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Iran: Second stage of suspension of commitments under JCPOA nuclear deal

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On May 8, 2019 – exactly a year after President Donald Trump’s catastrophically ill-advised decision to withdraw the United States from the Joint Comprehensive Plan of Action (JCPOA) and impose financial and economic sanctions on the Islamic Republic of Iran (IRI), Iranian President Hassan Rouhani said that Tehran was suspending the implementation of two of its commitments under the landmark nuclear accord, signed in 2015.  “Tehran has spent a whole year waiting for the remaining signatories to the agreement to fulfill their part of the obligations,” Rouhani said in televised remarks.  

Tehran insists that since the parties to the 2015 nuclear deal, above all the Europeans, have failed to fully meet their commitments concerning the economic part of the agreement, maintaining the JCPOA in its present form makes no sense. Iran did not follow the US example and leave the JCPOA though. It only warned the other signatories that it might do so, giving them two months to compensate for Washington’s withdrawal and guarantee Iran’s interests. This deadline expired on July 7.

During those past two months, Tehran refused to sell uranium enriched up to 3.67 percent to either Russia or the United States above the 300 kg limit.  By the time the JCPOA deal was signed, Iran had accumulated 10,357 kg of such uranium, and 410.4 kg of uranium enriched up to 20 percent. By 2019, Tehran had eliminated its stocks of 20%-enriched uranium and was selling surplus low-enriched uranium (LEU) to Russia and the US.  According to the terms of the JCPOA deal, Iran was allowed to enrich limited quantities of uranium for scientific purposes, and export surplus quantities exceeding the 300 kg limit. Now Iran is stocking up on LEU again. Tehran has been doing the same with its surplus heavy water necessary for the production of plutonium, which is at the heart of the production of plutonium-based nuclear weapons. Iran has a heavy water producing plant, which is not on the list of facilities banned by the JCPOA, but it is still not allowed to store more than 130 tons of heavy water. Tehran previously exported 32 tons of heavy water to the United States and 38 tons to the Russian Federation. After May 8, however, it started accumulating heavy water.

President Rouhani insisted that Iran’s interests, above all the freedom to sell oil and the lifting of sanctions imposed on its banking sector, be ensured.  No miracle happened though, as the European Union, above all Germany, France and Britain the United Kingdom have failed to create an effective mechanism to compensate for the negative impact of US sanctions on the Iranian economy.

On June 28, Germany, France and the United Kingdom set up INSTEX (Instrument in Support of Trade Exchanges) – a new transaction channel that will allow companies to continue trading with Iran despite US sanctions. However, this system has so far focused on the supply of humanitarian goods to Iran (medicines, medical equipment, food). Iran wants more though: it needs free oil exports and free banking.

Sadly, the European powers are not yet ready to guarantee this, apparently hating the prospect of coming under Trump’s sanctions.

Iran is now announcing a new stage of its struggle. As it earlier promised, within the next 60 days Tehran will lift restrictions on the level of uranium enrichment (currently at 3.67 percent) bringing it to a level it needs. Weapons-grade uranium is enriched to 90 percent. It’s really a long way moving from 3.67 percent all the way up to 90 percent. What is really dangerous, however, is that Iran is now moving exactly in this direction. Back in January, Ali Akbar Salehi, the head of the Atomic Energy Organization of Iran (AEOI), said that his country was now all set to resume uranium enrichment in a wider scale and with a higher level of enrichment.

On June 7, AEOI spokesman Behrouz Kamalvandi said that Iran was fully prepared to increase uranium enrichment to any level, adding that the enrichment level would soon be brought to 5 percent. The following day, he said that “Iran has surpassed the uranium enrichment level of 4.5 percent. The level of purity is sufficient to meet the country’s needs in providing fuel to our power plants,” he added.

