Iran News Round Up - October 5, 2017

CEO of Iran’s Middle East Bank Parviz Aghili recommended an overhaul of Iran’s banking sector during the Europe-Iran Forum in Zurich, Switzerland on October 3. Aghili claimed that approximately half of Iran’s banks must shut down or merge in order for the Iranian banking system to meet the adequate capital requirements required by the Basel III banking standards. The Basel Accords require banks to have adequate capital reserves before assuming the risks of lending and investing money. Many Iranian banks’ balance sheets operate on low capital reserves. Iran’s central bank may soon require privately-owned Iranian banks to adhere to these standards in order to secure business with major foreign banks and to mitigate risks for foreign investors. (Fars News Agency) (Reuters) (E)

Foreign Minister Mohammad Javad Zarif expressed his condolences to both the country of Iraq and the family of late Iraqi President and Patriotic Union of Kurdistan (PUK) founder Jalal Talabani following his passing in Berlin on October 3. Talabani was an ardent supporter of a sovereign Kurdish state, but promoted unity in Iraq during his tenure as president. (Tasnim News Agency) (IRNA) (E) (New York Times) (E)

• Deputy Parliamentary Speaker Ali Motahari also expressed his condolences on Talabani’s death. Motahari described Talabani as a moderate politician. Motahari also stated that Talabani would have “certainly been against the Iraqi Kurdistan referendum.” The Deputy Speaker also stated that the “attraction of Kurds to [Kurdistan Regional Government President Massoud] Barzani in the absence of [Talabani] is not a good thing.” (Alef)
• President Hassan Rouhani praised Talabani’s efforts in strengthening relations amongst Iraq’s various tribes and ethnic groups. Rouhani expressed hope that Iraqis would continue Talabani’s “moderate and popular policies.” First Vice President Eshagh Jahangiri commended Talabani for his valued efforts in developing Iran-Iraq relations.  (President.ir) (ILNA)

Iranian Foreign Minister Javad Zarif visited Doha, Qatar to discuss the expansion of Iran-Qatar political and economic relations with Qatari Foreign Minister Sheikh Mohammad bin Abdulrahman al Thani. Zarif stressed Iran’s readiness to develop long-term economic cooperation with Qatar. Zarif traveled to Oman to meet with Sultan Qaboos and the Omani Foreign Minister on October 3. (Fars News Agency) (Press TV) (E) (Mehr News Agency) (E)

Turkish President Recep Tayyip Erdogan met with President Hassan Rouhani in Tehran on October 4. Erdogan and Rouhani signed four memorandums of understanding (MoUs) focused on developing bilateral tv and radio broadcasting, historical records and archives, customs and trade, and banking relations. Rouhani stated that both Iran and Turkey are dedicated to preserving Iraq’s territorial integrity and preventing any changes to regional countries’ geographic borders. (Fars News Agency) (Mehr News Agency) (ISNA) (President.ir) (Washington Post) (E)

• Turkish President Recep Tayyip Erdogan also met with Supreme Leader Ayatollah Ali Khamenei in Tehran on October 4. Khamenei praised Iran-Turkey cooperation in establishing de-escalation zones in Syria. Khamenei said that the Iraqi Kurdistan push for independence is a U.S. attempt to create a “new Israel” in the region. The Supreme Leader and Erdogan both indicated the importance of strengthening economic ties between Iran and Turkey. (Fars News Agency) (Leader.ir)

European External Action Service (EEAS) Secretary General Helga Schmid said that “as Europeans, we will do everything to make sure [the nuclear deal] stays,” during the Europe-Iran Forum in Zurich, Switzerland. Schmid stressed that the EU and the U.S.’s shared concerns over Iran’s role in regional affairs fall outside of the purview of the JCPOA. British Ambassador to Iran Nicholas Hopton also expressed his approval with the JCPOA during the same conference. Hopton urged President Trump to recertify Iran’s compliance with the nuclear deal. Hopton also conveyed his hope that the U.S. “will continue to play a constructive and important role in the implementation of the JCPOA.” Schmid and Hopton are the latest senior European diplomats to speak up about preserving the nuclear deal amidst international concerns over the prospect of U.S. withdrawal from the agreement. EU, British, French, and German ambassadors voiced their support for the JCPOA on September 27 at an Atlantic Council conference in Washington, DC. (Reuters) (E) (Press TV) (E)

Foreign Ministry Spokesperson Bahram Ghassemi reiterated the Iranian government’s position that the Joint Comprehensive Plan of Action (JCPOA) is non-negotiable. Ghassemi stated that Iran is willing to only talk about the “JCPOA, and its exact implementation.” He also stated that Iran has “no [reason] to negotiate with others about missile issues,” noting that Iran’s ballistic missile program is strictly for the purpose of defense and deterrence. Ghassemi stressed that Iran will “never give permission to anyone to intervene or to [determine specific policies]” on Iranian deterrence policies. (YJC)

Frederick Kagan discusses the inherent weaknesses in the Russo-Iranian alliance in, “The Moscow-Tehran Axis is a Coalition of the Weak.”