July 2007 Monthly Forecast

Posted 28 June 2007
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MIDDLE EAST

Iran

Expected Council Action
It now seems unlikely that recent diplomatic initiatives aimed at resuming negotiations between Iran and the EU3+3 (France, Germany, UK + China, Russia and US) on Iran’s nuclear programme will produce early results. A new resolution expanding sanctions against Iran is therefore likely to be adopted in July.

Key Recent Developments
Although Mohammed ElBaradei, the Director General of the International Atomic Energy Agency (IAEA), reported in late May that Iran had still not complied with resolution 1747 requesting it to stop uranium-enrichment activities, the Council did not take up the issue in June and there seemed to be a willingness to allow more time.

The EU foreign policy chief Javier Solana met Iranian negotiator Ali Larijani in Spain on 31 May. Larijani suggested that Iran was ready to better cooperate with the IAEA.  They met again on 23 June, but at time of writing it seemed that no encouraging development had occurred. The EU3+3 seem therefore currently to be discussing ways to strengthen sanctions.

On 8 June, in a final statement, the G8 deplored Iran’s failure to meet its obligations under Council resolutions and supported additional measures should Iran further refuse to comply.

The IAEA Board of Governors met on 11 June. ElBaradei reiterated that dialogue and diplomacy were the only ways to break the impasse with Iran’s nuclear programme and deplored the deterioration of the IAEA’s knowledge of Iran’s activities.

Tensions between Iran and the international community increased. Following President Ahmadinejad’s remarks on 3 June calling for “the destruction of the Zionist regime”, France and the US pushed the Council to adopt a press statement condemning these remarks, but no consensus could be reached.

Iran stated on 11 June that all American bases in the region were within reach of Iran’s missiles. It also requested the Council to condemn threats that Israel made against Iran when Prime Minister Olmert said in April that Israel could destroy the entire Iranian nuclear programme. US criticism of Iran’s role in fomenting violence in Iraq intensified. For its part, Iran accused the US of conducting covert operations on its soil.

On 21 June the Chairman of the 1737 sanctions committee briefed the Council and reported that 73 states had reported on their implementation of sanctions on Iran, of which 38 had legislation in place to ban all items that could contribute to Iran’s enrichment-related and reprocessing activities.

ElBaradei and Larijani met in Vienna on 22 June and agreed to draw up an action plan within two months for resolving the outstanding issues and allowing broader IAEA access to Iranian sites. An IAEA delegation is visiting Iran. The plan would be part of a broader political understanding to be discussed between Larijani and Solana.

Options
A third resolution following the logic of incremental pressure seems to be the main option. The resolution could:

  • replace “calls upon” with “decide” in several provisions;
  • impose a travel ban on Iranian officials involved in the nuclear programme;
  • impose limits on flights by Iranian aircraft;
  • include additional names in the list of people and entities subject to asset freeze;
  • toughen current financial sanctions through restricting or even banning export credits to Iran; and
  • ban additional categories of arms sales to Iran.

Key Issues
The issues remain identical to those described in our June 2007 Forecast Report:

  • how long the incremental pressure approach will remain; and
  • keeping the doors open for negotiation.

An underlying issue which seems to be rising closer to the surface is the level of anxiety about US intentions should it conclude that neither sanctions nor diplomacy is likely to succeed. Media reports in June of ongoing high level discussions in Washington on a military option fuel this anxiety.

Council Dynamics
It seems that the Solana-Larijani ongoing talks prompted the EU3+3 to adopt a “wait and see” position during June. But other issues have also been the focus of attention (the G8 meeting, the situations with regards to Darfur and Kosovo).

As in the past, China and Russia are likely to favour a more limited expansion of sanctions than France, the UK and the US, but consensus among the P5 has been easier to reach recently.

South Africa, Indonesia and Qatar may oppose sanctions which go beyond proliferation-sensitive activities.

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UN Documents

 Selected Security Council Resolutions

  • S/RES/1747  (24 March 2007) imposed additional measures against Iran and reinforced the existing ones.
  • S/RES/1737  (23 December 2006) imposed measures against Iran under Chapter VII, article 41, of the UN Charter and expressed its intention to adopt further measures under article 41 in case of Iranian non-compliance.
  • S/RES/1696  (31 July 2006) demanded that Iran suspend all enrichment-related and reprocessing activities and expressed its intention to adopt measures under article 41 in case of Iranian non-compliance.
 Latest IAEA Board Resolution
  • GOV/2006/14  (4 February 2006) underlined the necessary steps that Iran should take to re-establish confidence in the peaceful nature of its nuclear programme and reported the issue to the Security Council.
 Latest IAEA Report
  • GOV/2007/22 (23 May 2007) noting that Iran had not complied with resolution 1747.
 Selected Letters
  • S/2007/355 (13 June 2007) was a letter from Iran regarding the abduction of 5 Iranian consular officers in Erbil (Iraq) by the US.
  • S/2007/354 (11 June 2007) was a letter from Iran denouncing Israel’s threats of resorting to force against Iran, and requesting the Council to react to those.
  • S/2007/342 (1 June 2007) was a letter from Iran to the Secretary-General alleging the uncovering of American espionage networks in Iran, and requesting explanations from the US.
  • S/2007/341 and S/2007/343 (1 June 2007) were letters from Iran to the Secretary-General concerning US media coverage of the head of the terrorist group “Jundullah”.

 

Full forecast

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