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Exclusive: Top U.S. Treasury official to warn UAE, Turkey over sanctions evasion

WASHINGTON, Jan 28 (Reuters) – The U.S. Treasury Department’s top sanctions official on a trip to Turkey and the Middle East next week will warn countries and businesses that they could lose U.S. market access if they do business with entities subject to U.S. curbs as Washington cracks down on Russian attempts to evade sanctions imposed over its war in Ukraine.

Brian Nelson, undersecretary for terrorism and financial intelligence, will travel to Oman, the United Arab Emirates and Turkey from Jan. 29 to Feb. 3 and meet with government officials as well as businesses and financial institutions to reiterate that Washington will continue to aggressively enforce its sanctions, a Treasury spokesperson told Reuters.

“Individuals and institutions operating in permissive jurisdictions risk potentially losing access to U.S. markets on account of doing business with sanctioned entities or not conducting appropriate due diligence,” the spokesperson said.

While in the region, Nelson will discuss Treasury’s efforts to crack down on Russian efforts to evade sanctions and export controls imposed over its brutal war against Ukraine, Iran’s destabilizing activity in the region, illicit finance risks undermining economic growth, and foreign investment.

The trip marks the latest visit to Turkey by a senior Treasury official to discuss sanctions, following a string of warnings last year by Treasury and Commerce Department officials, as Washington ramped up pressure on Ankara to ensure enforcement of U.S. curbs on Russia.

STRAINED RELATIONS

Nelson’s trip coincides with a period of strained ties between the United States and Turkey as the two NATO allies disagree over a host of issues.

Most recently, Turkey’s refusal to green-light the NATO bids of Sweden and Finland has troubled Washington, while Ankara is frustrated that its request to buy F-16 fighter jets is increasingly linked to whether the two Nordic countries can join the alliance.

Nelson will visit Ankara, the Turkish capital, and financial hub Istanbul on Feb. 2-3. He will warn businesses and banks that they should avoid transactions related to potential dual-use technology transfers, which could ultimately be used by Russia’s military, the spokesperson said.

Dual-use items can have both commercial and military applications.

Washington and its allies have imposed several rounds of sanctions targeting Moscow since the invasion, which has killed and wounded thousands and reduced Ukrainian cities to rubble.

Turkey has condemned Russia’s invasion and sent armed drones to Ukraine. At the same time, it opposes Western sanctions on Russia and has close ties with both Moscow and Kyiv, its Black Sea neighbors.

It has also ramped up trade and tourism with Russia. Some Turkish firms have purchased or sought to buy Russian assets from Western partners pulling back due to the sanctions, while others maintain large assets in the country.

But Ankara has pledged that international sanctions will not be circumvented in Turkey.

Washington is also concerned about evasion of U.S. sanctions on Iran.

The United States last month imposed sanctions on prominent Turkish businessman Sitki Ayan and his network of firms, accusing him of acting as a facilitator for oil sales and money laundering on behalf of Iran’s Revolutionary Guard Corps.

While in the United Arab Emirates, Nelson will note the “poor sanctions compliance” in the country, the spokesperson said.

Washington has imposed a series of sanctions on United Arab Emirates-based companies over Iran-related sanctions evasion and on Thursday designated a UAE-based aviation firm over support to Russian mercenary company the Wagner Group, which is fighting in Ukraine.

(This story has been corrected to change headline to UAE, Turkey, not Middle East; adds Turkey in paragraph 1)

Reporting by Daphne Psaledakis and Humeyra Pamuk
Editing by Don Durfee and Leslie Adler

Our Standards: The Thomson Reuters Trust Principles.

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Islamic State claims Iran shrine attack, Iran vows response

  • Women and children among casualties – state media
  • President says Iran will respond to attack
  • Protesters mark 40 days since Mahsa Amini’s death in custody

DUBAI, Oct 26 (Reuters) – The militant group Islamic State said it carried out an attack on a Shi’ite Muslim shrine in Iran on Wednesday which killed 15 people, escalating tensions in a country reeling from a wave of protests and prompting warnings of a response from Tehran.

Iranian officials said they had arrested a gunman who carried out the attack at the Shah Cheragh shrine in the city of Shiraz. State media blamed “takfiri terrorists” – a label Tehran uses for hardline Sunni Muslim militants like Islamic State.

The group has claimed previous attacks in Iran, including deadly twin bombings in 2017 which targeted Iran’s parliament and the tomb of the Islamic Republic’s founder Ayatollah Ruhollah Khomeini.

Wednesday’s killing of Shi’ite pilgrims came on the same day that Iranian security forces clashed with increasingly strident protesters marking the 40-day anniversary since the death in police custody of Mahsa Amini, a 22-year-old Kurdish woman.

