U.S. imposes fresh Iran-related sanctions, targets Khamenei-linked foundation

By Daphne Psaledakis and Humeyra Pamuk

WASHINGTON (Reuters) – The United States on Wednesday imposed sweeping new sanctions targeting Iran, blacklisting a foundation controlled by Supreme Leader Ayatollah Ali Khamenei and taking aim at what Washington called Iran’s human rights abuses a year after a deadly crackdown on anti-government demonstrators.

The sanctions announced by the U.S. Treasury Department, which also targeted Iran’s intelligence minister, marked the latest action to reinforce the “maximum pressure” campaign on Iran pursued by President Donald Trump’s administration. They came just over two months before Trump is due to leave office after his Nov. 3 election loss.

The department imposed sanctions on what it described as a key patronage network for Khamenei. It said it blacklisted the Bonyad Mostazafan, or the Foundation of the Oppressed, which is controlled by Khamenei, in the move also targeting 10 individuals and 50 entities associated with the foundation in sectors including energy, mining and financial services.

The sanctions freeze any U.S. assets of the targeted individuals and entities and generally bar Americans from doing business with them.

The charitable foundation – an economic, cultural, and social welfare institution – has amassed vast amounts of wealth to the detriment of the rest of the Iranian economy and controls hundreds of companies and properties confiscated since the 1979 Islamic Revolution.

“Iran’s Supreme Leader uses Bonyad Mostazafan to reward his allies under the pretense of charity,” U.S. Treasury Secretary Steven Mnuchin said in the statement.

“The United States will continue to target key officials and revenue-generating sources that enable the regime’s ongoing repression of its own people,” Mnuchin added.

Trump, who has taken a hard line toward Tehran during his presidency and abandoned an international nuclear agreement with Iran reached by his predecessor Barack Obama, last week asked for options on attacking Iran’s main nuclear site, but ultimately decided against taking the step, a U.S. official said on Monday.

The Treasury Department also slapped sanctions on Iranian Intelligence Minister Mahmoud Alavi, accusing his ministry of playing a role in serious human rights abuses against Iranians, including during last year’s protests.

VIOLENT CRACKDOWN

The crackdown a year ago may have been the bloodiest repression of protesters in Iran since the 1979 revolution.

Reuters reported last year that about 1,500 people were killed during less than two weeks of unrest that started on Nov. 15, 2019. The toll, provided to Reuters by three Iranian interior ministry officials, included at least 17 teenagers and about 400 women as well as some members of the security forces and police.

Iran’s Interior Ministry has said around 225 people were killed during the protests, which erupted after state media announced that gas prices would rise by as much as 200% and the revenue would be used to help needy families.

The U.S. State Department on Wednesday also blacklisted two Iranian Revolutionary Guard Corps (IRGC) officials, accusing them of involvement in the killing of nearly 150 people in the city of Mahshahr during last year’s crackdown. The action bars them and their immediate families from traveling to the United States.

Rights groups said they believe Mahshahr had one of the highest protest death tolls, based on information they received from local residents. The State Department said as many as 148 civilians were killed there.

“Nations who believe in supporting the freedoms of expression and association should condemn Iran’s egregious human rights violations, and reaffirm respect for the dignity and human rights and fundamental freedoms of every person by imposing consequences on the regime as we have, today,” U.S. Secretary of State Mike Pompeo said in a separate statement.

Reuters was the first to report that sanctions on Iranians involved in the crackdown against anti-government demonstrations were expected as early as this week.

Tensions between Washington and Tehran have risen since Trump unilaterally withdrew in 2018 from the 2015 deal under which Tehran agreed to restrict its nuclear program in return for relief from American and other sanctions. Trump restored harsh U.S. economic sanctions designed to force Tehran into a wider negotiation on curbing its nuclear program, development of ballistic missiles and support for regional proxy forces.

U.S. President-elect Joe Biden, set to take office on Jan. 20, has previously said he would return the United States to the nuclear deal, if Iran resumes compliance.

Some analysts have said that the piling-on of additional U.S. sanctions by Trump’s administration appeared to be aimed at making it harder for Biden to re-engage with Iran after taking office.

(Reporting by Daphne Psaledakis and Humeyra Pamuk; editing by Will Dunham)

No let-up in global rainforest loss as coronavirus brings new danger

By Michael Taylor

KUALA LUMPUR (Thomson Reuters Foundation) – Tropical rainforests disappeared at a rate of one football pitch every six seconds last year, researchers said on Tuesday, urging countries to include forest protection in post-pandemic plans.

