Category Archives: Russia

Iran’s Windfall From Nuclear Deal Cut in Half by Debts

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NYT’s -WASHINGTON — Iran gained access to about $100 billion in frozen assets when an international nuclear agreement was implemented last month, but $50 billion of it already was tied up because of debts and other commitments, a U.S. official said on Thursday.

Stephen Mull, the State Department’s lead coordinator for implementing the international nuclear agreement with Tehran, also told the House Foreign Affairs Committee there was no evidence Iran had cheated in the first few weeks since the deal was implemented.

Mull and John Smith, acting director of the Treasury Department office that oversees sanctions, faced heated questioning from some members of the committee, where several Democrats had joined Republican lawmakers in opposing the nuclear pact that was reached in July.

Many have worried that Iran would cheat on the deal and use unfrozen funds for action against Israel or to support Islamist militants elsewhere in the region.

“Of that amount, a significant portion of it, more than $50 billion, is already tied up,” Mull said.

It was the first top-level congressional hearing on the nuclear pact since Jan. 16, when world powers lifted crippling sanctions against Iran in return for it compliance with the agreement to curb its nuclear ambitions.

“We seem to be in many instances talking tough about Iran,” said U.S. Representative Eliot Engel, the panel’s top Democrat, a deal opponent. “In reality our actions are far away from our rhetoric and that’s a worrisome thing. We want to make sure that Iran’s feet are held to the fire.”

Many members of the U.S. Congress, where every Republican and a few dozen Democrats opposed the agreement, have been calling for legislation to impose new sanctions on Iran over its ballistic missile program and human rights record.

House Republicans have been pushing legislation to restrict the ability of President Barack Obama, a Democrat, to lift sanctions under the nuclear pact. One measure passed the House on Feb. 2 almost entirely along party lines but it has not yet been taken up in the Senate and Obama has promised a veto.

*** Not so fast, all is still not kosher….

WASHINGTON (AP) — A State Department official says the U.S. does not know the precise location of tons of low-enriched uranium shipped out of Iran on a Russian vessel under the landmark nuclear agreement.

Testifying Thursday, Ambassador Stephen Mull tells the House Foreign Affairs Committee the stockpile is a Russian custody issue.

Critics of the nuclear deal seized on the shipment’s status to show the agreement’s flaws. New Jersey GOP congressman Chris Smith says it’s “outrageous and unbelievable” that Russia is being trusted to be the repository for such sensitive material. Russia is a close ally of Iran.

The low-enriched uranium is suitable mainly for generating nuclear power and needs substantial further enrichment for use in the core of a nuclear warhead. Mull says he’s confident the material will be controlled properly.

***

Saudi Arabia and Bahrain have banned Iranian-flagged vessels from entering their waters and imposed other shipping restrictions, according to ship insurers citing local reports, potentially escalating tensions between Tehran and Riyadh.

Iran has been struggling to ramp up oil exports and still faces insurance and financing hurdles despite the lifting of international curbs on its banking, insurance and shipping sectors last month as part of a nuclear deal with world powers.

A ban on Iranian ships in those ports is unlikely to affect international trade, although the uncertainty will add to trade hiccups for Iran.

Some ship insurers in recent days, citing reports from local agents and correspondents, said in notes to members that Saudi Arabia and Bahrain had banned all Iranian-flagged ships from entering their waters.

Norwegian ship insurer Gard said Bahrain had imposed a ban on any vessel that has visited Iran as one of its last three port calls.

“There is currently no such restriction in Saudi Arabia,” Gard wrote, citing information from a logistics provider. Saudi Arabian and Bahraini authorities did not immediately respond to requests for comment.

Ship insurer West of England said separately: “An entered vessel has since been denied entry to Bahrain after visiting an Iranian port two port calls earlier, resulting in the fixture being cancelled.”

Other ship insurers had yet to issue any guidance or confirm there were new regulations in place.

 

While oil companies such as Italy’s Eni and France’s Total have been looking to book cargoes from Iran, international insurers are no nearer to resolving concerns over US sanctions that remain in place.

Last month, Sunni Muslim Saudi Arabia cut ties with Shi’ite Iran after its Tehran embassy was attacked following Riyadh’s execution of a Shi’ite cleric.

In solidarity with Riyadh, Kuwait and Qatar subsequently pulled out their ambassadors from Tehran, and the United Arab Emirates downgraded its ties. Bahrain and two non-Gulf states, Djibouti and Sudan, severed relations completely.

Saudi Arabia and Iran – leading members of the Organisation of the Petroleum Exporting Countries – continue to grapple with weak oil prices.

