Iran's View » Economics http://www.iransview.com The Persian Prespective Mon, 16 Oct 2017 21:56:46 +0000 en-US hourly 1 http://wordpress.org/?v=3.9.20 Oil Drops Below $28 a Barrel as Iran’s Sanction Liftedhttp://www.iransview.com/oil-drops-below-28-a-barrel-as-irans-sanction-lifted/1628/ http://www.iransview.com/oil-drops-below-28-a-barrel-as-irans-sanction-lifted/1628/#comments Tue, 26 Jan 2016 21:02:50 +0000 http://www.iransview.com/?p=1628 Crude prices dropped below $28 a barrel earlier this week due to the expected rise in Iranian exports after the sanction against Tehran was lifted.

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Photo Credit: Blake.thornberry, Flicker.cm

Photo Credit: Blake.thornberry, Flicker.com

Crude prices dropped below $28 a barrel earlier this week due to the expected rise in Iranian exports after the sanction against Tehran was lifted.

The group of P5+1 decided to revoke the international sanctions that disable Iran in exporting approximately 2 million barrels per day (bpd), as part of the landmark nuclear accord reached between Iran and six world powers. Prior to the sanction, Iran exported 2.3 million bpd, which fell to one million in 2011 and 2012.

As a member of OPEC (Organization of the Petroleum Exporting Countries), Iran issued an order to increase their production by 500,000 bpd. Currently, the country has at least a dozen very large crude carrying super-tankers in-place to export to potential buyers.

However, investors fear that the lifting of the sanction could worsen the already existing oversupply of crude worldwide, especially in the United States. Since Iran’s sanction has been lifted, other OPEC members will now be able to export oil across the already weak markets, which are currently plagued by an energy supply surplus.

Even with a surplus of crude worldwide, extraction of fossil fuel is still very much ongoing in the top producing nations in the Middle East, including Iran and Iraq.

At the minute, global oil companies are planning to cut investments and projects to safeguard their future, due to declining price of crude.

“Companies want to reduce their range of activity and pick those with the highest returns on capital,” said Brendan Warn, oil and gas equity analyst.

But, construction and rehabilitation of gas pipes and gas treatment plants are still visible in West Qurna and other Middle Eastern territories. Oil and gas solution companies have been utilising local workers to help the regions provide stable maintenance support staff as well as building good relations with the country due to the high percentage of local labour employed by said oil and gas companies.

“We have established a strong network of relationships with local construction companies. These factors along with our dedication to HSE, ethics and compliance, and security have given us a successful track record of utilising local capabilities and managing the risks of working in challenging locations,” said Cyrus Ahsani, CEO of one of the top oil and gas solutions in the Middle East.

It’s not all bad though as OPEC members expect to see the price of crude regain its footing in the market this year, as they forecast the non-OPEC producers to have difficulty in sustaining production over the next six months due to the continuing low oil price.

“With market participants likely opting for the worst outcome, which would swell the global oversupply even further, lower prices are required to shut-in production from non-OPEC countries, particularly the U.S. These adjustments are likely to (contribute to) even more company defaults related to oil, as well as less investment spending across the oil sector,” said UBS analysts Giovanni Staunovo and Dominic Schnider to CNBC.

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Gazprom after Iranian Savvy Developed Under Sanctionshttp://www.iransview.com/gazprom-after-iranian-savvy-developed-under-sanctions/1553/ http://www.iransview.com/gazprom-after-iranian-savvy-developed-under-sanctions/1553/#comments Fri, 08 May 2015 09:23:59 +0000 http://www.iransview.com/?p=1553 The representative of the Russian oil giant Gazprom in the Iran’s International Oilshow says the company seeks to obtain the technological know-how and equipments Iran has acquired under the western sanctions.

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The representative of the Russian oil giant Gazprom in the Iran’s 20th International Oil, Gas, Refining & Petrochemical Exhibition says the company seeks to obtain the technological know-how and equipments Iran has acquired under the western sanctions.

“Iran has been in sanctions condition for the past 12 years, and Russia is sanctioned too; so we have some joint interests to discuss. I look over the Iranian market and we know Iran has great experiences in working in these sanctions conditions which is much favored by Russia,” Sergey Lasutenko said in an interview with IransView’s Mojtaba Mousavi.

