Hardliners Seek Zarif and Larijani’s Ouster as FATF Debate Continues

Week of November 26, 2018 | Iran Unfiltered is a weekly digest tracking Iranian politics & society by the National Iranian American Council | Subscribe Here

• Hardline MPs Seek Foreign Minister Zarif and Parliamentary Speaker Larijani’s Impeachment
• Reformist Confirmed as Tehran Mayor after Controversial Delay
• Earthquake hits Kermanshah Province, where Deadly Quake Struck Last Year
• Rouhani calls Israel a “Cancerous Tumor”
• Supreme Leader Calls for Improving Military Capabilities

Parliamentarians belonging to the far-right Jebhe Paydari faction have circulated bills calling for the impeachment of Foreign Minister Javad Zarif and Speaker of the Parliament Ali Larijani. Their opposition to Zarif and Larijani is rooted in the on-going contentious domestic debate over legislation to reform the Iranian banking system in line with guidelines from the Financial Action Task Force (FATF). In other developments, reformist Pirouz Hanachi was formally approved by the Interior Ministry as Tehran’s mayor, two weeks after his election by the Tehran City Council. A 6.3 magnitude earthquake also struck Western Iran, resulting in no reported fatalities, while President Rouhani issued an uncharacteristically harsh denunciation of Israel and the Supreme Leader called for increasing the capabilities of Iran’s Armed Forces.

Calls for Zarif and Larijani’s Impeachment

On November 27th, a bill signed by 24 members of the fundamentalist “Jebhe Paydari” faction calling for the impeachment of Foreign Minister Javad Zarif was handed to Speaker of the Parliament Ali Larijani’s office. The bill listed eleven reasons for Zarif’s removal, including: Zarif’s recent comments about money laundering inside Iran [covered in a previous Iran Unfiltered], “inattention to economic matters in the country’s diplomacy”; “inattention to developing ties with countries in Asia, Africa, and Latin America”; “failing to take advantage of the opportunities created by resistance in the region.”

Ali Asghar Yousefnejad, a member of the parliamentary speaker’s office, stated that the bill would be sent to the parliament’s foreign policy and national security committee for review.

Jebhe Paydari MPs were previously rebuked by Supreme Leader Ayatollah Khamenei over their calls for President Rouhani’s removal. Jebhe Paydari also spurred major controversy after a placard during an anti-Rouhani conference they organized in August tacitly threatened Rouhani’s life if he pursued renewed negotiations with the United States.

MP Hossein-Ali Haji-Deligani, one of the 24 signatories, cited Zarif’s money laundering comments— explained in a previous Iran Unfiltered—as the principal reason for his impeachment: “The foreign minister several days ago in an interview with one of the news sites made a claim that there was widespread money laundering in the country. To clear up this issue, parliamentarians have introduced a bill for Zarif’s impeachment.” He added: “In the impeachment bill it’s stated that Mr Zarif announce the names of those who engage in money laundering to parliamentarians.”

After Zarif’s money laundering comments, Iran’s attorney general asked Zarif for evidence regarding money laundering inside Iran. On November 24th, it was reported that Zarif had sent a 12-page letter to the attorney general’s office, which largely dealt with the money laundering issue.

The call for Zarif’s impeachment was rebuked by most in Iran’s political spectrum, including conservatives. Masoud Forghouni, a conservative newspaper columnist, said in response to the impeachment bill: “This bill is a good goal assist for Zarif and the Rouhani administration. Mr Zarif implemented the idea of the late [President] Hashemi Rafsanjani and Mr Rouhani on being friends with America, which resulted in the nuclear negotiations and the JCPOA. Zarif must stay until the end of the Rouhani’s term to make up for the great mistake of the JCPOA and the severe consequences Iran paid for getting too close to America.”

Forghouni added that the bill was a deadender in parliament: “Zarif’s impeachment will not garner enough votes and this issue will only enhance his image in public opinion. When these critics know that the current parliament doesn’t have the capabilities to remove a minister like Zarif, why do they enter a game they know they’ll lose?”

The Jebhe Paydari MPs also took steps this week to remove Ali Larijani as speaker of the parliament. Hardline MP Deligani stated that 27 MPs also supported impeaching Larijani. The reasoning Deligani provided was that Larijani sent the FATF bill on Iran acceding to the terrorism financing convention (CTF) to the Expediency Council to resolve differences between the Guardian Council and parliament over the bill [see a previous Iran Unfiltered for background on the bill]. Deligani contends that the bill should have returned to parliament for further debate.

Reformist Entekhab noted that the impeachment calls against Zarif and Larijani both have to do with the FATF issue. An Entekhab column also noted that the bills were unlikely to succeed: “The number of Jebhe Paydari MPs in the 10th parliament is limited. The rest of the principlists in parliament did not support their impeachment bills. As such, in a final voting in parliament these impeachment bills won’t have more than 40 to 50 votes.”  

As attacks on Zarif and Larijani increase, the bills on meeting FATF guidelines are getting closer to adoption. On November 27th, Ali Najafi, the spokesman for the parliament’s national security foreign policy committee, stated that some of the differences between parliament and the Guardian Council over the CTF bill had been resolved.

