Iran vs. Iranian fraudsters

Iran vs. Iranian fraudsters

Baku, Azerbaijan, Sept. 28

By Azer Ahmadbayli – Trend:

For the past few months Iran received a number of foreign investments to put its limping economy in order.

In addition to €8B allocated by Export–Import Bank of Korea and $35B assigned by several Chinese banks, Europeans woke up last week to contribute to the process.

Oberbank (OBER.VI) became one of the first European banks to sign an investment deal with Iran (€1B) since the sanctions on Iran were eased in 2016.

"This will encourage more banks, the rather bigger and more conservative banks, also to attempt strengthening ties with Iran," Bahaoddin Hosseini Hashemi, former president of Sarmayeh Bank, told Trend.

The same day Denmark’s Danske Bank signed a deal for a €500m line of credit with ten Iranian banks. Also, French state-owned bank BPI France is going to provide a €500m credit line to French companies wanting to invest in Iran.

Funds are allocated by way of FDI as well as credit lines.

Clearly, Iran welcomes the process. It is a good opportunity to revive sanction-affected segments of economy (automotive industry, oil&gas upstream etc.), to place funds in sectors relatively young for Iran (renewable energy), to invest in infrastructure (transport, ports, railroad network). New jobs will lower social tensions.

Politically it may be interpreted as a token of trust – a thing that Iran needs most of all now.

However, Iran can face challenges within the process.

One part of them was described in details in TREND’s previous overview, headlined Iranian economists voice concerns over credit lines, which discussed the ability of Iranian companies to meet their commitments to pay back the allocated loans as well as the uncertain future of forex rate in Iran.

Here some other concerns have been touched upon:

Political risks

USA, the major superpower which has a say in most of international affairs, is signaling of its possible leave from JCPOA. Nobody now can predict now the consequences of that move, if it happens.

Despite the EU Ambassador to US David O’Sullivan’s Monday statement that if the US pulls out of the nuclear deal and reapplies sanctions, the European Union could take advantage of a mid-1990s statute that would protect European companies from being penalized, it doesn’t seem real for EU to fully ignore Washington’s position. In any case, if Washington exits the deal, it could someway affect incipient investment process.

Inner risks

Bribery and gray schemes of greenwashing and smurfing should concern Iranian Government not to a less but to a greater degree than political risks. For the last few years there were several high-profile cases in Iran related to fraud and money laundering, especially in the country’s banking sector.

Take alone the famous 2011 fraud case of Mahafarid Khosravi, the CEO of Amir Mansoor Arya Investment Company, who was charged with $3-billion embezzlement and sentenced to death on charges of "corruption and disrupting the country's economic system."

14 Iranian banks were involved in the case, including state-run Bank Saderat and Bank Melli. The case raised questions about corruption at senior levels in Iran during the administration of the former president Mahmoud Ahmadinejad.

Cases like that one are only the tip of the iceberg. Iranian leadership cruelly suppresses such crimes but as international experts admit, Iran didn’t succeed too much. The 2016 Basel Anti-Money Laundering (AML) Index identified Iran as the highest money laundering risk out of 149 countries surveyed.

Iranian Government has to take comprehensive control over the inflow of foreign investments, no matter what type they are, for money to reach its proper destination. It is a crucial condition.

On the other hand, if European banks feel financial and reputation risks by getting evidence of any suspicious transactions or deals Iran is involved, they could turn away from further investments, which are vital for Islamic Republic.

There is one more thing to be noted. In perspective, if investment climate in Iran improves, it can be used by European community as an additional argument to support Tehran’s interests.

But if this matter of national importance fails, Iran will lose confidence of EU partners – one of Tehran’s key assets today.