He said Iran and Russia are two of the biggest oil and gas countries in the world; adding Iran has great oil and gas reserves as Russia does and both countries have some big experiences in exploration and production of crude oil and other hydrocarbon products.

“We have some very close views on the market. The idea is to unify our forces. It is work of professionals to promote these ideas but the potentials in political and economical situations are very big. I think it will be very fruitful to cooperate,” he added.

He said Gazprom does not have many activities in Iran at the moment but it will be doing major projects in the near future.

“In the field of exploration, we can cooperate with Iran. Iran has a lot of experiences in constructing some machines and tools for drilling under the sanctions,” he said.  

He added Gazprom is estimating the Iranian market to estimate the Iranian forcibility and work of equipment production.

“We have technologies and Iran has its own. We have a great experience in offshore works. Gazprom is very good at sea drilling. We know that Iran has two seas: the Persian Gulf and the Caspian Sea; the Persian Gulf is very rich with gas and oil reserves and we can cooperate in the field.”

Iran and Russia are much closer than Iran and the US, he said, adding Tehran and Moscow have some platform to discuss in the oil and gas sectors.

Both Iran and Russia have great experience in drilling. Russia’s Gazprom has the biggest pipeline systems in the world, he said.

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Iran Reaches Out for Russia: Why?http://www.iransview.com/iran-reaches-russia/1521/ http://www.iransview.com/iran-reaches-russia/1521/#comments Sun, 15 Feb 2015 18:41:27 +0000 http://www.iransview.com/?p=1521 Tehran-Moscow relations are poised to enter into a historic phase under the current circumstances and given the two countries' ups and downs in history.

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By: Soheil Kheiri *

Tehran-Moscow relations are poised to enter into a historic phase under the current circumstances and given the two countries’ ups and downs in history.

Throughout the past several months, Iran and Russia have stepped up efforts to deepen their ties. The recent Moscow visit by Iranian President Hassan Rouhani, holding the first Iran-Russia strategic relations meeting in Moscow, the Tehran visits of the Russian ministers of defense and energy and, above all, the visit by senior Iranian official Ali Akbar Velayati to submit the message of President Rouhani to Russian President Vladimir Putin are but examples that make the mutual efforts by the two countries to enhance their ties evident.

By sending Velayati, the Supreme Leader’s advisor in international affairs, to Moscow as his special messenger, Rouhani meant to convey to Russians that the Leader has thrown his weight on enhancing ties with Kremlin and that the move enjoys the backing of the Islamic establishment’s highest political decision-makers.

Now the question is: Why should Iran be seeking enhanced ties with Russia?

1. The sitting administration in Iran took office with promises of bolstering foreign relations and international status of the country in a bid to allay the nation’s political and economic concerns. To that effect, Rouhani has spent most of his energy on resolving Iran’s nuclear issue in the talks with the group of P5+1, while the outcome of the talks have disproved being worth his endeavors so far. As the talks drag on and US sticks to its sanctions against Iran, hopes for reaching a final nuclear agreement flare up inside Iran, and the administration has embarked on its Plan B to resolve the nation’s economic problems.

Enhancement of ties with Russia tells the West, especially the US, that the Islamic Republic has a firm Plan B and it would adhere to if the talks fail. It also says that Iran has not limited all its efforts to the future of the talks. “If they [P5+1 negotiators with Iran] fail to make such an agreement, the people of Iran, officials, the honorable administration and others have many different options. They should definitely take these options so that they can counteract and slow the plot of imposing sanctions,” said Supreme Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei in speech he delivered on February 8, 2015 in a meeting with commanders and personnel of the Air Force of the Islamic Republic of Iran Army.

2. Taking office of a moderate president in Iran has raised hopes for the peaceful resolution of Iran’s nuclear case with the West. This has stoked Kremlin with fears that more pressure will be put on Russia if Iran’s relations with the West normalize. Iran’s decision to raise interactions and enhance ties with Russia can quell its worries in this regard.

3. In its new approach, Iran has tried to exploit Russia’s dispute with the West in the talks. Dr. Velayati said after his meeting with Putin that new Russian stance in the talks should be expected in the talks.

