they are currently in the process of translating the technical data, testing product sensitivity, temperatures and vibrations to assess component compatibility.
 
A spokesperson from another Russian missile and aerospace company said that given the economic sanctions, they are open to cooperating with China as long as the quality, manufacturing speed and pricing is competitive.
 
 
Russia acquires around US$2 billion in electronic components from the US every year, much of which goes into hi-tech systems in Russia's aerospace and military projects. Around 75%-80% of Russia's GLONASS-M satellite, for instance, is made from components supplied by Western countries.
 
Chinese military expert Wang Yanan told the Global Times that there is a strong chance of China and Russia working together due to economic sanctions. While the standard of China's component products and research and development are not the highest in the world, its product systems are very complete and self-sufficient, and are continuing to improve and advance, he said. If they can continue working together and build of each other's strengths, China and Russia could break down the electronics monopoly that has been held by the West for many years, he added.
 
An unnamed Chinese aerospace expert said in an interview with the Global Times that while China can help Russia solve a lot of its components shortage problems it cannot solve all its problems because some products cannot be perfectly replaced. Chinese products may also be incomplete or might require more time to properly match with Russian platforms. But buying from China has distinct advantages too, including security of supply and cheaper prices, the expert added.
 
Apart from electronic precision components, laser equipment at the Mulino training center of the Russian Ground Forces supplied by Germany can also be replaced by those produced by Chinese companies, accoring to Russian media reports

Friday, 9 November 2012

Anyone stockpiling nuclear weapons is mentally retarded' – Ahmadinejad



During a meeting in Indonesia, Iranian President Mahmoud Ahmadinejiad said that the era of nuclear deterrence “is over,” and nations that stockpile nuclear weapons are “mentally retarded.”

­He also reiterated his long-running stance that Iran does not possess nuclear weapons, nor does it seek to build one, as the nation does not need atomic weapons to defend itself.

"The period and era of using nuclear weapons is over. … Nuclear bombs are not anymore helpful and those who are stockpiling nuclear weapons, politically they are backward, and they are mentally retarded," Ahmadinejad said during a democracy forum in Bali, Indonesia.

The Iranian president added that any government or agency was free to inspect Iran’s nuclear sites. That statement contradicts Tehran’s recent policy of preventing International Atomic Energy Agency (IAEA) observers from accessing some of its nuclear sites.

The US and its allies have long accused ing its nuclear facilities as a cover for developing atomic weapons, a claim which Tehran has repeatedly denied.
The subject has been an ongoing source of tension between Iran and countries that remain skeptical of its nuclear ambitions – the US and Israel being the most vocal critics.

Israel has hinted at taking military action against Iran’s program for some time. Last week, Israeli Defense Minister Ehud Barak said that the country and its allies will have to make a decision on military action against Iran in “eight to ten months.”

In September, General Amir Ali Hajizadeh, a senior commander in Iran’s Revolutionary Guard, warned that Tehran would strike US bases in the region if Israel attacked Iran.

“We will enter a confrontation with both parties and will definitely be at war with American bases should a war break out," he told Al-Alam TV.

The US has publicly maintained its preference for a diplomatic solution to the tensions, and has imposed multiple rounds of economic sanctions against Iran in the hopes of forcing Tehran to end its nuclear program.

Wednesday, 17 October 2012

Iran lashes out at EU for blocking its satellite channels



Authorities in Tehran slammed the EU over its gagging of 19 Iranian satellite channels which coincided with the latest round of sanctions, one of the toughest yet. The shutdown is a big attack on freedom of speech, analyst Chris Bamberry told SW.

France’s Eutelsat and UK’s Arqiva satellite providers made a decision to stop broadcasting the Iranian state TV channels on Monday.

The news outlets that were blocked included Press TV in English and Al-Alam in Arabic.

The shutdown came shortly after the European Union imposed fresh sanctions against Iran including an embargo on the import of the country’s natural gas.

Mohammed Sarafraz, vice-president of the Islamic Republic of Iran Broadcasting (IRIB), has slammed the decision to stop broadcasting the 19 channels as “political”.

He told the Business Recorder that “the contract was still valid, and Eutelsat broke the contract between us unilaterally and without legal justification," adding that IRIB lawyers were planning to launch a formal complaint.

Press TV says that in a separate statement emailed to them, Arqiva said that the decision was made by the EU Council.

“We terminated the contracts because it was the order of the European Commission. We have to follow it,” Karen Badalov, area management of Eutelsat SA, reportedly told Press TV.

