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ANKARA — Iran aims to increase its gasoline imports over the next year, a senior Iranian oil official said on Thursday, as the country has stopped using domestic petrochemical plants to produce the fuel.

Imports are a sensitive subject for energy-rich Iran as they have been a target for US sanctions aimed at persuading Tehran to curb its nuclear activities.

"Iran's fuel imports will surely increase this [Iranian] year," said the senior official, who asked not to be named.

The Iranian year started on March 21.

He refused to reveal the amount or the possible suppliers, but media reports suggest that the import of gasoline will be around 11 million litres.

"Iran will triple gasoline imports in the next Iranian calendar year," Iran's semi-official Mehr news agency quoted the head of the National Iranian Oil Products Distribution Company, Mostafa Kashkouli, as saying on March 4. "It will be around 11 million litres."

However, Iran's Oil Minister Bijan Zanganeh said in September that Iran will import several million litres a day of gasoline to fill the gap between domestic supply and consumption, according to the oil ministry's SHANA website.

Iran has been trying to side-step sanctions on its oil industry by becoming self-sufficient in gasoline production as it produces only 60 per cent of its domestic gasoline demand and imports the remaining 40 per cent from friendly powers.

Iran lacks refining capacity — in part due to a lack of foreign investment — forcing it to import 40 per cent of its domestic gasoline demand.

US-led sanctions on foreign companies that help to supply fuel to Iran have scared off Iran's regular gasoline suppliers, hitting what is seen as the Islamic Republic's Achilles' heel, its lack of refining capacity.

The National Iranian Oil Co.'s director of international affairs in 2010, Ali Asghar Arshi, said Iran had become self-sufficient in producing gasoline and also other top oil ministry officials were quoted by Iranian media as saying that "Iran won't have to rely on imports anymore".

Many analysts were sceptical, saying it was part of the country's "political and psychological" propaganda to cope with sanctions.

Iran's plan to increase imports follows an interim deal agreed in November with world powers under which Tehran has shelved higher-grade uranium enrichment and obtained modest relief from punitive sanctions in return. The interim accord went into effect on January 20.

Alarmed over high pollution levels, Hassan Rouhani's government has repeatedly said it wants to halt production of gasoline from petrochemical plants, which started in 2010.

Iran and major powers are seeking a final settlement by a July deadline under which the West wants Iran to significantly scale back its nuclear programme.

Separately, the International Monetary Fund (IMF) said recently that Iran's economy faces deep structural weaknesses as intensified nuclear sanctions have added to other domestic challenges to the government.

In its first review of the Iranian economy in nearly three years, the IMF said the country needs to respond with a "prompt and vigorous" reform programme to prevent further deterioration.

A combination of shocks, including the start of subsidy reforms, poorly funded social programs, and the intensification of trade and financial sanctions, had "weakened the economy", the IMF added.

"Inflation and unemployment are high, while the corporate and banking sectors show signs of weakness," it indicated.

"Iran now stands at a crossroad... The new authorities should embark on a prompt and vigorous implementation of fundamental reforms to the frameworks supporting product, labour, and credit markets," the IMF concluded

GENEVA/WASHINGTON — China has lost a dispute at the World Trade Organisation (WTO) over limits on rare earth and metals exports, handing Europe and the United States a victory over what they see as Beijing's unfair trade practices.

"Today's ruling by the WTO on rare earth shows that no one country can hoard its raw materials from the global market place at the expense of its other WTO partners," said European Union (EU) Trade Commissioner Karel De Gucht. 

China produces more than 90 per cent of the world's rare earths, key elements in defence industry components and modern technology from iPhones and disk drives to wind turbines.

China imposed strict rare earth export quotas in 2010, saying it was trying to curtail pollution and preserve resources.

Prices of the prized commodities soared by hundreds of per cent and the United States, EU and Japan complained that the export restrictions gave Chinese companies an unfair competitive edge. 

China said limits on exports of rare earths, as well as the metals tungsten and molybdenum, were needed to prevent over-mining.

Any of the parties in the case can appeal within 60 days.