Interior Minister Ahmad Vahidi blamed the protests sweeping Iran for paving the ground for the Shiraz attack, and President Ebrahim Raisi said Iran would respond, according to state media.

“Experience shows that Iran’s enemies, after failing to create a split in the nation’s united ranks, take revenge through violence and terror,” said Raisi, speaking before Islamic State released its claim of responsibility.

“This crime will definitely not go unanswered, and the security and law enforcement forces will teach a lesson to those who designed and carried out the attack.”

The semi-official Tasnim news agency said the attacker shot an employee at the shrine entrance before his rifle jammed and he was chased by bystanders.

He managed to fix his gun and opened fire on his pursuers, before entering a courtyard and shooting worshippers. Several women and children were among the dead, it said.

A witness at Shah Cheragh told state television: “I heard sounds of gunfire after we prayed. We went to a room next to the shrine, this lowlife came and fired a barrage of shots. Then (the bullet) hit my arm and leg, it hit my wife’s back, but thank God my child was not hit, he is seven years old.”

DAY OF CLASHES

The attack in Shiraz took place at the end of a day of confrontations across the country between security forces and protesters, with video footage showing some of the most violent clashes in more than a month of unrest following Amini’s death.

The demonstrations have become one of the boldest challenges to the clerical leadership since the 1979 revolution. A wide range of Iranians have come out on to the streets, with some calling for the downfall of the Islamic Republic and the death of Supreme Leader Ayatollah Ali Khamenei.

Security forces opened fire at mourners in Amini’s Kurdish home town of Saqez on Wednesday, according to a witness.

“Riot police shot mourners who gathered at the cemetery for Mahsa’s memorial ceremony … dozens have been arrested,” the witness said. Iranian authorities were not available to comment.

The semi-official ISNA news agency said about 10,000 people were at the cemetery, adding that the internet was cut off after clashes between security forces and people there.

Videos on social media showed crowds packing streets in many cities and the bazaars of Tehran and some other cities shut down with people chanting “Death to Khamenei”.

1500tasvir, a Twitter account focused on Iran protests with 280,000 followers, reported a “brutal crackdown” on protesters in multiple locations in Tehran, including a gathering at the Tehran Medical Association.

Video footage on social media appeared to show members of the Basij militia shooting at protesters in Tehran.

Other videos showed protesters chasing riot police and throwing stones. They also showed protesters in the holy Shi’ite city of Mashhad setting fire to a riot policeman’s motorbike. In Tehran, a protester hit a policeman, while in the city of Qazvin riot police opened fire on protesters.

Some protesters chanted: “We will fight, we will die, we will get Iran back” from its clerical rulers.

Reuters was not able to verify the authenticity of the footage.

State news agency IRNA said a member of the elite Revolutionary Guards was shot dead “by rioters” in the western city of Malayer.

An Iranian former pro-reform official said the spread of the protests appeared to have taken authorities by surprise and contrasted with the establishment’s assertions that support for the Islamic system is overwhelming.

While some analysts said prospects for the imminent dawn of a new political order are slim, activists said a wall of fear had fallen and the path to a new revolution was not reversible.

Students have played a pivotal role in the protests, with dozens of universities on strike. Hundreds of schoolgirls have joined in, chanting “Freedom, Freedom, Freedom,” despite fierce crackdowns by security forces.

State media and hardline officials have branded protesters “hypocrites, monarchists, thugs and seditionists”.

Rights groups said at least 250 protesters had been killed, including teenage girls, and thousands had been arrested.

The authorities, who have accused the United States and other Western countries of fomenting what they call “riots”, have yet to announce a death toll but state media have said around 30 members of the security forces have been killed.

Writing by Parisa Hafezi and Dominic Evans
Editing by Michael Georgy, Nick Macfie and Alistair Bell

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OPEC+ members line up to endorse output cut after U.S. coercion claim

  • U.S. says more than one OPEC country coerced into cut
  • Iraq, Kuwait, other OPEC+ members stand by decision
  • Saudi defence minister says decision was purely economic

CAIRO Oct 16 (Reuters) – OPEC+ member states lined up on Sunday to endorse the steep production cut agreed this month after the White House, stepping up a war of words with Saudi Arabia, accused Riyadh of coercing some other nations into supporting the move.

The United States noted on Thursday that the cut would boost Russia’s foreign earnings and suggested it had been engineered for political reasons by Saudi Arabia, which on Sunday denied it was supporting Moscow in its invasion of Ukraine.