4. There are several areas where the two countries enjoy common grounds like the crises in Syria and Iraq, opposing US monopoly and Iran’s tender to join the Shanghai Cooperation Organization. Tehran-Moscow cooperation can facilitate these areas.

5. Iran and Russia can severely influence the world energy market. As the two countries’ oil revenues have fallen dramatically thanks to the falling oil prices, which they believe is a political plot hatched jointly by the US and its Middle East ally Saudi Arabia, Iran and Russia have been prompted to think out plans to enhance their ties in order to shield their economies against the current and future economic assaults. This was evident when Russian energy minister attended Velayati’s meeting with Putin in Moscow.

All in all, when dealing with Russia, certain points need to be considered:
Iranian decision-makers must be wary of the fact that enhanced relations with Russia must not, under any circumstances, be based on West’s animosity toward the two nations because if this is not the case in the future, Iran will be the side that loses the most. Secondly, Iran must always remember that Kremlin would never prefer Iran over Western allies.

* Soheil Kheiri has an M.A in Eurasian studies from the School of International Relations of the Iranian Foreign Ministry. His articles about the Russian politics are published in the scientific journals and he regularly writes for Iranian newspapers and political magazines.

ran's Ali Akbar Velayati (R) shakes hands with Russian President Vladimir Putin before a meeting in Moscow on January 28, 2015. (Photo Credit: TasnimNews.)

ran’s Ali Akbar Velayati (R) shakes hands with Russian President Vladimir Putin before a meeting in Moscow on January 28, 2015. (Photo Credit: TasnimNews.)

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Iran not Committed to Observe Oil Export Ceiling, Deputy Oil Ministerhttp://www.iransview.com/iran-committed-observe-oil-export-ceiling-deputy-oil-minister/1478/ http://www.iransview.com/iran-committed-observe-oil-export-ceiling-deputy-oil-minister/1478/#comments Fri, 16 May 2014 16:08:37 +0000 http://www.iransview.com/?p=1478 Iranian deputy oil minister says Iran does not see itself committed to the oil export cap imposed by the P5+1 group.

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Iranian deputy oil minister says Iran does not see itself committed to the oil export cap imposed by the P5+1 group.

While the International Energy Agency reported decline in Iran’s oil export, Ali Majedi, Iran’s deputy oil minister for international affairs and trade said Iran will give up efforts to boost oil exports.

Global imports of Iranian crude in April averaged 1.11 million barrels per day (bpd), the Paris-based IEA said in its monthly Oil Market Report released on Thursday, down 180,000 bpd from March.

US says under an interim deal signed in November between Iran and the P5+1, Iranian Iran should hold its oil exports to an average of 1 million bpd, but otherwise Iranian oil Minister says the Geneva deal does not ban Iran from increasing oil production and the country “will use every possibility to increase the amount of oil exports.”

“[We] will not wait wait for America’s permission,” Bijan Zanganeh said on April 7, 2014, according to the oil ministry news service SHANA.

While in Vienna, delegations from Iran and the P5+1 are trying to draft a final nuclear deal, the Iranian deputy oil minister reiterated that the country will accept a limitation on its oil export.

“We should not give up our efforts [to sell more oil]. (…) the P5+1 imposed an oil export cap but we are committed to our interests,” Majedi said on Friday in an interview with Iranian news site Parsnews.

“They may ask other countries to not buy Iranian oil but they cannot threaten us to [limit] our oil export. If any foreign country wanted to buy more oil, we definitely welcome the request,” he said.

China and India, two main customers of Iranian oil have said they see no reason to conform to arbitrary sanctions applied unilaterally by the US.

The United States also had to grant exemptions from sanctions to 10 European countries and Japan last year as the oil market needed high quality Iranian oil.

Iran has the world’s fourth largest oil reserves and is second only to Russia in reserves of natural gas.

Oil exports believe a prolonged oil embargo against Iran will put the United States and Europe in a worse financial position than they were before the sanctions, mostly because of a spike in oil prices and lack of adequate sources of backup oil supply.

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Iran Imports Vehicles, Medicines From India to Bypass US-led Oil Sanctionshttp://www.iransview.com/iran-to-import-vehicles-medicines-from-india-to-bypass-us-led-oil-sanctions/653/ http://www.iransview.com/iran-to-import-vehicles-medicines-from-india-to-bypass-us-led-oil-sanctions/653/#comments Fri, 17 May 2013 10:42:29 +0000 http://www.iransview.com/?p=653 Iran agreed to source vehicles and medicines from India to bypass sanctions on its oil industry and help New Delhi settle payment for oil imports in rupees, Times of India reported today.