The US said the export limits allowed China to artificially increase world prices for raw materials crucial to make products like hybrid car batteries, wind turbines and energy-efficient lighting, while artificially lowering prices for Chinese producers.

"China's decision to promote its own industry and discriminate against US companies has caused US manufacturers to pay as much as three times more than what their Chinese competitors pay for the exact same rare earths," US Trade Representative (USTR) Michael Froman said in a statement.

Rare earth industries

Demand for rare earths comes from a variety of industries. General Electric uses rare earths in wind turbines. Toyota and Nissan use them for their hybrid and electric cars, while Blackberry and Apple  need them for smartphones and tablet computers. The USTR cites estimates that industries using rare earths contribute more than $300 billion to the US economy. 

Shares of companies mining or exploring for new sources of rare earths soared in 2010 on speculation that China's crackdown could boost demand for alternative sources, but a slump in prices recently as new supply has come on board from Australia has weighed on earnings of producers like Molycorp Inc.

China had been widely expected to lose the case, after a successful challenge two years ago to China's export restraints on a different set of raw materials used in the steel, aluminum and chemical industries, including bauxite and magnesium.    

China's ministry of commerce said the head of its treaty and law department welcomed the WTO's recognition of its efforts to conserve resources and protect the environment, but regretted that the panel found China's export duties, quotas and quota administration breached WTO rules.

"China believes that these regulatory measures are perfectly consistent with the objective of sustainable development promoted by the WTO," it said in a statement, adding that China was currently assessing the WTO report. 

The European Commission said no-one disputed China's right to put in place environmental and conservation policies.

MOSCOW — Egypt has resumed talks about the creation of a free trade zone with the customs union of Russia, Belarus and Kazakhstan, Egyptian and Russian officials said on Wednesday.

Russia is increasing efforts to strengthen relations with large importers of its products as the United States and European Union (EU) threaten steeper sanctions over Moscow's intervention in the crisis in Ukraine.

In the biggest East-West confrontation since the Cold War, the US and EU have imposed visa bans and asset freezes on some of President Vladimir Putin's closest political and business allies after Moscow annexed Ukraine's Crimea.

"There were talks about this [creation of the free trade zone with Egypt] before 2011... Now we have agreed to resume these negotiations and to discuss sectors of cooperation," Russian Agriculture Minister Nikolai Fydorov said.

"The final decision will be made after the [presidential] election campaign in Egypt, official documents will be appearing after it," he told reporters in Moscow after the meeting of the Russian-Egyptian commission for trade development.

Egyptian Industry and Investment Minister Mounir Fakhry Abdel Nour said the agreement on free trade with the customs union could contribute to expanding cooperation between two countries.

He added that the officials have also discussed a number of joint projects, including supplies of Russian liquefied natural gas and other commodities.

Russian state nuclear firm Rosatom is considering taking part in the construction of a nuclear power plant in Egypt, according to officials.

They have also agreed to revive Russia's participation in modernisation of assets dating back to the Soviet era, Fyodorov noted. 

He mentioned an aluminium plant, a hydro power plant, and projects related to the light metro in Cairo and grain storage. He did not specify what form Russia's involvement could take.

Wheat supplies

Egypt is already the largest importer of Russian wheat, buying one fifth of the country's exports of this commodity so far in 2013/14. It bought 2.6 million tonnes of Russian wheat between July 1 and the end of February.

"You [Russia] have expressed your wish to expand exports, primarily of wheat... and we want to develop exports of vegetables and fruit. It would help widen our cooperation," Abdel Nour told the meeting.

Officials did not provide any other details on how Russian wheat exports could be increased.

It is unlikely that the countries will reach a major long-term wheat supply deal — a possibility the market has repeatedly speculated on, although there might be other ways of a deeper cooperation, a trader said.

"Egypt has often talked about these long term wheat deals before but no one believes anything practical will come out of it as it doesn't make sense. Why would you lock yourself into a deal with certain prices and what if market prices go down after that, you are stuck paying the higher price?" the trader added.