Saudi King Salman bin Abdulaziz said the kingdom was working hard to support stability and balance in oil markets, including by establishing and maintaining the agreement of the OPEC+ alliance.

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The kingdom’s defence minister and King Salman’s son, Prince Khalid bin Salman, also said the Oct 5 decision to reduce output by 2 million barrels per day – taken despite oil markets being tight – was unanimous and based on economic factors.

His comments were backed by ministers of several OPEC+ member states including the United Arab Emirates.

The Gulf state’s energy minister Suhail al-Mazrouei wrote on Twitter: “I would like to clarify that the latest OPEC+ decision, which was unanimously approved, was a pure technical decision, with NO political intentions whatsoever.”

His comment followed a statement from Iraq’s state oil marketer SOMO.

“There is complete consensus among OPEC+ countries that the best approach in dealing with the oil market conditions during the current period of uncertainty and lack of clarity is a pre-emptive approach that supports market stability and provides the guidance needed for the future,” SOMO said in a statement.

Kuwait Petroleum Corporation Chief Executive Officer Nawaf Saud al-Sabah also welcomed the decision by OPEC+ – which includes other major producers, notably Russia – and said the country was keen to maintain a balanced oil markets, state news agency KUNA reported.

Oman and Bahrain said in separate statements that OPEC had unanimously agreed on the reduction.

Algeria’s energy minister called the decision “historic” and he and OPEC Secretary General Haitham Al Ghais, visiting Algeria, expressed their full confidence in it, Algeria’s Ennahar TV reported.

Ghais later told a news conference that the organisation targeted a balance between supply and demand rather than a specific price.

Oil inventories in major economies are at lower levels than when OPEC has cut output in the past.

Some analysts have said recent volatility in crude markets could be remedied by a cut that would help attract investors to an underperforming market.

U.S. National Security Council spokesman John Kirby said on Thursday that “more than one” OPEC member had felt coerced by Saudi Arabia into the vote, adding that the cut would also increase Russia’s revenues and blunt the effectiveness of sanctions imposed over its February invasion of Ukraine.

King Salman said in an address to the kingdom’s advisory Shura Council that the country was a mediator of peace and highlighted the crown prince’s initiative to release POWs from Russia last month, state news agency SPA reported.

Khalid bin Salman said on Sunday he was “astonished” by claims his country was “standing with Russia in its war with Ukraine.”

“It is telling that these false accusations did not come from the Ukrainian government,” he wrote on Twitter.

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Reporting by Moataz Mohamed, Yasmin Hussien, Maha El Dahan and Aziz El Yaakoubi; additional reporting by Nayera Abdallah and Ahmed Tolba; Editing by Louise Heavens, Will Dunham and Alexandra Hudson

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OPEC+ to consider oil cut of over than 1 million barrels per day

  • Cuts could include Saudi voluntary reduction
  • Largest cut since pandemic reduction
  • Oil fell due to rising Fed rates, weak economy

DUBAI, Oct 2 (Reuters) – OPEC+ will consider an oil output cut of more than a million barrels per day (bpd) next week, OPEC sources said on Sunday, in what would be the biggest move yet since the COVID-19 pandemic to address oil market weakness.

The meeting will take place on Oct. 5 against the backdrop of falling oil prices and months of severe market volatility which prompted top OPEC+ producer, Saudi Arabia, to say the group could cut production.

OPEC+, which combines OPEC countries and allies such as Russia, has refused to raise output to lower oil prices despite pressure from major consumers, including the United States, to help the global economy.

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Prices have nevertheless fallen sharply in the last month due to fears about the global economy and a rally in the U.S. dollar after the Federal Reserves raised rates.

A significant production cut is poised to anger the United States, which has been putting pressure on Saudi Arabia to continue pumping more to help oil prices soften further and reduce revenues for Russia as the West seeks to punish Moscow for sending troops to Ukraine.

The West accuses Russia of invading Ukraine, but the Kremlin calls it a special military operation.

Saudi Arabia has not condemned Moscow’s actions amid difficult relations with the administration of U.S. President Joe Biden.

Last week, a source familiar with the Russian thinking said Moscow would like to see OPEC+ cutting 1 million bpd or one percent of global supply.

That would be the biggest cut since 2020 when OPEC+ reduced output by a record 10 million bpd as demand crashed due to the COVID pandemic. The group spent the next two years unwinding those record cuts.

On Sunday, the sources said the cut could exceed 1 million bpd. One of the sources suggested cuts could also include a voluntary additional reduction of production by Saudi Arabia.

OPEC+ will meet in person in Vienna for the first time since March 2020.

Analysts and OPEC watchers such as UBS and JP Morgan have suggested in recent days a cut of around 1 million bpd was on the cards and could help arrest the price decline.

