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Gulf Crisis Weekly
15 June 2012

Moscow: A Turning Point in the Iran Crisis?

Milan Rai, Justice Not Vengeance

The nuclear crisis over Iran may be facing a turning point as negotiators head for Moscow on Monday 18 June.

The latest round of negotiations began optimistically in April, and has grown steadily more depressing with each successive meeting. The signs are that the process will break down immediately after Moscow, but not actually in Moscow, in order to spare Russia the embarrassment.

Before the first round of talks in Ankara, there had been positive signs from Iran, including an indication, way back in November, from Iranian President Mahmoud Ahmadinejad that Iran was willing to cease production of 20%-enriched uranium:

'If they give us the 20% enriched uranium this very week, we will cease the domestic enrichment of uranium of up to 20 percent this very week. We only want the 20% enrichment for our domestic consumption. If they give it to us according to international law, according to IAEA laws, without preconditions, we will cease domestic enrichment. This is not something we wish to produce and sell on the open market. 20% enriched uranium, as you know, is not useful for much of anything other than the production of cancer treatment medication. It is not useful for a power plant.' (Interview with the New York Times, 21 September 2011)

Iranian Foreign Minister Ali Akbar Salehi wrote in the Washington Post just ahead of the talks:

'Despite sanctions, threats of war, assassinations of several of our scientists and other forms of terrorism, we have chosen to remain committed to dialogue. In the upcoming talks, we hope that all sides will return to the negotiating table as equals with mutual respect; that all sides will be committed to comprehensive, long-term dialogue aimed at resolving all parties’ outstanding concerns; and, most important, that all sides make genuine efforts to reestablish confidence and trust.' (The Washington Post, 12 April 2012)

Salehi (accurately) explained the background to Iran's production of 20%-enriched uranium:

'Forty-five years ago, the United States sold my country a research reactor as well as weapons-grade uranium as its fuel. Not long afterward, America agreed to help Iran set up the full nuclear fuel cycle along with atomic power plants. The U.S. argument was that nuclear power would provide for the growing needs of our economy and free our remaining oil reserves for export or conversion to petrochemicals.

'That rationale has not changed.

'Still, after the Islamic Revolution in our country in 1979, all understandings with the United States in the nuclear field unraveled. Washington even cut off fuel deliveries to the very facility it supplied. To secure fuel from other sources, Iran was forced to modify the reactor to run on uranium enriched to around 20 percent. The Tehran Research Reactor still operates, supplying isotopes used in the medical treatment of 800,000 of my fellow Iranians every year.

'... In 2009, we put forward a request to the International Atomic Energy Agency for fuel for the reactor as its supply was running out, threatening the lives of many Iranians. When we agreed to exchange a major portion of our stock of low-enriched uranium for reactor fuel in 2010 — a proposal by the Obama administration — the response we got from the White House was a push for more U.N. Security Council sanctions.

'... Thanks to the grace of God and the hard work of our committed and growing cadre of scientists, we managed to do something we had never done before: enrich uranium to the needed 20 percent and mold it into fuel plates for the reactor.'
(The Washington Post, 12 April 2012)

The US and the European Union had made ending the production of 20%-enriched uranium into one of their three major objectives. The second objective is to get Iran's 140kg of 20%-enriched uranium out of the country, through a swap of the kind referred to by Ahmadinejad. Iran would get militarily-useless 20% fuel rods for its medical research reactor, and would give up its stocks in return.

Why all the fuss about 20%-enriched uranium?
Because it takes Iran closer to being a threshold state like Japan, a country capable of making a nuclear bomb if it chooses to.
It takes a roughly similar effort to get from uranium ore (which is 0.7% Uranium-235) to 20%, as it does to turn 20%-enriched into 90%-enriched (or 'weapons-grade') uranium. Fuel for nuclear power stations only needs to be 5%-enriched.

The third major demand of the US and the EU was the closure of Iran's new Fordow uranium enrichment facility inside a mountain near the holy city of Qom. The deeply-buried Fordow facility cannot be destroyed by a conventional military attack.