In the second stage of suspensions of its commitments under the JCPOA deal, Iran will move forward also on the plutonium track. It has just announced the termination of work done by a special group of experts concerning the reconstruction of a heavy water reactor in Arak. The IR-40 reactor was designed to produce up to 10 kilograms of weapons-grade plutonium a year, which is enough fissile material for making approximately two plutonium bombs. The JCPOA envisages reformatting the reactor so that it is not capable of producing weapons-grade plutonium. It is exactly for this purpose that a working group was set up consisting of representatives of the Atomic Energy Organization of Iran, the Atomic Energy Authority of China and the US Department of Energy. In 2017, experts from the United States replaced their British colleagues during the Arak reactor redesign process. According to an official Iranian report released in April 2018, “conceptual reconstruction of the reactor” had already been completed. However, the reconstruction process is slow and easily reversible. At the end of May, Iranian Deputy Foreign Minister Abbas Araghchi said that “We don’t count on JCPOA and JCPOA participants in the Arak project anymore. We will do it ourselves.”

Finally, it was announced that the process of accumulating heavy water for the IR-40 reactor was in full swing. Allaying all doubts, President Hassan Rouhani said loud and clear that after July 7, Iran would refuse to reformat the Arak reactor and would bring it back to a state, which foreign countries describe as dangerous and capable of producing plutonium, if the other signatories to the JCPOA agreement failed to honor their obligations.

Unpleasant news, but fully predictable too, following the US withdrawal from the nuclear deal. It took the whole world by surprise.

Berlin has expressed “grave concern” overTehran’s plans to enrich uranium above levels allowed by the JCPOA deal.

“We have repeatedly appealed to Iran not to take further action to destroy the nuclear deal. And now we are urging Tehran to refrain from any steps that are contrary to its commitments under the JCPOA system,” the German foreign ministry said in a statement.

Paris was seriously alarmed by Tehran’s stated desire to raise the level of uranium enrichment above 3.67 percent fissile purity set in the JCPOA.

“We urge Iran to cease all activities that do not meet its obligations under the JCPOA,” the French foreign ministry said in a statement.

According to the Élysée Palace, President Emmanuel Macron will soon resume consultations on this issue with the Iranian authorities and concerned international partners, and will, before July 15, examine conditions for resuming dialogue with all parties.

London will remain committed to the nuclear deal with Iran, although it believes that Tehran’s actions breach the terms of the agreement, the British Foreign Office said. Simultaneously, the Foreign Office is coordinating its actions with the other signatories to the JCPOA deal and discussing with them what should be done next.

The European Union is extremely concerned about Iran’s plans and is urging Tehran to roll back its nuclear activities, which are not covered by the JCPOA agreement. However, the EU is waiting for official conclusions by the IAEA concerning Tehran’s steps before it outlines its official response.

Iran will take center stage at the meeting of EU foreign ministers, scheduled for July 15.

The EU countries, as co-authors of the JCPOA accord, are mulling the possibility of holding a summit to discuss the situation.

Tokyo is equally worried about Iran’s intention to begin uranium enrichment above 3.67 percent, and urges Tehran to immediately resume the implementation of the JCPOA accord. Japan believes that the Islamic Republic should stick to its commitments under the nuclear deal.

Jerusalem believes that the steps being taken by Iran to raise the level of uranium enrichment are “moderate.” Meanwhile, Israeli Energy Minister Yuval Steinitz said that Iran is on its way to producing nuclear bombs.

Prime Minister Benjamin Netanyahu, for his part, described Iran’s new decision as “very dangerous,” and urged France, Britain and Germany to impose “paralyzing sanctions” on Tehran.

Washington, in the person of President Trump, called the Iranian officials “bad guys,” just as he usually does, and advised Tehran to be careful about what it says and does.

“Iran does a lot of bad things. The Obama agreement [on this deal in 2015] was the most foolish agreement that you will ever find,” Trump said. He added that there will be a very serious discussion of this issue, either now or within the next few days. “Iran will never have a nuclear weapon,” Trump said bluntly.

Echoing the president, US Secretary of State Mike Pompeo is equally tough on Iran intimidating Tehran with new sanctions and threatening to completely isolate the country if it makes no concessions.

The truth is, however, that all this mayhem around Iran was provoked by Washington, while Tehran is just trying to push back the best way it can.  Moreover, it is doing this strictly in the framework of the JCPOA, a document approved by Resolution 2231 of the UN Security Council. Article 26 of the JCPOA prescribes the European Union and the United States to refrain from re-introducing or re-imposing sanctions against Iran. Moreover, the Article states that Iran will treat a re-imposition of sanctions or the introduction of new nuclear-related sanctions “as grounds to cease performing its commitments under this JCPOA in whole or in part.” This is exactly what Tehran is doing.

