Iran, IAEA Begin Nuclear Talks

International nuclear officials began two day of talks with Iran today to seek agreement on an “action plan” to alleviate concerns over Tehran’s nuclear ambitions, Reuters reported (see GSN, July 10).

While International Atomic Energy Agency safeguards chief Olli Heinonen, met with officials in Tehran, President Mahmoud Ahmadinejad reaffirmed his intention to defy a U.N. Security Council demand to freeze the nation’s nuclear activities.

“The process of the installment [of uranium enrichment centrifuges] might slow down or speed up ... but no one should expect us to give up our rights and stop its process,” he said (Reuters I, July 11).

Still, agency head Mohamed ElBaradei expressed hope yesterday that Iran’s willingness to hold discussions could signal a step back from the brinkmanship Tehran and Western nations have displayed in past four years.

“I hope (Heinonen) can come back with at least a serious indication from Iran to move forward.  To resolve these issues would be a major breakthrough," he said Monday at the agency’s Vienna headquarters.

ElBaradei disclosed this week that Iran has slowed the pace of installing centrifuges at its uranium enrichment facility at Natanz.  He suggested that the move might encourage the United States and West European powers to refrain from seeking a new round of Security Council sanctions against Iran, according to Reuters.

A U.S. official, however, played down the significance of the slowdown.

“I would not necessarily read too much into that (enrichment slowdown) and whether or not that is a conscious political decision or an issue of technical problems,” State Department spokesman Sean McCormack said Monday.

One former State Department nonproliferation official also expressed skepticism over Iran’s intentions.

“Iran's offer is more likely stalling for time before further sanctions,” said Mark Fitzpatrick, now with the International Institute for Strategic Studies.  “Then, as now, their willingness to provide answers depended on having the issue taken off the Security Council agenda” (Mark Heinrich, Reuters II, July 10).

Meanwhile, U.S. officials are crafting a new set of sanctions to propose to the Security Council, the Wall Street Journal reported today.

The council has twice imposed sanctions since December, and the deadline set for an Iranian nuclear freeze passed in May.

The next batch of measures should escalate pressure significantly, a senior U.S. official said.

“This package has to be more than incrementally tougher,” the official said.  “Either that, or Iran has to show that it is truly willing to change its course.”

The new measures under consideration include freezing the assets of a second major Iranian bank, the Journal reported.  In its second round of sanctions, the council agreed to target Bank Sepah, the nation’s fourth largest financial institution. 

In addition, officials are discussing whether to target an engineering company owned by Iran’s Revolutionary Guards Corps.  The firm contracts with private companies in the oil and gas industry, according to the Journal.

Also under consideration is a ban on the international travel of a select group of Iranian officials.  Such a ban was debated earlier this year, but was ultimately dropped from the council’s sanctions.

While the United States seeks agreements with its Western allies for the new measures, China and Russia have publicly expressed concern about imposing further sanctions against Iran, the Journal reported.

China has rapidly growing economic interests with Iran, importing about $5 billion in goods in the 12 months ending in March, while exporting more than $5 billion over the same period.  Iran is the now the third largest oil supplier to China, the Journal reported (Neil King, Wall Street Journal, July 11).

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