Iran, North Korea and the Cruz Letter

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The Keys to Iran’s Missiles are in China and North Korea

The latest revelations about Iran’s ballistic missile program make it clear that sanctions on Tehran are pointless unless they’re imposed on China and the DPRK, too. Full story and intelligence here.

Iran space navigation system to be launched  

TEHRAN, Feb. 10 (MNA) – National plan to improve navigation and positioning services will soon become operational with special features.

Iran’s very modern system of navigation and positioning system has been produced by Iran Electronics Industries (IEI) as the executive and with the support of Iran’s National Space Center as one of the subordinate units of the Science and Technology Department of the Presidential Office.

The system aims to provide advanced services to increase life quality of Iranian people and will soon become operational providing the whole country with the possibility to simultaneously exploit three highly-advanced global positioning systems called GPS, GLONAA as well as BeiDou.

Numerous valuable services offered by the system with centimeter accuracy include car navigation, crisis management, social services, mapping, identification of stationary and moving targets, precision farming, urban traffic control, tracking oil and gas pipelines, environmental services, advanced housing and urban development services, customs issues and smuggling prevention, accurate harness of fire, current and advanced insurance services, shipping services and ports, fine weather forecast.

The implementation of the navigation and positioning system will be carried out in three phases in 2016.

****

Sen. Cruz to President Obama: “Strategic Patience” Toward North Korea Isn’t Working

WASHINGTON, D.C. – U.S. Sen. Ted Cruz (R-Texas) today sent a letter to President Barack Obama that expresses grave concerns about the administration’s North Korea policy and outlines alternative policy actions to address North Korea’s illegal nuclear tests, strengthen U.S. national security and return greater stability to East Asia and the Korean Peninsula.

Cruz sent the letter today after announcing he will vote for the North Korea Sanctions Enforcement Act of 2016 (H.R. 757), which would impose nuclear weapons-related sanctions on North Korea. The Senate is expected to pass the bill this evening.

“I write to express deep concern regarding [President Obama’s] policy of ‘strategic patience’ toward the Democratic People’s Republic of Korea (DPRK), particularly in light of their recent nuclear test and satellite launch that also served as a long-range ballistic missile test,” wrote Sen. Cruz. “Your administration has, for too long, hoped to achieve denuclearization through failed diplomacy and limited sanctions. The nuclear tests of May 2009, February 2013, and January 2016 suggest that ‘strategic patience’ with a country still officially at war with us is not working.”

Cruz’s letter to Obama lists five actions rooted in American strength that might actually modify the hostile and aggressive behavior of North Korea and its protectors:

1) Fully enforce U.S. laws. The U.S. needs to sharpen the choices for North Korea by raising the risk and cost for those who choose to violate laws and resolutions.

2) Stop protecting China. It is time to tell the truth about China: the PRC is not our partner in denuclearizing the Korean peninsula. Lax enforcement of U.S. laws have made China complacent in policing the illicit financing of regimes like North Korea and Iran, thus becoming complicit in their proliferation.

3) Rebuild the U.S. Navy. The U.S. must renew its commitment to force projection to protect our allies and deter our enemies.

4) Deploy a Terminal High Altitude Area Defense (THAAD) unit to better protect U.S. troops and critical targets in South Korea. This system is more capable than any ballistic missile system that South Korea has or will have for decades. And if the U.S. is serious about defending South Korea, we must openly confront China’s support for North Korea.

5) Relist North Korea as a state sponsor of terrorism. North Korea’s cyber attack and accompanying threats of a “9/11-type attack” fulfill the legal definition of international terrorism – “violent acts or acts dangerous to human life that…appear to be intended to intimidate or coerce a civilian population” (18 U.S. Code § 2331).  Removal from the list has resulted in no improvement in the behavior of the DPRK, and we should end the dangerous fiction that they are not engaged in international terrorist activities.

The full letter can be viewed here and below.

February 10, 2016
President Barack Obama
The White House
1600 Pennsylvania Ave. NW
Washington, DC 20500

Dear Mr. President:

I write to express deep concern regarding your policy of “strategic patience” toward the Democratic People’s Republic of Korea (DPRK), particularly in light of their recent nuclear test and satellite launch that also served as a long-range ballistic missile test. Your administration has, for too long, hoped to achieve denuclearization through failed diplomacy and limited sanctions. The nuclear tests of May 2009, February 2013, and January 2016 suggest that “strategic patience” with a country still officially at war with us is not working.