Beijing describes President Trump’s policy of “putting maximum pressure” on Iran as the main reason for Tehran’s retaliatory decision to suspend the implementation of some of its commitments under the JCPOA deal. Simultaneously, China regrets the measures being taken by Iran, and calls on all parties to show maximum restraint and stick to the terms of the 2015 nuclear accord in order to avoid any further escalation.

Russia fully understands the reasons behind Iran’s actions, but still urges Tehran to refrain from taking any further steps that could complicate the situation. Mikhail Ulyanov, Russia’s Permanent Representative at International Organizations in Vienna, hopes that the level of uranium enrichment in Iran will not exceed 5 percent. He also believes that there is no danger of nuclear proliferation.

Russia’s Deputy Foreign Minister Sergei Ryabkov warned against attempts to overdramatize the whole situation and urged the parties to show restraint and keep the nuclear deal alive.

“We urge everyone to show restraint, we urge the European signatories to the JCPOA not to ramp up tensions over the issue. We urge our Iranian colleagues to be extremely responsible, as before, in what they do in this respect, especially where it comes to the implementation of a comprehensive safeguards agreement with the IAEA and an additional protocol to this agreement, not to mention maintaining Iran’s participation in the NPT accord. There have been alarming signals to this effect coming from Tehran and we would certainly not welcome, to put it mildly, any movement in this direction,” Ryabkov emphasized.

The IAEA has decided to hold an emergency meeting on the Iranian issue and the Agency’s Board of Governors met on July 10 to discuss concerns about the nuclear report issued by the Iranian authorities.

Virtually the entire world understands Tehran’s position and the measures it has been taking to counteract the US sanctions, but it still urges it to show restraint in order to avoid any further spike in tensions.

Is it really possible to defuse tensions? Well, this depends on multiple factors, both internal and external.

The main thing, however, is whether the European Union is able to make a dent in Washington’s financial, economic (and, above all, oil) blockade of Iran. Will Europe face a serious confrontation with the United States? How satisfied will Tehran be with the EU’s actions and assistance it could get on the matter from China and Russia?

Presently, these questions defy easy answers, although many observers believe that, unfortunately, these answers could be pretty pessimistic. Iran’s Deputy Foreign Minister Abbas Araghchi said that Iran would suspend ever more commitments to the JCPOA once every 60 days if its signatories failed to adhere to the terms of the landmark deal. 

What are the further steps that the Iranians could take as they roll back their commitments under the JCPOA deal? According to political analysts, a discontented Iran could keep stocking up on low-enriched uranium and heavy water above the caps set by the nuclear deal. The most dangerous thing, however, is that if Tehran starts to raise the level of uranium enrichment to 20 percent or above, it will restore the nuclear reactor in Arak to the condition it was in before the nuclear deal was signed, and limit, or even end, any oversight by IAEA inspectors. 

According to experts, the next, “reverse” re-equipment of the reactor to its pre-2015 state will take a lot of time and cost a lot of money. Despite the really drawn out process of conversion to a “safe” state, the head of AEOI Ali Akbar Salehi said in 2016 that after reconfiguration, the reactor would take between three and four years to go on-stream – sometime around 2020. The reactor, modified according to JCPOA specifications, is about 75 percent ready now. This means that “reverse-converting” it to a working “plutonium” state will take at least several years.

The same is true with the uranium program. According to the London-based International Institute for Strategic Studies (IISS), in 2013, at the height of its nuclear infrastructure development, of all enriched uranium stored in Iran, about 120-130 kg of 93 percent-enriched uranium could be obtained, which is enough for building five nuclear charges.

US and Israeli physicists believed that it would take between a year or two for Iran to achieve these indicators. It was a purely mathematical calculation though, which ignored a whole variety of external and internal factors. The specialists were not sure that Iran possessed sufficiently advanced technology and chemically pure substances to ensure a gradual increase in uranium enrichment up to 90 percent and be able to turn uranium from gaseous state to that of a high-quality metal, necessary for the creation of a nuclear charge.

