Attack at Algeria Gas Plant Heralds New Risks for Energy Development

The siege by Islamic militants at a remote Sahara desert natural gas plant in Algeria this week signaled heightened dangers in the region for international oil companies, at a time when they have been expanding operations in Africa as one of the world's last energy frontiers. (See related story: "Pictures: Four New Offshore Drilling Frontiers.")

As BP, Norway's Statoil, Italy's Eni, and other companies evacuated personnel from Algeria, it was not immediately clear how widely the peril would spread in the wake of the hostage-taking at the sprawling In Amenas gas complex near the Libyan border.

Map by National Geographic

Algeria, the fourth-largest crude oil producer on the continent and a major exporter of natural gas and refined fuels, may not have been viewed as the most hospitable climate for foreign energy companies, but that was due to unfavorable financial terms, bureaucracy, and corruption. The energy facilities themselves appeared to be safe, with multiple layers of security provided both by the companies and by government forces, several experts said. (See related photos: "Oil States: Are They Stable? Why It Matters.")

"It is particularly striking not only because it hasn't happened before, but because it happened in Algeria, one of the stronger states in the region," says Hanan Amin-Salem, a senior manager at the industry consulting firm PFC Energy, who specializes in country risk. She noted that in the long civil war that gripped the country throughout the 1990s, there had never been an attack on Algeria's energy complex. But now, hazard has spread from weak surrounding states, as the assault on In Amenas was carried out in an apparent retaliation for a move by French forces against the Islamists who had taken over Timbuktu and other towns in neighboring Mali. (See related story: "Timbuktu Falls.")

"What you're really seeing is an intensification of the fundamental problem of weak states, and empowerment of heavily armed groups that are really well motivated and want to pursue a set of aims," said Amin-Salem. In PFC Energy's view, she says, risk has increased in Mauritania, Chad, and Niger—indeed, throughout Sahel, the belt that bisects North Africa, separating the Sahara in the north from the tropical forests further south.

On Thursday, the London-based corporate consulting firm Exclusive Analysis, which was recently acquired by the global consultancy IHS, sent an alert to clients warning that oil and gas facilities near the Libyan and Mauritanian borders and in Mauritania's Hodh Ech Chargui province were at "high risk" of attack by jihadis.

"A Hot Place to Drill"

The attack at In Amenas comes at a time of unprecedented growth for the oil industry in Africa. (See related gallery: "Pictures: The Year's Most Overlooked Energy Stories.") Forecasters expect that oil output throughout Africa will double by 2025, says Amy Myers Jaffe, executive director of the energy and sustainability program at the University of California, Davis, who has counted 20 rounds of bidding for new exploration at sites in Africa's six largest oil-producing states.

Oil and natural gas are a large part of the Algerian economy, accounting for 60 percent of government budget revenues, more than a third of GDP and more than 97 percent of its export earnings. But the nation's resources are seen as largely undeveloped, and Algeria has tried to attract new investment. Over the past year, the government has sought to reform the law to boost foreign companies' interests in their investments, although those efforts have foundered.

Technology has been one of the factors driving the opening up of Africa to deeper energy exploration. Offshore and deepwater drilling success in the Gulf of Mexico and Brazil led to prospecting now under way offshore in Ghana, Mozambique, and elsewhere. (See related story: "New Oil—And a Huge Challenge—for Ghana.") Jaffe says the Houston-based company Anadarko Petroleum has sought to transfer its success in "subsalt seismic" exploration technology, surveying reserves hidden beneath the hard salt layer at the bottom of the sea, to the equally challenging seismic exploration beneath the sands of the Sahara in Algeria, where it now has three oil and gas operations.

Africa also is seen as one of the few remaining oil-rich regions of the world where foreign oil companies can obtain production-sharing agreements with governments, contracts that allow them a share of the revenue from the barrels they produce, instead of more limited service contracts for work performed.

"You now have the technology to tap the resources more effectively, and the fiscal terms are going to be more attractive than elsewhere—you put these things together and it's been a hot place to drill," says Jaffe, who doesn't see the energy industry's interest in Africa waning, despite the increased terrorism risk. "What I think will happen in some of these countries is that the companies are going to reveal new securities systems and procedures they have to keep workers safe," she says. "I don't think they will abandon these countries."

This story is part of a special series that explores energy issues. For more, visit The Great Energy Challenge.