I would like to propose five alternative actions rooted in American strength that might actually modify the hostile and aggressive behavior of the DPRK and its protectors:

1. Fully enforce U.S. laws. In September 2015, Secretary Kerry warned of “severe consequences” if North Korea “refuses to live up to its international obligations.”[1] It is well past time to impose those consequences. History demonstrates that the United States is able to dictate the agenda when dealing with hostile regimes and improve global security through our leadership. Unilateral U.S. actions against Iran, combined with diplomatic pressure, led other nations to impose their own financial and regulatory measures against Tehran. Collectively, the international sanctions isolated Iran from the international banking system, targeted critical Iranian economic sectors, and forced countries to restrict purchases of Iranian oil and gas, Tehran’s largest export.

The United States should use its actions against Iran as a model for imposing the same severity of targeted financial measures against North Korea. Washington should no longer hold some sanctions in abeyance, to be rolled out after the next North Korean violation or provocation. There will be little change until North Korea feels the full impact of sanctions and China feels concern over the consequences of Pyongyang’s actions and its own obstructionism. The U.S. needs to sharpen the choices for North Korea by raising the risk and cost for those who choose to violate laws and resolutions. Actors who have thus far been willing to facilitate North Korea’s prohibited programs and illicit activities should not be exempt for political convenience. If Congress passes additional sanctions in the coming days, my hope is that, in addition to signing them into law, you would faithfully and consistently execute such targeted measures in a non-discriminant manner.

2. Stop protecting China. It is time to tell the truth about China: the PRC is not our partner in denuclearizing the Korean peninsula. Lax enforcement of U.S. laws have made China complacent in policing the illicit financing of regimes like North Korea and Iran, thus becoming complicit in their proliferation. China has enabled DPRK arms shipments to Iran to travel unimpeded through Chinese ports[2] and airspace.[3] It has facilitated the shipment of chemical reagents and protective suits from North Korea to Syria.[4] It has allowed transfer of arms-related material to Syria.[5]

Perhaps the most egregious act was the Chinese transfer of transporter-erector-launchers (TELs) to North Korea in 2011. Upon receipt of these vehicles, North Korea modified them with the ability to launch the KN-08, an intercontinental ballistic missile capable of reaching the West Coast of the United States from a road-mobile launch platform. This capability poses a nuanced challenge to our ground-based interceptors deployed in Alaska and California. A subsequent report from the United Nations confirmed that Chinese entities were responsible for the sale of these vehicles.[6] On April 7, 2015, Admiral Bill Gortney, the Commander of North American Aerospace Defense Command, confirmed that the KN-08 was operational. Because of China, North Korea has a modern mobile missile launcher that increases its ability to threaten Alaska, Washington, Oregon, and California with a road-mobile nuclear strike.[7]

3. Rebuild the U.S. Navy.

The foundation of the United States’ ability to project power overseas is the aircraft carrier, and its supporting Carrier Strike Group. One would hope that your annual budget submission to Congress would reflect the centrality of the aircraft carrier to America’s defense of our national interests and our allies abroad, but sadly this is not the case. The USS Gerald Ford is over budget,[8] the second ship of the class remains behind schedule,[9] and our Navy has only 272 combatants.[10] The budget you submitted further exacerbates this problem by reducing shipbuilding funds an additional $1.75 billion, as our adversaries expand their presence at sea and increase aggressive rhetoric regarding territorial sea claims.

While Naval force projection has declined under your watch, Japan has invested heavily in its armed forces. Leading the effort to broaden the definition of “self-defense” and expand the military missions Japan would be willing to accept, Prime Minister Shinzo Abe has prudently responded to the threat environment he faces in East Asia. In contrast to your administration, the Japanese government increased defense spending by 2.8% to $42 billion in 2015, which amounted to the largest defense budget in Japan’s history.[11] Your administration has celebrated our ally’s commitment to stability in the region, but I/we fear that your unwillingness to fully fund America’s military to meet its threats will render moot the courageous actions of our friend and ally Japan. The U.S. must renew its commitment to force projection to protect our allies and deter our enemies.

4. Deploy THAAD in South Korea. Last year, your administration approached Seoul with the prospect of deploying a Terminal High Altitude Area Defense (THAAD) unit to better protect U.S. troops and critical targets in South Korea. This system is more capable than any ballistic missile system that South Korea has or will have for decades. The THAAD deployment is wholly in line with China’s stated goal of preserving stability on the Korean peninsula and would not in any way constrain China’s military capabilities. Yet, the PRC reacted aggressively to this prospective deployment. In July 2014, President Xi Jinping warned President Park Geun-hye to “tread carefully”[12] regarding THAAD so it “won’t be a problem between South Korea and China.”[13] Beijing has issued similar warnings after Seoul began publicly discussing the need to improve its missile defenses after last month’s North Korean nuclear test.

