Iran’s decision on IRGC may affect ties with rest of world

Baku, Azerbaijan, Jan.23

By Leman Zeynalova – Trend:

Reducing the armed forces and the Islamic Revolutionary Guard Corps (IRGC) influence in the Iranian economy is easier to say than to achieve, Francis Perrin, Senior Fellow at the OCP Policy Center (Rabat) and Senior Research Fellow at the French Institute for International and Strategic Affairs (IRIS, Paris), told Trend.

His comments came after Iranian Supreme Leader Ayatollah Ali Khamenei tasked the general staff of the armed forces of the country with privatizing the economic institutions affiliated with army and the IRGC.

The Iranian defense minister, brigadier-general Amir Hatami, told the official Iran daily that the decision seeks to prevent the armed forces form being involved in “irrelevant economic activities”.

It is not the first time - and perhaps not the last one - that the Supreme Leader of the Islamic Republic of Iran, Ayatollah Ali Khamenei, is asking for more privatizations and is calling for the armed forces and the Islamic Revolutionary Guard Corps (IRGC) to stop from being involved in economic activities. This demand was first formulated more than ten years ago, noted Perrin.

‘Since his first mandate President Hassan Rouhani has had some very hard words about this major and growing economic and industrial role played by these entities, especially the IRGC. He stressed that a significant part of the Iranian economy was transferred from an "unarmed government" (the Iranian government) to an "armed government", an obvious reference to the IRGC. He added that this second government was armed with guns, media and news agencies. It is not a sound economic and privatization policy, he explained. We have to transfer more activities to the "real private sector", President Rouhani added,” recalled the expert.

He believes that the very recent orders coming from the Supreme Leader must be analyzed as regards two main aspects: it is part of the fierce political struggle within the Iranian regime (see the paragraph above) and it could have an impact on economic relationship between Iran and the rest of the world.

When President Trump decided in October 2017 to impose new sanctions on Iran the US Department of the Treasury's Office of Foreign Assets Control designated the IRGC as a foreign terrorist organization under US law, recalled the expert.

“It means that foreign companies working with economic entities in Iran linked to the IRGC could be sanctioned by the US Administration, which will make much more difficult the economic opening President Rouhani and his government, including Oil Minister Bijan Namdar Zanganeh, want to achieve. This reminder by the Supreme Leader is also a way to try to reduce this higher political risk for Iran and for foreign investors or potential investors in Iran,” noted Perrin.

As US Treasury Secretary Steven Mnuchin said last October, "we urge the private sector to recognize that the IRGC permeates much of the Iranian economy and those who transact with IRGC-controlled companies do so at great risk".

“Of course reducing the armed forces and the IRGC's influence in the Iranian economy is easier to say than to achieve. The Corps has very strong political connections and major interests in the industrial sphere and will not accept to retreat gracefully. The Supreme Leader asked them to withdraw from economic entities not related to their missions but there is here some room for interpretation. And the Defense Minister, General Amir Hatami, has just said that Khatam ol-Anbia, the main engineering and construction arm of the IRGC, would not be affected by the Supreme Leader's orders. Khatam ol-Onbia is playing a very important role in the oil and gas sector,” he added.

