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NUKEWARS
Israel's Peres says world must keep pressuring Iran
by Staff Writers
Jerusalem (AFP) Dec 19, 2013


Iran sanctions relief a 'limited' boost: report
Washington (AFP) Dec 19, 2013 - The economic benefits of an interim nuclear agreement between Iran and world powers are already being felt in the Islamic republic but the relief is limited, a report said Thursday.

A deal struck in November to suspend international sanctions for six months has seen an improvement in Iran's stock market and a drop in inflation, said the Institute of International Finance, which represents 450 banks and global financial institutions.

In particular, the gap between the black market and official exchange rates for the Iranian rial have narrowed, "falling from an average of IR 35,675 per dollar in June to IR 29,700" as of December 16, the report said.

"Real GDP could stabilize and even rise modestly in the current fiscal year," which ends on March 20, 2014.

But the report said the political situation in the Middle East remains volatile and cautioned that only a comprehensive agreement on Iran's disputed nuclear program would revive the country's economy.

"Failure to agree could bring about new sanctions and do further, possibly irreversible, damage to Iran's economy," the IIF said, warning that deep reforms are needed to spur strong economic growth.

Under the deal reached in Geneva in November, Iran agreed to freeze some of its nuclear activities in return for some sanctions relief. The agreement is aimed at buying time for a comprehensive accord.

"In time, improved economic conditions could strengthen President Hassan Rouhani's position in Iran's politics and provide him with greater room to advance the new policy of accommodation and greater transparency with the international community," the IIF report said.

Israel on Thursday urged China and other world powers to keep up pressure on Iran as talks on implementing a landmark nuclear deal were set to resume in Geneva.

"The world, in which China is a major player, should help the Iranian people to divorce themselves from the policies of threats and hostilities to prevent (Iran) from acquiring nuclear capability," Israeli President Shimon Peres said after meeting Chinese Foreign Minister Wang Yi in Jerusalem.

"We must maintain the diplomatic pressure; ensure the sanctions regime remains effective to force Iran to comply with the inspections and limitations which the international community demands," Peres said, according to a statement from his office.

Talks between Iran and the P5+1 group of world powers were set to resume Wednesday, as the two sides look to implement an interim agreement in which Iran curbs its controversial nuclear activities in exchange for the easing of some sanctions.

The P5+1 -- which includes China, Russia, the United States, Britain and France plus Germany -- negotiated the November 24 accord, which is intended to buy time for a comprehensive agreement.

Israel and Western nations have long suspected Tehran of using its civilian nuclear programme as a cover for developing a nuclear weapons capability, while Iran insists the programme is entirely peaceful.

Israel, the region's sole if undeclared nuclear power, views Iran as its greatest threat and has not ruled out military action to curb Tehran's nuclear drive.

But Peres insisted Thursday that "we do not view the Iranian people as our enemy."

"Our enemies are the policies and ideology driving the current Iranian regime," he said.

Peres and Yi also discussed US-brokered peace talks with the Palestinians, which have made little headway since they resumed in late July, with the Israeli president thanking Beijing for its "constructive support."

Iran nuclear talks return to Geneva
Geneva (AFP) Dec 19, 2013 - Delicate talks between Iran and world powers on how to implement a landmark nuclear deal were to resume in Geneva Thursday, as France's foreign minister cast doubt on their chance of success.

The technical talks were set to begin at 3:00 pm (1400 GMT) in the Swiss city, Iran's deputy foreign minister and lead negotiator Abbas Araqchi, who is not personally taking part in the expert-level negotiations, told Iranian state television.

Experts held four days of talks in Vienna last week, but the Iranians walked out after Washington expanded its sanctions blacklist against Tehran.

Tehran was prepared to continue the talks after EU foreign policy chief Catherine Ashton "made the assurance that the world powers, particularly the United States, will continue the talks in goodwill... and that they are serious about implementing the deal," Araqchi told Iran's state broadcaster on Wednesday.

Under the landmark deal struck in Geneva on November 24, Iran agreed to roll back parts of its nuclear programme for six months in exchange for modest sanctions relief and a promise by Western powers not to impose new sanctions.

But French Foreign Minister Laurent Fabius, one of the key players in the negotiations with Tehran, cast doubt Thursday on the chances of a final nuclear deal.

"It is unclear if the Iranians will accept to definitively abandon any capacity of getting a weapon or only agree to interrupt the nuclear programme," he told the Wall Street Journal.

"What is at stake is to ensure that there is no breakout capacity," Fabius said, referring to Iran's possible ability to relaunch a weapons programme from dormant sites.

During the six-month nuclear freeze, which has not yet begun, Iran and world powers aim to hammer out a long-term comprehensive accord to decisively end the standoff over Iran's contested nuclear programme, after a decade of failed attempts and rising tensions.

Iran denies wanting nuclear weapons but many in the international community suspect otherwise, and neither Israel -- widely considered to be the Middle East's sole if undeclared nuclear-armed state -- nor Washington have ruled out military action.

The fresh round of negotiations, being held at an undisclosed venue in Geneva, is scheduled to last through Friday, but Araqchi said talks could be extended into the weekend.

He told Iran's state broadcaster that the head of his ministry's political and international department, Hamid Baeedinejad, would lead the Iranian delegation, made up of nuclear experts and experts on the banking, transport and oil sector sanctions.

Delegations for the six powers negotiating with Iran, the so-called P5+1 group comprising the United States, China, Russia, Britain, France and Germany, would also be made up of technical experts, Ashton's spokesman Michael Mann told AFP.

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