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Obamas Share the Love, Even for Michelle's Bangs

Jan 20, 2013 10:49pm

(Charles Dharapak/AP Photo)

President Obama used the first public remarks of his second term to address what he called the “most significant” event of this weekend: his wife’s much-talked-about new haircut.

“I love her bangs,” Obama told supporters at an inaugural reception at the National Building Museum. “She looks good. She always looks good.”

First lady Michelle Obama, wearing a black sequined cocktail dress and showcasing her new hairdo, also heaped compliments on her husband.

“Let me tell you, it has just been a true thrill to watch this handsome, charming individual grow into the man and the president that he is,” she said, as she reached out to playfully touch the president’s face, sparking laughter from the crowd.

Praising his compassion and courage, the first lady introduced the president as the “love of her life.”

Obama, who was sworn in for a second term in a small White House ceremony earlier today, kept his remarks short, noting he has another big speech to deliver Monday.

“There are a limited amount of good lines and you don’t want to use them all up tonight,” he joked.

Because the Constitutionally mandated date for the inauguration, Jan. 20, fell on a Sunday this year, the traditional, public ceremony was delayed until Monday.

Saving the best for his official inaugural address, the president instead dedicated the bulk of his remarks to thanking supporters for their hard work and dedication to getting him re-elected.

“You understood this was not just about a candidate; it was not just about Joe Biden or Barack Obama. This was about us, who we are as a nation, what values we cherish, how hard we’re willing to fight to make sure that those values live not just for today but for future generations,” he said.

“All of you here understood and were committed to the basic notion that when we put our shoulders to the wheel of history, it moves… It moves forward. And that’s part of what we celebrate when we come together for inauguration,” he said.

SHOWS: World News

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Biden’s gun task force met with all sides, but kept its eye on the target

Vice President Biden was curt, avoiding confrontation when he sat down with the National Rifle Association and other gun rights advocates. He looked across the table in his ornate conference room and asked the NRA official if his group could back a ban on assault weapons.

“No,” was James J. Baker’s reply.

There was little discussion, no real debate over whether a 1990s ban had worked. The two men simply moved on. Biden, leading a task force to study gun violence, was certain of the course of action President Obama would end up taking, and Baker was just as certain that the NRA would work to stop it.

In the 33 days after the massacre at Sandy Hook Elementary School, gun control rocketed through what one administration official called “a time warp,” transforming from an issue that was politically off-limits to one at the top of Obama’s agenda.

At the center of the transformation was the Biden-led task force. It held 22 meetings, most of them in the same week and many stretching past two hours, Biden furiously scribbling notes in a black leather-bound spiral notebook. The group collected ideas from 229 organizations — or, as Biden put it in a speech last week, “reviewing just about every idea that had been written up only to gather dust on the shelf of some agency.”

The vice president personally placed phone calls, too, including a 45-minute chat one night with the parents of a student who died at Sandy Hook.

“It was like watching an entire term of Senate hearings compressed into a week,” said one administration official who, like others interviewed, spoke on the condition of anonymity to talk candidly. “He was gently interrogating witnesses, following up, finding common ground, finding discrepancies.”

The outcome was never in doubt, however. From the outset, Obama made clear he would champion universal background checks for all gun buyers and bans on assault weapons and high-capacity ammunition magazines.

“I feel like to a certain extent they were checking the box, to say we’ve met with all the stakeholders and now we’re going to do what we’re going to do,” Baker, the NRA lobbyist, said of the task force.

Biden’s task force was less about determining which of the big-ticket items to recommend — it recommended them all — and more about involving each interest group in a process that could build a diverse coalition to lobby Congress.

A strategy took shape to undercut the NRA by appealing to its membership base through more friendly groups, such as evangelical pastors and sportsmen’s associations.

The representative of the hunters group Ducks Unlimited, for instance, presented Biden with a wooden duck decoy. In that meeting, Biden conceded that any push for universal background checks could include exceptions for gun transfers between family members.

“He wasn’t challenging their positions,” said an official. “He was looking for space between their positions and where we are — space where things can happen.”

The task force also provided Biden with his latest prominent role on a high-profile issue. Biden looks to be at the center of every big policy push of the second term, from taxes and debt to the war in Afghanistan. His performance will affect not only his ambitions for a possible third run at the presidency, but also Obama’s legacy. On guns, an issue Biden knows well, he plans to go out on the hustings to rally public support.

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By-election is about choosing the right candidate who can serve: minister

SINGAPORE: Education Minister Heng Swee Keat said the by-election in Punggol East is not about voting more opposition into Parliament.