Therefore, it would actually take Iran at least a decade to create a ready-for-use nuclear weapon (a missile warhead). And this provided there is no outside interference.

In view of the above, it would be safe to assume that Iran will take months, and in some cases even years, to restore the highest level of its nuclear infrastructure development. This is the relative time frame within which Iran’s nuclear program could get a new start. If, of course, it is allowed to make such a start.

How to prevent a military solution to the Iranian nuclear issue? This question takes us back again to the year 2012. There are two answers: war or negotiations. Since no one wants war, either in Tehran, Washington, Jerusalem or anywhere else, then negotiations are the way to go.

Washington appears ready for negotiations with Tehran without any preliminary conditions, that is, with continued US pressure on Iran and tough sanctions.

Tehran may start negotiations with Washington if these sanctions are lifted and with a permission from the country’s supreme leader Ayatollah Khamenei.

On May 31, Russian Foreign Minister Sergei Lavrov said: “We will welcome the start of negotiations between the US and Iran … <…> But we are convinced that negotiating from the position of “first, I will strangle you economically, and then you will beg us to negotiate,” is not something we perceive as a model for behavior on the foreign policy front.”

From our partner International Affairs

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Middle East

“Today Saudi Arabia finally lost the war on Yemen.”

Eric Zuesse

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On August 17th, an anonymous German intelligence analyst who has perhaps the world’s best track-record of publicly identifying and announcing historical turning-points, and who is therefore also a great investigative journalist regarding international relations (especially military matters, which are his specialty) headlined at his “Moon of Alabama” blog, “Long Range Attack On Saudi Oil Field Ends War On Yemen”, and he opened:

Today Saudi Arabia finally lost the war on Yemen. It has no defenses against new weapons the Houthis in Yemen acquired. These weapons threaten the Saudis economic lifelines. This today was the decisive attack:

Drones launched by Yemen’s Houthi rebels attacked a massive oil and gas field deep inside Saudi Arabia’s sprawling desert on Saturday, causing what the kingdom described as a “limited fire” in the second such recent attack on its crucial energy industry.  …

The Saudi acknowledgement of the attack came hours after Yahia Sarie, a military spokesman for the Houthis, issued a video statement claiming the rebels launched 10 bomb-laden drones targeting the field in their “biggest-ever” operation. He threatened more attacks would be coming. 

New drones and missiles displayed in July 2019 by Yemen’s Houthi-allied armed forces

Today’s attack is a check-mate move against the Saudis. Shaybah is some 1,200 kilometers (750 miles) from Houthi-controlled territory. There are many more important economic targets within that range.  …

The attack conclusively demonstrates that the most important assets of the Saudis are now under threat. This economic threat comes on top of a seven percent budget deficit the IMF predicts for Saudi Arabia. Further Saudi bombing against the Houthi will now have very significant additional cost that might even endanger the viability of the Saudi state. The Houthi have clown prince Mohammad bin Salman by the balls and can squeeze those at will.

He went on to say that the drones aren’t from Iran but are copies from Iran’s, “assembled in Yemen with the help of Hizbullah experts from Lebanon.”

He has been predicting for a long time that this war couldn’t be won by Crown Prince Mohammed bin Salman al-Saud (MbS). In the present report, he says:

The war on Yemen that MbS started in March 2015 long proved to be unwinnable. Now it is definitely lost. Neither the U.S. nor the Europeans will come to the Saudis help. There are no technological means to reasonably protect against such attacks. Poor Yemen defeated rich Saudi Arabia.

The Saudi side will have to agree to political peace negotiations. The Yemeni demand for reparation payments will be eye watering. But the Saudis will have no alternative but to cough up whatever the Houthi demand.

The UAE was smart to pull out of Yemen during the last months.

If he is correct (and I have never yet found a prediction from him turn out to have been wrong), then this will be an enormous blow to the foreign markets for U.S.-made weapons, since the Sauds are the world’s largest foreign purchasers of those, and have spent profusely on them — and also on U.S. personnel to train their soldiers how to use them. So (and this is my prediction, not his), August 19th might be a good time to sell short U.S. armament-makers such as Lockheed Martin.