"What is more realistic is that they discuss together whether or not the Russian government can perhaps encourage Russian firms to participate more directly in GASC [Egyptian state wheat buyer] tenders to increase the amount of Russian offers," he indicated

AMMAN — Amman Chamber of Commerce (ACC) President Issa Murad on Tuesday stressed the importance of increasing economic, commercial and investment cooperation with Chile. At a meeting with Chile’s Ambassador to Jordan Eduardo Escobar Marin, Murad highlighted the need to capitalise on the distinguished relations between the two countries to achieve this goal. Murad indicated that commercial relations between Jordan and Chile were still below the desired aspirations, noting that the private sector should work to stimulate further cooperation and increase joint trade exchange. Marin stressed his country’s commitment to boost its cooperation with Jordan, especially in economic and commercial areas, in a manner that serves the joint interests of the two countries. 

WASHINGTON — The dark world of cybercrime has evolved from one of rogue individuals to a functioning market-based economy with its ups and downs, code of conduct and "innovation".

A study by Rand Corp. and commissioned by the security firm Juniper Networks found a well-organised, multibillion-dollar underground economy that has become "a playground of financially driven, highly organised and sophisticated groups”.

The evolution of cybercrime creates new challenges for security professionals trying to protect computer networks, says Nawaf Bitar, Juniper's general manager for security.

"We have long suspected that cybercriminals were sophisticated and that they had an organisational structure, but no one had studied this," Bitar told AFP. "The success of this market is driven by accelerated economics, and the way to address this is through economics."

The report says the black markets "are growing in size and complexity" and that this activity "mirrors the normal evolution of a free market, with both innovation and growth."

Juniper's security vice president, Michael Callahan, said this cyber underground has all the characteristics of an economy, including its own currencies — chiefly cryptographic payment forms such as Bitcoin.

According to Callahan, the underground economy is characterised by specialisation and "resilience", so that if one market participant leaves, another steps up.

"We saw this when [the black market bazaar] Silk Road went down, and within a day other participants started filling that gap," Callahan said. "It's one of those signs this is a mature economy." 

'Honour among thieves'  

The report notes that, just as in some organised crime groups, there is a code of conduct that helps reassure customers.

"You have honour among thieves," Callahan indicated. "They work to a level of conduct. They know it is in all of their best interests to follow the rules. Like in other markets, these people know that your reputation is key."

The report suggests that about 30 per cent of the sellers of financial data are "rippers", who fail to deliver promised goods or services.

These abuses generally occur in the "lower" levels of the black market that are easiest to access.  But these rippers "tend to get reported and then often quickly removed", the report said.

The study found these markets span the globe from China to eastern Europe to Latin America, with many US-based players and "more cross-pollination between these cybercriminals than ever before".

The cybercrime world features "storefronts" like other forms of e-commerce, with hacker tools and services bought and sold.

The tools available include those used in the attack on US retail giant Target, where upwards of 110 million customers may have had their personal data stolen.

For those who lack technical savvy, new services are offered. Rand found one can obtain a Distributed Denial of Service (DDoS) attack — in which hackers overwhelm a server to interrupt access — for as low as $50 for a 24-hour attack.

'Active resistance'       

According to Bitar, the cybersecurity community needs to shift its focus because of the new threat, because the traditional methods of using firewalls and other defensive measures are not enough.

"We need to use active resistance rather than passive resistance," he said. 

This could involve setting traps, using encryption and delivering bogus information that disrupts efforts by hackers and attacks.

But he strongly opposed the idea of "hacking back" at the attackers.

"I believe that is wrong. You can harm innocent bystanders," he said.

AMMAN — Bank al Etihad on Monday announced that its internal auditing process has unveiled an embezzlement case concerning withdrawal of JD207,000 using two fake credit cards issued by resigned employees. In a statement to The Jordan Times on Monday, the bank said the employees, who resigned in October 2013, have withdrawn the money from other banks' ATMs and that their cash withdrawals have no impact whatsoever on clients' accounts, adding that it has filed a lawsuit to the concerned agencies against the employees.