“$90 oil is non-negotiable for the OPEC+ leadership, hence they will act to safeguard this price floor,” said Stephen Brennock of oil broker PVM.

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Reporting by Maha El Dahan, Olesya Astakhova and Alex Lawler; Editing by Gareth Jones, Jan Harvey and Raissa Kasolowsky

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Gulf Arab summit calls for action, not words from Iran

RIYADH, Dec 14 (Reuters) – A Gulf Arab summit in Saudi Arabia urged Iran on Tuesday to take concrete steps to ease tension while reiterating a call to include the region in talks between global powers and Tehran aimed at salvaging their nuclear agreement.

Saudi Arabia’s crown prince had told the annual gathering of Gulf leaders before the final communique was issued that the nuclear and missile programmes of longstanding adversary Iran should be handled “seriously and effectively”.

Indirect talks between Iran and the United States to revive the 2015 nuclear pact started in April, but stopped in June after the election of hardline President Ebrahim Raisi. After a five-month hiatus, Iran’s negotiating team returned to Vienna with an uncompromising stance.

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“So far the reports show there is some stalling by Iran and we hope this will turn to progress in the near future,” Saudi Foreign Minister Prince Faisal bin Farhan al-Saud told a press conference after the Gulf summit.

He said that while Gulf states prefer to be part of the talks they would be “open to any mechanism” that addresses their concerns, which also include Iran’s regional proxies.

Sunni Muslim Saudi Arabia and Shi’ite Iran are vying for influence in a rivalry that has played out across the region in events such as Yemen’s war and in Lebanon, where Iran-backed Hezbollah’s rising power has frayed Beirut’s Gulf ties. read more

Riyadh and the United Arab Emirates are both engaging with Iran in a bid to contain tensions at a time of deepening Gulf uncertainty over the U.S. role in the region, and as the oil producing states focus on economic growth.

Prince Faisal said the talks had seen no “real change on the ground” but that “we are open, we are willing”.

Iran’s president has said his foreign policy priority would be improving ties with Gulf neighbours.

SOLIDARITY

The Saudi crown prince toured the Gulf in a show of solidarity ahead of the summit, which took place nearly a year after Riyadh put an end to a 3-1/2-year Arab boycott of Qatar.

Saudi Arabia and non-Gulf Egypt have restored diplomatic ties with Doha but the United Arab Emirates and Bahrain have yet to do so, though Abu Dhabi has moved to mend fences.

The four boycotting states had accused Qatar of supporting Islamist militants, a charge Doha denied.

Saudi Arabia and the UAE have shifted away from hawkish foreign policies to a more conciliatory approach as they vie to lure foreign investment, and win over U.S. President Joe Biden.

The UAE has acted faster to improve ties with Iran and Turkey, while also re-engaging with Syria after forging relations with Israel last year.

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Reporting by Yousef Saba and Lisa Barrington; Writing by Ghaida Ghantous; Editing by Clarence Fernandez, William Maclean and Mark Heinrich

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Saudi Arabia’s crown prince sets off on tour of Gulf Arab states

Formula One F1- Saudi Arabian Grand Prix – Jeddah Corniche Circuit, Jeddah, Saudi Arabia – December 5, 2021 Saudi Crown Prince Mohammed bin Salman is seen before the race Pool via REUTERS/Andrej Isakovic

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DUBAI, Dec 6 (Reuters) – Saudi Arabia’s de facto ruler Crown Prince Mohammed bin Salman set off on a tour of fellow Gulf Arab states on Monday ahead of a Gulf summit this month amid crucial talks aimed at salvaging a nuclear pact between Iran and the West.

Prince Mohammed will visit Oman, the United Arab Emirates, Bahrain, Qatar and Kuwait, Saudi state news agency SPA reported. Oman will be the first leg of the tour.

It will be the crown prince’s first trip to Qatar since Riyadh and its Arab allies imposed an embargo on Doha in mid-2017 in a row that was only resolved last January.

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Al Arabiya said the summit of Gulf Arab leaders would be held in the Saudi capital Riyadh in mid-December.

Saudi Arabia and the UAE have engaged with long-time foe Iran in a bid to contain regional tensions as indirect talks between Washington and Tehran to revive the nuclear pact drag.

In the latest round of talks in Vienna last week, Western powers questioned Iran’s determination to salvage the 2015 agreement, which Gulf states saw as flawed for not addressing Tehran’s missiles programme and network of regional proxies.

Then-President Donald Trump withdrew the United States from the pact in 2018 and reimposed U.S. sanctions, prompting Iran to begin violating nuclear restrictions. Tehran denies seeking nuclear weapons.

