![\"Iran\u2019s](\"https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/sites\/2\/2018\/06\/Irans-economy.jpg\" "\\"Irans-economy\\"")
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By Staff Writer<\/p>\n
While Iran\u2019s economy desperately needs macro investments, the official figures show that even the 2015 nuclear deal, aka JCPOA, has failed to pump necessary capital into the country\u2019s economic arteries.<\/p>\n
Meanwhile, the consequences of the US withdrawal from the deal will make it even more difficult for the Iranian regime to absorb foreign investors.<\/p>\n
Regime officials have repeatedly spoken of absorbing foreign capital as well as the necessary technology to renovate the country\u2019s outdated oil and gas industry.<\/p>\n
In addition to an outdated oil and gas industry, it would also be impossible for Iran to exploit many of its oil and natural gas fields without taking advantage of foreign technology and capital.<\/p>\n
The nuclear deal was supposed to pave the way for absorbing foreign investments by lifting sanctions and reconnecting Iran to the SWIFT network.<\/p>\n
While Germany had high hopes of increasing its trade volume with Iran to more than 10 billion Euros, and French Total, among other big international oil companies, had been planning to turn into a key player in Iran\u2019s oil and gas industry, the official figures released by regime officials give a totally different picture.<\/p>\n
Absorbing only $5 billion in foreign investment<\/p>\n
In an interview with state-run Fars news agency on June 9, 2018, regime\u2019s Deputy Economy Minister \u2018Mohammad Khazaei\u2019 revealed that only $5 billion foreign investment has been made in Iran in 2017. The Deputy Economy Minister even went on to say that the figure was 45 percent higher than the investment made in a previous year.<\/p>\n
What Khazaei refers to as Rouhani government\u2019s economic achievement in 2016 and 2017, the foreign investment figures however suggest that regime\u2019s policies to absorb foreign capital have practically failed, as a foreign investment of only $3 billion in 2016, as announced by Khazaei, shows that foreign investors are unwilling to enter Iran\u2019s market.<\/p>\n
US withdrawal from the JCPOA<\/p>\n
It should be pointed out here that absorbing three and five billion dollars in 2016 and 2017, respectively, took place while US withdrawal from the nuclear deal was still not on the table.<\/p>\n
With the United States pulling out of the nuclear deal nearly a month ago, the consequences could be clearly seen as big oil companies, refineries and car manufacturers have already decided to leave Iran\u2019s market.<\/p>\n
A SWIFT solution<\/p>\n
Being disconnected from the SWIFT financial network was one of the major problems the Iranian regime was faced with during 2012-2016, as it not only made it difficult for regime\u2019s financial transactions related to its export and import activities, but it also limited regime\u2019s access to its own financial resources across the world.<\/p>\n
One of the consequences of Trump\u2019s reemploying sanctions on the Iranian regime would be that regime\u2019s financial links with the global banking system will once again be cut off, something that\u2019s going to happen when Trump administration\u2019s 180-day deadline expires on November 4, 2018.<\/p>\n
In his interview with state-run Fars news agency, Mohammad Khazaei has suggested that Europe determines a number of banks for resolving the financial transaction issues following the re-imposition of US sanctions. This, however, could not be done from a financial point of view, first because the European banks are themselves part of the SWIFT network, and thus they will practically have no possibility to continue working with their Iranian counterparts in case Iranian banks are kicked out of the network.<\/p>\n
Besides, the United States has threatened to punish companies and banks that keep trading or cooperating with the Iranian regime, a punishment that would involve heavy financial fines and cutting access to the United States\u2019 financial system as well.<\/p>\n
Under such circumstances, it\u2019s not conceivable that European banks are willing to take the risk of doing financial transactions with the Iranian regime.<\/p>\n
So, it\u2019s quite predictable that it would be more difficult than ever for the Iranian regime to absorb foreign capital with the sanctions re-imposed and regime\u2019s banks once again disconnected from the international financial network.<\/p>\n","protected":false},"excerpt":{"rendered":"
By Staff Writer While Iran’s economy desperately needs macro investments, the official figures show that even the 2015 nuclear deal, aka JCPOA, has failed to pump necessary capital into the […]<\/p>\n","protected":false},"author":10,"featured_media":51490,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[178],"class_list":{"0":"post-24883","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-save"},"yoast_head":"\n