Najafi said of a recent meeting between representatives of the parliament and the Guardian Council: “In this meeting, the errors the Guardian Council had with the parliament’s CTF bill were reviewed with representatives of the Guardian Council.” He added: “At the end, representatives of the [foreign policy and national security] committee–from a legalistic approach and after explanations by the Guardian Council representatives–made changes to some parts [of the bill] and insisted on their previous positions on other parts.”

Supreme Leader Calls for Military Upgrades as Rouhani Lambasts Israel

On November 28th, Supreme Leader Ayatollah Khamenei met with commanders of the Iranian army’s navy and issued a call for increasing Iran’s military capabilities. He stated: “The Islamic Republic does not intend to start a war with anyone but we must increase our capabilities such that not only will the enemy be afraid to attack Iran, but that—with authority and readiness in the arena—our armed forces will remove the shadow of [foreign] threats from the Iranian people.”

On November 27th, President Rouhani delivered remarks at the 32nd “Islamic Unity” conference, which takes place annually in Tehran. In his speech, he strongly denounced Saudi Arabia, Israel, and the United States–continuing a recent trajectory of more bellicose foreign policy rhetoric since the snapback of U.S. sanctions.

Regarding Israel, he stated: “How is it that a fake regime called Israel was formed in this region and how is it that the great and historical nation of Palestine was uprooted from its home and for years has been subject to murder and looting by the Zionists? … The creation of this cancerous tumor was on the basis that the West didn’t trust the region’s people and even the governments that were its puppets, and it had to create its own puppet power, which would listen 100 percent to it and ensure the West’s interests in the sensitive Middle East region.”

Regarding Saudi Arabia, he stated: “Depending on foreigners is the biggest historical mistake. You’ve given them $450 billion to provide for your security?”

Earthquake and Other Domestic Developments

On the evening of Sunday, November 25th, a 6.3 Richter earthquake struck Iran’s Western Kermanshah province. Among the towns damaged were Sar Pol-e Zahab, Gilan-e Gharb, and Gasr-e Shireen. Last year, an earthquake hit the same area, killing and injuring thousands.

Officials reported no deaths from the earthquake but stated that over 700 had been injured. The Head of Iran’s Red Crescent stated on Monday: “A review of 150 villages has been concluded and thankfully until now there have been no deaths … There have been 634 injured from escaping [buildings] or from damage. Both 72-hour food & one-month food packages have been sent to the affected regions.”

On November 28th, Pirouz Hanachi was officially confirmed as Tehran’s mayor. Hanachi was elected by Tehran’s reformist city council as mayor roughly two weeks ago.

However, his confirmation required approval from the Interior Ministry, which delayed in issuing it—leading to speculation that Hanachi would be rejected. According to some city council members and Interior Ministry officials, the reason for the delay in the Interior Ministry’s approval was that it was awaiting the Intelligence Ministry’s final review of Hanachi.

Mohammad Bagher Nobakht, the head of the Rouhani administration’s Planning and Budget Organization, announced that wages for government employees would increase by 20 percent in the Iranian government budget for next year. Nobakht also stated that the budget for the upcoming Iranian year 1398 (March 2019-March 2020) would be finalized on Sunday, December 2nd and be sent to the parliament for approval.

Nobakht also said about the impact of U.S. sanctions: “The shadow of sanctions will impact our income and consumption, but our skill will be demonstrated in using our ability and experience to work around the sanctions.”

Nobakht said of government support packages to help withstand sanctions: “We have increased the pensions of covered people by three to five times, and this trend will continue in 1398. People eligible for subsidies will also receive them. Government support and compensation packages will also continue and all of our efforts will be so that we can proudly overcome the sanctions situation.”

Workers Protest in Shush as Zarif Comes Under Fire

Week of November 12, 2018 | Iran Unfiltered is a weekly digest tracking Iranian politics & society by the National Iranian American Council | Subscribe Here

• Protests by Workers at Private Haft Tapeh Company Enter Third Week, Amidst Arrests of Leaders
• Some Women Allowed Inside Azadi Stadium Soccer Match for Second Time in Recent Months
• “Sultan of Coins” and Accomplice Executed for Alleged Financial Crimes
• Officials Deny Executions of Suspects Tied to September Ahvaz Terrorist Attack
• Foreign Minister Zarif Faces Conservative Backlash after Comments on Money Laundering
• Officials Caution Europe on Slow Pace of Implementing “Special Purpose Vehicle”

For the past three weeks, the southwestern Iranian city of Shush has been the site of protests by workers from the Haft Tapeh sugar cane factory over unpaid wages and job insecurity. In recent days, 18 of the protesting workers have been arrested, though officials have since stated that most have been released. In other news, a limited number of women were allowed inside Azadi stadium to watch the final match of the AFC Champions League in Tehran following pressure from FIFA and other international soccer bodies. However, this marked the second time in recent months that some women have been allowed inside the stadium for a soccer match.