‘Snuffing out’ alternative view on Iran

Speaking to SW, political analyst Chris Bamberry said that the EU’s move is basically a major blow to freedom of speech.

SW: The fresh sanctions don’t target the media, so why this ban on Iranian broadcasters, and why now?

Chris Bamberry: I think you don’t have to be a conspiracy theorist to think that by banning Iranian media, 19 TV and radio stations from access to Europe, it does look like you further step to the military intervention against Iran, given it happens on the same day that the EU imposes further sanctions on Iran, and against a background of a continuing military buildup by America with its British and French allies in the Persian Gulf. And the siren calls from Tel Aviv for America’s action against Iran.

Therefore, it seems to me a further ramping-up of this, and the decision to withdraw access was taken not just by private satellite companies but, as the Iranians were told, by the European Council of Foreign Ministers, at the highest level – perhaps by the European Commission. The European parliament has no powers to overturn this decision.

It seems to me a significant attack on freedom of speech. What they’re trying to do is snuff out an alternative view on Iran being offered to people in Europe, as opposed to a view that is force-fed, which is that Iran is a terror state, which is out of control and a danger. And of course we’re also going to be denied the fact that Iran is offering concessions and compromising all the nuclear issue. Not quite as it’s painted by the West.

SW: So why is it being ignored that Iran is offering concessions, that they’re actually saying, “We will be flexible now in these nuclear talks.” You talk about the military buildup, about the sanctions continuing – why are all those gestures being ignored then?

CB: I think that Americans have got a regime change in Iran in their minds. I don’t think that they will take any military action due to the presidential election, but I don’t think we can underestimate the hatred the Americans have for the Islamic Republic of Iran, as a consequence of the 1979 revolution, the overthrow of the Shah, their key ally in the Middle East; the seizure of the embassy, the CIA headquarters was in Tehran, and the hostage crisis was a humiliation for the Americans. So I think you can’t underestimate the determination of the Americans to get revenge on Iran. The constant buildup going ahead in the Persian Gulf is an excellent way for this to be happening!

SW: You’d think the impetus of that regime change come from within the country. And yet we’ve seen anti-American and pro-nuclear rallies in Iran lately. Experts say there are traditional pro-Western middle class turning on to Washington. So this is where we could see it all backfiring, isn’t it?

CB: I think it happens because the West, as usual, do not look into their own history. And look at how Iranians see the West. In 1953, there was a coup orchestrated by the British to overthrow a democratically-elected government in Iran, which had the temerity to nationalize the Anglo-American oil companies in the country. They remember the Shah of Iran was installed by the British and Americans. They remember the torture and the repression under the Shah, [who] was backed by the British and Americans. They remember that the Shah was encouraged to have a nuclear program! It was allowed under the Shah, but not now. And the Iranian nationalism is that Iranians don’t like being told that they can’t do something by former colonial powers. And therefore, it has become a touchstone for national pride. Even among those who aren’t enthusiastic about Ahmadinejad regime.

Monday, 15 October 2012

EU bans import of Iranian gas to European countries – German FM



German Foreign Minister Guido Westerwelle said the EU is banning the import of Iranian natural gas into union nations. The announcement came as EU governments agreed to one of the toughest sets of sanctions yet on Iran's nuclear program.

The sanctions also include a ban on financial transactions between European and Iranian banks, with some exceptions for those involving humanitarian aid, food, and medicine purchases.

The decision was made during Monday’s meeting of EU foreign ministers in Luxembourg.

“The [EU] Council has agreed additional restrictive measures in the financial, trade, energy and transport sectors, as well as additional designations, notably of entities active in the oil and gas industry," a written statement issued by the European Union council said.

Further export restrictions were imposed on industrial software, graphite, and the metals which the EU believes could be used to develop ballistic missiles. The new restrictions also prohibit eurozone companies from providing shipbuilding technology and classification services to Iranian tankers and cargo vessels.

The sanctions aim to pressure Iran to cooperate in talks regarding its nuclear program. British Foreign Secretary William Hague said the new sanctions were a “sign of our resolve in the European Union that we will step up the pressure.”

Also on Monday, leading European satellite provider Eutelsat SA took 19 Iranian television and radio broadcasters off the air, in a move to abide by earlier EU sanctions. The decision prompted accusations of censorship and threats of lawsuits from Iranian state television.

“We terminated the contracts because it was the order of the European Commission. We have to follow it,” Karen Badalov, area manager of Eutelsat SA, told Press TV.

This is the second round of EU sanctions imposed on Iran in the past few months.

In July, the European Union banned the import of Iranian crude oil, as well as financial services relating to the sale, purchase and transport of Iranian oil.