He said it is about electing the right candidate who can best serve the residents in the ward.

Mr Heng said these in response to comments made by the Workers' Party (WP) secretary-general Low Thia Khiang at the WP rally on Saturday.

Mr Low had said that residents should vote for the opposition to make the government work harder for them.

Mr Heng said the government is already working hard to improve the lives of Singaporeans.

He said the People's Action Party candidate for Punggol East Koh Poh Koon is a sincere, dedicated and hardworking man.

And that Dr Koh will work hard to understand the needs of residents and work with ministers to convey feedback to improve the lives of residents.

Mr Heng urged voters to focus on what Dr Koh can do for them and how he can contribute to a better future for them.

He said voters should cast their votes on who is the best person to serve residents and not to serve the interests of the opposition party.

- CNA/ck

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UPA has fulfilled most of the promises made in 2004, 2009, PM says

JAIPUR: Prime minister Manmohan Singh has expressed hope that the Jaipur chintan shivir will give a new direction to the party.

Addressing workers on the last day of the meeting here, Manmohan Singh highlighted the achievements of the UPA government.

The government has fulfilled most of the promises made in 2004 and 2009, the PM said.

Manmohan stressed the need to improve communication strategy to ensure the good work done by the government is made known to the people.

The PM claimed that poverty had gone down under the UPA rule and said it is important to tell the people how they have benefited from the central schemes.

The PM said the UPA government had done better than the previous NDA government.

Speaking on the recent tension at the LoC, Prime Minister Manmohan Singh said we want friendship with our neighbour, but for that they will also have to make an effort.

Earlier, Congress president Sonia Gandhi outlined the road ahead for the party.

Expressing happiness at the large participation of youth leaders, she said it was a positive sign for the party.

Sonia said the party must lead the 'struggle' to counter the effect of corruption.

"Let me reiterate corruption at all levels is a deep-rooted malice and all sections of society are effected by it. As a party we must lead struggle to combat its effect," Sonia Gandhi said.

She said corruption was the main concern of the nation when the party held its session at Burari in July 2011 and the party has moved on with a five-point agenda to deal with corruption.

The key among the steps taken was introducing Lokpal Bill in the Parliament and introducing more transparency in process of allocating natural resources, said the Congress president.

"We have introduced path breaking legislation for grievance redressal, whistle blowers, and historic 'apka paisa apke hath' (your money in your hands, the direct cash transfer scheme) initiative," she said.

Referring to the brutal gang-rape in the national capital that shook the nation, Gandhi described the victim as a symbol of women and children who suffer from similar fates.

Her death would not go in vain, she said and added that every woman and every girl has a fundamental right to be secure and safe in the country.

Sonia vowed to take personal initiative to see that women are adequately represented in the Parliament.

She also objected to some of the outrageous comments made by certain politicians, adding that:"We can not tolerate mindsets that lead to crimes against women. Every woman, every girl in our country has the fundamental right to be secure and safe."

"I will personally continue to press for the Women's Reservation Bill which will allow 1/3rd reservation for women in Parliament and state legislatures," she said.
Sonia Gandhi also stressed the need for electoral reforms in her speech.

She also highlighted the achievements of the UPA government.

The draft Jaipur declaration of the Congress party has called on all secular and progressive forces to unite in ideological battle against those who polarize and divide society.

The draft says that the party will go to the people on the basis of performance of UPA govt, the promise of stability and good governance and restatement of its core values.

(With inputs from agencies)

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Attack at Algeria Gas Plant Heralds New Risks for Energy Development

The siege by Islamic militants at a remote Sahara desert natural gas plant in Algeria this week signaled heightened dangers in the region for international oil companies, at a time when they have been expanding operations in Africa as one of the world's last energy frontiers. (See related story: "Pictures: Four New Offshore Drilling Frontiers.")

As BP, Norway's Statoil, Italy's Eni, and other companies evacuated personnel from Algeria, it was not immediately clear how widely the peril would spread in the wake of the hostage-taking at the sprawling In Amenas gas complex near the Libyan border.

Map by National Geographic

Algeria, the fourth-largest crude oil producer on the continent and a major exporter of natural gas and refined fuels, may not have been viewed as the most hospitable climate for foreign energy companies, but that was due to unfavorable financial terms, bureaucracy, and corruption. The energy facilities themselves appeared to be safe, with multiple layers of security provided both by the companies and by government forces, several experts said. (See related photos: "Oil States: Are They Stable? Why It Matters.")