Amidst an on-going corruption probe, the “Sultan of Coins,” a moniker for currency and gold dealer Vahid Mazloumin, was executed alongside an accomplice. Foreign Minister Javad Zarif has also come under intense criticism after comments linking some of the opposition to Iran reforming its anti-money laundering laws to powerful money launderers inside the country. The vociferous attacks have included a draft impeachment bill against him authored by conservative MPs. Meanwhile, Deputy Foreign Minister Abbas Araghchi has issued a stern warning to Europe highlighting the consequences of it failing to implement a “Special Purpose Vehicle” to facilitate Iran trade in the wake of U.S. sanctions.

Zarif Under Fire for Comments on Money Laundering

Foreign Minister Javad Zarif has come under fire from principlist and hardline forces after linking some of the opposition to a bill on Iran acceding to the convention on terrorism financing—one of four bills introduced by the Rouhani administration to meet guidelines set out by the Financial Action Task Force (FATF)—to money launderers inside Iran who stand to lose with the new regulations.

On November 12th, Zarif has stated during an interview with Khabar Online: “I believe that many of the concerns [regarding the FATF bills] are sincere. But I believe that behind some of the [anti-FATF] atmosphere that has been created are economic interests. Money laundering is a reality in the country. I don’t want to pin this money laundering on a specific place. But those places that launder thousands of billions [of rials], definitely have the financial ability to spend tens or hundreds of billions on propaganda and creating an atmosphere in the country against anti-money laundering laws.”

Conservative newspaper Kayhan immediately rebuked Zarif, stating: “Zarif’s strange comments and his accusations against the critics and opponents of the FATF bills, which have been broadly embraced by spiteful and anti-revolutionary foreign media, come despite money laundering already being illegal under law. The insult of money laundering directed towards critics and opponents without any supporting documents or evidence will definitely be pursued through legal means and the foreign minister must be held accountable.”

On November 20th, the conservative Fars News Agency stated that based on a new law, Zarif would be solicited for evidence regarding his money laundering accusation. Fars stated that “based on a new procedure, the judiciary would in response to crimes committed in the country—such as the money laundering accusation made by Zarif—send an official letter from the prosecutor’s office to the accuser giving him/her ten days to two weeks to provide evidence to be followed up on by the judiciary.”

Judiciary Chief Amoli Larijani also criticized Zarif’s comments, stating: “If there is widespread money laundering in the country how come they haven’t notified the judiciary of this? This issue is similar to the debate over the illegal imports of cars, which after several months was brought to the attention of the judiciary. Our law against money laundering was passed in the 1380s [2001-2011] and based on it those who are aware of money laundering are obligated to notify a judiciary official.”

On November 20th, principlist MP Hossein-Ali Haji-Deligani, stated that a bill for Zarif’s impeachment had been introduced in parliament. Deligani stated: “This bill is being written and it is expected that in the next days signatures will start being gathered in support of it.”

One political analyst told the reformist Fararu of the impeachment bill: “The MPs know well that it is extremely doubtful that a bill for Zarif’s impeachment will get enough votes. But they are pursuing this to at least keep him busy for a while.”

Worker Protest

Workers for the Haft Tapeh sugar cane factory, a private company located in the city of Shush in the southwestern Iranian province of Khuzestan, are continuing weeks-long protests over unpaid wages and job insecurity. According to BBC Persian, over the past two decades, Haft Tapeh workers have on multiple occasions engaged in protests, demonstrations, and strikes against the company.

State outlet ILNA has written that some of Haft Tapeh’s shareholders and members of its board of directors were on the Iranian Central Bank’s list of foreign currency manipulators. The Iranian judiciary’s spokesperson has also stated that Haft Tapeh’s manager has fled and his whereabouts are unknown.

On November 18th, authorities arrested 18 of the protesting Haft Tapeh workers. Among the arrested were Ismail Bakhshi and Moslem Armand, two of the protesting workers’ representatives.

Haft Tapeh workers have stated that there are two paths to resolving the crisis: for Haft Tapeh to be governed by workers, or for the company to come under state control and be managed by a worker’s council.

Many student groups and organizations across Iran have voiced support for the Haft Tapeh workers. One statement, from the Muslim Society of Students of Shahid Chamran University in Ahvaz, read: “The workers have in a completely peaceful way and to attain their basic rights engaged in protests in line with the constitution. However, unfortunately the way these workers have been treated is very improper.”

On November 20th, the public prosecutor of Shush, Mostafa Nazari, stated that 15 of the arrested workers had been freed. Nazari stated: “The demonstrations in recent days by workers, after the incitement of some is no longer only an economic issue and has resulted in the public’s order and comfort becoming disturbed and traffic across the city.” He added: “Haft Tapeh workers must be cautious of non-workers who—under the guise of caring about labor and economic issues—seek to take advantage of the stature and position that hardworking laborers have [in society].”

Reports of Executions Over Ahvaz Attack

On November 12th, reports surfaced that 22 individuals were executed in connection with the September 22nd terrorist attack on a military commemoration parade in the southwestern city of Ahvaz. Radio Farda said of these reports: “Some websites on Sunday reported that 22 individuals who were arrested based on charges of ‘connections’ with the attack on the military parade in Ahvaz, without prior notice being given to their families, were executed on November 8th in Ahvaz’s central prison.”

