Iran Wants To Barter Oil With Foreign Firms To Build Housing

A statement issued by the Department said the End-User Review Committee (ERC), composed of representatives of the Departments of Commerce (Chair), State, Defense, Energy and, the Treasury makes determination if a company has inappropriately diverted US technology for purposes that are harmful to US interests.

A senior administration official had said earlier in the day the Commerce Department and Treasury Departments would announce a series of actions on Thursday targeting Chinese companies that Washington says use biotechnology and surveillance to abuse human rights.

Aside from China, the Commerce Department also took action against entities from Georgia, Malaysia, and Turkey for allegedly "diverting or attempting to divert U.S. items to Iran’s military programs."

A document released said several companies are being designated “for actions contrary to the national security or foreign policy interests of the United States. Specifically, these companies have supplied or attempted to supply U.S.-origin items that could provide material support to Iran’s advanced conventional weapons and missile programs...”

Police officials on Wednesday announced the arrests of 42 money exchangers and closure of 20 currency exchange outlets in Tehran accusing them of manipulating the market. The police also summoned managers of 20 websites and social media apps and warned them about exchange rates.

The rial has fallen to more then 300,000 against the US dollar, as negotiations over Iran’s nuclear program in Vienna are stalled and the economic outlook for the country seems bleak. The rial has fallen nearly tenfold since the end of 2017, when it became likely that the United States would abandon the 2015 nuclear agreement and impose sanctions.

Iran’s police and courts have arrested and prosecuted tens of people since 2018 on charges of boosting the value of the dollar or the price of gold, while the fall of the rial is the result of Iran’s economic crisis.

Last week also the Intelligence Ministry arrested five people and closed 841 bank accounts it said were involved in “illegal” currency and futures trade.

Donyaye Eghtesad (World of Economy) has highlighted the elimination of cheap dollars government has been providing to importers of food and medicine as the main factor, which will boost prices.

The government's annual budget bill for the new Iranian year that starts on March 21,2022 was handed over to the parliament for ratification on Sunday. Usually, the bill will undergo dramatic changes before it takes its final shape probably in February or March.

During the past two years, the parliament and the government had so many problems over the annual budget that their debates remained inconclusive after several weeks and Supreme Leader Khamenei handed over the ratification of the bill to the heads of the executive, judiciary and legislative powers.

This year, political analysts have said that debates over the budget are likely to widen the gap between the parliament and the presidential administration more than ever before. The Majles Speaker, and the parliament's biggest fraction, the Paydari Party members are preparing to fight over the lion's share of the budget.

Last year a deputy Majles Speaker charged that Speaker Mohammad Bagher Ghalibaf made changes in the budget numbers after its final ratification. But the matter was pushed under the carpet to avoid further controversy.

According to Donyaye Eqtesad the delaying of retirement age will be raised to take some pressure off from the Social Security Organization. The organization has been facing problems in recent years as cash from the pension fund was diverted into some failed business activities, reducing available cash.

Olia Alibeigi, a member of the trustees of the organization has charged in an interview with the Iranian Labor News Agency (ILNA)on Monday that successive government and the parliament in Iran think they can withdraw money from the pension fund whenever they need to solve other economic problems.

Meanwhile, observers say an average 10 percent salary increase for government employees amid 50-percent inflation, will add to dissatisfaction among the workers. On Monday, thousands of Iranian teachers clashed with the police near the parliament after security agents attacked protesters who wanted a pay adjustment to make up for the impact of the country's back-breaking inflation. Not only government office workers are affected but millions of workers in state-owned industries.

Social media users in Iran have pointed out that the 10 percent raise for government employees is ridiculous while Raisi has proposed a 300-percent increase for the expenses of the Presidential Office.

Meanewhile, many economists argue that not providing cheap dollars to importers of essential goods, may save around $8 billion annually. But the problem is that many in parliament, economists and politicians say this would add fuel to inflation, which has already reached 45 percent this year.

Rising inflation, small salary increases and the amount of tax the government is planning to collect from citizens are likely to exert immense pressure on the nation. Experts talking to Iran International Television during Sunday and Monday predicted that one of the implications of the new budget bill is the increased likelihood of protests in Iran.

The head of the Planning and Budget Organization, Masoud Mirkazemi on Monday told local media that based on family incomes a monthly cash handout of 900,000-120,000 rials will be paid to citizens. In the current free market exchange rate, the sum equals 3-4 US dollars, or one kilogram of red meat per month. Annual inflation hovers around 45 percent.

President Ebrahim Raisi presented his draft budget for the next calendar year that starts on March 21, 2022, on Sunday. The budget is based on over-optimistic oil export estimates and other revenues that on paper have produced a balanced budget. One measure with a crucial impact on impoverished workers is the elimination of cheap government dollars for imports of basic food items, such as wheat and sugar.

Iran struggles with a deep economic crisis triggered by low oil exports due to US sanctions imposed since 2018. Oil revenues finance more than half the government budget in ordinary circumstances.

Tehran has been engaged in indirect nuclear talks with the United States since April that if successful could lift the economic sanctions, but so far there has been no breakthrough.

Mostafa Daraeinejad the head of Iran’s fruit and vegetables association told the Iranian Labour News Agency (ILNA) Friday that India, Russia, Uzbekistan, the United Arab Emirates, Oman, Qatar and others no longer accepted some certificates issued by Iran's agricultural organizations and demanded their own standards be met.

Iran exported $6.5 billion in agricultural products last year. It is among the top ten producers of more than two dozen fruits and vegetables, including saffron, apples, citrus fruit, watermelons and other melons, pomegranates, dates, pistachios, and walnuts.

Daraeinejad said India was refusing import permits for Iranian kiwi after finding it did not meet safety standards. Iran is seventh in world kiwi production, and the main producing region exported nearly 60,000 metric tons, worth $95 million in 2018.

Daraeinejad warned that Iran faced the threat of losing agricultural markets if the ministry of agriculture did not take immediate action to raise standards. He said the matter should also concern domestic consumers as "Iranians don't deserve to ingest nitrates and other pesticide residues…”

In November Uzbekistan turned down several thousand tons of Iranian and Pakistani potatoes due to high levels of pesticide. Qatari importers in November returned to Iran nearly 588 date palms, worth $136,000, imported for lining streets in preparation for the 2022 soccer World Cup.

A few weeks ago, Russia banned imports of some Iranian agricultural products. According to Reza Nourani, chairman of the National Association of Agricultural Producers, a large shipment of peppers was rejected because certificates on pesticide-residue levels were lacking. The Mashregh News website claimed December 1, that “the Israeli lobby” in Russia was behind the move in order to eliminate market competition for Israeli peppers.

According to Iranian Customs Organization, Iran last year exported $22 million of peppers to Russia, which after the imposition of US ‘maximum pressure’ sanctions in 2018 became one of the major destinations for Iran's fruit and vegetable exports. Agricultural products make up more than 80 percent of Iran's exports to Russia.

Although Iran produces a wide variety of agricultural products, the sector has been battling with serious drought and inadequate water supplies for years. At the same time, environmentalists argued that cultivation of watermelonsand cucumbers, two of Iran's major fruit and vegetable exports, should be banned in most areas as producing one kilo of watermelon requires on average 300 liters of water. Producing chicken, rice and bread all require even more water.