SWIFT sanctions: West going to extremes to punish Iran

US wants Iran evicted from SWIFT, an independent financial clearinghouse that is crucial to the country's oil sales. This could immediately cripple Tehran’s financial lifeline, but would come with its own costs for the world economy.

Iran’s eviction from SWIFT could drive forward the current slow pressure campaign of sanctions aimed at persuading Iran to drop its nuclear program. It might also buy time for the US to persuade Israel not to launch a pre-emptive military strike on Iran this spring.

The bitter truth is, the plan might actually backfire on western nations themselves as it could send oil prices soaring and undercut the reputation of Society for Worldwide Interbank Financial Telecommunications (SWIFT). The Brussels-based organization is a banking hub used by virtually every nation and corporation around the world.

Mark Dubowitz, a sanctions expert advising the White House on Iran, told AP the Obama administration is having detailed discussions on the merits and consequences of forcing SWIFT to block Iranian transactions.

While United States cannot order SWIFT to kick Iran out, it can punish the organization's board of directors. Some American lawmakers went further and are already trying to increase pressure on SWIFT. The Senate Banking Committee passed a measure earlier this month directing the White House to press SWIFT to block Iranian entities. A tougher House bill would compel the administration to sanction SWIFT unless it stopped providing services to Iran.

Representatives from SWIFT are scheduled to meet with European Union officials this week, according to US official familiar with the talks. The meeting is expected to result in the EU ordering SWIFT to expel at least some of its sanctioned banks. It is unclear, however, whether the order will extend to Iran's Central Bank.

In the case SWIFT fails to act on its own, the US expects Europe to require SWIFT to terminate services for Iranian banks, an Obama administration official said. Lawyers for SWIFT are holding meetings in Washington. People familiar with the talks say a compromise is possible in which SWIFT would voluntarily bar or restrict Iranian transfers.

More than 40 Iranian banks and institutions use SWIFT to process financial transactions, and losing access to that flow of international funds could badly damage the Islamic republic's economy. It would also probably hurt average Iranians more than the welter of existing banking sanctions already in place since prices for household goods would rise while the value of Iranian currency would drop.

Back in 2006, SWIFT was involved in a separate controversy when it was revealed that it had skirted the EU's strict privacy laws after the September 11, 2001, attacks. The organisation was found to have transferred millions of pieces of personal information from its US offices to American authorities as part of the US Terrorist Finance Tracking Program.

SWIFT handles cross-border payments for more than 10,000 financial institutions and corporations in 210 countries. It lets users exchange financial information securely and reliably, thereby lowering costs and reducing risk. Established in 1973, the essential but little-known hub is overseen by major central banks, including the U.S. Federal Reserve and the European Central Bank.

Iran denies reports on EU oil export cuts

Iran's Oil Ministry has refuted media reports on the country stopping its crude exports to six EU nations on Wednesday.

"We deny this report… If such a decision is made, it will be announced by Iran's Supreme National Security Council," a spokesman for the ministry told Reuters.

The European Commission has "absolutely no information" about the news and will check it, said the spokesman for Foreign Policy, Michael Mann.

The initial news from Tehran nonetheless sent Brent crude prices up nearly $2 a barrel to $119.28, hitting a six-month high.

Iran’s state Press TV first reported that Tehran had cut off crude supplies to Spain, Italy, Greece, Portugal, France and the Netherlands. That would have fulfilled Iran's threat to retaliate for the EU’s oil embargo, agreed by the bloc in January.

But then the news was reduced to the Iranian Foreign Ministry notifying the ambassadors of the six EU countries of the upcoming oil blockade.

Out of the listed nations, Italy, Spain and Greece account for up to 68 per cent of Iranian oil consumed in Europe. Half of Spanish and a third of Greek oil imports come from that country. The Spanish ambassador to Iran has voiced concerns that Tehran’s preemptive oil action would deliver a heavy blow to Madrid’s staggering economy.

The EU's 27 member states adopted the oil embargo against Tehran on January 23. It immediately banned new oil deals with Iran and implemented a total boycott of Iranian oil from July 2012. The EU embargo followed tough US sanctions approved earlier last month. Taken together, they remove 2.6 million barrels of oil from international markets, as Iran is the world’s third-largest oil exporter, only behind Saudi Arabia and Russia.

Western leaders insist Iran is on a dangerous path towards acquiring nuclear weapons and demand it halts its program. Tehran consistently denies such ambitions, saying its nuclear intentions are civilian, not military.

­Iran gave “a two-fold” response to the US and EU on Wednesday, says Chris Bambery, a political analyst with the International Socialist Group.

The day began with more pressure from Washington, who wants to target the Iranian oil trade by excluding Tehran from the financial clearinghouse SWIFT (Society for Worldwide Interbank Financial Telecommunication). Iran could not help playing hardball in response, Bambery says, though in any case Tehran sees an opportunity for negotiations.

“Iran is responding in a very measured way. On the one hand, this is a hard response – threatening to cut oil supplies to the EU’s poorest countries. But on the other hand, they are offering the EU and the US to talk over the whole nuclear question. Iran says it is prepared for talks despite the propaganda campaign launched by the US, UK and Israel and despite the military build-up in the Persian Gulf,” Bambery told RT.