On September 24th, the Intelligence Ministry had in fact announced that 22 individuals “responsible” for the attack at the military parade, which led to the deaths of 25 civilians, were arrested in Ahvaz.

However, on November 12th Gholam-Reza Shariati, the governor of Khuzestan province denied any executions had taken place, describing the reports as “completely false.” Hossein Beigi, a member of the parliament’s national security and foreign policy committee, also rejected that executions had occurred and stated that the “execution sentence will only be carried out after approval from the Supreme Court.”

Women Allowed Inside Azadi Stadium

On November 10th, roughly 800 Iranian women were allowed inside Azadi stadium to watch the AFC Champions League final between Persepolis from Iran and Kashima Antlers from Japan. This marked the second time in recent months, the first being an Iran-Bolivia friendly soccer match on October 16th, that a limited number of women were allowed inside Azadi stadium—challenging a convention against women attending soccer matches that has existed since the 1979 Islamic revolution. Radio Farda said the female spectators were “handpicked and had their own seating area.”

The entrance of women into Azadi stadium was widely praised across Iranian society, especially by reformist news outlets. Reformist Shargh said the presence of women in the audience was the “most important and positive act in the [AFC Champions League] final.” Asr Iran wrote that “the men and women present in the stadium showed that they have the culture for this [women being present in stadiums alongside men] and the infrastructure for it is ready.”

MP Mohammad Reza Tabesh, the deputy head of the reformist Hope faction in parliament, expressed dismay that pressure from FIFA and other international soccer bodies was necessary for women to be allowed to watch the match. Tabesh stated that women being allowed to enter Azadi stadium was the “will of the [political system].” He added: “Unfortunately this action was delayed and procrastinated on. To such an extent that FIFA and international federations entered the arena [to pressure Iran to allow women inside the stadium]. We ourselves could have made decisions on women being present in stadiums before international pressure was imposed on us. In this case we would have had both the approval of the people and religious values would have been upheld.”

On November 14th, Ayatollah Makarem Shirazi—a prominent Shia marja, the highest rank in the Shia clerical hierarchy—delivered a speech where he dismissed the importance of women being allowed inside stadiums. He also discussed Iran’s international position in the wake reinstated U.S. sanctions and the prospects of U.S.-Iran negotiations.

In the speech, Ayatollah Makarem Shirazi denounced the U.S. for leaving the nuclear deal. He stated: “The world we live in is a world in which a savage dictatorship is its ruler and some countries seek to dominate others … Even in the time of the Arab jahiliyyah [before Islam] agreements were respected. But today some countries leave agreements whenever their heart desires.”

He added regarding U.S.-Iran negotiations: “The government and people must know that we are in such a world and we must know with who we are expected to negotiate with. They push forward a bunch of irrelevant, wrong, and meaningless issues to advance their aims, such as the Revolutionary Guards disbanding, not having missiles, and leaving Syria.”

He then said about the presence of women in stadiums: “We must know that in such a world we have to be strong in the face of aggressors. We must strengthen to confront them. God willing the Rouhani administration thinks more of the people and with the issue of women in stadiums doesn’t distract people and thinks of realities.”

“Sultan of Coins” Execution Plays into Domestic Politics

On November 14th, Vahid Mazloumin, known as the “Sultan of coins,” and Mohammad Ismaeil Qasemi, were executed for financial crimes. Mazloumin was arrested in July while allegedly hoarding gold coins, and Qasemi was arrested last January. The official charges against Mazloumin and Qasemi were “sowing corruption on earth through creating a corrupt network disturbing the economic, foreign currency, and money system by engaging in illegal dealings and massive smuggling of currency and gold coins.”

Abbas Jafari Dolatabadi, Tehran’s prosecutor, said after the execution: “The charges against Vahid Mazloumin were disturbing the country’s economic system through manipulating the money and banking market. There is no basis to say he was executed for buying and selling gold coins.”

Also on November 14th, Masoud Nili, a senior economic advisor to President Rouhani and staunch advocate of free-market economics, resigned from his post. His resignation came several weeks after Abbas Akhoundi, another strong proponent of the free market, resigned as Minister of Roads and Urban Development, citing Rouhani’s shifting economic policy (as covered in a previous Iran Unfiltered). In recent months, President Rouhani has moved towards greater state intervention in the economy to combat U.S. sanctions and stabilize the country’s currency.

After the execution of Maloumin and Qasemi and Nili’s resignation, conservative newspaper Kayhan ran the provocative headline: “Two liberals leave the administration and two corrupt economic actors are executed, and the cost of the dollar decreases!” Mohammad Tabibian, an economist who served in the Hashemi Rafsanjani administration during the 1990s, said in response to the headline: “These efforts are aimed at nothing but damaging the public’s collective rationality and breaking down humanitarian values. Clearly, this won’t take the place of rational economic policymaking and pursuing humanitarian methods.”

Deputy Foreign Minister Cautions Europe

On November 19th, Deputy Foreign Minister Abbas Araghchi delivered a speech in which he discussed the return of U.S. sanctions and on-going European efforts to salvage the nuclear deal. Araghchi stated regarding U.S. sanctions: “No one in Iran will be raising their hands [in surrender] because of sanctions. We will find our own path, just like we have in the past.”

