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Party Leader Says Tragedy Awaits Iran If Economic Crisis Is Not Tackled

Iran International Newsroom
Jul 26, 2022, 15:43 GMT+1Updated: 17:38 GMT+1
Iran's centrist politician Hossein Marashi
Iran's centrist politician Hossein Marashi

The leader of Iran’s centrist Executives of Construction Party, Hossein Marashi says only the Supreme Leader can confront and solve the current economic crisis.

He highlighted that the annual inflation rate has jumped from 40 to 60 percent during Ebrahim Raisi’s first year in office, and the vast majority of people face incredibly hard financial conditions.

Raisi, a hardliner cleric, with no relevant experience, became president in early August 2021, with the support of Supreme Leader Ali Khamenei and his loyal followers among the military and conservatives.

Marashi, who is a regime loyalist but with business and technocratic background, in an interview with Didban Iran [Iran Monitor] news website on Monday, argued that the Islamic Republic needs to return to its senses and only Khamenei can make this happen.

The current 60 percent inflation figure is based on an optimistic assessment, he noted, adding that pessimists in Iran say annual inflation is over 100 percent. Marashi maintained that Iran’s problems, highlighted by its economic crisis, is beyond the powers of other officials, including the president or parliament to solve.

“No one other than Khamenei can rescue Iran from this crisis,” Marashi sai

Ebrahim Raisi seen praying in a session of parliament on April 18, 2022
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Ebrahim Raisi seen praying in a session of parliament on April 18, 2022

d. The remark implicitly hints that Khamenei as top decision maker in major foreign policy, political and economic matters, is responsible for the current crisis.

The main issue dominating debate in the wider Iranian circles is about the nuclear program and the resulting United States’ sanctions that have exacerbated the difficult economic situation. Khamenei is seen as the only real decision-maker on the nuclear issue.

Meanwhile, Marashi ruled out Raisi’s occasional remarks about the former government of President Hassan Rouhani being responsible for Iran’s problems, adding that “Raisi is a non-expert in executive affairs and makes many such uncalculated comments.” Instead, Marashi largely blamed the Raisi administration and particularly his former Labor Minister Hojjat Abdolmaleki’s manipulation of the annual budget bill.

In another development, reformist Ali Mohammad Namazi said in an interview with the conservative Nameh News website that frequent protests in Iran indicate dissent and dissatisfaction. He suggested that Raisi Administration officials should have sat down with the top executives of the previous government to determine the root cause of Iran's problems and focus on solving them rather instead of simply baling their predecessors for all problems form a whole year.

Namazi criticized the Raisi administration for the effective devaluation of the Iranian currency and price rises for medicine, housing and everything else. Iran’s currency is near its all-time low of 320,000 rials to the US dollar, a more than 25-percent drop just since March.

He further criticized the government for its broken promises in the areas of housing and employment. The Raisi administration had promised to build one million apartments and create one million jobs every year. Namazi said that even one-tenth of this promise has not materialized.

Meanwhile he criticized the government's foreign policy, saying that "there is every indication that the talks aimed at reviving the 2015 nuclear deal will not be fruitful, adding that it looks like…either the [UN Security Council] trigger mechanism will be activated, which means even more sanctions, or Iran will be facing a military attack in the future."

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Iranian Lawmaker Boasts About Moscow Buying Drones From Tehran

Jul 26, 2022, 12:21 GMT+1

An Iranian lawmaker says the military cooperation between Tehran and Moscow has upset the political equations of the global order, confirming Russia’s request to buy Iranian drones.

Hadi Beiginejad, a member of the parliament's energy committee, told the Iranian government’s official website IRNA on Tuesday that Iran’s progress in the field of building unmanned aerial vehicles has significantly changed the country’s image in the international arena.

He said selling drones has strengthened Iran's ties with friendly countries, describing it as a beneficial factor for the peace and stability of the region.

He added that the United States has admitted to rise of Iran’s might in drone productions, and is well aware of the cost of dealing with Iranian drones in the region.

US National Security Adviser Jake Sullivan warned twice in July that Moscow appears to be looking at buying Iranian drones and Russian officers even visited a drone base in Iran’s Kashan to review their options. His statements hinted at possible training of Russian crews to operate the drones and said the this would cause more civilian deaths in Ukraine.

Meanwhile, the head of US Central Intelligence Agency, William Burns said on July 20, “It’s true that the Russians are reaching out to the Iranians to try to acquire armed drones,” Bloomberg reported. Secretary of Defense Lloyd Austin and Chairman of the Joint Chiefs of Staff Gen Mike Milley also confirmed that Russia is planning to obtain Iranian drones to strengthen its weakening position in battles.

An adviser to President Volodymyr Zelensky told Iran International on Monday that Russia and Iran are allies in the Ukraine war and it won’t be a surprise if Tehran supplies drones to Moscow.