I welcome recent progress this week in negotiations with South Korea on THAAD. However, I am concerned that you have not publicly condemned Xi Jinping for attempting to intimidate and blackmail a U.S. ally into rejecting our military assistance. It would be unfortunate if the climate agreement and progressing trade negotiations with the PRC were higher strategic priorities for the United States than standing up to the world’s largest communist state. If the U.S. is serious about defending South Korea, we must openly confront China’s support for North Korea. The U.S. should strongly push back against China’s opposition to THAAD by rebutting its false assertions that the system would impact Chinese security.

A good place to start would be disinviting them from Rim of the Pacific Exercise (RIMPAC) 2016. While speaking in Jakarta on March 20, 2013, you linked participation in these exercises with political engagement: “We have invited the Chinese to participate in the RIMPAC exercise which we host, and we are delighted that they have accepted.  We seek to strengthen and grow our military-to-military relationship with China, which matches and follows our growing political and economic relationship.”[14] Given China’s complicity in North Korea’s nuclear capability, stonewalling of missile defense in South Korea, and its aggressive actions in the South China Sea, I/we believe it is time for the United States to fundamentally reevaluate U.S.-China relations.

5. Relist North Korea as a State Sponsor of Terrorism. One need not look far for justification. North Korea’s cyber attack and accompanying threats of a “9/11-type attack” fulfill the legal definition of international terrorism – “violent acts or acts dangerous to human life that…appear to be intended to intimidate or coerce a civilian population” (18 U.S. Code § 2331).  Removal from the list has resulted in no improvement in the behavior of the DPRK, and we should end the dangerous fiction that they are not engaged in international terrorist activities.

The regime in Pyongyang has not only issued explicit threats against American citizens, but there is also documented evidence that North Korea has shipped arms to Iran. Three intercepted vessels bound for Iran in July 2009 contained North Korean weapons that Western intelligence and Israeli intelligence officials and non-government experts believe were bound for Hezbollah and Hamas.[15] All three ships contained North Korean components for 122 mm Grad rockets and rocket launchers, 2,030 corresponding detonators, and related electric circuits and solid fuel propellant. As you know, Hezbollah and Hamas frequently fire these rockets into Israel. Yet your Administration continues to assert that North Korea is “not known to have sponsored any terrorist acts since the bombing of a Korean Airlines flight in 1987.”[16]

Until such actions are taken, the North Korean threat will continue to metastasize. Their launch last Saturday is further evidence of the escalating danger the DPRK poses to the U.S. and our allies. America must once again lead from a position of strength, rekindling the fear of our enemies and restoring the trust of our friends.

Sincerely,

Ted Cruz

[1] Secretary Kerry, Press Availability With South African Foreign Minister Maite Nkoana-Mashabane, September 16, 2015.

[2] Report of the Panel of Experts established pursuant to resolution 1874 (2009),  United Nations, June 11, 2013 (p. 31),http://www.securitycouncilreport.org/atf/cf/%7B65BFCF9B-6D27-4E9C-8CD3-CF6E4FF96FF9%7D/s_2013_337.pdf.

[3] Ibid (pp. 33-34).

[4] Report of the Panel of Experts established pursuant to resolution 1874 (2009), United Nations, June 14, 2012 (pp. 27-29),http://www.securitycouncilreport.org/atf/cf/%7B65BFCF9B-6D27-4E9C-8CD3-CF6E4FF96FF9%7D/NKorea%20S%202012%20422.pdf.

[5] Report of the Panel of Experts established pursuant to resolution 1874 (2009),  United Nations, June 11, 2013 (pp. 36-38),http://www.securitycouncilreport.org/atf/cf/%7B65BFCF9B-6D27-4E9C-8CD3-CF6E4FF96FF9%7D/s_2013_337.pdf.

[6] Report of the Panel of Experts established pursuant to resolution 1874 (2009),  United Nations, June 11, 2013 (pp. 26-28),http://www.securitycouncilreport.org/atf/cf/%7B65BFCF9B-6D27-4E9C-8CD3-CF6E4FF96FF9%7D/s_2013_337.pdf.

[7] Bill Gertz, “Admiral: North Korea Can Hit U.S. With Long-Range Nuclear Missile,” Washington Free Beacon, October 12, 2015,http://freebeacon.com/national-security/admiral-north-korea-can-hit-u-s-with-long-range-nuclear-missile/.