Araghchi also censured European powers for moving slowly on efforts to salvage the JPCOA and creating channels to continue commercial ties with Iran: “If the Europeans retreat, their sovereignty, reliability, and security will come under question. If Europe thinks that the West Asian region will be more secure without the JCPOA, it can test this. Our region has a collection of issues and problems, can Europe bear a new wave of terrorism and immigration and the start of a nuclear crisis? Without a doubt, the cost for the JCPOA’s destruction is higher for Europe than America. If Europe believes that the JCPOA is important for its sovereignty, security, and reliability, it must be ready to pay a cost for it.”

Araghchi said of European efforts to create a “special purpose vehicle” (SPV) to facilitate trade with Iran, which has yet to materialize: “Whether the Europeans don’t want to work with us and are playing with us or whether they want to but aren’t able to, at the end it doesn’t make a difference. The result is that the Europeans either didn’t want to or couldn’t do anything. However, we will stay in the JCPOA as long as it’s to the benefit of the country. If this ceases to be the case, staying in the  JCPOA will be useless.”

Other Domestic Developments

In a November 20th interview, a prominent principlist (conservative) figure, Mohammad Reza Mir Taj Al-Dini, discussed Iran’s shifting political climate and the possibility of principlists returning to power in the 2020 parliamentary and 2021 presidential elections. Al-Dini stated that reformist and moderate forces inside Iran were losing popularity: “Some internal polling shows that reformist and moderate figures are losing popularity and people are turning away from them.”

He added that reformists/moderates have failed to deliver on their promises: “The people see that reformists in practice have not had any successes. They promised that they would maintain the value of the national currency, that they would solve economic problems and unemployment, but they did not abide by these slogans and election promises and have had these problems turn against them as people have seen the currency’s value drop.”

He then predicted that principlists would win in Iran’s upcoming elections, stating: “As such, it is predictable that in the next parliamentary and presidential elections, the people’s choices will be different.”

Meanwhile, on November 13th, the Tehran city council elected Pirouz Hanachi as mayor of Tehran. Hanachi, a reformist political figure who has held senior posts in the Tehran municipality and worked in the Rouhani administration’s Ministry of Roads and Urban Development, is the third mayor since reformists took control of Tehran’s city council after elections in May 2017. The first mayor elected by the reformist city council council, Mohammad-Ali Najafi, resigned on April 10th, 2018, citing health problems. His successor, Mohammad-Ali Afshani, came out of retirement to assume the position, but was removed after a new law passed in September forbid retirees from assuming government posts.

Iran Reacts to Reinstated U.S. Sanctions

Week of November 5, 2018 | Iran Unfiltered is a weekly digest tracking Iranian politics & society by the National Iranian American Council | Subscribe Here

• Officials Stress Iran will Withstand U.S. Sanctions
• Prominent Artists and Activists Launch Campaign Against Sanctions
• European “Special Purpose Vehicle” Payments System Expected Soon
• Senior Parliamentary Official Leaves Door Open for U.S.-Iran Negotiations
• Iran Offers Comprehensive Cooperation over Denmark Assassination Accusation
• Communications Minister Says Iran Repels Israeli Cyber Attack
• Rouhani Administration Introduces Citizenship bill for Children Born to Iranian Mothers but Foreign Fathers

Iranian officials uniformly lambasted the re-imposition of U.S. sanctions targeting Iran’s oil and banking sectors. Figures from across the political spectrum generally described the sanctions as painful but emphasized that Iran would ride them out. A common thread in reactions was that the unilateral sanctions were isolating the U.S. and international efforts such as the yet-to-be implemented European “special purpose vehicle” would bear fruit for facilitating continued Iranian trade with the world.

However, one official, the head of the parliament’s foreign policy and national security committee, delivered remarks on the importance of keeping the diplomatic option open towards the United States. Meanwhile, prominent Iranian artists and civil society activists, including celebrated filmmaker Asghar Farhadi, launched a petition and campaign against the sanctions. Iran’s communication minister also announced that the country had repelled an attempted Israeli cyber attack on its communications infrastructure, while the Rouhani administration introduced a bill to go to parliament on granting Iranian citizenship to children born to Iranian mothers but foreign fathers.

Iranian Responses to U.S. Sanctions

On November 5th, the day U.S. sanctions were reinstated, President Hassan Rouhani delivered a speech at Iran’s economy ministry. In his remarks, he stated that the Islamic Republic would defeat U.S. sanctions “with pride.” He added: “In history we have no example of Iran being on one side and having international institutions and global powers and different countries on its side, and America being on the other side with just a few countries.”

Iran’s newly appointed economy minister Farhad Dejpasand also said of reinstated U.S. sanctions: “The situation of the country is very sensitive, but we have enough tools to overcome these conditions.”