---

Follow the author on Twitter: @Lyaman_Zeyn

Iran’s Bahar Azadi gold coin price rising
Iran’s Bahar Azadi gold coin price rising
Volume of dry-farming land in Iran increases
Volume of dry-farming land in Iran increases
Iran's NISOC begins excavations on its territory
Iran's NISOC begins excavations on its territory
Loading Bars
Latest
Iran’s Bahar Azadi gold coin price rising
Volume of dry-farming land in Iran increases
Iran's NISOC begins excavations on its territory
Iran’s South Pars Gas Company reveals production data of its refinery
Iran waits for Europeans to comply with the JCPOA - MFA
Iran to make decision whether to open schools after Nowruz holiday
Production of LPG-fueled cars in Iran's interests - Chamber of Commerce
Armenia's war crimes exposed at UN Congress
Azerbaijan sees growth in Jan.2021 transactions via clearing system for small payments
Iran boosts car manufacturing
Spanish La Vanguardia: Return to Azerbaijan's Karabakh after war
Azerbaijan’s export of ferrous metal products down
Turkmenbashi Oil Refineries opens tender for purchase of gasoline
Britain's M&S expands online business to over 100 markets
Dustbin of history - place for former Armenian president Kocharian, 'Karabakh clan' - historian
Khazar Consortium opens tender to purchase cementing unit
Turkey’s food retail chain Migros to bolster gender-equal workforce and greener stores
Iran Mercantile Exchange working to expand sale of goods
Iran reveals COVID-19 data for March 8
Modi to inaugurate Maitri Setu between India and Bangladesh on Tuesday
India's Covid Vaccine Rollout "Rescued The World": Top US Scientist
India pre-eminent partner of US in Indo-Pacific region: Blinken tells Jaishankar
Bachendri Pal to lead all women team aged above 50 in a 5 month long Himalayan expedition
Satellite set for Mar 28 launch will provide near real time images of borders, quick monitoring of natural disasters
Sikh Fighter Pilot Memorial In UK To Honour Indians Who Fought In World Wars
IMF, Georgia review agenda of bilateral cooperation
Iranian President and Irish FM discuss JCPOA
Iran reserves strategic basic goods
Iran’s Rouhani asks for release of frozen assets in Iraqi banks
Iranian parliament approves increase of salaries to aid low incomes
Iran not to allocate Nowruz gasoline quota due to COVID-19
Uzbekneftegaz establishing production of import-substituting products for industrial enterprises
Iran to obtain its funds frozen in Iraq
Georgia opens new enterprise with support of Rural Development Agency
Interest in entrepreneurship growing among women in Azerbaijan
Export of cotton from Azerbaijan greatly increases in Jan. 2021
Mubarek oil&gas production dep’t owned by Uzbekneftegaz to increase natural gas production
Uzbekistan reveals its COVID-19 data for March 8
Iran unveils number of mining facilities put into operation
Japanese businessmen visit Azerbaijan’s Guba genocide memorial complex (PHOTO)
Development of Iran's Siyahmakan oil field launched
Nearly half of non-oil sector taxes in Azerbaijan falls on mobile operator in 2020
Azerbaijan's Azercell reveals number of processed requests in 2020
Azerbaijan's Jan. 2021 imports from EU show increase
Accumulative life insurance market in Azerbaijan grows
Iran capable of building long water transfer pipelines - Iranian VP
Deliveroo launches London IPO after business surges in 2020
Iran to publish final report of the downed Ukrainian jet soon
No direct or indirect relations between Iran and US - Iranian Foreign Ministry
Approval of FATF related bills would increase Iran's export revenue - Iranian Union
Iranian medicine importers awaiting approval of FATF related conventions
Turkey records slight decrease in car exports abroad
Cement exports from Turkey to global markets grow
Azerbaijan shows footage from Zangilan's Garagoz village (VIDEO)
Turkey's revenues from export of grains, legumes to global markets up
Moscow hosts opening ceremony of another 'Gifts of Azerbaijan' stand
Turkmenistan sells diesel fuel, gasoline to number of countries
Baku celebrating International Women's Day (PHOTO)
Kazakhstan's exports to Portugal plummet amid COVID-19
Kazakhstan boosts trade turnover with Lithuania
Oil supply to exceed demand in 2022, says JP Morgan
Georgia sees decrease in COVID-19 cases
Uzbekistan's gold deposit ranks in list of world's biggest gold mines by production
Azerbaijan's digital infrastructure project to generate Digital Silk Road between Europe, C.Asia
U.S. says all options on table for a decision on Afghanistan
Growth rate of agricultural production in Turkmenistan increases
Uzbekneftegaz reveals volume of oil products manufactured in 2M2021
Azerbaijan's First VP congratulates Azerbaijani women on International Women's Day
JP Morgan reveals 2021 oil demand & supply forecasts
Boom in Iran's housing sector create new jobs for local force
JP Morgan says OPEC to boost supply in 2021
OPEC crude output to exceed 30 mbpd in 2022 – JP Morgan
Uzbekistan, India talk mutual phytosanitary permits for agricultural products
Turkmenistan exceeds plan for transport, communication sector
Weekly review of Azerbaijani oil market
Nepal PM Oli receives first jab of Indian-made COVID-19 vaccine
Iran's economic development declines
IAM Construction LLC to reconstruct facility in Azerbaijan’s Seaside Park
Azerbaijan’s state interests on Azerbaijani-Armenian border protected at highest level
China's focus on annual GDP targets gives greater policy flexibility
Iran's CBI reveals amount of loans issued in Iran's trade sector
Buy/sell operations at Iran Mercantile Exchange on the rise
Iran kicks off development of Ramin oil field in Khuzestan Province
Iran reveals amount of loans issued in housing and construction sector
Iranian currency rates for March 8
Iranian banks issue big loans to agricultural sector
Iran boosts development of Zilayi oil field
Iran boosts exports via Zanjan Province
Iran's exports to Azerbaijan not on high enough level - Ali Jahangiri
State Oil Fund of Azerbaijan enters top five most transparent sovereign wealth funds
Large-amount loans issued in Iran's services sector
Excavations at Iran's South Pars gas field continue
Significant work done on water and electricity sectors in Iran – minister
Azerbaijan’s Buta Airways low-cost airline to resume flights from Baku to Ukraine’s Kyiv
Iran implements plan to maintain, increase extraction from several oil fields
Turkmenistan sees increase in trade turnover volumes
Japan government spokesman says timing of Biden-Suga meeting undecided
Exports to Iraq via Mehran crossing top $460m
Kazakhstan’s daily COVID-19 case count stands at 653
Weekly review of Azerbaijani ICT sector highlights
All news