"It is particularly striking not only because it hasn't happened before, but because it happened in Algeria, one of the stronger states in the region," says Hanan Amin-Salem, a senior manager at the industry consulting firm PFC Energy, who specializes in country risk. She noted that in the long civil war that gripped the country throughout the 1990s, there had never been an attack on Algeria's energy complex. But now, hazard has spread from weak surrounding states, as the assault on In Amenas was carried out in an apparent retaliation for a move by French forces against the Islamists who had taken over Timbuktu and other towns in neighboring Mali. (See related story: "Timbuktu Falls.")

"What you're really seeing is an intensification of the fundamental problem of weak states, and empowerment of heavily armed groups that are really well motivated and want to pursue a set of aims," said Amin-Salem. In PFC Energy's view, she says, risk has increased in Mauritania, Chad, and Niger—indeed, throughout Sahel, the belt that bisects North Africa, separating the Sahara in the north from the tropical forests further south.

On Thursday, the London-based corporate consulting firm Exclusive Analysis, which was recently acquired by the global consultancy IHS, sent an alert to clients warning that oil and gas facilities near the Libyan and Mauritanian borders and in Mauritania's Hodh Ech Chargui province were at "high risk" of attack by jihadis.

"A Hot Place to Drill"

The attack at In Amenas comes at a time of unprecedented growth for the oil industry in Africa. (See related gallery: "Pictures: The Year's Most Overlooked Energy Stories.") Forecasters expect that oil output throughout Africa will double by 2025, says Amy Myers Jaffe, executive director of the energy and sustainability program at the University of California, Davis, who has counted 20 rounds of bidding for new exploration at sites in Africa's six largest oil-producing states.

Oil and natural gas are a large part of the Algerian economy, accounting for 60 percent of government budget revenues, more than a third of GDP and more than 97 percent of its export earnings. But the nation's resources are seen as largely undeveloped, and Algeria has tried to attract new investment. Over the past year, the government has sought to reform the law to boost foreign companies' interests in their investments, although those efforts have foundered.

Technology has been one of the factors driving the opening up of Africa to deeper energy exploration. Offshore and deepwater drilling success in the Gulf of Mexico and Brazil led to prospecting now under way offshore in Ghana, Mozambique, and elsewhere. (See related story: "New Oil—And a Huge Challenge—for Ghana.") Jaffe says the Houston-based company Anadarko Petroleum has sought to transfer its success in "subsalt seismic" exploration technology, surveying reserves hidden beneath the hard salt layer at the bottom of the sea, to the equally challenging seismic exploration beneath the sands of the Sahara in Algeria, where it now has three oil and gas operations.

Africa also is seen as one of the few remaining oil-rich regions of the world where foreign oil companies can obtain production-sharing agreements with governments, contracts that allow them a share of the revenue from the barrels they produce, instead of more limited service contracts for work performed.

"You now have the technology to tap the resources more effectively, and the fiscal terms are going to be more attractive than elsewhere—you put these things together and it's been a hot place to drill," says Jaffe, who doesn't see the energy industry's interest in Africa waning, despite the increased terrorism risk. "What I think will happen in some of these countries is that the companies are going to reveal new securities systems and procedures they have to keep workers safe," she says. "I don't think they will abandon these countries."

This story is part of a special series that explores energy issues. For more, visit The Great Energy Challenge.

Read More..

Algeria Hostage Crisis Over, One American Dead

After the Algerian military's final assault on terrorists holding hostages at a gas complex, the four-day hostage crisis is over, but apparently with additional loss of life among the foreign hostages.

One American, Fred Buttaccio of Texas, has been confirmed dead by the U.S. State Department. Two more U.S. hostages remain unaccounted for, with growing concern among U.S. officials that they did not survive.

But another American, Mark Cobb of Corpus Christi, Texas is now confirmed as safe. Sources close to his family say Cobb, who is a senior manager of the facility, is safe and reportedly sent a text message " I'm alive."

Inside Algerian Hostage Crisis, One American Dead Watch Video

American Hostages Escape From Algeria Terrorists Watch Video

In a statement, President Obama said, "Today, the thoughts and prayers of the American people are with the families of all those who were killed and injured in the terrorist attack in Algeria. The blame for this tragedy rests with the terrorists who carried it out, and the United States condemns their actions in the strongest possible terms. ... This attack is another reminder of the threat posed by al Qaeda and other violent extremist groups in North Africa."

