VIENNA — Iran is believed to be expanding uranium enrichment activity deep inside a mountain, diplomatic sources said on Monday, a move likely to add to tension with Western powers that suspect Tehran is seeking nuclear weapons capability...
Iran said last year that it would transfer its highest-grade uranium refinement work to Fordow from its main enrichment plant at Natanz, and sharply boost capacity...
Iran two years ago started refining uranium to a fissile concentration of 20 percent at Natanz – far more than the 3.5 percent level usually required to power nuclear energy plants.
Tehran says it will use 20 percent-enriched uranium to convert into fuel for a research reactor making isotopes to treat cancer patients, but Western officials say they doubt that the country has the technical capability to do that.
In addition, they say, Fordow’s capacity – a maximum of 3,000 centrifuges – is too small to produce the fuel needed for nuclear power plants, but ideal for yielding smaller amounts of high-enriched product typical of a nuclear weapons programme...
Tightening international sanctions against Iran look set to shrink its economy, push up inflation and further erode its currency, but they may fail to deliver a knock-out blow that forces Tehran to compromise on its nuclear ambitions.
Few areas of Iran’s economy now remain untouched by the sanctions. Because of payments difficulties, Iranian ships have in recent days stopped loading imports of Ukrainian grain. The United Arab Emirates has told its banks to stop financing Iran’s trade with Dubai. Iranians are finding it more difficult to obtain hard currency to travel abroad.
But the history of sanctions against other countries, and the strengths of Iran’s diverse and relatively self-reliant economy, suggest that as long as Tehran can find buyers for a large proportion of its oil, it will be able to limp along.
The pain will be felt throughout the country and could increase discontent with the government, but if President Mahmoud Ahmadinejad can cope with that political threat, there may be no overriding economic reason for him to back down.
“Iran can still scrape by,” said Gary Hufbauer, a fellow at the Peterson Institute for International Economics in the United States and a former U.S. Treasury official who has written extensively about the history of sanctions.
He ranks the measures against Iran – taken to stop what the West sees as Tehran’s nuclear ambitions – as among the toughest international sanctions of the past 50 years, but not as harsh as those once imposed on Iraq, North Korea and Cuba – countries which defied economic pressure.
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