http://www.thedailybeast.com/articles/2014/07/18/putin-set-to-retaliate-against-obama-by-trashing-iran-deal.html







07.18.14
Putin Poised to Retaliate Against Obama by Trashing Iran Deal

Now that the U.S.-Russia relationship has broken down, Moscow could throw a
wrench into the teetering nuclear negotiations with Iran.

The escalating tensions between Washington and Moscow, brought to fever by
the MH17 airliner disaster
<http://www.thedailybeast.com/articles/2014/07/17/congress-mh17-crash-is-act-of-terror-and-putin-may-be-to-blame.html>,
are finally to the point where they threaten to spoil the number one item
on President Obama’s foreign policy agenda: the nuclear talks with Iran.
The man doing the threatening is Russian President Vladimir Putin.

Earlier this week, Putin promised to retaliate against the United States fornew
sanctions
<http://www.treasury.gov/resource-center/sanctions/OFAC-Enforcement/Pages/20140716.aspx>
targeting
his friends and business associates, as well as large Russian defense,
energy, and financial firms. On Thursday, Putin called President Obama to
alert him a civilian jetliner had crashed over Eastern Ukraine, a tragedy
the U.S. says was caused by a missile shot from a Russian-made SA-11 mobile
surface to air missile system
<http://www.thedailybeast.com/articles/2014/07/17/mh17-shoot-down-likely-was-a-mistake.html>
located
in a separatist-held area.

Putin’s next call was to none other than the President of Iran, Hassan
Rouhani
<http://eng.news.kremlin.ru/news/22694?utm_source=twitterfeed&utm_medium=twitter>
.

“Mr. Putin and Mr. Rouhani exchanged views on the state of talks on Iran’s
nuclear program,” stated the Kremlin readout of the call. “The two leaders
also examined bilateral cooperation matters of mutual interest, including
joint projects in the oil and gas sector and in peaceful nuclear energy.”

“An extension is the only thing the Iranians need to complete their bomb
work. The whole point of the sanctions was to make sure that time is not on
the side of the Iranians.”

U.S. officials, lawmakers, and experts, have been watching and waiting for
Putin to use the Iran negotiations as a way to mess with Obama ever since
the tit-for-tat sanctions
<http://www.thedailybeast.com/articles/2014/03/17/russia-will-sanction-u-s-officials.html>began
in March.

Moscow and Tehran have been negotiating a $1.5 billion oil-for-goods
exchange, which could undermine international pressure on Iran to make a
deal with the West. But overall, Moscow has continued to be a reasonably
constructive part of the international coalition pressing Iran to roll back
its nuclear program.

The Obama administration on Friday announced a four-month extension to the
talks
<http://www.nytimes.com/2014/07/19/world/middleeast/negotiators-agree-to-extend-iran-nuclear-talks-diplomats-say.html?partner=rss&emc=rss&smid=tw-nytimesworld>,
which would constitute perhaps the last chance Iran has to land a deal.
“This will give us a short amount of additional time to continue working to
conclude a comprehensive agreement, which we believe is warranted by the
progress we’ve made and the path forward we can envision,” Kerry said in a
statement.

 But if Putin decides that retaliating against the U.S. and ruining Obama’s
foreign policy legacy is more important than sealing a pact with Iran, the
whole thing could unravel.

The shooting down of MH17 has escalated the diplomatic war between
Washington and Moscow and made that scenario more likely because it could
result in more sanctions and legal action against the Russian government.

“Right now, as the U.S. should move legally against Russia, Russia will
begin to see its overseas portfolios start to really become encumbered and
therefore they might decide to be less helpful on Iran,” Sen. Mark Kirk
told The Daily Beast. “Then, the big goose egg that the administration is
going to get from Iran will more obviously be a zip.”

Kirk is part of a chorus of GOP senators calling for the administration to
impose more sanctions on Russia in the wake of the MH17 disaster. That
includes measures like the Russian Aggression Prevention Act
<https://beta.congress.gov/113/bills/s2277/BILLS-113s2277is.pdf>, which
would cut all senior Russian officials, their companies, and their
supporters off from the world’s financial system; target any Russian
entities owned by the Russian government or sanctioned individuals across
the arms, defense, energy, financial services, metals, or mining sectors in
Russia; and ban all Russian banks from the U.S. financial system.

The Obama administration Wednesday imposed limited sanctions on many key
players in those sectors, saying that broader sectoral sanctions were still
on the table.

“Once we realize that [top State Department negotiator] Wendy Sherman got
squat in Geneva, I think the Republican leadership will be highly
supportive of any legislation on Iran,” Kirk said, referring to the latest
round of negotiations.

Lawmakers in both parties are also set to push for new sanctions on Iran
this year to be passed into law during the four month extension but not put
into force until negotiations fail outright. One Democratic lawmaker who
met with Secretary of State John Kerry Thursday at the State Department
told The Daily Beast that Kerry said he was open to that idea. The State
Department press shop denied Kerry made such remarks.

“An extension is the only thing the Iranians need to complete their bomb
work,” said Kirk. “The whole point of the sanctions was to make sure that
time is not on the side of the Iranians.”

Even top Democrats in Congress are worried that the MH17 disaster and its
effect on U.S.-Russian relations will harm the effort to strike a nuclear
deal with Iran.

The incident was “a serious act of terror, and if there was Russian
complicity in it, that makes it even worse,” said Elliott Engel, the top
Democrat on the House Foreign Affairs Committee. “Considering that we are
doing the P5+1 [world power negotiations with Iran] and Russia’s part of
that, there are all kinds of intertwining complications involving that.”

Until now, Moscow has retaliated to U.S. financial pressure with sanctions
of their own against U.S. officials, lawmakers, and even donors toPresident
Obama
<http://www.thedailybeast.com/articles/2014/05/02/exclusive-putin-secretly-sanctioned-top-obama-campaign-donors.html>
who
are linked to the gay advocacy community. Putin hasn’t always made the
retaliatory sanctions public, but his government sought to respond
proportionally and kept other issues out of the dispute.

“A few things that had gone on between the U.S. and Russia despite the
sanctions have been the P5+1 talks, the effort to rid Syria of its chemical
weapons, and the implantation of treaties like New START,” said Sam Charap,
senior fellow at the Institute for Strategic and International Studies.

But Russian can’t punish American banks and energy firms the same way the
U.S. punishes Russian entities. American businesses rarely depend on access
to the Russian financial system and U.S. officials don’t have assets in
Russia.

 “If it’s true that the Russians are now diverging from the rest of the
P5+1 in the Iran negotiations, that would be a clear sign that they have
retaliated for the sanctions,” Charap said.





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