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Iran agreed to source vehicles and medicines from India to bypass sanctions on its oil industry and help New Delhi settle payment for oil imports in rupees, Times of India reported today.

The two countries had agreed to settle bilateral trade in rupees after it became difficult for India to route payments to Iran because of the sanctions.

India is Iran’s second-biggest oil client after China.

While Iran is pursuing diplomacy through negotiations with so-called P5+1 group consisting United States, Britain, France, Russia, China and Germany, to settle longtime dispute with west over its nuclear program, US is using unilateral sanctions to pressure Iran to abandon its nuclear program, which the West believes is aimed at making a bomb but Iran insist is for civilian use.

India exported goods from Iran worth $3.36 billion in 2012-13 while its imports were $ 11.6 billion, prompting New Delhi to look for more items to sell to the country.

“We visited Iran and suggested sectors they could look at including engineering, power, steel, auto and pharma. They are keen on automobile and pharma for now,” said a commerce ministry official, adding that the country did not appear keen on a larger trade agreement.

Under the rupee arrangement, India makes part payment into a rupee account maintained with UCO BankBSE 0.06 %. Iran uses this account to import goods from India, reducing the need for routing dollar payments through third country.

A delegation led by Indian commerce secretary SR Rao had visited Iran last month when India presented many import options to Iran to reduce the $11 billion trade deficit it ran with the country last year.

Automobiles and pharmaceuticals are India’s biggest exports adding up to $18.4 billion and $14.6 billion in 2012-13. Currently, India’s exports comprise mainly of agriculture and processed goods and more recently, pharma. Iran had rejected Indian wheat citing quality issues.

The arrangement suits Iran, which was importing most of the automobiles and auto components from EU, but after the sanctions were imposed is facing some difficulty. Indian automakers already meet the stringent quality norms and are in position to meet Iranian demands.

The Iranian industry is working at one-third lower capacity due to problems in importing auto parts. Iran has most European and Japanese, South Korean brands of cars, trucks and buses. India enjoys competitive advantage as it is being driven by R&D, said FIEO.

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Subsidies Are A Hot Election Issue In Iranhttp://www.iransview.com/subsidies-are-a-hot-election-issue-in-iran/587/ http://www.iransview.com/subsidies-are-a-hot-election-issue-in-iran/587/#comments Tue, 14 May 2013 05:55:16 +0000 http://www.iransview.com/?p=587 September 2010, when Mahmoud Ahmadinejad announced the first steps of a subsidy targeting plan through the state TV, he never have guessed that in less than 2 years, he would be inundated with censure.

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iran-currency-rial-dollar September 2010, when Mahmoud Ahmadinejad announced the first steps of a subsidy targeting plan through the state TV, he never have guessed that in less than 2 years, he would be inundated with censure.

Critics accuse him of not carrying out the reforms in the right way. They claim that he was oblivious to the laws passed by the Majlis and instead has put his own ideas into action. His actions resulted in high inflation, weakening of domestic producers and destabilizing the market.

Subsidy targeting is part of a five step, “Subsidy Reform Plan” in Iran.  According to the 2010 act of the Majlis, the government could gain revenue of billions of Rials by canceling subsidies for energy carriers and essential goods. According to the Majlis’ laws the government should have given 50% of the revenue to the people. 30% should have been given to the producers and the rest would have been for the government expenses. Most of the critics are targeting this issue. Critics are mostly supporters of the program, but they say the government gave the producers’ share to the people to raise the given cash subsidy.

Products have subsequently become more expensive, because of the increased cost of transportation. Those who couldn’t afford it laid off workers and canceled productions.

The Government has been blamed for being the main reason for inflation, unemployment and impairing the domestic producers. Accordingly the next phase of the subsidies which was supposed to come into action this year is still pending.

 

This has caused a debate among the upcoming Presidential candidates on how they are going to improve living conditions and finish the job of implementing subsidies:

Mohsen Rezaee, the Secretary of the Expediency Discernment Council and a candidate commented on this matter: I’m totally in favor of subsidy reforms. He even promised to raise the given cash subsidy 2.5 times.