Political Prisoners Transferred To Main Evin Prison in Tehran

Jul 25, 2022, 12:32 GMT+1

Iranian authorities have transferred female prisoners from two penitentiaries with harsh living conditions to the main Evin prison in Tehran, where they can be under better surveillance.

A few days after female political prisoners were transferred from Qarchak to Evin, the political prisoners of the Fashafouyeh prisonwere also transferred to Evin on Sunday.

The transfers from Qarchak, also known as Rey or Shahr-e Rey Women Prison on July 20, and Fashafouyeh, aka the Greater Tehran Central Penitentiary, to Evin both were carried out abruptly and without any explanation by the authorities. 

Normally political prisoners demand to be transferred to Evin because that is where the Islamic Republic holds most of its political prisoners and Qarchak and Fashafouyeh are usually for people convicted of violent felonies and common criminals.

However, former political prisoner and civil rights activist Arash Sadeghi wrote on social media that the transfers were done with the aim of imposing restrictions and having more control on political prisoners rather than separating them based on crimes.

He added that for example there is limitations in access to telephones in Evin's women’s ward and the Ward Six of Evin – where the political prisoners of Fashafouyeh are held – is close to Ward 209 that belongs to the Intelligence Ministry, making it easier to put pressure and restrictions on the prisoners of conscience.

Moreover, considering the disastrous situations of the Qarchak and Fashafouyeh detention centers, which were being leaked out by the political prisoners, the Islamic Republic preferred to transfer them to Evin instead of closing or changing the conditions of these two prisons, he said, noting that in this way no more news from these two prisons will go out. 

Iran’s Higher Oil Revenues Offset By Large Capital Flight

Jul 25, 2022, 11:40 GMT+1
•
Maryam Sinaiee

Iran’s revenues from oil and other exports have increased but so has the rate of capital flight, figures from the Central Bank of Iran (CBI) indicate.

The CBI report published last week indicates that in the fiscal year ending March 20, 2022, the country's revenues from exporting oil, gas, as well as oil and gas products and by-products, amounted to nearly $39 billion, $17 billion more than the previous fiscal year when oil prices were much lower.

The 84% increase in oil export revenues, however, was accompanied by a nearly 50% increase in capital flight in comparison with the previous fiscal year (ended March 20, 2021) as trust in the local economy and the political future of the country appeared to have diminished.

According to the latest OPEC figures, Iran earned more than $25 billion from selling crude oil in 2021. There have been numerous reports since late 2020 that Iran has been selling more oil, clandestinely, despite US sanction. Iranian shipments increased from as low as 200,000 barrels per day in 2019 to as high as more than one million barrels in January 2022. In 2020 Iran earned only around $8 billion due to enforcement of US sanctions.

The precise amount of capital leaving Iran is very difficult to calculate but it can be deducted from the official data on net capital account deficit. According to the CBI’s latest report, the net capital account deficit stood at $9.3 billion during the fiscal year ending March 20, 2022.

The hard currency outflow from the country is invested in various ways including in real estate, stocks, bonds, cryptocurrencies, or establishing of companies abroad. Investment in neighboring countries is particularly popular. The high rate of inflation and the huge drop in the value of the national currency have also hugely contributed to the urge to invest in such markets instead of domestic production and services.

In January this year Iran's central bank said that over $6 billion had been taken out of the country in six months (March 21-Sept. 20, 2021) because of political and economic uncertainty.

One of the indications of capital flight from Iran is the popularity of property acquisition in neighboring countries such as Turkey, the United Arab Emirates, and Georgia which often goes hand in hand with business investments.

According to a report by the state broadcaster’s Young Journalists Club (YJC) in April, the value of assets held by Iranians abroad was estimated at between 3 to 4 trillion dollars in 2015, about 10 times the country’s gross domestic production.

Experts say CBI figures indicate that Iranians are fearful about the safety of their investments despite promises of government officials last year that the 2015 nuclear deal, Joint Comprehensive Plan of Action (JCPOA) would be restored.

They argued that the administration of President Ebrahim Raisi does not tie the economy to the outcome of the nuclear talks and restoration of the JCPOA and therefore, the economy would not be damaged even if the talks to restore the deal failed and US sanctions continued.

Iran has also struggled to attract foreign investment since the United States withdrew from the 2015 nuclear deal and slapped sanctions on oil exports, international banking, and officials of the Islamic Republic. Any entity worldwide supplying dollars to Iran is vulnerable to punitive US action.

According to official figures, Iran's net capital account balance was positive from 2001 to 2005 when there was foreign investment. But in the following years, except in 2014, the balance has been in the negative.

