Nuclear Issues

What can we expect from Rouhani’s second term? The large majority with which he won does not change the basic fact that the number one decision-maker in Iran remains Supreme Leader Khamenei. Ephraim Kam writes to Iran Matters that it is doubtful that Rouhani’s large majority will translate into greater power vis-à-vis Khamenei and the regime’s radical wing, as the president will likely continue to depend on them.

Djavad Salehi-Isfahani, visiting scholar at the Belfer Center's Iran Project, sheds light on some of the most important economic topics relevant to the 2017 Iranian presidential election. 

Ukraine-based journalist Maxim Tucker has just published two articles to claim that pro-Russian rebels in Eastern Ukraine are plotting to manufacture a dirty bomb with the help of Russian scientists, using radioactive waste from a storage facility at the Donetsk Chemical Factory.

Aaron Arnold, Associate of the Project on Managing the Atom at the Belfer Center for Science and International Affairs, writes that while Iran may receive sanctions relief as part of a final nuclear deal, it needs to take actions to strengthen its financial laws and regulations in order for it to truly be integrated into the global economy. He argues that Iranian financial laws, specifically those relating to money-laundering, terrorism financing, and proliferation financing, remain weak and do not meet the standard of the international financial community. These legal weaknesses have caused Iran to remain designated by the U.S. Treasury as a "jurisdiction of primary money-laundering concern," making it much harder for the Iranian financial sector to operate using American currency or the American financial system, which, despite recent developments such as the launch of the Asian Infrastructure Investment Bank, maintains the dominant role in global finance. He concludes that without these reforms to Iran's banking sector, its benefits from the ending of sanctions will be much smaller than desired by Iranian policymakers.

Aaron Arnold, Associate with the Project on Managing the Atom at the Belfer Center, and Nikos Passas, Professor of Criminal Justice at Northeastern University, argue in The Bulletin of the Atomic Scientists that an important, and generally overlooked, aspect of any deal with Iran is the role of banks and financial institutions in monitoring proliferation related transactions and keeping Iran from cheating on the agreement. They point out that banks are necessary for the monitoring and verification of a nuclear agreement because they provide the information used by sanctions enforcers to track illicit proliferation financing. At this point, several holes exist in detecting proliferation financing, including the lack of a clear template for banks and regulatory agencies to be searching for, and the lack of binding regulations for all forms of financial institutions, such as money remitters. They suggest that the Iranian nuclear deal offers a chance for these systematic holes to be plugged by centralizing analysis of data for proliferation financing and seeking reforms in the Iranian financial system.

Alexei Arbatov assess the potential developments in Russian, Iranian, and American relations should the nuclear negotiations break down. He argues that further Russian cooperation on coercing Iran is not likely when Russia and the West remain locked in a standoff over Ukraine, and suggests that Russia and Iran may move to build closer relations in the future.

With the 2014 Nuclear Security Summit (NSS) now over, policymakers are thinking about next steps to address nuclear security. The NSS process has progressed since its first installment in 2010; yet, the Middle East, a key region where nuclear security is of tremendous importance, remains underrepresented.