On November 6th, Deputy Foreign Minister Abbas Araghchi discussed the U.S. sanctions and Iran’s foreign relations in a far-reaching television interview. Araghchi stated that the Trump administration had not only failed to get the international community on board with its pressure campaign but was deepening the divide between America and its traditional allies. “America tried to make the international community cooperate with it but the international community resisted. The current U.S. administration has achieved a political and moral defeat for itself,” he proclaimed.

Araghchi added: “The Europeans say it isn’t only about Iran but a matter of preserving their own political and economic independence against America. Everyone is concerned and worried about the dominance of America’s financial and economic system.”

Araghchi stated that the sanctions were weakening America’s economic power and were a sign of U.S. decline. “Trump with his overuse of the sanctions tool and imposing his demands is weakening America’s power. This is because countries are now trying to remove themselves from the dominance of U.S. sanctions,” he asserted. “We believe that America’s political, economic, and military powers is on a downhill trajectory and Trump is accelerating this. The experiences of Afghanistan, Iraq, West Asia, and now Syria show that America’s military, economic, and political policies are declining.”

Araghchi rebuked the Trump administration’s overall Iran policy and contended that the White House would eventually change its approach towards Iran. He stated: “I have no doubt that Trump will repeat the experience of Obama and will ultimately reach the conclusion that he must talk to the Iranian people with a language of reverence, not of threats of sanctions.”

He said of the Trump administration’s Iran policy: “There are people in Trump’s team who live in the delusion of regime change and Iran’s collapse … Trump perceives that Iran like some other countries will concede to pressure and will sit at another negotiating table for another deal. This is the peak of simplicity and false hope.

He added: “With our policies, we will be able to overcome the sanctions. We made the necessary predictions regarding these sanctions. The oil and banking sanctions are the main sanctions of America, which we experienced before but carried on despite them. But now our position is far better because Europe, China, and Russia are supporting Iran.”

Araghchi went on to express certainty that Europe’s “special purpose vehicle” (SPV) to facilitate trade with Iran would be implemented. He stated: “This is a complex system. We expected it to be completed sooner, but it is now in its final stages … It might be that it will take some more time before this system is implemented, but I am sure it will be implemented.”

He then discussed on-going negotiations between Iran and the “P4+1” remaining signatories to the nuclear deal. He mentioned a then-upcoming meeting of technical experts on November 7th, stating: ” In this meeting, technical experts from legal, energy and other backgrounds from all the [P4+1] countries will be present.”

Araghchi also discussed a civil nuclear cooperation meeting between Iran and Europe planned for the end of November: “Holding this conference in these circumstances at a technical and political level is very important and sends a strong message to the Americans. In this meeting, Mr Salehi [Ali Akbar Salehi, head of the Atomic Energy Organization of Iran] will participate alongside European officials.”

On November 5th, during his weekly press conference, Foreign Ministry Spokesperson Bahram Ghassemi also discussed European efforts to create the SPV. Ghassemi stated that the SPV would be implemented, but that it would take more time: “This new mechanism dealing with monetary and financial areas is complex and takes time … I think if we are a little patient, very soon the entirety of the SPV will be announced and become clear. I hope that in a very short time we can get to its implementation.”

Ghassemi said on reinstated U.S. sanctions: “Americans, especially the current White House, are used to sanctions and have become addicted to them. We view this kind of step by the U.S. as a kind of self-sanctioning.”

On November 8th, Rasoul Sanaei-Rad, the political head of the “political ideology office of the commander-in-chief [Ayatollah Khamenei],” issued a statement in response to reinstated U.S. sanctions. Specifically, Sanaei-Rad reacted to comments made by U.S. Secretary of State Mike Pompeo and Treasury Secretary Steven Mnuchin during a November 2nd press briefing on Iran sanctions, in which they partly discussed changing the regional “behavior” of Iranian leaders, including Qassem Soleimani—the head of the “Qods Force” foreign operations arm of the Revolutionary Guards.

Sanaei-Rad stated: “The victories of the resistance axis in Iraq and Syria under the stewardship of Qassem Soleimani defeated all of America’s plans for the region. It has resulted in them targeting our dear commander of Islam [Soleimani] with slander, lies, and fury.”

Sanei-Rad stressed that American setbacks in the region were not due to Iran, but to miscalculations by U.S. officials. “The Americans view Iran as the reason for their defeats [in the region], when in reality they should analyze their own role in their defeats. Their defeats are due to the imprudence of White House officials and inattention to regional developments.”

He added: “The Islamic Awakening [Arab Spring] and the creation of the resistance axis resulted in the people of the region no longer accepting American regional dominance. However, it is the incorrect strategies of the Americans that has inflicted numerous defeats on them.” He went on: “White House officials are stuck in a futile cycle and instead of changing their behavior and learning the lessons of their past failures, they are repeating their mistakes and day-by-day exacerbating their losses.”

On November 5th, Iran’s Central Bank chief Abdolnaser Hemmati issued a response to reinstated U.S. sanctions against Iran’s Central Bank and reports that SWIFT—the international financial messaging system—would be cutting off some Iranian banks. “The reinstated sanctions were already predicted by the Central Bank and there has been planning for every situation, even for the scenario of sanctions beyond this,” he stated. “The necessary negotiations with countries that are our trade partners have been carried out and the method of how we will engage them has been coordinated.”