 

Ali Akbar Velayati, a candidate from the so called “Advancement” or “2+1” coalition thinks differently: Every administration is obliged to continue the subsidies but only those with low income should receive the cash subsidy. We can exclude the well off from receiving it and put it into long term investments and fund the country’s economy.

 

Mohammad Bagher Qalibaf, Tehran’s mayor and a Principalist candidate believes that the Reform Act is not implemented correctly. But it is a vital necessity that should be continued.

 

Ghoal Ali Hadad-Adel thinks like his other Principalist friends. He believes that not allocating the subsidy to domestic production has caused serious problems. He also said that the given subsidy cash should be raised considerably.

 

Kamran Bagheri Lankarani and Alireza Zakani are among the anti-west figures. Lankarani said, he would continue subsidies, keeping a close eye on low income people and limiting the impact it has on the inflation.

 

Zakani suggested a 7-step program to implement the subsidies. He said we should know the target social group  because now the cash subsidy is distributed among the rich and poor evenly which is not equitable.

 

Reformists criticize the government on subsidy reforms. Muhammad Reza Aref, (VP in Khatami administration), Hasan Rowhani (head of the Center for Strategic Research), Mustafa Kavakebian (MP) and Masoud Pezeshkian (minister in Hashemi administration) are the best known Reformist candidates. But considering Akbar Hashemi Rafsanjani’s candidacy they are likely to step aside in favor of him.

 

Hashemi hardly criticizes the Ahmadinejad administration on subsidy reforms and said subsidies should have strengthened producers and improved the country’s economy and agriculture. Instead it has caused inflation and devalued the national currency by giving money to the people.

Hashemi’s critics say he believes in the Capitalist model as he did in his 8 year presidency.

 

Esfandiar Rahim Mashaee thinks very differently on the issue. This controversial figure is considered a candidate supported by the government.

 He said I feel it’s my duty to continue Ahmadinejad’s policies.

He believes the implemented first step of subsidies had no negative consequences and the government was successful in controlling the inflation.

 

The conclusion

As we see different views among political parties and different individuals, implementing subsidies and the amount and distribution of cash subsidies will change unless Ahmadinejad’s protégé is elected.

 

Most of the government critics say it’s very likely that the producers and the low income people will receive a better portion of the cash subsidies.

The anti-Iran sanctions could have a direct impact on implementing the subsidies. Yet this may change according to the final winner’s view towards the West.

We should wait and see that which candidate, with what political and economic proposals will win.

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Iran Weathers The Not So Crippling Sanctions Stormhttp://www.iransview.com/iran-weathers-the-not-so-crippling-sanctions-storm/466/ http://www.iransview.com/iran-weathers-the-not-so-crippling-sanctions-storm/466/#comments Mon, 06 May 2013 01:30:38 +0000 http://www.iransview.com/?p=466 This year at the UN General Assembly Israel's Prime Minister Benjamin Netanyahu threatened Iran with a military attack to prevent Iran from becoming what he calls a nuclear state. This is nothing new to Iran. 34 years after Iran's revolution the country is constantly facing threats and the recently hyped nuclear issue is just such a pretext. Because even when Iran's nuclear program was halted, threats kept on coming as we saw in the Iran-Iraq war which lasted 8 years.

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This year at the UN General Assembly Israel’s Prime Minister Benjamin Netanyahu threatened Iran with a military attack to prevent Iran from becoming what he calls a nuclear state. This is nothing new to Iran. 34 years after Iran’s revolution the country is constantly facing threats and the recently hyped nuclear issue is just such a pretext. Because even when Iran’s nuclear program was halted, threats kept on coming as we saw in the Iran-Iraq war which lasted 8 years.

Military threats coupled with economic sanctions from the US and the EU has hurt Iran’s economy and its currency lost almost two thirds of its value; Meaning that the people can buy less and their income doesn’t match the increasing prices.

The People’s Participation in the Election Despite Domestic Instability

Military threats aren’t the only problem Iranian people are dealing with today. It has been quite some time since some Iranian officials are dissenting on domestic issues.