The sanctions marked a major policy change for the EU, which was traditionally a major importer of Iranian oil.

The decision followed a set of sanctions issued by the US last June, when Washington banned the world's banks from making oil-related transactions with Iranian financial institutions. Previous US sanctions have banned almost all trade with Iran, with certain exceptions for activity ‘intended to benefit the Iranian people.’

Several other countries – including Switzerland, Japan, Australia and Canada – have also imposed sanctions on Iran in recent years, in response to what they describe as Tehran’s lack of cooperation with the International Atomic Energy Association (IAEA).

The US and its allies have long accused Iran of using its nuclear program as a cover to develop atomic weapons, though Tehran frequently vows its program is solely for civilian purposes.

Friday, 12 October 2012

Iran - Panic Is Worse Than It Looks



The UN sanctions have cut government income sharply. This has caused enormous inflation and a sharp increase in unemployment. The government is being openly criticized for heavy spending (over $5 billion so far) to prop up the Assad dictatorship in Syria. Although the new sanctions and the loss of over a million barrels a day of oil exports has caused a lot of commotion inside Iran, it will not have a huge impact on the Iranian economy. Current GDP is about $480 billion a year and if the reduced oil exports continue for the rest of the year, GDP will be down about a percent for the year (versus growth of over five percent without sanctions). Iran has sufficient hard currency reserves to continue essential imports (food and other consumer goods) for 2-3 years. Despite lots of corruption by the ruling clerics and their families (who control or own about half the GDP), the other half of the economy is quite robust and productive. Most Iranians are angry at the corruption and harsh rule of the clerics, but about twenty percent of the population benefits from working for the clerics, and a lot of these supporters have weapons and are willing to kill to keep things as they are. So the majority grumbles and gets by as best they can.

Iranian secret police and intelligence agencies are telling their bosses (the senior clerics that run the country) that illegal labor organizations are organizing protests against the worsening economic conditions. This is happening despite a continuing crackdown on any pro-reform media. Hundreds of pro-reform journalists have been jailed, driven into exile or compelled to shut up over the last three years.

Most foreign airlines are cancelling service to Iran because the rapidly growing inflation there, and being forced to use the local currency, makes it unprofitable. The Iranian is being pressured to allocate scarce and expensive foreign currency to air transport operations otherwise Iran will lose most of its passenger and air freight service. Some Western maritime shipping firms are also halting service to Iran, for the same reasons.

American Internet security experts believe that recent Cyber War attacks against Arab and Western oil companies in the Persian Gulf area were carried out by Iran, or by hackers hired by Iran. This was believed to be part of a retaliation (for the economic sanctions against Iran) campaign. The hacker attacks were low-quality and do not appear to have done much damage.  The U.S. Department of Defense is investigating the attacks and said there would be retaliation.

Deteriorating economic conditions inside Iran make involvement with the illegal drug trade more attractive. In the last few days three border guards were killed by drug smugglers crossing the Pakistan border in the southwest. This drug war is fought out along a 1,700 kilometer border with Afghanistan and Pakistan. Over the last decade the government has spent $700 million to build barriers and sensors along this border, to make it more difficult for the drugs (largely opium, heroin and hashish) to get across. In the past six months some fifty tons of drugs have been seized. This was accompanied by several hundred casualties and even more arrests. This war has been going on for three decades and shows no signs of slowing down.

October 11, 2012: The Iran backed Hezbollah Shia radical militia in southern Lebanon admitted that it was responsible for sending an Iranian UAV into Israel on October 6th.  The Israelis detected the UAV coming in from the sea and after tracking it over Israeli territory for twenty minutes had an F-16 shoot it down when the UAV was over a rural area and headed for Israel's nuclear complex at Dimona.  While some Palestinians claimed the UAV came from Gaza, Israeli officials said this was not the case, leaving Lebanon (and Hezbollah) as the likely source. Hezbollah has been using Iranian UAVs for years. This particular flight was apparently to test the Israeli ability to detect a UAV. Troops were sent out to collect pieces of the downed UAV and examination of this wreckage will make it clear where the UAV came from and what model it was. Israeli radar spotted the UAV over the Mediterranean and tracked it as it reached land near Gaza. The UAV was apparently flying under GPS control and may have been taking and transmitting pictures as it went. There may be more incidents like this, because this sort of thing allows Iranian propagandists to make noise about how Iran is "attacking" Israel. That will probably stop when Israel begins shooting down the UAVs over the Mediterranean.