[8] Christian Davenport, “New Gerald R. Ford carrier class, as predicted, called $13 billion ‘debacle,’” Stars and Stripes, October 1, 2015,http://www.stripes.com/news/navy/new-gerald-r-ford-carrier-class-as-predicted-called-13-billion-debacle-1.371389.

[9] Ibid.

[10] Status of the Navy, as of February 9, 2016,http://www.navy.mil/navydata/nav_legacy.asp?id=146.

[11] Ankit Panda, “Japan Approves Largest-Ever Defense Budget,” The Diplomat, January 14, 2015,http://thediplomat.com/2015/01/japan-approves-largest-ever-defense-budget/.

[12] Yonhap, “China’s Xi Asked Park to ‘Tread Carefully’ over U.S. Missile-Defense System,” August 26, 2014,http://english.yonhapnews.co.kr/national/2014/08/26/73/0301000000AEN20140826002100315F.html.

[13] Chang Se-jeong and Ser Myo-ja, “Xi Pressed Park on Thaad System,” Korea JoongAng Daily, February 6, 2015,http://koreajoongangdaily.joins.com/news/article/article.aspx?aid=3000595

[14] Ashton Carter, “The U.S. Defense Rebalance to Asia,” Remarks as prepared for delivery, April 8, 2013,http://archive.defense.gov/Speeches/Speech.aspx?SpeechID=1765.

[15] Manyin, Mark, “North Korea: Back on the State Sponsors of Terrorism List?” CRS, January 21, 2015,http://www.crs.gov/Reports/R43865?source=search&guid=738771c7105c426fac0c7ad3efa85187&index=4.

[16] “Country Reports on Terrorism 2012,” Department of State, May 30, 2013,http://www.state.gov/j/ct/rls/crt/2012/209980.htm.

 

 

In the first phase, a total of 15 network stations and two data centers will be launched in Tehran as an experiment to collect accurate position information.

 

After the implementation of the first phase in Tehran, the second phase of the project will be implemented in major cities while the third phase the whole country will be covered by the system.

 

The hardware of the system is supposed to be available to users who will only be charged for a very low annual cost

Syria, now Uncontrollable

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Opposition Leader: U.S. Diplomacy Costs Syrian Lives

Bloomberg: In the days since the collapse of the Syria peace talks championed by U.S. Secretary of State John Kerry, the humanitarian catastrophe in northern Syria has grown, tens of thousands of new refugees were created, and the Russian- and Iranian-backed killing of civilians has increased. These are all consequences of the flawed U.S. strategy, according to the lead negotiator for the Syrian opposition.

Riyad Hijab was prime minister of Syria in 2012 under the dictator Bashar al-Assad; he became the highest-ranking defector from the regime when he switched sides and joined the rebels. He is now the leader of the High Negotiating Committee that represented the Syrian opposition at last week’s meetings in Geneva, which collapsed after two days. Kerry had pressured the Syrian opposition leaders to attend, even warning they could lose their U.S. funding if they boycotted. Hijab says that Kerry’s approach — to try to persuade Assad and Russia to negotiate while the offensive continues — has actually made things much worse.

“The administration is saying it is testing the good faith of the other side,” Hijab told me in a phone interview on Monday. “But when you are testing these things and it fails, the price that is being paid is horrendous death and the expansion of extremism and terrorism on the ground.”

Syrian forces backed by Russian air power are pressing an offensive against rebel groups in and around Aleppo, the nation’s largest city, that began before the scheduled peace talks. Kerry said Friday, “This has to stop.” He said he would know if the other parties, such as Russia, were “serious” about upholding United Nations Security Council resolutions on protecting civilians after a meeting later this week in Munich of the international group of countries supporting proxies in the Syrian civil war.

In the eyes of the Syrian opposition, Russia and Iran are making a mockery of the peace process, and Kerry’s reluctance to acknowledge this is putting them in deadly harm. It also creates more problems for America’s regional allies, aids the Islamic State and dims the prospects for future peace talks. “The failures of the negotiations end up lowering the credibility of the moderate opposition in front of the Syrian people,” said Hijab. “United States credibility is plummeting within the population of Syria but also in the region as a whole.”

This week, it is Syrians near Aleppo who are paying the price. Regime forces, with Russian support, are advancing toward the Turkish border, threatening to cut off opposition groups and civilians from their source of aid. At least 35,000 people have joined the flood of refugees since the collapse of the talks, ahead of what many anticipate will be another in a long line of starvation sieges the regime is perpetrating on cities. Hijab said there are now 18 cities under siege, three more than when the talks began. More here.