Iran is passing its most tense situation. As we move closer to the Presidential Election each party tries to gather the public’s attention and reach power. Even the patriot “Principalists” party is facing divisions among themselves.

This tension began after the Presidential Elections in 2009. Reformist candidates rejected the outcome and claimed fraud in the voting process and encouraged voters to take the protest to the streets. Protests began slowly and over time it turned Iran into turmoil and the street protests lasted 8 months. It all ended when masses of people came to the streets and demanded the trial of the leaders of the unrest.

Iranians Marking the anniversary of 1979 Islamic Revolution. (Photo Credit:Saeed Karimi Nejad/Fars)

Iranians Marking the anniversary of 1979 Islamic Revolution. (Photo Credit:Saeed Karimi Nejad/Fars)

Last year Iran held Parliamentary Elections which was the first elections after the 2009 unrest. International sanctions had the highest impact and people were facing growing economic problems. The dissent between the Majlis (Parliament) and the government flared up as the Majlis insisted on questioning the President for his actions. Because of the discontent among the people analysts expected a very low participation in the elections. But at 65% the voter turnout was even higher than the previous Parliamentary elections.

 

People Unity Regarding Nuclear Issue

Nuclear Energy is just the West’s bargaining chip to pressure Iran. With this in hand they have been able to enforce an all-out assault on Iran, ranging from psychological warfare to every kinds of sanctions and economic pressures.

Despite all the sanctions and pressures from the US to cancel Iran’s nuclear program Iran has been able to reach 20% uranium enrichment and claims that every details of the knowledge was achieved within Iran without any foreign help.

Four nuclear scientists have been murdered in terrorist acts in the past two years. This shows how advanced Iran’s nuclear program is that they are trying to stop it with terrorist acts. It is believed that these attacks were made by Mossad agents to cause fear among those associated with this technology. But after these attacks many Iranian college students said they wanted to change their field of study to nuclear physics to fill the place of those martyred scientists and insure that nuclear technology would thrive.

A Public Poll shows 63% of Iranians are in favor of the nuclear program.

The Gallop Institution revealed that its surveys show that Iranians blame the US for sanctions and they fully support their nuclear program. It seems that one of the goals of imposed sanctions by Obama is to distance people from their government. But Iranians are in favor of their nuclear program however the questionnaire was designed to indicate economic problems as the main result of the sanctions.

The question was this: Given the impact of the economic sanctions against Iran should Iran continue to develop its nuclear capabilities? About 63% said yes, 17% said no and 19% refused to answer. They blamed the US for sanctions and 1 in 5 of them blamed the Iranian government. While less than that blamed the EU and the UN.

With these surveys analysts knew that the Iranian people would close ranks and defend their national interests against foreign enemies. After 34 years of sanctions Iran is on its feet.

8 years of war between Iran and Iraq supports this fact. During this war Iran was effectively held hostage by 30 different countries. This means many countries were in the enemy front lines helping Saddam’s regime. Iran was under strict sanctions and countries refused to sell her military equipment. According to Iranian officials Iran couldn’t even purchase barbed wire.

Iranian regime with the help of the media showed there are other economic difficulties in the EU and the US so Iranians haven’t felt alone in the global financial crisis.

Iranians see OWS (Occupy Wall Street) as a result of the pressures that American people are facing. Many European countries are having a budget deficit and people in many countries like Spain Italy and Greece are showing the discontent in street violence.

 

But the Iranian government proudly says that unlike the US and the EU Iran’s problem are caused by outsiders and sanctions. Handling these pressures can result in Iran’s self-sufficiency, advancement and victory. This may be the reason why in Iran the economic pressures don’t end in street violence.

Street reports indicate that although the prices are overwhelmingly increasing especially for essential goods Iran is having calm days.

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Iran’s Leader Advises on The Presidential Elections, Criticizes Ahmadinejad’s Volatile Economyhttp://www.iransview.com/irans-leader-advises-on-the-presidential-elections-criticizes-ahmadinejads-volatile-economy/451/ http://www.iransview.com/irans-leader-advises-on-the-presidential-elections-criticizes-ahmadinejads-volatile-economy/451/#comments Sun, 28 Apr 2013 18:58:53 +0000 http://www.iransview.com/?p=451 Iran's Leader Advises on The Presidential Elections, Critiques Ahmadinejad's Volatile Economy on an Speech ahead of the Labors' Day.