AMMAN — Capital Bank of Jordan announced Monday in a press statement that the general assembly of shareholders has authorised capitalising JD16.5 million of retained earnings and raising the bank’s paid-up capital to JD181.5 million. As such, shareholders will get bonus shares at a rate of 10 per cent besides a 10 per cent cash dividends. According to Chairman Bassem Khalil Al Salem, the bank generated JD42.6 million after-tax profit last year, 98 per cent higher than the JD21.5 million recorded in 2012. The statement showed that the bank’s assets grew by 17 per cent to JD1,886 million at the end of last year and that deposits of clients rose by 18.8 per ecnt to reach JD1,140 million. The portfolio of credit facilities increased by 9.2 per cent to JD735 million at the end of 2013 compared to JD673 million at the end of the previous year.

AMMAN — The association agreement signed between Jordan and European Union (EU) states did not increase Jordanian exports to European markets, according to Senator Ziad Al Homsi, chairman of the Amman Chamber of Industry (ACI).

“The balance of trade tilted heavily in favour of the EU as Jordanian exports toatlled $142 million, whereas imports exceeded $2.5 billion,” an ACI press statement quoted Homsi as saying on Monday.

“Exports to Germany amounted to $7.3 million while imports reached more than $900 million,” Homsi added during a ceremony held by the ACI to mark the opening of an economic cooperation office at its premises.

The ceremony was attended by Ralph Tarraf, ambassador of Federal Republic of Germany to Jordan, and Khaldun Abu Hassan, chairman of the Jordanian-German Business Council.

According to Homsi, the Jordanian benefit from the association agreement with the EU is still limited, despite of its importance, compared with other trade agreements such as the Greater Arab Free Trade Area Agreement and the Free Trade Agreement with the US.

In the press statement, the ACI chairman mentioned legislative and regulatory barriers imposed by the EU, and the rules of origin requirements related to the Jordanian-European Association Agreement as the most important obstacle that faces Jordanian exports to European markets.

He underlined the importance of German technology transfer to the Jordanian industrial sector to qualify it to export to the European markets.

Tarraf said Jordan possess a solid industry capable of entering the European markets, adding that the German embassy will contribute to strengthening economic relations between both countries through several programmes, among them the economic cooperation office that was opened at the ACI with the support of German Agency for International Cooperation.

Fahmi Al Najjar, the Jordan-German economic cooperation consultant, indicated that  an integrated information network will be built through scientific consultancy centres and industry experts, in addition to expos and forums which will be held in Germany.

 Moreover, there will be full information about  the German market, export and import mechanisms, in order to assist Jordanian companies which are keen to export products to Germany, and also help to import machines and production lines from Germany.

The office will avail for companies and factories to benefit from the Senior Experts Service (SES) programme supported by the German government, which comprises more than 11,000 experts in all managerial and technical fields, to provide assistance for companies and institutions in developing countries voluntarily and at low costs, especially for the small- and medium-sized enterprises.

 “The expert will be recruited upon the company’s request, and depending on the sector and tasks demanded, the services can also be utilised in the health, tourism, management and other aspects,” the statement said.

“Ministries and official institutions can also benefit from the SES programme,” it added indicating that  nine industrial companies applied for this service besides two governmental ministries during the past period.

AMMAN — Jordan’s exports went up by 19.8 per cent in January, reaching JD407.6 million compared to JD340.1 million generated in the same month of 2013, according to the Department of Statistics (DoS) figures on foreign trade. The increase was driven by the increase in fertilisers and crude phosphate, said DoS, which noted that the amount of exports from fertilisers and phosphate went up by 416 and 14 per cent respectively. 

AMMAN — Amman Chamber of Commerce (ACC) President Issa Murad on Sunday discussed means to develop economic ties with Egypt during a meeting with Egyptian Ambassador in Amman Khaled Tharwat. The two sides underlined the need to support the establishment of joint ventures and investments, calling for drawing up an action plan to eliminate obstacles hindering the flow of commodities between both countries. Muard and the diplomat suggested holding a meeting between businesspeople from the two countries on the sidelines of the 10th Egyptian fair, which will be held in May in Amman. Jordan’s exports to Egypt stood at JD84 million last year, compared to JD500 million in imports from the North African country.