Syria, already a catastrophe, seems on the verge of an uncontrollable disaster

WaPo: Suddenly, after four years of brutal civil war, Syria this week became even more of an uncontrollable military, diplomatic and humanitarian disaster.

“We are not blind to what is happening,” Secretary of State John F. Kerry said Tuesday, as he prepared for a meeting in Munich of stakeholders from outside Syria. “We are all very, very aware of how critical this moment is.”

The Thursday gathering could well be the last gasp of a three-month, Kerry-orchestrated effort to bring together powerful countries on all sides of the conflict — from Russia and Iran on behalf of the government of Syrian President Bashar al-Assad, to the United States and its partners on the opposition side — to try and forge a political solution that would allow them all to focus their efforts on defeating the Islamic State.

What seemed possible even two weeks ago, however, now seems all but hopeless. Failure of planned peace negotiations could lead President Obama finally to a decision he has long resisted — whether to more fully arm and back rebel groups whose cohesion and commitment to a democratic and secular Syria he mistrusts.

In recent days, Russian bombardment of opposition forces north of Aleppo, a rebel stronghold, has severed opposition supply lines and threatens to allow government-aligned forces to encircle the city. In a letter sent to the Obama administration this week, Russia proposed to stop the bombing on March 1, allowing it to continue for another three weeks

The Russian blitz has allowed pro-government ground forces, mostly composed of Iranian-trained militias from Iraq, Iran and Lebanon’s Shiite Hezbollah, to push north to with 20 miles of the Turkish border. This is the same area where the United States and Turkey have planned to carve out an opposition-held zone to combat Islamic State forces approaching it from the east.

Tens of thousands of new refugees have fled Aleppo and its environs to the recently closed Turkish border. Mercy Corps, one of the few aid agencies in a position to help them, said Tuesday that its supplies will soon run out. For those who haven’t fled, the encirclement of Aleppo “would leave up to 300,000 people, still residing in the city, cut off from humanitarian aid unless cross-line access could be negotiated,” the United Nations said.

In Europe, where a flood of nearly a million migrants and refugees from the region, most of them Syrians, have already arrived, political and social tensions are threatening the foundation of European unity constructed over the past 70 years.

“There are fault lines emerging that we thought we had overcome,” said Peter Wittig, Germany’s ambassador to the United States, who described the situation as an existential threat to Europe.

“The United States has been slow to recognize this is a much bigger thing than anything else we’ve experienced since the beginning of the European Union,” Wittig said. “We didn’t see it earlier, we were totally unprepared. . . . We’re not blaming the United States. It takes time for this country to realize that it’s really that serious.”

Germany has taken in the bulk of the migrants and refugees, while some Eastern European members of the E.U. have closed their borders to them.

Negotiation track derided

U.S. ties have become strained with partners closer to the conflict. These allies fear the Obama administration has been blinded to the threat from Russia and Iran by its desire to believe they can be swayed by diplomatic reason and appeals to shared worries about expansion of the Islamic State.

One senior official from a close partner nation described the negotiation track as a farce. The official said that it was unrealistic to expect the opposition to come to the table when its forces are being decimated on the ground and civilians are being starved by Russian bombing and the government gains it has enabled, in violation of United Nations resolutions that Moscow agreed to in order to get the talks started. The official, who said that U.S. leadership is still essential if the war is to end, did not want to be identified by name or nationality in order to speak candidly.

Frontline Turkey, a NATO ally and member of the U.S.-led coalition against the Islamic State, has dithered over its priorities, concerned that a U.S. alliance with Syrian Kurds fighting against the militants will give advantage to Turkish Kurds who seek independence. Even as pro-government forces expand north from Aleppo, Kurdish fighters in Syria’s northwest corner are pushing into the same area.

Turkish President Recep Tayyip Erdogan has demanded that the United States choose between Turkey and the Syrian Kurdish Democratic Union Party. After State Department spokesman John Kirby said this week that the United States does not consider the Syrian Kurds to be terrorists while recognizing that Turkey does, the Ankara government called in U.S. Ambassador John R. Bass on Tuesday for a dressing-down.

Talks between the Syrian government and opposition were suspended before they began this month after rebel representatives said they would not sit at the table until the government provided humanitarian access to besieged areas and released women and children it is holding prisoner. The Munich meeting, originally scheduled to monitor progress in the negotiations, became a final effort to get them started.