According to Algerian state media, 32 militants are dead and a total of 23 hostages perished during the four-day siege of the In Amenas facility in the Sahara. The Algerian Interior Ministry also says 107 foreign nationals who worked at the facility for BP and other firms were rescued or escaped from the al Qaeda-linked terrorists who took over the BP joint venture facility on Wednesday.

The Japanese government says it fears "very grave" news, with multiple casualties among the 10 Japanese citizens working at the In Amenas gas plant.

Five British nationals and one U.K. resident are either deceased or unaccounted for in the country, according to British Foreign Minister William Hague. Hague also said that the Algerians have reported that they are still trying to clear boobytraps from the site.

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Earl Smith is the man behind a military patch that President Obama prizes

AUSTIN — That February morning in 2008 found Barack Obama decidedly out of sorts.

He was locked in one battle with Hillary Rodham Clinton for the Democratic nomination that showed no signs of ending — and another with a vicious cold that felt the same way.

As he rode the service elevator in the backway of a convention hotel here, the snowy-haired African American operating it turned suddenly. He held out a black-and-gold bit of fabric embroidered with a screaming eagle.

“Senator Obama, I have something I want to give you,” the man said. “I’ve carried this military patch with me every day for 40 years, and I want you to carry it, and it will keep you safe in your journey.” Obama tried to refuse, but the older man persisted.

Big endeavors can find their meaning in small moments.

Later that day, Obama and his aides discussed the encounter. The future president pulled the patch from his pocket, along with about a dozen other items people had pressed upon him.

“This is why I do this,” he said. “Because people have their hopes and dreams about what we can do together.”

Two American stories intersected that morning in that elevator. The more famous, of course, is the one that begins its next chapter on Monday, as the nation’s first black president takes the oath of office for a second term.

But the other story also tells a lot about where this country has been and how far it has come.

No one in Obama’s small party that day noticed the man’s name tag or, if anyone did, the fact that it said Earl Smith was quickly forgotten.

No one knew how much of Smith’s life had been woven into a patch that, over four decades, found its way from the shoulder of an Army private to the pocket of a future commander-in-chief.

It was the only shred of cloth he had saved from the uniform of a nightmarish year in Vietnam. Smith fired artillery with a brigade that suffered 10,041 casualties during the course of the war. The brigade’s soldiers received 13 Congressional Medals of Honor.

The patch was waiting among his possessions when Smith was pardoned by the state of Georgia in 1977 after spending three years in prison for a crime he claimed was self-defense.

Smith kept it close as his lucky charm while he rebuilt his life and his reputation, starting with a job vacuuming hallways and changing sheets in an Atlanta Marriott. He carried it with him as he traveled halfway around the world again, to positions in hotels far from home, Riyadh in Saudi Arabia and Abu Dhabi in the United Arab Emirates.

Along the way, as he tended to travelers and made sure VIP gatherings went smoothly, he met three U.S. presidents.

His instincts told him Obama would make it four.

Like just about anyone else who was alive on Nov. 22, 1963, Smith can describe exactly where he was when he heard the horrific news: He was coming off a high school football practice field in his home town of San Benito, Tex.

Though not yet old enough to have voted for the man slain in Dallas, “I was devastated — a lot of us young people were — because John Kennedy was the young president,” recalled Smith, now 68.

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UN council slams 'heinous' Algeria attacks

UNITED NATIONS: The UN Security Council on Friday strongly condemned the "heinous" attack and hostage-taking at an Algerian gas complex by Al-Qaeda linked militants.

A statement agreed by the 15-member council stressed the need to bring the Al-Qaeda linked attackers and their backers to justice.

At least 12 hostages and 18 kidnappers were killed in an assault by Algerian security forces on the Sahara desert complex. Between seven and 10 hostages were still being held.

"The Security Council condemned in the strongest terms the terrorist attack in In Amenas, Algeria," said the statement.

The council expressed "deep sympathy and sincere condolences to the victims of these heinous acts and their families and to the people and governments of Algeria and those countries whose nationals have been affected."

It "underlined the need to bring perpetrators, organizers, financiers and sponsors of these reprehensible acts of terrorism to justice."

In addition, it urged all countries "to cooperate actively with the Algerian authorities" in line with international law and Security Council resolutions.

The statement also added a phrase that said countries must ensure that "measures taken to combat terrorism comply with all their obligations under international law, in particular international human rights, refugee and humanitarian law."