The loss in 2019 of 3.8 million hectares (9.3 million acres) of tropical primary forest – which means intact areas of old-growth trees – was the third biggest decline since the turn of the century, according to data from Global Forest Watch (GFW).

“Primary forests are the areas we are the most concerned about – they have the biggest implications for carbon and biodiversity,” said Mikaela Weisse, a project manager at the GFW forest monitoring service, run by the World Resources Institute.

“The fact that we are losing them so rapidly is really concerning,” she told the Thomson Reuters Foundation.

Loss of primary forest, which hit a record high in 2016 and 2017, was 2.8% higher in 2019 than the year before.

Agricultural expansion, wildfires, logging, mining and population growth all contribute to deforestation, according to GFW researchers.

Cutting down forests has major implications for global goals to curb climate change, as trees absorb about a third of the planet-warming greenhouse gas emissions produced worldwide.

Forests also provide food and livelihoods for people who live in or near them, are an essential habitat for wildlife, and aid tropical rainfall.

Governments preparing post-coronavirus economic stimulus plans should include measures to protect forests, said Weisse.

In the short-term, the virus may weaken enforcement of forest laws, with people taking advantage of that to commit environmental crimes, she warned.

In the medium-term, economic stress could hike pressure for more extractive industries in forests or larger-scale agriculture, she added.

Workers coming home from cities after losing jobs could also turn to forests to help feed their families, increasing the risk of deforestation, she said.

“The situation has changed,” Weisse said of the COVID-19 pandemic. “What we need to do has also changed.”

WILDFIRES

The top three countries for primary forest loss last year – Brazil, Democratic Republic of Congo (DRC) and Indonesia – have remained largely the same this century, GFW researchers said.

Brazil accounted for more than a third of all primary forest loss in 2019 at 1.36 million hectares.

Many of the Brazilian forest fires that made international headlines last year did not occur inside primary forest, but in already deforested areas as farmers cleared logged land for agriculture and cattle, according to the data.

Neighbouring Bolivia, however, experienced record-breaking primary forest loss at 290,000 hectares, due to fires in both forests and surrounding woodlands, GFW said.

And Australia experienced a 560% jump in tree cover loss from 2018, driven by unprecedented bushfires, making it easily the country’s worst year on record.

The DRC saw its losses fall slightly to 475,000 hectares, still the third-highest year on record for the African nation, the data showed.

Malaysia lost 120,000 hectares of primary forest last year, ranking 6th behind Peru at 162,000 hectares, it added.

The figure for Indonesia remained at historically low levels for the third year in a row at 324,000 hectares, a 5% reduction in losses from 2018, according to GFW.

Tougher law enforcement to prevent forest fires and land clearing, and bans on forest-clearing and new oil-palm concessions all helped, said Arief Wijaya, forests and climate manager at think-tank World Resources Institute Indonesia.

“I would (now) like to see the government not only trying to reduce deforestation but reverse deforestation,” Wijaya said.

As the Southeast Asian nation battles the coronavirus pandemic, it is important that funds set aside for forest protection and restoration are not reallocated to help the wider economy and healthcare system, he added.

In total, the tropics lost 11.9 million hectares of tree cover – which includes all natural forests and tree plantations – in 2019, according to the GFW data.

“There has been so much international effort to try and slow or stop tropical deforestation, and the fact that we’re not seeing the numbers budge at a global level is something we are quite concerned about,” said Weisse.

(Reporting by Michael Taylor @MickSTaylor; Editing by Megan Rowling. Please credit the Thomson Reuters Foundation, the charitable arm of Thomson Reuters, that covers the lives of people around the world who struggle to live freely or fairly. Visit http://news.trust.org)

Senators push for U.S. to expand mining for electric vehicle supply chain

WASHINGTON (Reuters) – U.S. senators voiced bipartisan support on Tuesday for the expansion of domestic mining and minerals recycling, part of a push to jumpstart the country’s electric vehicle supply chain and offset China’s rising dominance in the fast-growing space.

“China is consolidating control of the entire supply chain for clean technologies,” Senator Lisa Murkowski, the Republican chair of the Senate’s Energy and Natural Resources Committee, said at a hearing. “The United States is falling behind … and allowing that to happen is a strategic mistake.”

(Reporting by Ernest Scheyder)

Baby powder helping fund Islamic State in Afghanistan: report

FILE PHOTO: Afghan National Army troops prepare for an operation against insurgents in Khogyani district of Nangarhar province, Afghanistan November 28, 2017. REUTERS/Parwiz/File Photo

KABUL (Reuters) – Islamic State fighters in Afghanistan are making hundreds of thousands of dollars a year from illegal mining of talc, much of which ends up in the United States and Europe, advocacy group Global Witness reported on Tuesday.

