2012 Developments with Iran




47 INTLLAW 453

47 Int'l Law. 453
 
Public International Law

*453 NATIONAL SECURITY LAW


Copyright (c) 2013 American Bar Association; James D. Carlson; William V. Dunlap; Adrianne Goins; Geoffrey M. Goodale; Jonathan Michael Meyer; Jason I. Poblete; Guy C. Quinlan; MichaeF O. Walker

       This article surveys relevant 2012 developments in national security law for international lawyers. [FN1]

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II. Iran

       The pressure on Iran to be more forthcoming with its nuclear ambitions continued through 2012. The tension between Iran and the international community stems from disagreement over Iran's obligations to implement nuclear safeguards under the so-called Safeguards Agreement, [FN26] six UN Security Council Resolutions, [FN27] and eleven International Atomic Energy Agency (IAEA) resolutions. [FN28]


       On November 18, 2011, the IAEA Board of Governors adopted a resolution which, inter alia, stressed it was essential for Iran and the IAEA to “intensify their dialogue aiming at the urgent resolution of all outstanding substantive issues.” [FN29] The Board also called on Iran “to engage seriously and without preconditions in talks aimed at restoring international confidence in the exclusively peaceful nature of Iran's nuclear programme.” [FN30] IAEA *457 and Iranian officials met five times in 2012 to bridge differences and discuss a structured approach in resolving these differences, in particular for gaining access to the Parchin installation and addressing the apparent military dimensions of Iran's nuclear program. [FN31] The meetings failed to achieve agreement on these issues. In September, the IAEA noted that Iran was not providing the necessary cooperation to enable the IAEA “to provide credible assurance about the absence of undeclared nuclear materials and activities . . . and therefore to conclude that all nuclear material in Iran is in peaceful activities.” [FN32]

       As a result of these and previous failures of Iran to cooperate with the international community, the United States and the European Union enacted additional sanctions this year.

       President Obama signed two pieces of legislation affecting Iran: the National Defense Authorization Act for Fiscal Year 2012 (NDAA) [FN33] and the Iran Threat Reduction and Syria Human Rights Act of 2012 (ITRSHRA). [FN34] Section 1245 of the NDAA gives the President power to freeze all assets of Iranian financial institutions that have a nexus to the United States. [FN35] Furthermore under the NDAA, foreign financial institutions that knowingly facilitate a “significant financial transaction with the Central Bank of Iran or with another [sanctioned] Iranian financial institution” risk being cut off from direct access to the U.S. financial system. [FN36] A condition precedent to these provisions is a presidential determination that there was a sufficient supply of petroleum and petroleum products from countries other than Iran to permit a sufficient reduction in the volume of petroleum and petroleum products purchased from Iran by or through foreign financial institutions; President Obama issued a determination to that effect on June 11, 2012. [FN37] ITRSHRA expands the Iran Sanctions Act of 1996, [FN38] sanctions Iran's Revolutionary Guard Corps, [FN39] and prohibits provision of insurance services to the National Iranian Oil Company. [FN40]

       Similarly, the European Union passed a formidable set of sanctions focused on Iran's crude oil, petroleum, and petrochemical industry and product-related transactions, heavy water-related activities, energy sector revenues, the Central Bank of Iran, the Iranian Revolutionary Guard Corps, and precious metal transactions. [FN41] Additionally, the Society for *458 Worldwide Interbank Financial Telecommunication, in response to the EU sanctions, announced it would “discontinue its communications services to Iranian financial institutions” subject to the EU sanctions. [FN42] This action impacts as many as thirty Iranian financial institutions. [FN43]

       The effect of the international sanctions is the subject of debate. IAEA Director General Yukiya Amano stated on November 20, “Iran is enriching uranium at a constant pace and international sanctions aimed at making Tehran suspend the activity are having no visible impact.” [FN44] While Iran's nuclear ambitions may not be impacted by sanctions, its economy apparently is. Iranian President Mahmoud Ahmadinejad blamed the Western sanctions for the tumble of the Iranian rial against the dollar: the rial hit a new low in October, triggering riots in the streets of Tehran. [FN45] Also, Iran's oil output declined for seven straight months until rebounding strongly in October in response to increased oil purchases by China and South Korea. [FN46]

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[FNa1]. The committee editors of this article were Captain James D. Carlson, Judge Advocate, U.S. Coast Guard, and William V. Dunlap, professor of law, Quinnipiac University School of Law. Captain Carlson contributed “Iran;” Adrianne Goins, Counsel, Vinson & Elkins L.L.P., contributed “Foreign Investment--CFIUS Practice in 2012;” Jason I. Poblete, Partner, PobleteTamargo, contributed “Cuba;” Guy C. Quinlan, former Counsel, Clifford Chance and Rogers & Wells, contributed “Nuclear Arms Control;” and Lieutenant Michael O. Walker, Judge Advocate, U.S. Coast Guard, contributed “Regulating Telecommunications--ITU and the WCIT-12.” The section on the Export Enforcement Coordinating Center was contributed by Geoffrey M. Goodale, Special Counsel, Cooley L.L.P., and Jonathan Michael Meyer, Attorney at Law, Vice Chair, Export Controls and Economic Sanctions Committee, ABA Section of International Law and former Vice Chair, National Security Committee, ABA SIL. The views expressed herein by the Coast Guard officers are those of the authors and are not to be construed as official or reflecting the views of the Commandant or of the U.S. Coast Guard.

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[FN26]. Int'l Atomic Energy Agency [IAEA], Agreement Between Iran and the IAEA for the Application of Safeguards in Connection with the Treat on Non-Proliferation of Nuclear Weapons, IAEA Doc. INFCIRC/214 (May 15, 1974) available at http:// www.iaea.org/Publications/Documents/Infcircs/Others/infcirc214.pdf [hereinafter Safeguard Agreement].

