London, 17 May - Iranian President Hassan Rouhani invited global investors to Iran, in an effort to secure some major deals, which he believes will give him the edge in this Friday’s elections.
The much-touted rewards from the sanctions relief secured in the 2015 nuclear deal between Iran and the P5+1 nations, has not been seen by the ordinary Iranians for two reasons: low investment and greed of the elites. So, it is not surprising that Rouhani wants to promise future wealth if he is re-elected.
The investment has not been as high as the Regime hoped, because major banks and companies are reluctant to invest in a country with such strong links to terror and human rights abuses, especially when the military arm the controls a large amount of the economy is currently being considered for blacklisting because of their links to terror.
Despite more than a dozen agreements between Iran and international energy firms to conduct oil and gas field studies, none have invested money and one oilfield services firm, Schlumberger, has pulled out.
Some have also criticised the Iranian Regime for not providing the facts to investors.
Stephane Michel, French oil major Total’s president for exploration and production in North Africa and the Middle East told an EU-Iran oil and gas forum last month: “If at the end of the day, it is only words and no facts, there’s a problem. We are trying to make it work.”
The Regime is blaming the US for the low investment because, among other things, the State Department must certify that Iran is abiding by the 2015 nuclear deal every 90 days and if Iran is found to be violating the deal, sanctions can quickly be re-imposed.
Iran’s oil minister, Bijan Zanganeh, said: “The major thing is the political limitation for them and pressure on them in the United States. I hope the European Union supports companies.”
While this may scare some investors off, it is worth noting that new evidence uncovered by the Iranian Resistance reveals that Iran has not stuck to the agreement. In essence, the Iranian Regime is criticising checks on whether or not it is violating the nuclear deal, while violating the nuclear deal.
Oil companies have asked the US for waivers which would protect their investments if the US re-imposed sanctions but these are not easy things to get.
However, there are many other things which make investors wary of working with Iran including, a lack of transparency, skeletal banking system, and red tape.
Companies are also concerned that any deals they make with Rouhani in the run-up to the election could easily be undone by the next President.