October 10, 2012: In the capital there were violent clashes in the streets downtown. People were angry at the rapid inflation (currently over 30 percent) and sharp increase in what it cost to buy foreign currency. So far this year, the price (in rials, the Iranian currency) has more than tripled from 11,000 rials per dollar to over 39,000. About half of that increase occurred in the last two weeks or so as a result of the government trying to put restrictions on private money changers. That caused a panic. There has also been growing inflation even for good produced inside Iran. This is caused by the government printing more money to reward its loyalists (about a fifth of the population.) The government doesn't care if its opponents suffer, because it can point to these people and complain that it's all the fault of the sanctions. This worked for Saddam Hussein when Iraq was under similar sanctions in the 1990s. The Shia majority suffered most from the sanctions, which was fine with Saddam as the Shia were his mortal enemies. But the Western media played along and criticized the sanctions for making ordinary Iraqis suffer. Saddam starved and tormented his Shia opponents even when there were no sanctions, but this was not considered newsworthy.

Turkey is accusing Iran of making peace with Iranian Kurdish separatists (PJAK) in return for sanctuary in Iran and a truce with Iranian security forces. PJAK, which has been active since 2004, is supposed to have several thousand armed members. Last year PKK (Turkish Kurd separatists) announced that they would join with PJAK to fight the Iranian government. PJAK has been hammered by Turkish and Iranian forces over the last few years, the result of an agreement between Turkey and Iran to coordinated operations against their Kurdish separatists. There's been no official announcement of ending this deal.

October 8, 2012: The Foreign Ministry contradicted the head of the Revolutionary Guards and denied that any Iranian troops were in Syria or Lebanon. Last month the Revolutionary Guards commander had bragged that members of the Quds Force were operating in Syria. Quds is Iran's international terrorism support organization. The Quds Force supplies weapons to the Afghan and Pakistani Taliban as well as Islamic radicals in Somalia, Iraq and elsewhere. Quds is believed to be advising Syrian forces on how to deal with the rebels, and occasionally helping with raids and interrogations. Iran is also bringing in some badly needed special weapons and equipment. Most of this is coming in by air via Iraq. Syrian rebels are getting some proof of Iranian aid out of the country, but little of this has been made public. What is known is that several hundred military age Iranians were flown out of Syria in the last week. These were said to be Quds men, being withdrawn because of the economic crisis back in Iran.

October 7, 2012: The world's largest manufacture of Internet hardware (U.S. firm Cisco) cut its ties to long-time Chinese partner ZTE (also a major manufacturer of Internet hardware) when it was discovered that ZTE was illegally exporting Cisco equipment to Iran.

October 6, 2012: Iran's secret police (otherwise known as the Intelligence Ministry) opened their own web site (vaja.ir). In part this makes them seem like less of a scary monster (which they are for most people they encounter) and to make it easier for people who want to provide information (on disloyal Iranians or foreign agents) and be rewarded.

Yemen accused Iran of sending cash and other support to Sunni tribal separatists in southern Yemen while continuing long-standing support to rebellious Shia tribes in the north. Yemen has caught ships attempting to smuggle Iranian weapons in.

October 3, 2012: The government announced that slowdowns for Internet service were the result of attacks from unnamed attackers.

October 2, 2012: On September 24th it took 24,000 Iranian rials to buy one dollar on the black market. Today it costs 39,000 rials. The official exchange rate is 12,000 rials, but there are severe restrictions on who can get dollars at that rate. So most people, and businesses, use the illegal money changers, which the government is now cracking down on.

October 1, 2012: The government has restored access to Google gmail email service. The government insisted the shutting down gmail access was an accident. Even government supporters were angry at losing access to gmail. This was cut on September 23rd along with YouTube (also owned by Google). YouTube was cut off for refusing to take down videos Iranian clerics found offensive to Iran or Islam. This was also seen as a prelude to cutting the country off from the Internet and leaving only Iranian web sites functioning. This can work, because the Internet was built to operate no matter how much of it had been shut down (by nuclear war, according to the original specifications half a century ago). Iranians will still be able to use expensive satellite communications, or, near the border, cell phones to access the worldwide Internet. So forbidden news will still get in and be circulated. But the government will sharply limit the ability of Iranians to regularly communicate with people outside the country (especially the millions of Iranians living abroad.) There will still be official worldwide Internet access within Iran, but only with government approval and considerable restrictions.  Such "intranets" are quite common. The U.S. government and many large corporations use them for security reasons. Iran apparently underestimated the difficultly of setting up a national intranet, and were surprised at how many of their own core supporters depended on the existing Internet.