Hemmati stated that after months of volatility, the Iranian economy and currency market had been stabilized ahead of reinstated U.S. sanctions: “The necessary steps to precisely fine-tune the supply and use of currency has been taken and the situation of the country has been elevated to an optimal level—which we see in the stability that has characterized the currency and money market recently.”

On November 6th, Vice-President Eshaq Jahangiri delivered an address at a ceremony initiating several newly appointed ministers in the Rouhani administration, where he commented on reinstated U.S. sanctions. Jahangiri stated: “The latest show from Trump and his colleagues was brought on the stage yesterday. In these circumstances, how we manage the country is important. The issues and decision-making in managing the country have to be meticulous.”

Jahangiri struck a more concerned tone and stressed the importance of the Iranian government working with the Iranian people to overcome sanctions. He declared: “What is vital is that we speak sincerely with the people. Because the people are the main owners of the country and the revolution and overcoming the difficult conditions ahead is not possible without the people’s cooperation.” He added: “But this isn’t [meant] to spread problems that may cause [people to] worry. Were it is not necessary, we shouldn’t worry the people. We must keep our worries to ourselves, but no other issue should be kept from the people.”

Jahangiri added: “The people must see that officials are sincerely endeavoring to overcome problems. If people see this, they will enter the arena and will not hesitate to make every help and sacrifice. We saw with our own eyes the sacrifices the people made during the Imposed War [the Iran-Iraq War].”

Jahangiri also said of the Rouhani administration’s shifting economic policy towards greater state intervention: “In these conditions, the administration is forced to change some of its policies, policies on government control in the currency market, exports, and imports.”

On November 8th, prominent Iranian artists and civil society activists launched a campaign against the reinstated U.S. sanctions, stressing that the Iranian people would be paying the biggest price. The signatories, which included celebrated filmmakers such as Asghar Farhadi, proclaimed: “Once again, the United States has imposed sanctions against Iran. Such measures have never brought to the people of Iran what politicians proclaim they will: human rights, freedom, and a better life. Every Iranian will personally pay the price for these sanctions.”

Potential for U.S.-Iran Negotiations?

On November 3rd, Heshmatollah Falahatpisheh, chairman of the Iranian parliament’s National Security and Foreign Policy Committee, held a press conference before domestic and international media. In his remarks, Falahatpisheh touched on a wide range of topics, including prospects for U.S.-Iran negotiations and European efforts to keep Iran in the nuclear deal.

Falahatpisheh, who weeks ago stood out among Iranian officials for comments that there was “diplomatic atmosphere for de-escalation with America,” again touched on the potential for U.S.-Iran diplomacy. He declared: “America is not Trump. Even though this view has serious opponents, I believe we shouldn’t close all channels of negotiations with America if negotiations exist in different domains. We must create the right conditions. Especially given that there is serious opposition to the Trump administration.”

Falahatpisheh explained more, stating that negotiations could occur at different official or unofficial levels and that Iran could pursue any of these. He proclaimed: “Negotiations occur in different domains, such as intelligence, security, economics, political, and official diplomacy. Negotiations can even occur at the level of elites or secret negotiations can occur. The Islamic Republic of Iran has experience with all these types of negotiations in its history. If the country reaches the conclusion that negotiations will secure its interests, this step will be taken, even with respect to America.”

However, Falahatpisheh also stated that Trump’s current approach negated the potential for negotiations: “With Trump and [his] current policies, negotiations between Iran and America don’t make sense. The new American administration has chosen policies that explicitly challenged the trajectory of respectful diplomacy that had formed [previously].”

Falahatpisheh stressed repeatedly in his remarks that negotiations with the U.S. were no longer taboo for Iran. “Negotiations between the Islamic Republic of Iran and America are not taboo. During the JCPOA era, Iran’s foreign minister at the level of the foreign ministry had permission to negotiate with the American side.”

He added that Iranian foreign policy was flexible: “Iran has reached a level of maturity in which there is no taboo in its foreign policy and any second we desire, we can enter a new foreign policy space. But in current circumstances, there is no strategy for negotiations with America.”

Falahatpisheh emphasized that Iran’s regional influence and missile program were non-negotiable: “Trump’s expectation is that Iran will give up two core features that provide for its strength: its [regional] strategic depth and missile strength. We are not a country like Iraq, to be besieged within our borders. We have a regional role and can take actions throughout the region and hold influence. Under no circumstances can they take these capabilities from us.”

Falahatpisheh then stated on Iran’s relations with Europe: “Iran’s relations with Europe at a political level have never been this good. This is a score. The Europeans know that if it wasn’t for Iran, ISIS would have reached the borders of Europe. Iran has also given 2,600 martyrs in combating smuggling into Europe.”

Falahatpisheh stated on Iran’s commitment to the JCPOA: “On multiple occasions our country’s officials have announced our position in this regard. Our commitment to the JCPOA depends on it securing our national interests. As long as it secures our national interests, we will remain in the deal.”

