Iran, Russia Ink Agreements To Bolster Energy, Trade Ties
Tehran and Moscow have signed a number of major memoranda of understanding (MoUs) to expand energy and trade ties, as Russian Deputy Prime Minister Alexander Novak visited Iran.
Tehran and Moscow have signed a number of major memoranda of understanding (MoUs) to expand energy and trade ties, as Russian Deputy Prime Minister Alexander Novak visited Iran.
The agreements were signed in Tehran on Wednesday during a meeting attended by Novak and Iranian Oil Minister Javad Owji.
"Iran and Russia are both under oppressive sanctions, which, God willing, can be neutralized by working together and developing relations in various fields," Owji was quoted as saying by the oil ministry’s news agency, Shana.
"Good agreements were reached in the fields of rail, road transport, shipping and aviation," he said, without expanding further, adding that both sides have "good capacities for cooperation in energy, banking, transportation, agriculture, nuclear energy, industry and trade".
"We plan to increase the level of Iran-Russia trade relations in these fields to $40 billion a year," the oil minister added. Current annual bilateral trade is around $4 billion.
According to Russia's Interfax news agency Novak and Owji discussed the potential for oil and gas swaps, as well as "increasing joint investments in oil and gas projects" with the Russian official emphasizing that "Energy is one of the most important sectors of our trade and economic cooperation."
"We agreed to switch over to the use of national currencies as much as possible," Novak added, noting that "A path is being pursued to increasing trade, economic, logistics, investment, financial and banking cooperation, despite the unprecedented pressure that Russia is currently experiencing from unfriendly countries."
While Tehran has been chafing under sanctions for years, especially after the US pulled out of the nuclear deal in 2018, Western governments have imposed tough sanctions on Russia after it invaded Ukraine in February.
During a visit to Khuzestan Province on Monday, he also said that Iran has been experiencing a 40 percent inflation rate for several years now.
Rezaei argued that the people should be convinced the government has an economic plan and is trying to solve their problems. His remarks contradicted many Iranian analysts and politicians including several lawmakers who have charged that the Raisi administration does not have an economic plan and it is his economic team's ad-hoc decisions that have led to an economic crisis.
Rezaei told Friday prayers imams of Khuzestan that the government is trying to gradually reform the economy and that President Ebrahim Raisi has asked several think tanks to write a document about “this evolution.” He further claimed that in the past 26 years Supreme Leader Ali Khamenei has repeatedly called on successive governments to start economic reforms, but nothing has been done.
Rezaei, a military man with no experience in running the economy, made uncalculated comments a few months ago, which led to an unofficial ban on him to declare economic policies. His comments on Monday coincided with president Raisi being absent, on a visit to Oman.
The vice president was last seen Tuesday morning sitting on the floor of a building in Abadan with Interior minister Ahmad Vahidiand a group of local officials, reportedly leading a meeting about relief work following the collapse of a high rise building which killed 16 people, and tens of others injured or gone missing.
Saeed Hafezi, a local reporter, told the Iran International TV Tuesday afternoon that the owner of the collapsed Building Hossein Abdolbaghi was linked to Mohsen Rezaei, adding that while Abdolbaghi was reportedly arrested, it was said after Rezaei's arrival in Abadan that he was killed under the debris.
Meanwhile, commenting on Rezaei's remarks on the Iranian economy during the year, Reza Gheidi, an economic journalist in Tehran told Iran International TV that Iranians no longer believe or trust remarks or promises by state officials, mainly because they constantly contradict themselves.
Gheidi added that the situation is marked by the people's disillusionment and disappointment about state officials' ability to deal with the economic crisis. Iranians are currently thinking of food not as something that can keep them healthy, but as something that can simply fill their stomach, as prices have doubled and tripled in recent weeks.
Meanwhile, Ahmad Alirezabeigi, a lawmaker for Tabriz has harshly criticized state officials "for insulting Iranians' intelligence when talking about the economy and the causes of protests from 2018 to 2022."
The lawmaker said that the people are feeling the pressure of rising prices with their flesh and bones as the impact of the government's policy of removing food subsidies has given rise to further inflation. He characterized state officials’ promises about no further price rises as "nonsense."
While the government insists that it has hiked the price of a few food items, another lawmaker, Hassan Lotfi, said on 21 May that price rises have already impacted a range of some 700 household items.
The Iranian Red Crescent has reported eleven deaths and warned about the collapse of the rest of the building. So far 39 have been pulled from the rubble alive. Rescue operations cintinued Tuesday as there were as many as 50 people buried under the rubble. Three rescue workers were injured on Tuesday when another part of the building collapsed.
Saeed Hafezi, a journalist and whistle-blower, claims that Hossein Abdolbaghi, owner of one of the ten-story Metropol twin towers which collapsed Monday, was seen leaving the building half an hour before it collapsed, and authorities are lying about his death in the accident. Hafezi says he has personally spoken to a witness.
Radio Goosheh Kenar, a local internet radio station run by Hafezi, on Tuesday published an audio file sent by a man claiming to be an employee of the Abadan coroner’s office who claims officials of the coroner’s office were pressured by unidentified authorities to issue a death certificate in Abdolbaghi’s name for an unidentifiable body they brought in. The man whose voice was altered in the recording says the coroner’s office has so far not relented to outside pressure and declined to issue a death certificate.
Initially, suspicions arose right after the collapse of the building on Monday when media, including the official news agency (IRNA), reported Abdolbaghi’s arrest but on Tuesday prosecutor general of Khuzestan province, Sadegh Jafari-Chegeni, told the judiciary’s news agency, Mizan News, that he died in the incident. Abdolbaghi’s identity papers were discovered on a very badly damaged and unidentifiable body in the rubble, he said, and the body was eventually identified as belonging to him, officials claimed, without saying who made the identification.
A photo taken from CCTV footage in the area has also been circulating on social media allegedly showing Abdolbaghi running away after the incident. Dariush Memar, a journalist currently residing in London, in a tweet Monday said he had met Abdolbaghi in Iran many times and he can confirm that the man in the photo is highly likely to be him, “unless a photo of his body is shown at the coroner’s office by the justice department of Abadan.”
Abdolbaghi, 40, is a well-known entrepreneur in Khuzestan with alleged strong connections with influential officials and centers of power. In 2018 the ministry of industries, mines and trade named him as the top entrepreneur of the Arvand Free Zone in Khuzestan.
In an article published in August 2020 in Feydus, an Iranian news website, Memar accused Abdolbaghi of corruption. “His formula for amassing wealth, like many others in Iran today, is very simple: Clever management of connections and opportunities based on rente.” ‘Rente’ is a French word used in Persian to imply privileges resulting from undue influence.
He also had close connections with the police and security forces who once gave an award.
The head of Iran’s Construction Engineering Organization, Hamzeh Shakib, on Monday said adding three extra stories to the original plan built illegally had caused the tragedy of the building’s collapse. He also said the organization had several times reported critical faults in the construction of the building, including in their most recent report, but the municipality of Abadan which was responsible for stopping the construction ignored the warnings.
Authorities say they have arrested ten officials including the current mayor of Abadan and two former mayors, for negligence leading to the tragedy of the building’s collapse.