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Iranian Labors meeting with Supreme Leader, Ayatollah Khamenei on April 27, ahead of Labors' Day. (Photo Credit: Khamenei.ir)

Iranian Labors meeting with Supreme Leader, Ayatollah Khamenei on April 27, ahead of Labors’ Day. (Photo Credit: Khamenei.ir)

Ayatollah Khamenei, Iran’s Supreme Leader, met with thousands of Iranian labors ahead of international Labors’ Day, on Saturday morning.

He spoke about the Iran’s upcoming 11th Presidential Elections, how to counter sanctions and how to empower domestic production.

He has previously named the Iranian New Year as the year of “Political and Economic Epic” and said, “One of the prominent examples of political achievement would be the Elections, which will be held on schedule.”

With only 47 days to the Elections, the Leader invited people from different parties once again: “Anyone from any party, who feels he’s capable, can enter the Presidential race.”

He stressed the “People’s significant participation” and said, those with ill will are trying to shatter people’s willingness to participate in the Elections in order to derail political achievements.

He also called objections against the Guardian Council establishment irrational and said, “We are blessed with the Guardian Council in the Islamic Republic. Imam Khomeini fully supported this establishment. The Guardian Council’s assessment is done by a community of honest people who take no sides and are aware of the requirements.”

He said those who want to become candidates should know what the executive management of the country is and they should know what the country needs and how far they can go.

He also criticized those inexperienced candidates and said, “Those who are willing to become candidates should know what the country needs and how far they can go.” The following statement was made because a growing number of politicians declared candidacy while some of them have no significant experience in executive management.

 

Prediction of harder economic situations and criticism of Ahmadinejad’s Economy

In reaction to the U.S. and its allies pursuing their sanctions against Iran, Ayatollah Khamenei reiterated: “Our economic policy should be based on an economy of resistance during sanctions, so its firm structure wouldn’t be influenced by world events.”

The Leader also said that an economy of resistance during sanctions is different from the economic policies pursued by other countries.

He indirectly criticized an unbalanced economic policy in Ahmadinejad’s administration in the last two years and said, “Daily decision making on economy issues, constantly changing them, seeking non-professional advise and believing in Western or Eastern structures of economy, are harmful to the country and our economy policy should be based on an economy of resistance during sanctions.

Iran’s Leader said, “Economy hardships and discontent in the West are confirming the failure of Capitalist economic policy.”

He believes that what we see in the U.S. and EU is the tip of the iceberg and things will deteriorate because Capitalism is in decline.

After economic reforms, coupled with rising sanctions against Iran, domestic production faced a lot of hurdles. Because many ingredients couldn’t make their way to Iranian factories and the government refused to pay subsidies and instead, gave it directly to people, as a monthly payment. This has caused a leap in inflation and consequently, more discontent of the government.

This happened exactly in the year which was supposed to be the year of “supporting Iranian workers and their funds”. The Leader reiterated many times that the government and people should support manufacturing.

He called on Iranian people to buy goods “Made in Iran”. He ordered governmental organizations not to use any foreign goods for their needs.

It seems that Iran’s Leader predicts that his country will face more severe sanctions and harder economic situations. His new policies are implementing a counter-sanctions economy that can withstand forceful pressures from the West; because he reiterated that Iran will not give up its nuclear enrichment rights.

Now we can better understand his comments on the required characteristics of the future President: “Iranian people are pursuing big ambitions and achievements and won’t surrender and no one can bully them. So, the President should be someone who is brave and hard-working against the threats of the enemies and won’t retreat.

If a huge leap in the economy should be the center of attention in the executive and legislative establishment of the country then we would not counter any political hardship.”

One other topic that the Leader elaborated on was his advice to every administration. “I have supported different Administrations and Presidents in the past years and also questioned them on various issues. My main concern was that the administrations should not create difficulties and stress in people’s lives.” He said, governments should not make unreachable promises, but they should progress in a reasonable way.”

Critics believe that “inflation” and “baseless promises” are two problems in Ahmadinejad’s administration. The majority of the criticisms against 10th administration are about the economic issues, involving inflation and domestic production.

