Iran Economy NewsOil Bartering Reveals the Real Situation of Iran’s Government

Oil Bartering Reveals the Real Situation of Iran’s Government

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According to economic observers, the Iranian regime’s economy is facing impasses from any directions, on the one hand, the system of a production-oriented economy is shattered, its foreign exchange earnings are cut off by sanctions on oil sales, and on the other hand, the regime’s bank accounts are frozen.

The regime’s economic experts warn the regime’s government that the government should think twice about any economic decision because the country’s economic stability under the sanctions is collapsed, and any wrong decision will make the situation even more explosive for the regime than the situation created after it decided to increase the gasoline price which sparked the November 2019 uprising.

Now Ebrahim Raisi’s government while facing a huge budget deficit has decided to barter oil with goods which is self an indicator of the miserable situation of the country’s economy.

Although this policy has already been experienced in Iran by previous government’s which was a huge failure, it seems that the 13th government has no other way and has adopted the same version to meet basic needs.

According to the head of the Tehran Chamber of Energy Commission, oil should be refined in exchange for investment in development projects so as not to harm the national economy.

Bartering of oil with goods is a policy that the Minister of Oil of the regime’s 13th government, on the day of the vote of confidence in the parliament, stated as one of his main plans.

Oil Minister Javad Oji also recently announced that the bartering with oil will be done with the capacity of the regime’s Ministry of Foreign Affairs, and is on the government’s agenda. In recent days, there have been reports of oil bartering with Pakistani rice, Indian tea, and some other basic commodities.

In such circumstances, the head of the Energy and Environment Commission of the Tehran Chamber believes that if the government seeks to implement the sale of oil through bartering, this method is capable only in the short term to solve the country’s necessities and the government should not seek to use this mechanism permanently.

According to Reza Padidar, the bartering of oil with goods may meet the country’s consumption needs at times, but if oil is given to foreign countries in exchange for junk and Indian and Chinese consumer goods, it will finally destroy the economy.

Mohammad Reza Bahonar, a member of the regime’s Expediency Council, said about the regime’s critical and uncertain situation which has led to its decision to barter oil with primary goods:

“Over the years, problems have piled up. It is not possible today (as Raisi’s) says that I will solve inflation in 6 months. Because inflation cannot be solved by order. The fact that the value of the rial is melting like ice in the summer sun will be not resolved by order.

“When Raisi says that I ordered the price of the rial to be strengthened, there is a whole range of factors that cannot be solved by order. Raisi’s government should specify its position on joining the FATF.

“He went on to say that the sanctions finally have their effects. Internal inefficiencies in the country also have their effects. That is, we assume we want to live in the face of sanctions.

“Well, lives should not be subject to heavy living pressures. To say that all sanctions should be lifted so that we can resolve the nuclear issue will not work. Problems that have piled up for 30 years will not be solved in two months.” (State-run website Barkhat, November 24, 2021)

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