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Edition: U.S. Article Comments (3) Video Save Email Print Reprints Most Popular Most Shared U.S. backs Seoul's charge that North Korea sank ship 19 May 2010 Louisiana shore sees heavy oil as BP prepares plug | Video 12:35am EDT UPDATE 1-Crystal to battle Lee for "American Idol" title 1:11am EDT WRAPUP 1-Louisiana shore sees heavy oil as BP prepares plug 12:26am EDT "Twilight" crisis averted! 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Not the uninsured 19 May 2010 Sex shop to give away "Pope condoms" 19 May 2010 Louisiana shore sees heavy oil as BP prepares plug | Video 12:35am EDT Iran dismisses U.N. sanctions draft Parisa Hafezi TEHRAN Wed May 19, 2010 8:07pm EDT Related News Obama: Iran sanctions push to continue -White House Wed, May 19 2010 Obama hails U.N. Iran sanctions draft Wed, May 19 2010 "Resilient" Iran defiant on renewed sanctions threat Wed, May 19 2010 Iran dismisses U.N. sanctions draft Wed, May 19 2010 Iran sanctions draft not legitimate: senior official Wed, May 19 2010 Related Video France expel Iranian Tue, May 18 2010 Iran's President Mahmoud Ahmadinejad waits for the start of an official meeting in Tehran, May 18, 2010. Credit: Reuters/Raheb Homavandi TEHRAN (Reuters) - Iran on Wednesday dismissed a draft U.N. resolution to expand sanctions as lacking legitimacy, but U.S. President Barack Obama insisted Washington would press ahead and that Tehran could not be trusted. World The draft resolution, agreed to by all five permanent Security Council members after months of negotiation, targets Iranian banks and calls for inspection of vessels suspected of carrying cargo related to Iran's nuclear or missile programs. But the proposed sanctions are far more modest than the crippling measures Obama's administration originally pushed for, largely as a result of objections by China and Russia, which have close trading ties with Tehran. "The draft being discussed at the United Nations Security Council has no legitimacy at all," Iran's semi-official Fars news agency quoted President Mahmoud Ahmadinejad's senior adviser Mojtaba Samareh-Hashemi as saying. Western diplomats said the text resulted from a compromise between the United States and its three European allies, which had pushed for much tougher sanctions against Tehran, and Russia and China, which sought to dilute them. Few of the proposed measures are new. But Western diplomats said the end result was probably the best they could have hoped for, given China's and Russia's determination to avoid measures that might have undermined Iran's troubled economy. Despite that, Obama hailed the draft plan and again called on Iran to curb its nuclear ambitions. "Given Mexico's seat on the U.N. Security Council, we agreed on the need for Iran to uphold its international obligations or face increased sanctions and pressure," he told reporters after talks with Mexican President Felipe Calderon. Obama later told Turkish Prime Minister Tayyip Erdogan by telephone that fundamental concerns remained over Iran's nuclear program and "negotiations on a new U.N. Security Council resolution will continue," the White House said. While acknowledging a nuclear fuel swap deal Turkey and Brazil brokered with Iran on Monday, Obama said Tehran had yet to notify the U.N. nuclear watchdog of its intentions and the Islamic Republic's recent actions "do not build confidence." Iranian politicians sought to reassure Iranians that any new sanctions would have no more impact than existing measures, which had failed to cripple the economy. "Despite all the restrictions that the arrogant countries impose on Iran in the global arena, the Islamic Republic has significant successes in political and economic fields," Energy Minister Majid Namjou was quoted as saying by ILNA news agency. 'NO CHANCE' Foreign Minister Manouchehr Mottaki said there was "no chance for a new resolution" to be approved at the Security Council. "Let's not take this seriously," he told reporters at a meeting in Tajikistan. Iran rejects Western allegations its nuclear program is aimed at developing weapons. It says its atomic ambitions are limited to the peaceful generation of electricity and refuses to suspend uranium enrichment. "A fourth round of sanctions is unlikely to change the Iranian attitude toward its nuclear program. Developing its nuclear program is a strategic decision and currently priority for the regime in Tehran," said Nicole Stracke, an Iran expert at Gulf Research Center in Dubai. "Therefore, the Iranian regime will divert the resources necessary to further the progress of its nuclear program." The decision to circulate the resolution to the Security Council on Tuesday was a rebuff to a deal brokered by Brazil and Turkey in which Iran agreed to send some enriched uranium abroad in return for fuel rods for a medical research reactor. Iran and