SYRIA - Daily Crap from Syria - West colluding with Arab allies against Syria: Envoy

Syrian Ambassador to Moscow Riad Haddad speaks during a news conference in Moscow on Feb. 15, 2012.

The Syrian ambassador to Russia has accused the West and its Arab allies of fueling unrest in the country by arming and funding terrorist groups rebelling against the government.

Riad Haddad said Monday that almost the entire world is fighting against the government of Syrian President Bashar al-Assad and there are several thousand foreign-backed terrorists in Syria committing acts of violence.

''Almost the entire world is fighting a bloody war against Syria. It is being fought on all levels: diplomatic, economic, in the media and by military means,'' Haddad was quoted by Interfax news agency as saying.

''This is the work of armed terrorist groups which are being financed from outside,'' he said.

The Syrian envoy also said that President Assad was elected by a majority of the people and that he will not step down because of outside pressure.

Meanwhile, Students Unions from various Arab countries announced in the Syrian capital, Damascus, the formation of the Arab Youth Front for Defending Syria.

The Front stressed that the Syrian issue should be resolved by Syrians themselves and rejected foreign interference in the country's internal affairs.

Meanwhile, a presidential decree released on Wednesday said that in line with President Bashar al-Assad's reform program the referendum on the new draft constitution would be held on February 26.

The proposed new constitution allows a multi-party political system and does not include Article 8, which gave the Baath Party a dominant role in Syria's political scene.

Syria has been experiencing unrest since mid-March and many people have lost their lives in the violence.

The West and the Syrian opposition accuse the government of killing protesters. But Damascus blames ''outlaws, saboteurs and armed terrorist groups'' for the unrest, insisting that it is being orchestrated from abroad.

IRAN - Daily Crap from Iranian Media - ‘Anti-Iran bids bring heavy costs for US and its allies’

Picture shows a vehicle that exploded near the Israeli embassy in New Delhi on February 14, 2012.

The US and its Western allies are not able to carry out any operations against Iran and any rash, careless measure will [undoubtedly] impose heavy losses on them [the Western states],”

Iran's Foreign Ministry Spokesman Ramin Mehmanparast has warned the West against any anti-Iran measures, saying such hasty moves will inflict heavy losses on the country’s enemies.

“The US and its Western allies are not able to carry out any operations against Iran and any rash, careless measure will [undoubtedly] impose heavy losses on them [the Western states],” Mehmanparast said Wednesday.

He added that the hegemonic powers’ acts of sabotage against the Islamic Republic are due to the country’s great influence on the global political developments.

Referring to the Israeli regime’s allegations that Iran was involved in the recent attacks on its embassy staff in Georgia, India and Thailand, the Iranian official added that Tel Aviv carries out such terrorist acts and puts the blame on Iran to incite the public opinion against Tehran.

Mehmanparast also added that by preparing unprecedentedly biased reports on Iran’s peaceful nuclear program and creating a negative atmosphere against the human rights situation in the country, the Israeli regime, which is the main source of terrorist acts in Iran and the whole region, wants to hinder Tehran’s progress.

On Tuesday, a man hurled a grenade at the Thai police and a cab. The attacker was injured seriously in the blast. Bangkok police say they found Iranian identification documents on the maimed man.

Earlier in the day, a house rented by three men, who police say were Iranians, exploded when a cache of explosives went off by accident. Soon after that, there was a third blast on a nearby road, Thai police said.

The three explosions in Bangkok happened a day after bomb attacks targeted Israeli embassy staff in India and Georgia.

Israeli Prime Minister Benjamin Netanyahu said Iran was behind the attacks. Iran rejected the accusations as baseless and said that they are a part of Tel Aviv’s psychological warfare campaign against Iran.

Australia - Sanctions threat for sub builder

Australian Submarine Corporation CEO Steve Ludlam

 

EMBATTLED Adelaide-based ASC will be placed on a performance-based contract which threatens sanctions if its output is not up to scratch.

More than 800 South Australian jobs are potentially at risk if ASC, which was heavily criticised in a recent report by UK submarine expert John Coles, fails to meet yet to be fully determined benchmarks.

While refusing to comment on the performance indicators, ASC managing director Steve Ludlam has told a finance Senate estimates committee it expects to be bound by the contract from July.

"It is important to get the exact terms of the performance base correct since we are driving the business to greater operational availability," he said.

ASC, which maintains the Collins-class submarines, is currently negotiating the contract with the Federal Government's Defence Materiel Organisation.

The demanding contract comes at a crucial time as the Government decides whether 12 new navy submarines will be designed and built or adapted and built by ASC - or imported from overseas.

Disturbingly for ASC, the Coles report presents a damning picture of a complex, inefficient and ultimately flawed $440 million annual maintenance and sustainment program at the same time it is trying to convince the Government it is capable of handling the project.

Opposition spokesman for Defence Senator David Johnston also asked Mr Ludlam to explain why the dividend paid to the Government by ASC had dipped from $15 million in 2008-09 to $2 million in 2009-10.