Iran Syria Policy and Operations Group
Elizabeth Cheney also headed the Iran Syria Policy and Operations Group (ISOG), established in March 2006, a unit within the State Department's Bureau of Near Eastern Affairs.
In April 2006, The New York Times published a story critical of Cheney's work, particularly with respect to Iran. Of particular scrutiny was a grants program administered by Elizabeth Cheney's unit, in collaboration with a Republican-affiliated foundation, the International Republican Institute. The Times maintained that when the group became controversial, with critics saying that it was plotting covert actions that could escalate into war with Iran and Syria, the group was disbanded, by May 2006. Shortly before the ISOG group was dissolved, Secretary of State Condoleezza Rice initiated a major effort to engage Iran and Syria in efforts to stabilize Iraq. As late as April 11, 2009, Iranian officials investigating "cyber-crimes" cited Cheney's efforts in the daily newspaper Iran, specifically the "Democracy Program" initiative as parallel to a Netherlands-funded push for a "velvet revolution" accomplished by a media campaign to polarize the country, "despite the 1981 Algiers Accords signed between the U.S. and Iran in the aftermath of the U.S. embassy takeover in Tehran." Her controversial business relationship with American-Iranian oil trader and millionaire Navid Khiabani, Which led to approving export license by European Union for Austrian Arm manufacturer Steyr Mannlicher to export Steyr High Caliber Anti material Steyr HS .50 to Iran caused media attention during 2005 and 2006.
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