Scorched-earth policy

Kerry has long sought a more muscular U.S. policy than Obama has allowed. But he also firmly believes that if negotiations can begin, Assad will eventually be forced from power, with Russian acquiescence in the face of the inevitable.

For the moment, Moscow seems more interested in adjusting the balance of power on the ground — where just months ago, the rebels were on the ascendant — to strengthen Assad’s position before entering talks about his future.

Near the Turkey-Syria border Tuesday, rebels said they fear they are being betrayed by the countries they thought were their allies — most notably the United States. Without significant new injections of arms and ammunition, they said, they will not survive the combined onslaught of intense Russian airstrikes and advances by pro-government ground forces.

“Russia is the second superpower in the world, and Russia is using all of its power against the rebels,” said Mohammed Adib, a political officer with Jabhat Shamiya, the main rebel group fighting in northern Aleppo province. “They’re using a scorched-earth policy, and they don’t care what the international community says.”

“The problem is the friends of the regime are really good friends and give lots of support, whereas our friends sometimes give support and sometimes not,” he said.

While they don’t expect they will receive anti-aircraft missiles, which would have a major impact on the balance of power, rebels said they still hope to receive upgraded weapons, including new-generation models of the TOW missiles that have proved effective at taking out the Syrian government’s aging battle tanks, though these are no match for newly supplied Russian T-90 tanks.

If the rebel fighters cannot rebound, Adib and other rebel spokesmen said, there is a risk that opposition fighters will join more radical organizations, including the Islamic State. “People will not surrender to [Assad] under any circumstances,” said Khaled Shihabeddine, a political adviser to the Noureddin al-Zinki rebel group. “If things stay as they are, with no support and no one stopping Russia, the rebels will be pushed into a corner and . . . all possibilities will be open.”

Keeping Islamic State from Money Exchanges

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Denying The Islamic State Access To Money-Exchange Houses

Energy: Regional regulators must take steps, as the Iraqi Central Bank has done, to wall off their financial systems from unlicensed or loosely regulated money remitters vulnerable to exploitation by the Islamic State.

This week, the entity known as the Foreign Ministers of the Small Group of the Global Coalition to Counter ISIL/Da’esh met in Rome to assess the coalition’s work and accelerate its efforts to degrade and ultimately defeat the Islamic State. In a statement, the ministers stressed that they “are determined to keep ISIL/Da’esh cut off from the international financial system [and] to disrupt its economic and financial infrastructure.” Making good on this pledge requires tackling the group’s access not only to banks but also to remittance providers such as exchange houses, which play an important role in the local economies and are more difficult to regulate. In December, the Central Bank of Iraq took action against nearly 150 Iraqi money-exchange companies — most, but not all, in Islamic State-controlled areas — showing how U.S. and regional regulators, along with other coalition partners, can join forces to isolate the group from the international financial system.

BACKGROUND

Given the Islamic State’s 2014 budget of roughly $2 billion, U.S. Department of Treasury officials have called the group’s ability to draw revenues from its own territory “unprecedented.” The sources of funds include between $500 million and $1 billion seized from bank vaults as the Islamic State gained territory (a onetime take), hundreds of millions a year from taxation and extortion, and tens of millions a month from oil sales, among other sources. While the Islamic State derives most of its income from the territory it controls, denying the Islamic State the ability to use bank branches and exchange houses in its territory to make and receive international transfers — to access foreign currency, procure goods, and finance foreign fighters and potentially foreign affiliates — is a critical part of isolating the group.

Military strikes have played an increasingly important role in degrading the Islamic State’s ability to derive income from resources in the territory it controls. Furthermore, given that the Islamic State derives most of its income from natural resource extraction and extortion directed at commercial activity, territorial losses will have a direct impact on the organization’s bottom line. Recently, airstrikes have also targeted Islamic State cash collection and distribution points, depriving the group of millions of dollars stored at these “cash depots,” according to military estimates.

Previously, the Iraqi government and other regional regulators have taken steps to cut off bank branches in Islamic State territory from participating in the broader financial system. The United States and other countries, together with Iraqi authorities, headquarters of international banks, and others within the international financial community, have partnered to counter the Islamic State’s backdoor banking through these bank branches, as well as those in Syria. International banks now look closely for indications of Islamic State financing and file suspicious activity reports that, U.S. authorities say, have provided “valuable insight into financial activity in areas where ISIL operates.” The Central Bank of Iraq instructed financial institutions incorporated in Iraq to prevent wire transfers to and from banks located in areas under Islamic State control, and international banks with regional branches in Islamic State-controlled territories have relocated staff away from areas around the group’s territories.