However: his prediction that “the Saudis will have no alternative but to cough up whatever the Houthi demand” seems to me to be the first one from him that could turn out to have been wrong. If the Sauds have perpetrated, say, $200 billion of physical damage to Yemen, but refuse to pay more than $100 billion in reparations, and the Housis then hit and take out a major Saudi oil well, isn’t it possible that the Sauds would stand firm? But if they do, then mightn’t it be wrong to say, at the present time, that: “Today Saudi Arabia finally lost the war on Yemen.”? He has gone out on limbs before, and I can’t yet think of any that broke under him. Maybe this one will be the first? I wouldn’t bet on that. But this one seems to me to be a particularly long limb. We’ll see!

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The message behind the release of Iranian oil tanker

Mohammad Ghaderi

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The Gibraltar court ordered the Iranian oil tanker Grace 1 to be released. The tanker was seized by the British Royal Marines about a month ago. 

This verdict was the ending of an elaborate game designed by John Bolton National Security Advisor of the United States and Mike Pompeo, carried out by the Britain government. 

With seizing the tanker, Bolton was trying to put psychological and political pressures on Iran and force other countries to form a consensus against Iran, but he couldn’t fulfill any of these goals. 

Iran’s firm, logical and wise answer to the seizure of Grace 1 (like making solid legal arguments) and the seriousness of our country’s armed forces in giving a proper response to Britain’s contemptuous act, made the White House lose the lead on reaching its ends. 

Washington imagined that the seizure of Grace 1 will become Trump’s winning card against Iran, but the release of the tanker (despite disagreement of the U.S.) became another failure for the White House in dealing with Iran.  

Obviously, London was also a total loser in this game. It is worth noting that U.S. was so persistent about keeping the oil tanker in custody that John Bolton traveled to London and insisted on British officials to continue the seizure of the ship. Their failure, however, clearly shows that the White House and its traditional ally, Britain, have lost a big part of their power in their relations with Iran. 

Clearly, the illegal seizure of the Iranian oil tanker by Britain proceeded by the seizure of a British tanker by Iran and the following interactions between the two countries is not the whole story and there is more to it that will be revealed in coming days. 

What we know for sure is that London has to pay for its recent anti-Iran plot in order to satisfy Washington; the smallest of these consequences was that Britain lost some of its legal credibility in international arena as it illegally captured an Iranian oil tanker. 

The order of the Gibraltarian court revealed that London had no legal right to seize the Iranian oil tanker and nobody can defend this unlawful action. Surely, Iran will take all necessary legal actions to further pursue the matter.  

In this situation, the Islamic Republic of Iran is firm on its position that it doesn’t have to follow the sanctions imposed by the European Union on other countries (including Syria). 

No entity can undermine this argument as it is based on legal terms; therefore, Iran will keep supporting Syrian nation and government to fight terrorism. This is the strategic policy of the Islamic Republic and will not be changed under the pressure or influence of any other third country. 

Finally, it should be noted that the release of Grace 1 oil tanker was not only a legal and political failure for Washington and London and their allies but it was also a strategic failure. Undoubtedly, the vast consequences of this failure will be revealed in near future. 

From our partner Tehran Times

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Business and boxing: two sides of the same coin

Dr. James M. Dorsey

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What do a planned US$15 billion Saudi investment in petroleum-related Indian businesses and a controversial boxing championship have in common?

Both reflect a world in which power and economics drive policy, politics and business at the expense of fundamental rights.

And both underscore an emerging new world order in which might is right, a jungle in which dissenters, minorities and all other others are increasingly cornered and repressed.

Rather than furthering stability by building inclusive, cohesive societies both support trends likely to produce an evermore unstable and insecure world marked by societal strife, mass migration, radicalization and violence.

A world in which business capitalizes on decisions by a critical mass of world leaders who share autocratic, authoritarian and illiberal principles of governance and often reward each other with lucrative business deals for policies that potentially aggravate rather than reduce conflict.

No doubt, the planned acquisition by Saudi Arabia’s state-owned national oil company Aramco of 20 percent of the petroleum-related businesses of Reliance Industries, one of India’s biggest companies, makes commercial and strategic economic and business sense.