Prince Mohammed starts his regional tour on the same day that the UAE’s top national security adviser is expected to visit Iran.

Sunni Muslim power Saudi Arabia in April launched direct talks with Shi’ite Iran, with which it is locked in several proxy conflicts in the Middle East. Riyadh has described the discussions, held in Iraq, as largely exploratory.

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Writing by Ghaida Ghantous and Alexander Cornwell; editing by Richard Pullin, Lincoln Feast and Nick Macfie

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Most Gulf bourses slide on fears over COVID-19 variant

Traders wait at the Bahrain Bourse in Manama, Bahrain, November 8, 2020. REUTERS/Hamad I Mohammed/File Photo

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Nov 28 (Reuters) – Most Gulf stock markets fell sharply in early trade on Sunday, with the Saudi index suffering its biggest single-day fall in nearly two years as fears of a potentially vaccine-resistant coronavirus variant rattled investors.

The World Health Organization (WHO) on Friday designated a new COVID-19 variant detected in South Africa as being “of concern” – the fifth variant to be given the designation. read more

Saudi Arabia’s benchmark index (.TASI) retreated by 4.4%, dragged down by a 3.4% fall for Al Rajhi Bank (1120.SE) and a 5.3% decline for Saudi National Bank (1180.SE).

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The kingdom has halted flights from and to Malawi, Zambia, Madagascar, Angola, Seychelles, Mauritius And Comoros Islands, Reuters reported on Sunday, citing the state news agency. read more

Dubai’s main share index (.DFMGI) tumbled 4.8% for its biggest intraday fall since March 2020, with blue-chip developer Emaar Properties (EMAR.DU) losing 7.9%.

Among other losers, budget airline Air Arabia (AIRA.DU) plunged 7.1%.

In Abu Dhabi, the index (.ADI) dropped 2.3%, hit by a 3.1% fall for First Abu Dhabi Bank (FAB.AD), the country’s largest lender, and a 3% drop for telecoms company Etisalat (ETISALAT.AD).

The United Arab Emirates has suspended entry for travellers from South Africa, Namibia, Lesotho, Eswatini, Zimbabwe, Botswana and Mozambique from Nov. 29 owing to concerns about the new variant of the COVID-19 virus, the state news agency reported on Friday. read more

The latest panedmic developments also sent oil prices, a key catalyst for the Gulf’s financial markets, plunging by $10 a barrel on Friday for their largest one-day drop since April 2020. The new variant added to concerns that an oil supply surplus could swell in the first quarter.

The Qatari benchmark (.QSI) declined more than 2% as stocks fell across the board.

On Saturday Qatar Airways said it has banned travellers from South Africa, Zimbabwe and Mozambique because of the spread of a new coronavirus variant.

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Reporting by Ateeq Shariff in Bengaluru
Editing by David Goodman

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Cyclone Shaheen hits Oman, three killed, flights delayed

DUBAI, Oct 3 (Reuters) – Tropical Cyclone Shaheen hit land in Oman on Sunday having already killed least three people, its high winds prompting evacuations from coastal areas and delaying flights to and from the capital, Muscat.

A child who had been swept away by water was found dead, the state news agency said, and another person was missing. Two Asian workers were killed when a hill collapsed on their housing area in an industrial zone, the state news agency reported.

The storm was carrying winds of 120 kph (75 mph) and throwing up waves of up to 10 metres (32 feet), Omani authorities said.

Video footage from local broadcasters showed vehicles submerged as people tried to make their way through muddy brown floodwater.

Part of the eyewall of the storm, where the most severe weather occurs, had entered Al Batinah South governorate, the state news agency said. The centre of the storm was expected to cross between Al Musanaa and Al Suwaiq in the evening.

The national emergency committee said the power supply would be cut in al-Qurm, east of the capital, to avoid accidents. More than 2,700 people were put up in emergency shelters.

Most of the oil-exporting country’s five million people live in and around Muscat. Roads in the capital would be open only to vehicles on emergency and humanitarian journeys until the storm dies down, authorities said.

In the United Arab Emirates, authorities said precautionary measures were being taken. Police officials were moving to ensure safety by conducting security patrols near beaches and valleys where torrential rains were expected.

Saudi Arabia’s civil defence authorities called for caution in several regions from Monday to Friday in expectation of heavy winds and possible flooding, the state news agency reported.

Reporting by Maher Chmaytelli and Nadine Awadalla
Writing by Nadine Awadalla and Michael Georgy
Editing by Emelia Sithole-Matarise, Philippa Fletcher, Catherine Evans and Frances Kerry

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