During the negotiating process, both sides have taken steps that have undermined good will.

The escalations started just before the second meeting in Baghdad, with the US administration adding pressure on importers of Iranian oil such as Japan to reduce their purchases, and the US Senate approving new sanctions on Iran. Not the way to create a co-operative atmosphere

Tehran, for its part, indicated that it would allow the International Atomic Energy Agency to inspect Parchin, a military facility which it had long been interested in, and then started dragging its feet. Talks between the two parties collapsed on 8 June.

While Iran would have been well-advised to have co-operated with the IAEA, when you look at the West's negotiating stance, you can see why Iran is feeling disappointed.

DIAMONDS FOR PEANUTS

In the words of two Iranian commentators, one formerly a spokesperson for the Iranian nuclear negotiating team, the West has been 'demanding the maximum concessions from Iran, in return for making minimal concessions themselves.' (Guardian, 15 June 2012)

In return for ending 20% enrichment, shipping out all Iran's 20% stocks, closing Fordow and allowing IAEA inspections of Parchin, Iran was offered... spare parts for civilian passenger planes, help with acquiring a light water nuclear reactor, and a fuel swap, trading 20%-enriched fuel plates for the Tehran research reactor. (The Western proposal put forward in Baghdad are summarised in the New York Times, 23 May 2012, among other places.)

Incidentally, as noted by Salehi above, Iran already has the technology to manufacture its own 20% fuel rods for the Tehran research reactor. It has reportedly converted a third of its 20% stock into such fuel. (Bloomberg Businessweek News, 5 June 2012)

(We will leave aside the shameful history of previous attempts to get the west to implement a fuel swap of Iran's 20%-enriched uranium.)

Former Iranian nuclear negotiator Hossein Mousavian, now a visiting scholar at Princeton University in the United States, has described the offer as 'diamonds for peanuts'. (Mousavian held his negotiating position from 2003-2005 under the more liberal Iranian President Mohammad Khatami.) (Reuters, 15 June 2012)

A senior US official told the International Crisis Group in June: 'had I been an Iranian, I too would have rejected the deal in Baghdad'. (International Crisis Group, The P5+1, Iran and the Perils of Nuclear Brinkmanship, Middle East Briefing N°34, 15 June 2012, p.11) The US official went on, unpersuasively in my view: 'Our thinking was to begin with such an offer. The question is how far we will be prepared to go in Moscow.'

Actually, all the signs are that the US will continue to follow a hard line, escalating sanctions, funding covert operations inside Iran (including through the terrorist People's Mujaheddin of Iran), executing electronic sabotage through viruses like Stuxnet, and demanding maximum concessions from Iran in return for minimal concessions by the West.

The International Crisis Group noted the dilemmas facing the two sides:

'For Iran, shutting down Fordow would mean doing away with what arguably is the chief obstacle to a unilateral Israeli strike. Likewise, the 100-kilogram stockpile
of 20 per cent enriched uranium has come at astronomical cost, in light of the ensuing sanctions regime. Tehran can neither close down Fordow nor part with its 20 per cent enriched uranium without receiving a major concession in return; swapping the latter for fuel rods is unlikely to meet that bar. In like manner, the U.S. and EU are very reluctant to begin relaxing the sanctions regime, as both know how difficult it was to achieve in the first place and how quickly it might unravel at the first sign of softening.'


PATHS AWAY FROM DISASTER

The ICG are among many commentators making sensible suggestions for the future.

Trita Parsi and Reza Marashi of the National Iranian American Council have proposed that the Europe Union help to create more trust by delaying the imposition of sanctions on Iran, in return for an enrichment freeze:

'By delaying - not lifting - its impending embargo on Iranian oil for six months, Europe will give decisive breathing space to an otherwise constricted negotiation process. The Iranians should, in turn, freeze the enrichment of 20 percent uranium for that same period.

