Iran Democracy Monitor: No.144

AND THE ECONOMIC WINNER IS... IRAN'S SUPREME LEADER
The interim agreement over Iran’s nuclear program, which entered into force on January 20th, remains a politically-contentious topic in Washington, with the White House and Congress at loggerheads over the prospect of additional sanctions on the Iranian regime. At least one party, however, is already a clear victor: Iran's Supreme Leader, Ali Khamenei, whose personal fortune is reportedly on track to receive a massive economic shot in the arm as a result of receding sanctions. That is because Khamenei controls Iranian business giant Setad, which has significant equities in the Iranian petrochemical sector - one of the areas of the Iranian economy most directly (and positively) affected by the West's easing of sanctions. Among the list of Iranian firms now permitted to do business abroad are Ghaed Bassir Petrochemical Products Company, Marjan Petrochemical Company, and the Sadaf Petrochemical Company, all of which are controlled by Setad. The multi-billion dollar conglomerate gained its status as an Iranian institution largely by the seizure and sale of property owned by Iranian citizens, and was specifically targeted by Western sanctions aimed at Iran’s leadership. (Reuters, January 22, 2014)

TARGETING AMERICA ON HUMAN RIGHTS
The basij are going on the rhetorical offensive against the United States. Iran’s domestic paramilitary has issued a new report on state repression which identifies the U.S. as “one of the main violators of human rights” in the international community. The study, published in English, Arabic and Farsi and released at Tehran University, accuses the U.S. of violations related to the War on Terror, as well as domestic discrimination, police brutality and racial inequality. Mohammad Reza Naghdi, head of the basij, as well as Mohammad Javad Larijani, chair of the Iranian judiciary’s human rights commission, presided over the paper’s release. (Radio Free Europe, January 27, 2014)

THE HIGH COST OF LABOR DISSENT
Twenty miners have been arrested by regime security forces in Yazd Province for leading a work stoppage at the Chadormalu Mine. The labor dispute was the result of some 3,000 workers being denied overtime pay and wage increases. Human rights organizations have condemned the arrests as “illegal,” claiming they violate existing labor laws in the Islamic Republic. According to Mansour Osanloo of the International Campaign for Human Rights in Iran, “when workers reach a dispute with their employers because of their pay or other guild demands, they have a right to stop work. Therefore they didn’t do anything illegal to warrant the arrests.” (ICHRI, January 31, 2014)

BITING THE HAND THAT FEEDS
One of Iranian president Hassan Rouhani's key social policies is provoking an unexpected domestic backlash. Several months ago, the Rouhani government launched a program to distribute free food to millions of low-income families. The objective of the initiative was to protect Iran's economically-disadvantaged - mainly retirees and low-wage workers, from the effects of soaring inflation and rising consumer prices. But poor quality food and long lines have generated discontent among recipients - and provided ammunition for Rouhani's political opponents. Critics in Iran's legislature have called for an official investigation into the program. (Financial Times, February 3, 2014))

NEW NATURAL GAS LINKS TO MOSCOW
Iran is poised to expand its energy partnership with Russia still further. Last month, Moscow and Tehran concluded a massive $1.5 billion monthly oil-for-goods swap, significantly easing Iran's economic isolation in the process. Now, Russian Ambassador to Tehran Levan Dzhagaryan has confirmed that Russian state natural gas giant Lukoil has begun negotiations with the National Iranian Oil Company to carry out exploration and development of Iran's quadrant of the Caspian Sea. The talks follow a rollback of sanctions on Iran's energy sector stemming from the interim nuclear deal recently concluded between Iran and the P5+1 powers. Lukoil, moreover, is not alone; other foreign firms - namely France's Total and Italy’s Eni - are also reportedly interested in resuming exploration and development in Iran. (Tehran Press TV, February 10, 2014)

A TURKISH-IRANIAN THAW
Iran is also tightening its ties to Turkey. The two countries have had troubled relations of late, stemming mainly from disagreements over Iran's support for the regime of Syrian dictator Bashar al-Assad. But both nations now appear eager to mend fences. A late January visit to Tehran by Turkish Prime Minister Recep Tayyip Erdogan has netted a palpable new dynamism in the bilateral relationship. "Our relations with Turkey have entered a new phase," a spokesperson for the Iranian Foreign Ministry has said. A large part of the thaw is economic; the two sides now plan to expand bilateral trade to $30 billion annually by next year. (Reuters, January 29, 2014; Beijing Xinhua, January 29, 2014)