[FN27]. The United Nations Security Council has adopted the following resolutions on Iran: S.C. Res. 1696, U.N. Doc. S/RES/1696 (July 31, 2006); S.C. Res. 1737, U.N. Doc. S/RES/1737 (Dec. 23, 2006); S.C. Res. 1747, U.N. Doc. S/RES/1747 (Mar. 24, 2007); S.C. Res. 1803, U.N. Doc. S/RES/1803 (Mar. 3, 2008); S.C. Res 1835, U.N. Doc. S/RES/1835 (Sep. 27, 2008); and S.C. Res. 1929, U.N. Doc. S/RES/1929 (June 9, 2010). S.C. Res. 1929 affirmed that Iran shall take steps required by the IAEA Board in IAEA Doc. GOV/2006/14 and IAEA Doc. GOV/2009/82, reaffirmed Iran's obligation to cooperate fully with the IAEA on outstanding issues, particularly those that give rise to concerns about military dimensions of the Iranian nuclear program, and decided that Iran shall comply without qualification with the Safeguard Agreement.

[FN28]. The IAEA Board of Governors has adopted eleven resolutions in connection with the implementation of safeguards in Iran: IAEA, Doc. GOV/2003/69 (Sept. 12, 2003); IAEA Doc. GOV/2003/81 (Nov. 26, 2003); IAEA Doc. GOV/2004/21 (Mar. 13, 2004); IAEA Doc. GOV/2004/49 (June 18, 2004); IAEA Doc. GOV/2004/79 (Sept. 18, 2004); IAEA Doc. GOV/2004/90 (Nov. 29, 2004); IAEA Doc. GOV/2005/64 (Aug. 11, 2005); IAEA Doc. GOV/2005/77 (Sept. 24, 2005); IAEA Doc. GOV/2006/14 (Feb. 4, 2006); IAEA Doc. GOV/2009/82 (Nov. 27, 2009); and IAEA Doc. GOV/2011/69 (Nov. 18, 2011). See IAEA, IAEA and Iran: IAEA Resolutions, http://www.iaea.org/newscenter/focus/iaeairan/iaea_resolutions.shtml (last visited Jan. 29, 2013).

[FN29]. IAEA, IAEA Doc. GOV/2011/69, supra note 28.

[FN30]. Id.

[FN31]. Press Release, IAEA, IAEA Expert Team Returns from Tehran (Feb. 22, 2012), http://www.iaea.org/newscenter/pressreleases/2012/prn201205.html. See also IAEA, IAEA and Iran: Chronology of Events, http:// www.iaea.org/newscenter/focus/iaeairan/iran_timeline9.shtml (last visited Feb. 15, 2013).

[FN32]. IAEA, Implementation of the NPT Safeguards Agreement and Relevant Provisions of United Nations Security Council resolutions in the Islamic Republic of Iran, IAEA Doc. GOV/2012/50 (Sept. 13, 2012).

[FN33]. National Defense Authorization Act for Fiscal Year 2012, Pub. L. No. 112-81, § 1245, 125 Stat. 1298 (2011).

[FN34]. Iran Threat Reduction and Syria Human Rights Act of 2012, Pub. L. No. 112-158, 126 Stat. 1214 (2012) [hereinafter ITRSHA].

[FN35]. Id. § 1245(c).

[FN36]. National Defense Authorization Act for Fiscal Year 2012, 125 Stat. at 1647.

[FN37]. Memorandum on Presidential Determination Pursuant to Section 1245(d)(4)(B) and (C) of the National Defense Authorization Act for Fiscal Year 2012, 77 Fed. Reg. 36,387 (June 19, 2012), available at http:// www.gpo.gov/fdsys/pkg/DCPD-201200465/pdf/DCPD-201200465.pdf. President Obama used Executive Order Nos. 13,599 and 13,622 in part to effectuate the 2012 NDAA. Exec. Order No. 13,599, 77 Fed. Reg. 6,659 (2012); Exec. Order No. 13,622, 77 Fed. Reg. 6,659 (2012).

[FN38]. ITRSHA, supra note 34, §§ 201-08.

[FN39]. Id. at tit. III.

[FN40]. Id. § 212.

[FN41]. Council Decision 2012/35/CFSP, 2012 O.J. (L 19) 22.

[FN42]. Press Release, Soc'y for Worldwide Interbank Fin. Telecomm., SWIFT Instructed to Disconnect Sanctioned Iranian Banks following EU Council Decision (Mar. 15, 2012), http://www.swift.com/news/press_releases/SWIFT_ disconnect_Iranian_banks.

[FN43]. Rick Gladstone & Stephen Castle, Global Network Expels as Many as 30 of Iran's Banks in Move to Isolate Its Economy, N.Y. Times, Mar. 16, 2012, at A6.

[FN44]. Alexandria Sage & Fredrik Dahl, Iran Nuclear Work at Constant Pace Despite Sanctions - IAEA, Reuters (Nov. 20, 2012, 9:02 AM), http:// in.reuters.com/article/2012/11/20/nuclear-iran-idINDEE8AJ0BX20121120.

[FN45]. Iran Police Clash with Protesters, BBC News (Oct. 3, 2012, 2:48 PM), http://www.bbc.co.uk/news/world-middle-east-19812482.

[FN46]. IAEA: Iranian Sanctions Might Hurt Its Economy but Not Its Oil Industry, Albawaba Bus. (Nov. 19, 2012, 8:40 AM), http:// www.albawaba.com/business/iea-iran-oil-451566.

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47 Int'l Law. 453

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