the two countries that brokered the swap deal urged a halt to talk of further sanctions. But the United States and its European allies regard the deal as a maneuver by Iran to delay their efforts to increase pressure on Tehran. U.S. Ambassador Susan Rice said the fuel deal had "nothing to do" with the uranium enrichment that led to the first three rounds of sanctions on Iran and the latest draft resolution. Erdogan, speaking by phone with Russian Prime Minister Valdimir Putin, said the Iran nuclear standoff must be solved through dialogue and diplomacy, Erdogan's office said. Putin said Turkey's and Brazil's efforts opened "additional possibilities," the statement said. Western powers say that in addition to refusing to suspend enrichment, Iran has not opened up completely to International Atomic Energy Agency inspections. French Foreign Ministry spokesman Bruno Valero said the swap deal "will be considered once detailed and written proposals by Iran are submitted to the IAEA." The draft resolution "calls upon states to take appropriate measures that prohibit" the opening of new Iranian bank branches or offices abroad if there is reason to suspect they might be aiding Iran's nuclear or missile programs. It also calls on states "to exercise vigilance over transactions involving Iranian banks, including the Central Bank of Iran" to ensure those transactions do not aid Tehran's nuclear and missile programs. It urges countries to be wary of dealing with Iran's Islamic Revolutionary Guard Corps and says some members and companies it controls will be added to existing lists of individuals and firms facing asset freezes and travel bans. The draft calls for an expansion of an existing arms embargo to include more types of heavy weapons. The draft will likely be revised in the coming weeks. Aside from Turkey and Brazil, council member Lebanon has made clear it would have trouble supporting sanctions against Iran. Lebanon, diplomats say, will likely abstain from a vote on the resolution because the Iranian-backed militant group Hezbollah is in its government. (Additional reporting by Matt Spetalnick in Washington, Olzhas Auyezov in Dushanbe, Guy Faulconbridge in Moscow, Robin Pomeroy in Tehran, Fredrik Dahl in Dubai and John Irish in Paris; Writing by Dominic Evans; Editing by Samia Nakhoul and Peter Cooney) (London World Desk, +44 207 542 7919) World Comments See All Comments (3) | Post Comment May 19, 2010 8:20pm EDT And Obama’s response? – http://bu.tt/31 bu.tt Report As Abusive May 19, 2010 8:44pm EDT When will Israel be obliged to join the NPT and submit to IAEA inspections? How can any sanctions against Iran be justified while Israel is not subjected to the same restrictions on nuclear development? It makes it very clear that the US move is its old colonial intention to prevent Iran from developing its economy and scientific knowhow to keep Iran attackable if and when the US will have the capacity to attack it; to preserve the old US hubris to hegemony of the world’s economy and energy resources. Under the pretense of US security and protection of its interest, the US has murdered millions of people in the Middle East, Central Asia and Africa, all the while using Iran’s nuclear work as scapegoat to deflect attention from the US aggression and war crimes. The US is hardly in a position to restrict Iranian nuclear work. Instead it should restrict its own double standard under which it condones and supports the Israeli Apartheid system with which it acts to destroy the Palestinian people. 1964 Report As Abusive May 20, 2010 1:16am EDT The UN Security Council gave the hand to Iranian president, offering him a regulatory settlement on the nuclear exploration in Iran. Brazil and Turkey struggled to make Mahmoud Ahmadinejad abide by the rules. However, he does not want only the rings, also wants the fingers and uses trickery to circumvent the agreement which he himself had just signed. Formally says one thing, but in practice does another. I wonder when Iran will send semi-enriched uranium to Turkey. Another question remains – if the uranium will be enriched in Turkey, why Iran would still need enrich its atoms beyond the level of purity sufficient to fulfill the agreement signed with Brazil and Turkey? Judging by the recent declarations from the Iranian President, he is even convinced that can enrich uranium to ever higher levels, up shouting to the world: we have the atomic bomb! Open the eyes, Obama, but do not fall in dirty scam, as George W. Bush, who started a war against Iraq, but Saddam Hussein (already hanged!), although screaming that had weapons of mass destruction, in fact only had old rusty shotguns. The History likes to repeat. Be careful. Ritacos [ritacos@bol.com.br] Ritacos Report As Abusive See All Comments (3) Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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