Falahatpisheh stated the European SPV might not be implemented until early 2019: “The implementation of the European plan might be delayed until the beginning of next year [2019]. We are looking at European help, but our look is not strategic. So if this help is not implemented, we won’t be shook in any serious way.”

Other Foreign Policy Developments: Denmark Accusation Fallout, Cyber Attack

On November 5th, Iranian Foreign Minister Javad Zarif had separate phone calls with the foreign ministers of the United Kingdom and Norway, discussing bilateral relations and the status of the nuclear deal. According to ISNA, the British foreign minister stressed the commitment of his country and other JCPOA signatories to the deal and emphasized the need to urgently implement Europe’s SPV to facilitate economic relations with Iran. The Norwegian foreign minister also declared his country’s support for the JCPOA’s implementation and stressed the need for increased bilateral cooperation between Iran and Norway.

Zarif and the Norwegian foreign minister also discussed the Denmark assassination plot accusation [covered in last week’s Iran Unfiltered], with Zarif promising Iran’s full cooperation on the case. Fararu states: “The claim of Denmark’s police regarding a Norwegian-Iranian citizen was another topic of conversation between the Norwegian foreign minister and Mohammad Javad Zarif, on which the Iranian foreign minister stressed the need to shed light on all dimensions of the issue and emphasized that Iran will cooperate in a comprehensive manner with European governments to clarify the facts.”

On November 4th, Foreign Ministry Spokesperson Bahram Ghassemi said in his weekly press conference that the Swedish and Norwegian ambassadors to Iran, as well as Denmark’s charge d’affaires, were invited to the Iranian foreign ministry for a meeting.

Fararu wrote that the Iranian representatives raised the issue of Iranian separatists given refugee in these countries, some of whom publicly endorsed the August Ahvaz terrorist attack: “During this meeting, the Iranian foreign minister’s special assistant and the head of the Iranian foreign ministry’s office for European affairs explained Iran’s positions on the August terrorist attack in Ahvaz and dismissed the accusations of the Zionist regime [regarding the alleged Denmark assassination plot]. They also stressed the responsibility of these countries to confront terrorism and that it was unacceptable to give refuge to people who explicitly claim responsibility for the Ahvaz terrorist attack.”

Fararu added regarding Iran’s readiness to cooperate on the Denmark case: “In these meetings, Iran’s representatives declared the readiness of the Islamic Republic to engage in comprehensive and extensive cooperation on security issues with these countries, and to jointly investigate [the alleged Denmark plot] to clarify the facts.”

On November 5th, Mohammad-Javad Azari Jahromi, Iran’s Minister of Information and Communications Technology, announced that Iran had thwarted an attempted cyber-attack targeting its communications infrastructure. Jahromi blamed the attempted attack on Israel, tweeting: “The regime that has a clear track record of using cyber weapons, such as Stuxnet, now has attempted to damage Iran’s communications infrastructure. But they had to leave empty-handed thanks to the vigilance of our technical teams. We will pursue this hostile move through international tribunals.”

Internal Developments: Detained Environmentalists, Potential Changes to Citizenship Law

Deputy Parliamentary Speaker Ali Motahari inquired about the case of eight detained environmentalists—four of whom were recently charged with the capital offense of “sowing corruption on Earth”—to Intelligence Minister Mahmoud Alavi at a private meeting of the parliament’s National Security Committee. Motahari specifically inquired about the discrepancy between the intelligence ministry and a four-person task team created by President Rouhani, which found the environmentalists not guilty of espionage, and the on-going espionage case being brought against them by the judiciary.

Morteza Saffari Natanzi, a member of the parliament’s national security committee, said to the reformist newspaper Shargh of the encounter: “Motahari has not stated yet whether he was convinced of Alavi’s answers. If he is unconvinced, he may take his questions to the public parliamentary floor.”

According to Natanzi, the case against the environmentalists has been pursued by the Revolutionary Guards’ intelligence agency. Alavi told Motahari that the intelligence ministry was not involved in the case.

On November 4th, after a cabinet-level meeting, the Rouhani administration approved a bill for children born to Iranian mothers but foreign fathers to be given the option of applying for Iranian citizenship. The bill will go to the parliament for approval. Based on the bill, these children can apply for citizenship through their mother until they are 18-years old, and after 18 can themselves apply for Iranian citizenship and receive an Iranian national identification card. In an interview with IRNA, Shahindokht Molaverdi, Rouhani’s special assistant on citizenship rights issues, stated that she is hopeful that the parliament will pursue “necessary and speedy cooperation” to approve the bill.

On November 5th, Iran’s Interior Minister Abdolreza Rahmani-Fazli spoke at a conference on “Passive Defense and Sustainable Development,” where he stressed the importance of alleviating the people’s grievances. He stated: “How can we repay the people for being vigilant and for their sacrifices and patience? We can only do this by providing for their satisfaction and if we cannot do this we will be faced with a fundamental problem and will have to pay the price. Because the state of nature has mercy on no one.”

Rahmani-Fazli also spoke about Islamophobia: “The biggest threat today is the plot to push Islam in a deviant direction and towards a fake Islam which is based on violence and blood-letting. Today, the actors for this plot at the global level are ISIS and terrorist groups like it.”