Iran's civilian nuclear chief Mohammad Eslami and IAEA head Rafael Grossi shake hands in Tehran. Reuters
Iran's civilian nuclear chief Mohammad Eslami and IAEA head Rafael Grossi shake hands in Tehran. Reuters
Iran's civilian nuclear chief Mohammad Eslami and IAEA head Rafael Grossi shake hands in Tehran. Reuters
Iran's civilian nuclear chief Mohammad Eslami and IAEA head Rafael Grossi shake hands in Tehran. Reuters

Iran agrees roadmap with IAEA as Russia seeks US guarantees over nuclear deal


Tim Stickings
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Iran said on Saturday it had agreed to hand over documents on its nuclear programme to the UN’s atomic watchdog, in a step that could help clear the way for a broader deal between Tehran and world powers.

But Russia's involvement in the negotiations, at a time when it faces increasing isolation over the war in Ukraine threw up a potential stumbling block, as Foreign Minister Sergey Lavrov demanded guarantees from the US that sanctions on Moscow would not impede trade with Iran.

"It would have all been fine, but that avalanche of aggressive sanctions that have erupted from the West - and which I understand has not yet stopped - demand additional understanding by lawyers above all," Mr Lavrov said.

Iranian nuclear chief Mohammad Eslami said he had struck an agreement with the visiting head of the International Atomic Energy Agency, Rafael Grossi, to exchange documents with the UN body by mid-June.

The documents “relate to outstanding questions between Tehran and the agency”, said Mr Eslami, which notably include an IAEA investigation into uranium traces at several old but undeclared sites in Iran.

Mr Grossi told the same press conference a wider restoration of the Iran nuclear deal “may not be possible” unless Tehran’s bilateral issues with the IAEA are resolved.

The director general, who also held talks with Iran’s foreign minister on Saturday, described his understanding with Tehran as an agreement to "work together, to work very intensively" and take a “practical, pragmatic approach” to overcome their remaining differences.

Although these IAEA-Iran issues are separate from the talks in Vienna on restoring the so-called Joint Comprehensive Plan of Action, Iran has indicated it wants the first out of the way before it agrees to the second.

Mr Grossi said he will not drop the IAEA’s inquiries into undeclared nuclear sites to enable a JCPOA deal, but said on Saturday the two sets of discussions were “closely interrelated” and that “one cannot ignore the other”.

Mr Grossi said it was hard to imagine any agreement to revive the 2015 nuclear deal if the UN nuclear watchdog's efforts to resolve open issues in Iran by June fail.

"My impression is that it would be difficult to imagine you can have a cooperative relationship as if nothing had happened if the clarification of very important safeguards were to fail," Mr Grossi told a news conference.

Diplomats in Europe have described the JCPOA talks as entering an endgame after 11 months of negotiations between Iran, Britain, Germany, France, China, Russia and indirectly the United States.

However, Mr Lavrov said in his intervention on Saturday that "problems have appeared recently from the point of view of Russia's interests" following its invasion of Ukraine.

He demanded a written guarantee from top US officials that the wave of sanctions being imposed on Russia would "not in any way harm our right to free, fully-fledged trade and economic and investment cooperation and military-technical cooperation with Iran".

A US State Department spokesperson said that the Russian sanctions are not related to the 2015 Iran nuclear deal, and should not have any impact on a potential revival of that agreement.

"The new Russia-related sanctions are unrelated to the JCPOA and should not have any impact on its potential implementation," the spokesperson said. "We continue to engage with Russia on a return to full implementation of the JCPOA. Russia shares a common interest in ensuring Iran never acquires a nuclear weapon. "

Britain’s top negotiator Stephanie Al-Qaq had said on Friday European officials were briefly returning home from Vienna to update their political bosses, but said: “We are close”.

But western diplomats have signalled the talks cannot drag on forever because of the pace of Iran’s continuing nuclear activities.

Under the 2015 deal, Iran agreed to limits on its nuclear activities in exchange for the US and other powers lifting sanctions. The agreement was meant to stop Tehran from developing a nuclear weapon, something it denies wanting to do.

But Iran has openly flouted these limits, for example by enriching and stockpiling uranium far above the thresholds set out in the deal, since former US president Donald Trump withdrew from the pact in 2018 and re-imposed sanctions.

The IAEA said this week Iran’s enriched uranium stockpile had reached 15 times the limit set out under the JCPOA.

UAE currency: the story behind the money in your pockets
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Dhadak 2

Director: Shazia Iqbal

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Rating: 1/5

Updated: March 07, 2022, 5:08 AM