Another area of effort is limiting new funds entering Islamic State territory through countersmuggling initiatives and by ceasing to pay Iraqi government salaries, which had been taxed directly and indirectly by the Islamic State, in areas under the group’s control. As pressure mounts on the Islamic State’s backdoor banking, the group has become more reliant on money-exchange houses to send and receive funds. More explanation and details here.

Meanwhile, there is finally those who are declaring Russia is aiding Islamic State:

US says Russian campaign in Syria helping the Islamic State

WASHINGTON (AP) — The U.S. says Russia’s counterterrorism campaign in Syria is actually helping the Islamic State.

Brett McGurk, the Obama administration’s point-man for defeating the group, says a Russian-backed offensive in northern Syria is targeting rebel fighters who were battling the Islamic State and who now have to face the Syrian military.

McGurk tells the House Foreign Affairs Committee, “What Russia’s doing is directly enabling ISIL.”

He says Russia is strengthening the Syria’s government, worsening a humanitarian crisis and fueling extremism. McGurk, who will meet Russian and other diplomats at a conference on Syria later this week, called the developments “totally unacceptable.”

Clapper Breaks with Obama’s Threat Crisis Plank

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North Korea has restarted plutonium reactor: US

North Korea has restarted a plutonium reactor that could fuel a nuclear bomb and is seeking missile technology that could threaten the United States, Washington’s top spy said on Tuesday.

Intel Chief Breaks From Obama Narrative On Iran Deal

DailyCaller: The head of U.S. intelligence believes that Iran’s recent actions speak loudly to its intentions, particularly given the country’s recent provocations since the Iran nuclear deal came into effect.

Testifying to the Senate Committee on Armed Services Tuesday, director of national intelligence James Clapper gave a very somber description of what he sees as Iran’s intentions toward the U.S. now that last summer’s nuclear deal has commenced. In particular, his statements offered little assurance that Iran is acting as an honest actor with the U.S. and the other states involved in last year’s negotiations, or that the nuclear deal will stop Iran from obtaining a nuclear weapon.

“Iran probably views JCPOA [Iran deal] as a means to remove sanctions while preserving nuclear capabilities, as well as the option to eventually expand its nuclear infrastructure,” said Clapper, who also noted that, so far, he sees no evidence that Iran is violating the nuclear deal.

Clapper’s statements stand in stark contrast with those made by President Barack Obama, who lauded the nuclear accord last summer, claiming it would not only stop all of Iran’s possible pathways to a nuclear weapon, but that “under its terms, Iran is never allowed to build a nuclear weapon.” More here.

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Clapper went into all specifics on the threat matrix both at home and globally. He did not leave anything behind, from cyber wars, space wars, weapons systems, human trafficking, terror organizations, economic instability, migrants, disinformation and drug cartels.

 STATEMENT FOR THE RECORD WORLDWIDE THREAT ASSESSMENT of the US INTELLIGENCE COMMUNITY
February 9, 2016
INTRODUCTION
Chairman McCain, Vice Chairman Reed, Members of the Committee, thank you for the invitation to offer
the United States Intelligence Community’s 2016 assessment of threats to US national security. My statement reflects the collective insights of the Intelligence Community’s extraordinary men and women, whom I am privileged and honored to lead. We in the Intelligence Community are committed every day to provide the nuanced, multidisciplinary intelligence that policymakers, warfighters, and domestic law enforcement personnel need to protect American lives and America’s interests anywhere in the world.
 The order of the topics presented in this statement does not necessarily indicate the relative importance or magnitude of the threat in the view of the Intelligence Community. Information available as of February 3, 2016 was used in the preparation of this assessment.
 
TABLE OF CONTENTS
 
GLOBAL THREATS Cyber and Technology Terrorism Weapons of Mass Destruction and Proliferation Space and Counterspace
 
Counterintelligence Transnational Organized Crime
 
Economics and Natural Resources Human Security
 
REGIONAL THREATS East Asia
China Southeast Asia North Korea
Russia and Eurasia
Russia Ukraine, Belarus, and Moldova The Caucasus and Central Asia
Europe
 
Key Partners The Balkans Turkey Middle East and North Africa 
Iraq Syria Libya  Yemen Iran  Lebanon Egypt Tunisia
 
South Asia
Afghanistan Bangladesh Pakistan and India
Sub-Saharan Africa  Central Africa Somalia South Sudan Sudan Nigeria
 
Latin America and Caribbean
 
Central America Cuba Venezuela Brazil