Several countries have urged Algeria to do everything to prevent harm to the remaining hostages at In Amenas.

- AFP/ck

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India hesitant to implement US, EU sanctions on Iran: Report

WASHINGTON: India is hesitant to implement all aspects of US and European Union sanctions against Iran, a congressional report has said, attributing this to New Delhi's reliance on Tehran with regards to Afghanistan and the historic, cultural and economic ties between the two nations.

"India is implementing UN sanctions against Iran but its cultural, economic, and historic ties--as well as its strategic need for access to Afghanistan-- have made India hesitant to adopt all aspects of US and EU sanctions on Iran," the independent and bipartisan Congressional Research Service (CRS) said in its latest report on Iran.

"India first signalled greater support for sanctioning Iran in late 2012 when its central bank ceased using a Tehran-based regional body, the Asian Clearing Union, to handle transactions with Iran," said the report.

Apparently perceiving international sentiment for tightening sanctions on Iran, India has been reducing its dependence on Iranian oil, CRS said.

Since 2008, India has reduced its imports of Iranian oil by volume and as a percentage of India's total oil imports, to the point where, by the end of 2012, Iran was only supplying about 10 per cent of India's oil imports, down from over 16 per cent in 2008, it said.

"Despite requiring significant investment to switch over refineries that handle Iranian crude, deputy oil minister R P N Singh told India's Parliament on May 15, 2012, that India would cut Iranian imports by another 11 per cent from May 2012 until the end of India's fiscal year in March 2013," the CRS told US lawmakers on its latest report on Iran.

"The Obama administration welcomed the pledge, and India received an exemption from P L 112-81 sanctions on June 11, 2012. Indian refiners have cut buys from Iran largely in line with the government's requests, although some months might show fluctuations as batches of oil shipments arrive. India's exemption was renewed on December 7, 2012," it noted.

CRS said India appears to be distancing itself from participation in the Iran-Pakistan gas pipeline project.

India reportedly has been concerned about the security of the pipeline, the location at which the gas would be officially transferred to India, pricing of the gas, tariffs, and the source in Iran of the gas to be sold.

If Iran resolves its disputes with the international community, India may envision an alternative to the pipeline project as a means of tapping into Iran's vast gas resources.

"During high-level economic talks in early July 2010, Iranian and Indian officials reportedly raised the issue of constructing an underwater natural gas pipeline, which would avoid going through Pakistani territory. However, such a route would presumably be much more expensive to construct than would be an overland route," it said.

According to a table compiled by CRS, even as India has considerably reduced its import of oil from Iran from a high 320,000 barrels per day (bpd) in 2011 to 280,000 bpd in 2012, it is the second largest importer of crude oil after China, which in 2012 imported 400,000 bpd.

CRS said the international sanctions has adversely affected Iran's economy to the point where key Iran leaders are considering the need for a nuclear compromise.

"Oil exports provide about 70 percent of Iran's government revenues and Iran's oil exports declined to about 1.25 million barrels by the end of 2012--a dramatic decline from the 2.5 million barrels per day Iran exported during 2011.

"The cause of the drop has been a European Union embargo on purchases of Iranian crude oil that took full effect on July 1, 2012 coupled with decisions by several other Iranian oil customers to substantially reduce purchases of Iranian oil in order to comply with a provision of the FY2012 National Defence Authorisation Act (P L 112-81). To date, 20 countries have been deemed in compliance," it said.

"The loss of hard currency revenues from oil--coupled with the cut-off of Iran from the international banking system and the decline of Iran's foreign exchange reserves--caused a collapse in the value of Iran's currency, the rial, in early October," CRS said.

That collapse prompted street demonstrations and, in response, Iran has tried to impose currency controls and arrested some illegal currency traders.

These steps have not restored public confidence in the regime's economic management--inflation has soared, industrial production has fallen, and some of the more expensive medicines are reported to be in short supply, it said.

CRS said sanctions may be slowing Iran's nuclear and missile programs by hampering Iran's ability to obtain some needed technology from foreign sources.

However, Department of Defence and other assessments indicate that sanctions have not stopped Iran from developing some new weaponry with indigenous skills.

"Iran is also judged not complying with UN requirements that it halt any weapons shipments outside its borders, particularly with regard to purported Iranian weapons shipments to help the embattled Assad government in Syria.

"And, international sanctions targeting the regime's human rights abuses do not appear to have altered Iran's repression of dissent or its efforts to monitor public use of the Internet," it said.

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