Hardliner Whistle-Blower Sentenced To Jail In Iran Warns His Peers

Jul 24, 2022, 22:29 GMT+1
•
Iran International Newsroom

A whistle-blower who had exposed wrongdoing and violations by a few senior conservative political figures in Iran has been handed a jail sentence for two years.

Vahid Ashtari, a young man who is a member of Edalat Khahan [Justice Seekers], a political group of mainly university students who are loyal to Iran's Supreme Leader Ali Khamenei, released a video on social media on Sunday, July 24, to warn others that whistle-blowing could be costly.

Ashtari also posted a court ruling based on which he has been sentenced to two years in jail for "spreading lies and disturbing the public's peace of mind." However, he said that he was never officially indicted.

In April this year, Ashtari revealed that the family of Majles (parliament) Speaker Mohammad Bagher Ghalibaf had visited to Turkey to buy baby clothes and accessories for Ghalibaf's daughter who was pregnant at the time. He also claimed that Ghalibaf’s wife, daughter and son-in-law arrived at Tehran’s Imam Khomeini airport from Istanbul with apparently a large layette set they bought from Turkey. People at the airport didn’t recognize them at first but when a photo of the family circulated on social media, their identity was revealed.

The accusations were followed by a barrage of criticism, and resurfacing of other alleged corruption cases against the family including spending hefty amounts on purchasing properties in Istanbul. Ghalibaf's family and some of the country's officials and political figures initially denied the report but after a while they gradually confirmed Ashtari's account.

Earlier, Ashtari and his colleagues in the Justice Seekers group had made revelations about the role of one of President Ebrahim Raisi's relatives, Meysam Nili, in giving government jobs to people close to them, and called the case "Meysam Gate."

Ghalibaf chairing a parliament session on May 25, 2022
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Ghalibaf chairing a parliament session on May 25, 2022

In his video and social media posts on Sunday, Ahtari welcomed his arrest and questioning at police stations, security organizations and courtrooms and said "It is good that young hardliners go to these places and find out what happens to activist workers and teachers and see the true nature of the religious political system 43 years after the 1979 Islamic revolution."

He called on Hezbollahis [hardline political activists who support the Islamic Republic and its leader] to pay special attention to this case and read the ruling.

Ashtari said: "Even after reading it, you may still not understand it because it is not a court ruling. It is a political editorial. But if your objective is to reform the appearance of the religious political system, you can see for yourself the true nature of the regime and how Islam works in the Judiciary and security system."

He "suggested to the devoted youths who blindly defend everything in the regime to find out what is going on behind the façade of Islam, sanctities and martyrs the officials take advantage of." However, he promised that "the situation in Iran will not remain like this."

The court ruling shows that Ashtari has also been accused of "discrediting state officials and mudslinging against them, portraying the country in a bad light and ridiculing a headline in Khamenei's official website."

Iranian analyst Ehsan Mehrabi told Iran International TV in London that although an official indictment has not been issued and Ashtari is entitled to an appeal, the reason why he has been given the jail sentence is that powerful officials wanted to send a message to all that no one, even a well-known conservative figure devoted to Khamenei, can get away with levelling accusations against regime insiders.

Iran Appoints New Ambassador To United Nations Headquarters

Jul 24, 2022, 17:24 GMT+1

The Islamic Republic appointed Sunday Saeed Iravani, a former deputy of the country’s top security official Ali Shamkhani, as Iran’s new ambassador to the United Nations. 

Iravani, who will replace Majid Takht-Ravanchi, served as a deputy of Shamkhani, the secretary of Iran's Supreme National Security Council (SNSC), for nine years. Majid Takht-Ravanchi was among the last officials appointed by former foreign minister Mohammad Javad Zarif, who led the Iranian negotiations with P5+1 countries which produced the 2015 nuclear deal – or the Joint Comprehensive Plan of Action. 

Iravani also served as Iran’s chargé d'affaires in Iraq and secretary of Iran’s Strategic Council on Foreign Relations. He has career overlaps with current lead nuclear negotiator Ali Bagheri-Kani – as both served as SNSC deputies. He is the first Iranian ambassador to the UN with extensive SNSC experience. Iravani's diplomatic assignments -- spearheading the Saudi-Iranian dialogue in Baghdad and his experience as chargé d'affaires -- have been more regionally focused than his predecessors to date. 

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President Ebrahim Raisi also appointed new ambassadors to six countries – Georgia, India, Lebanon, Czech Republic, Poland, and Sierra Leone -- on Sunday, practically cleansing the diplomatic roster of appointees from the administration of former president Hassan Rouhani. A cleric, Khalil Sadati Amiri, was named as Iran's ambassador to Sierra Leone. 

Moreover, Raisi appointed Ali Bahraini as Tehran’s permanent representative to the UN Office and other international organizations in Geneva.