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Iran-Argentina trade ties hit highest in yearshttp://www.iransview.com/iran-argentina-trade-ties-hit-highest-in-years/227/ http://www.iransview.com/iran-argentina-trade-ties-hit-highest-in-years/227/#comments Fri, 08 Feb 2013 09:44:42 +0000 http://www.iransview.ir/?p=227 According to Development of International Business (DNI), local exports to Iran have reached historic peaks since 2007, climbing to more than one billion dollars in the past two years.  “It is a significant export increase of more than 1,100 percent over the past six years. Trade with Iran has turned the Asian continent to the […]

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Argentine President Cristina Fernandez

According to Development of International Business (DNI), local exports to Iran have reached historic peaks since 2007, climbing to more than one billion dollars in the past two years. 

“It is a significant export increase of more than 1,100 percent over the past six years. Trade with Iran has turned the Asian continent to the second destination of the Argentine products even more than the European continent,” Marcelo Elizondo, director of the department of international business at DNI, told Press TV correspondent. 

“Argentina is clearly looking to emerging countries for growing market. Besides Argentina’s economic model is based on agricultural products. Last year, it exported 81 billion dollars, 55 percent of them were agricultural exports and Iran demands agricultural products. And a third reason is that over the past years the two countries seem to have overcome the political differences that neutralize bilateral trade,” Elizondo added. 

Israel and its Western allies have nervously watched growing economic and political relations between Iran and Argentina but Buenos Aires has responded to the criticism. 

Argentina’s Foreign Minister Hector Timerman has said that the upturn in trade ties is a response to “the sovereign decision of the government of Iran” to import Argentine products. 

This comes as President Cristina Fernandez also defended an agreement with Iran to establish a “truth commission” to investigate the 1994 bombing of a Jewish community center in Buenos Aires. 

Under intense political pressure imposed by the US and Israel, Argentina formally accused Iran of having carried out the 1994 bombing attack on the AMIA building that killed 85 people. AMIA stands for the Asociacion Mutual Israelita Argentina or the Argentine Israelite Mutual Association. 

The Islamic Republic has categorically denied any involvement in the terrorist bombing. 

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New US sanctions against Iran boost crude priceshttp://www.iransview.com/new-us-sanctions-against-iran-boost-crude-prices/110/ http://www.iransview.com/new-us-sanctions-against-iran-boost-crude-prices/110/#comments Mon, 04 Feb 2013 16:39:22 +0000 http://iransview.ir/?p=110 Oil prices rallied on Wednesday after the United States imposed new sanctions on Iran’s energy sector in a new attempt to force the Islamic Republic to halt its nuclear energy program. In London, the price of a barrel of European benchmark Brent closed at $116.73, up 21 cents from Tuesday. New York’s main contract, West […]

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Oil prices rallied on Wednesday after the United States imposed new sanctions on Iran’s energy sector in a new attempt to force the Islamic Republic to halt its nuclear energy program.

In London, the price of a barrel of European benchmark Brent closed at $116.73, up 21 cents from Tuesday.

New York’s main contract, West Texas Intermediate (WTI) for delivery in March, closed at $96.62 on the New York Mercantile Exchange.

“The main mover this morning was the new US sanctions,” said Rich Ilczyszyn at iiTrader.

“The market sold off pretty good this [Wednesday] morning and, on that story, came all the way back,” the analyst added.

 On Wednesday, the US Treasury Department announced new sanctions targeting Iranian oil revenue. The sanctions prevent Iran from gaining access to earnings garnered from its crude exports.

  The sanctions require the importing countries to keep their payments at home and only release them in return for purchases of goods from them by Iran, to effectively lock up Iranian oil revenue overseas.

Iran responded by condemning the measures as yet another act of hostility from the US government.

The US has spearheaded several rounds of Western sanctions against Iran in recent years, based on the unfounded accusation that Iran is pursuing non-civilian objectives in its nuclear energy program.

Iran rejects the allegations, arguing that as a committed signatory to the nuclear Non-Proliferation Treaty (NPT) and a member of the International Atomic Energy Agency (IAEA), it has the right to use nuclear technology for peaceful purposes.

In addition, the IAEA has conducted numerous inspections of Iran’s nuclear facilities but has never found any evidence showing that Iran’s civilian nuclear program has been diverted to nuclear weapons production.

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