Yet, there is equally little doubt that the announcement of the acquisition will be read by Indian prime minister Narendra Modi, days after he scrapped the autonomous status of the troubled, majority Muslim region of Kashmir, as a license to pursue his Hindu nationalist policies that discriminate against Muslims and other minorities and fuel tensions with Pakistan, the subcontinent’s other nuclear power.

The ultimate cost of the fallout of policies and business deals that contribute or give license to exclusion rather than inclusion of all segments of a population and aggravate regional conflict could be far higher than the benefits accrued by the parties to a deal.

Underscoring the risk of exclusionary policies and unilateral moves, cross border skirmishes between Indian and Pakistani forces erupted this week along the Kashmiri frontier in which at least five people were killed.

The timing of the announcement of the Aramco Reliance deal in a global environment in which various forms of racism and prejudice, including Islamophobia, are on the rise, assures Indian political and business leaders that they are unlikely to pay an immediate price for policies that sow discord and risk loss of life.

Like in the case of Saudi and Muslim acquiescence in China’s brutal clampdown on Turkic Muslims in the troubled, north-western Chinese province of Xinjiang, the most frontal assault on a faith in recent history, the announcement risks convincing embattled Muslim minorities like the Uighurs, the Kashmiris or Myanmar’s Rohingya who are lingering in refugee camps in Bangladesh that they are being hung out to dry.

To be sure, Kashmiris can count on the support of Pakistan but that is likely to be little more than emotional, verbal and political.

Pakistan is unlikely to risk blacklisting by the Financial Action Task Force (FATF), an international anti-money laundering and terrorism finance watchdog, at its next scheduled meeting in October by unleashing its anti-Indian militants.

Anthony Joshua’s controversial fight with Andy Ruiz scheduled for December in Saudi Arabia, the first boxing championship to be held in the Middle East, pales in terms of its geopolitical or societal impact compared to the Saudi Indian business deal.

Fact is that Saudi Arabia’s hosting of the championship has provoked the ire of activists rather than significant population groups. The fight is furthermore likely to be seen as evidence and a strengthening of Crown Prince Mohammed bin Salman’s selective efforts to socially liberalize the once austere kingdom.

Nonetheless, it also reinforces Prince Mohammed’s justified perception that Saudi Arabia can get away with imprisoning activists who argued in favour of his reforms as well as the lack of transparency on judicial proceedings against the alleged perpetrators of the killing of journalist Jamal Khashoggi in the Saudi consulate in Istanbul. Saudi Arabia insists the killing was perpetrated by rogue operatives.

What Saudi investment in India and the scheduled boxing championship in the kingdom have in common is that both confirm the norms of a world in which ‘humane authority,’ a concept developed by prominent Chinese international relations scholar Yan Xuetong, is a rare quantity.

Mr. Yan employs the concept to argue without referring to President Xi Jinping, Xinjiang, China’s aggressive approach towards the South China Sea or its policy towards Taiwan and Hong Kong that China lacks the humane authority to capitalize on US President Donald J. Trump’s undermining of US leadership.

Mr. Yan defines a state that has humane authority as maintaining strategic credibility and defending the international order by becoming an example through adherence to international norms, rewarding states that live up to those norms and punishing states that violate them. Garnering humane authority enables a state to win allies and build a stable international order.

Mr. Yan’s analysis is as applicable to India and Saudi Arabia as it is to China and others that tend towards civilizational policies like the United States, Russia, Hungary and Turkey.

It is equally true for men like Anthony Joshua promoter Eddie Hearn and business leaders in general.

To be sure, Aramco is state-owned and subject to government policy. Nonetheless, as it prepares for what is likely to be the world’s largest initial public offering, even Aramco has to take factors beyond pure economic and financial criteria into account.

At the end of the day, the consequence of Mr. Yan’s theory is that leadership, whether geopolitical, economic or business, is defined as much by power and opportunity as it is by degrees of morality and ethics.

Failure to embrace some notion of humane authority and reducing leadership and business decisions to exploiting opportunity with disregard for consequences or the environment in which they are taken is likely to ultimately haunt political and business leaders alike.

Said Mr. Yan: “Since the leadership of a humane authority is able to rectify those states that disturb the international order, the order based on its leadership can durably be maintained.”

What is true for political leaders is also true for business leaders even if they refuse to acknowledge that their decisions have as much political as economic impact.

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