'Delaying the sanctions will not ease pressure on Iran. According to renowned Iranian economist Bijan Khajehpour, 85 percent of the embargo is already in effect. Delaying its formal imposition will not cause buyers to return to the Iranian market. All it will do is to provide the West with an ability to use the oil embargo as the bargaining tool it was supposed to be -- and exchange it for tangible, verifiable Iranian nuclear concessions.

'If the embargo is formally imposed, however, it will become more difficult and costly to lift it and it will serve as naked escalation that will beget Iranian escalation rather than concessions. The risk of war will increase and the threat of an Israeli strike may materialize.'

Former Iranian official Hossein Mousavian, quoted twice above, has proposed that Iran agree to hold no 20%-enriched material in its stockpile, either by converting it to fuel, exporting it or lowering its enrichment to 3.5 percent - the level usually required for nuclear power plants. This 'would be the best objective guarantee for non-diversion' to military purposes, he's pointed out. (Reuters, 15 June 2012)

Abbas Maleki and John Tirman of the MIT Center for International Studies have set out some immediate steps:

1. Both sides could agree that as long as negotiations continue, they should avoid of provocative measures against each other. This means that Iran should clearly stop developing its nuclear installations and equipment while the P5+1 should avoid adopting new resolutions and issuing provocative statements, especially on the suspension of uranium enrichment by Iran. It should also not impose new sanctions.

2. During the Moscow negotiations, the P5+1 should affirm Iran's nuclear rights, as stipulated by President Obama, and unequivocally recognize Iran's right to enrich uranium up to 5 percent in its own facilities. Iran, in return, should issue an official statement in which it declares its readiness to stop 20 percent uranium enrichment.

3. The main concern of the United States is to prevent Iran's achievement of nuclear weapons and the most important problem for the Islamic Republic of Iran is to have its nuclear rights recognized within framework of the Non-Proliferation Treaty (NPT). Therefore, the two sides would be wise to prepare a package on the best way for preventing diversion in Iran's nuclear program toward military purposes under supervision, for example, by the IAEA with additional monitoring by the United States and two impartial representatives chosen by Iran. In this way, the package can be discussed and approved in the fourth round of negotiations between Iran and the P5+1. On the other hand, Iran can propose a package on its nuclear rights in cooperation with two impartial representatives appointed by the United States for further discussion and approval in the fourth round of talks between Iran and the P5+1. Proposals for preparing both packages should be raised in Moscow.

The International Crisis Group's eminently practical proposals run as follows:

'The Moscow meeting on 18 June should be used an opportunity.... To begin:

'instead of periodic, one- or two-day high-level, higher-stakes meetings, Iran and the P5+1 should agree on uninterrupted talks at a somewhat lower level for several months;

'moreover, both sides need to drop some of their demands: there will not be significant sanctions relief at this stage, and it is equally unlikely that Iran will shut down Fordow – the only installation it possesses that could resist an Israeli strike.

'Instead:

'Iran should be prepared to put on the table items that would seriously and realistically address the P5+1’s proliferation concerns:

'suspending its enrichment at 20 per cent;

'converting its entire stockpile of 20 per cent uranium hexafluoride into uranium dioxide pellets to be used for nuclear fuel fabrication;

'and freezing the installation of new centrifuges at Fordow, while agreeing to use the facility for research and development purposes alone and accepting more intrusive monitoring;

'the P5+1 should be willing to put on the table items that genuinely address Iranian concerns:

'accepting up-front the principle that Iran can enrich on its soil subject, until Tehran clarifies matters with the IAEA, to limitations on the level of purity and number of facilities;

'investing in a new research reactor and cutting-edge technologies related to renewable energies in Iran;

'and extending some form of sanctions relief, including one or more of the following: refraining from additional sanctions, postponing for a specified period entry into force of (or, if already in force, suspending) the EU oil embargo and/or ban on insurance for ship owners transporting Iranian oil;

'and easing pressure on Iran’s remaining oil customers.'

There are a wealth of sensible ideas out there. The signs are that Washington is determined to ignore them, and the EU will follow spinelessly along.

Uploaded 15 June 2012

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