Kyrgyzstan's referendum on new Constitution takes place, turnout was 36.75%
Kyrgyzstan's referendum on new Constitution takes place, turnout was 36.75%
Local elections and referendum in Kyrgyzstan: Voting ends
Local elections and referendum in Kyrgyzstan: Voting ends
President of Kyrgyzstan casts vote in local council elections, referendum
President of Kyrgyzstan casts vote in local council elections, referendum
Loading Bars
Latest
Israel to allow vaccinated tourists in starting late May
Biden confirms invitation to Putin to take part in climate summit
Presidents of Azerbaijan, Belarus have informal meeting
IMF unveils forecast on Azerbaijan's oil export for 2021-2022
Azerbaijani FM, Romanian ambassador stress high level of development of bilateral political relations (PHOTO)
Special equipment of Belarus assembled in Azerbaijan may be exported to Turkey
Azerbaijan's Foreign Ministry responds to Armenia's statement on War Trophy Park
President of Belarus pays working visit to Azerbaijan (PHOTO)
Moscow, Tehran attach great importance to North-South Corridor – Russian FM
Azerbaijani president gives weighty answer to Armenia’s disinformation campaign - Official (VIDEO)
Belarus reveals plans for oil purchases from Azerbaijan
Kazakhstan’s FlyArystan launching direct flights to Georgia
Iran's Energy Exchange announces products to be on sale on April 14
International Bank of Azerbaijan opens tender to buy printed materials
Azerbaijan's Aghdam needs to be fully rebuilt - German historian (VIDEO)
Azerbaijan's PM meets with BP's regional president
Ukraine may take part in restoration of Azerbaijan's liberated lands
Azerbaijani Finance Ministry places short-term bonds on auction
Iron ore concentrate production by major Iranian companies increases
President Ilham Aliyev: Pakistan was among countries that openly supported Azerbaijan from first days of confrontation
Iran’s Bahar Azadi gold coin price again falling
Sudan due to send first delegation to Israel next week
Liabilities of Bank Melli Iran’s Baku branch increase
Armenia obligated under int'l law to provide mine maps to Azerbaijan - Matthew Bryza
Footage from Azerbaijani Jabrayil's Sadi village (VIDEO)
Azerbaijan, Ukraine discuss full resumption of mutual flights
Oil exports via Barents Sea in Lukoil system increased
Hydrometeorology in Azerbaijan needs young experts for technologies - ministry
Azerbaijan shares latest data on mine clearance work carried out on liberated lands
Co-op between Iran, Russia to be effective in activating nuclear deal – Rouhani
2021 demand for OPEC crude to be higher than in 2020
Assets of Iranian Bank Melli's branch in Azerbaijan increase
On Independence Day eve Israel's population over 9.3m
Iran still waiting for S.Korea to provide solution, release its blocked assets
Azerbaijan issues data on number of COVID-19 vaccinated citizens
Azerbaijan confirms 2,457 more COVID-19 cases, 2,002 recoveries
OPEC revises up forecasts for Azerbaijan’s 2021 liquids supply
Rosatom can take part in developing green energy in Azerbaijan - expert
Repairing of last well in Iran's Naft Shahr field launched
Iran in favor of strengthening relations with Russia – President Rouhani
Azerbaijan Railways builds co-op on transiting additional goods
IMF talks forecast of money supply growth in Azerbaijan for 2021-2022
European Hydrogen Backbone’s updated cost revealed
IMF predicts growth for Azerbaijan's oil, non-oil GDP
Cargo movements in Iran’s Qeshm port down
Azerbaijan expects tourism sector to recover by summer
Plan on budget revenues surpassed in Kazakhstan
Scotland to ease some COVID-19 restrictions early
Around 70% of European infrastructure to start transporting hydrogen
U.S. will base 500 additional troops in Germany
Russia documents 8,173 coronavirus cases in past day, lowest figure since September 28
Kazakhstan names value of payments of compulsory vehicle insurance
Iran's mobile phone imports increase
Azerbaijani president signs order on hosting European Football Championship matches in Baku
Kazakhstan drafts pricing rules for exported crude oil, gas condensate
Retail trade indicators decrease in Kazakhstan
Kazakh Gas Refinery opens tender to buy spares
Kazakhstan records decrease in oil output
Belarusian IT company keen to expand its activities in Azerbaijan's transport sector
Iran’s Jam Petrochemical Company announces its production plan
Uzbekistan building modern wastewater treatment facility at Uzbekneftegaz GTL plant
Kazakh Gas Refinery opens tender to buy engines
Russian, Azerbaijani military discuss Iskander-M missile debris in Karabakh region - Russian official
Greece can take slightly more than 1 mcm/d via TAP
President Ilham Aliyev: Liberation of territories will be additional opportunities
President Ilham Aliyev: Armenians did it deliberately in order to erase legacy of Azerbaijani culture in order to erase these territories from our memories
Together with Russian president, we discussed issue about Iskander-M missile – Azerbaijani president
TAP supplies to Greece cause contraction in LNG imports
Kazakhstan attracts investments to develop national parks in Almaty region
European Commission makes statement on TAP
Russia’s Federal Air Transport Agency allows flights from Irkutsk to 3 countries
President Ilham Aliyev: I had a strong feeling during negotiations that Armenia doesn’t want a solution
President Ilham Aliyev: I think we need to be more active in order to try to build bridges
ADB focuses on renewable energy projects in Georgia
US eyes to continue negotiations on direct flights with Georgia
Bank of Georgia discusses revised outlook for country’s economic growth in 2021
Anabechdi company plans to produce textile in Georgia
Georgia to receive significant funds from IMF
Azerbaijan reveals 2M2021 data lending to energy, chemistry, natural resources sector
Georgian E-Space company looks to export its software
Death toll from coronavirus pandemic in Iran exceeds 65,000
Amount of Georgian bonds held by foreign investors up
JSC "Georgian Railway" reveals financial indicators for 2020
Uzbekistan, Russia discussing joint projects on aircraft construction
Iran's propane gas exports shrink
Armenia committed ecological terror during occupation of Azerbaijani lands - Ecology ministry
India, EU reiterate commitment to democracy, freedom and respect for human rights
Bangladesh: Multinational military exercise 'Shantir Ogroshena 2021' concludes
Turkey’s export of grains, legumes to Iran jumps
PM Modi to inaugurate virtual Raisina Dialogue, 50 countries to participate
US to support Georgian farmers, small business owners through agrotourism
External merchandise trade down in Georgia
New buildings of Turkmen Turkmenbasy, Senagat banks opened
Turkey's 1Q2021 export of chemical products sees increase
Iran's polyethylene exports rise
Georgia assists new ferroalloy enterprise in Terjola through "Produce in Georgia" program
Azerbaijan issues data on compulsory non-life insurance for Feb.2021
Foreign currency demand of Azerbaijani banks rebounds
Azerbaijan's revenues from customs duties increase
Azerbaijan's Feb.2021 lending to agriculture grows
All news