About 500,000 tonnes of talc, used in products ranging from paint to baby powder, were exported from Afghanistan in the year to March, according to Afghan mining ministry figures cited in the group’s report.

Almost all went to Pakistan, where much of it is re-exported. Pakistan provides more than a third of U.S. imports of talc and much also ends up in the European Union, it said.

“Unwitting American and European consumers are inadvertently helping fund extremist groups in Afghanistan,” Nick Donovan, Campaign Director at Global Witness, said in a statement, calling for stronger checks on imports.

Illegal mining of gemstones and minerals such as lapis lazuli is a major source of revenue for Taliban insurgents and the report said Islamic State was fighting for control of mines in Nangarhar, the province where it has its stronghold.

Nangarhar, on the border with Pakistan, has large deposits of talc as well as minerals such as chromite and marble, and sits on major smuggling routes used for drugs and other contraband.

The report quoted a senior Islamic State militant commander as saying that wresting control of mining assets from other armed groups in Nangarhar was a priority: “The mines are in the hands of the mafia … At any price we will take the mines.”

Security officials in Afghanistan have long been concerned about the uncontrolled traffic in Nangarhar of commodities like talc and chromite, which the Global Witness report said “may be the least glamorous of conflict minerals”.

It said that while it was difficult to estimate the value of the trade to Islamic State, revenue from mining in Nangarhar could amount “anywhere from the high tens of thousands to the low millions of dollars a year”. Somewhere in the hundreds of thousands was a plausible mid-range estimate, it added.

The sum did not appear very high, it said, but the U.S. military estimated the strength of Islamic State in Nangarhar at somewhere between 750 to 2,000 fighters, meaning the funds would be a significant source of revenue to the movement.

An Afghan mining ministry spokesman said a special committee had already been established to coordinate approaches to the issue with security and intelligence services. The ministry planned a news conference this week to address some of the specific issues raised in the report.

(Reporting by James Mackenzie; Editing by Mark Heinrich)

Utilities, mining boost U.S. industrial production

Robotic arms spot welds on the chassis of a Ford Transit Van under assembly at the Ford Claycomo Assembly Plant in Claycomo, Missouri April 30, 2014.

By Lucia Mutikani

WASHINGTON (Reuters) – U.S. industrial production increased more than expected in December as unseasonably cold weather at the end of the month boosted demand for heating, but manufacturing output barely rose, pointing to moderate growth in the industrial sector.

Strong demand for utilities bolsters expectations of an acceleration in consumer spending in the fourth quarter, which could prompt analysts to raise their economic growth estimates for the October-December period.

The Federal Reserve said on Wednesday industrial output surged 0.9 percent last month also buoyed by robust gains in mining production after slipping 0.1 percent in November.

Economists polled by Reuters had forecast industrial production advancing 0.4 percent in December. Industrial production rose at an annual rate of 8.2 percent in the fourth quarter, the biggest gain since the second quarter of 2010.

For all of 2017, industrial output rose 1.8 percent, the first and largest increase since 2014.

The industrial sector is being supported by a strengthening global economy and a weakening dollar, which is helping to make U.S. exports more competitive relative to those of the nation’s main trading partners. A survey early this month showed an acceleration in factory activity in December, with a measure of new orders recording its best reading since January 2004.

The dollar maintained gains versus a basket of currencies after the data, while prices for U.S. Treasuries were little changed.

Mining production increased 1.6 percent in December amid a rebound in oil and gas well drilling. Utilities production accelerated 5.6 percent last month after declining 3.1 percent in November.

Bitter cold gripped a large part of the country at the end of December. The surge in utilities demand added to strong December retail sales in supporting expectations of an acceleration in consumer spending in the fourth quarter.

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased at a 2.2 percent annualized rate in the third quarter.

But manufacturing output gained only 0.1 percent in December, putting a wrinkle on the report, after rising 0.3 percent in the prior month. Manufacturing production jumped 1.5 percent in October.

Manufacturing output was last month held back by a 1.5 percent drop in the production of primary metals. Motor vehicle and parts production increased 2.0 percent. Manufacturing production rose at a 7.0 percent rate in the fourth quarter.

With output accelerating last month, capacity utilization, a measure of how fully industries are deploying their resources, increased to 77.9 percent, the highest since February 2015, from 77.2 percent in November.

Capacity utilization is 2 percentage points below its long-run average. Officials at the Fed tend to look at capacity use as a signal of how much “slack” remains in the economy and how much room there is for growth to accelerate before it becomes inflationary.

(Reporting by Lucia Mutikani; Editing by Andrea Ricci)