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Iranian Lawmaker Says Medicine Shortages Can Lead To Crisis

Iran International Newsroom
Jul 2, 2023, 07:28 GMT+1Updated: 17:43 GMT+1
A pharmacy in Tehran in 2022
A pharmacy in Tehran in 2022

An Iranian member of parliament has warned about a looming crisis triggered by medicine shortage, saying that nearly 200 medications are not available.

Mohammad-Ali Mohseni-Bandpey, a member of the parliament's health committee warned in an interview with ILNA news website on Saturday that if a solution is not found, the issue may turn into a social, political, economic, and health crisis.

He said the government's huge debts to the social security organization and the organization's debts to hospitals, as well as the lack of sufficient drug production in the country are the most important factors contributing to the crisis.

During the past years, the authorities attributed medicine shortages in the country to the US sanctions, claiming that the sanctions targeted ordinary people. However, import of humanitarian items, including medicine, is exempt from US embargoes. In fact, Iran has been purchasing around two billion dollars' worth of medicines and raw materials annually for producing drugs from Europe and India.

The Foundation for the Defense of Democracies had previously written in a report that corruption, not sanctions, is causing medicine shortages in Iran.

While European countries had launched the INSTEX mechanism with the permission of the US to export humanitarian items to Iran, they discontinued it in March of last year because of Iran's unwillingness to use this mechanism.

In a joint statement in March, Germany and France said the Iranian leadership has chosen to act against the interests of its people by refusing to cooperate in the export of medicine and other life-saving goods.

Bandpey further noted that in a meeting held last week, the ministers of labor, health, intelligence and the representatives of the Central Bank, as well as the Revolutionary Guard acknowledged that if a solution is not found, this issue may turn into a big problem.

He also referred to the 180-million-dollar debt of the social security organization to hospitals and the government's “ten times larger” debt to this organization, saying that there is a shortage of medicine even in the emergency rooms of hospitals and people have to look for medicines outside the hospital, meaning in the black market.

He underlined that the country cannot produce enough drugs, because the cost of the medicines is more than government mandated prices. Iran's economy is mostly controlled by the government, especially imports of goods, which needs foreign currencies.

Earlier this year, Bandpey said the pharmaceutical companies are moving to other countries as there are "serious hurdles” to their activities.

In January an official of Iran’s drug importers union, Mojtaba Bourbour, challenged government officials’ claims about self-sufficiency in production of medicines and said not only up to 90 percent of raw material is imported from countries such as China and India, but also some medicines are imported from China but sold under Iranian labels.

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Politicians Eager To Win Parliament Seats, If Khamenei Allows

Jul 1, 2023, 23:27 GMT+1
•
Iran International Newsroom

New developments in In Iran's reformist and conservative camps are indicative of a new momentum in the country's political dynamics ahead of March 2024 elections.

Ultraconservatives, who dominate the current parliament and the government, are ready to go out of their way to ensure their continued supremacy in the political landscape.

The Reformist Front, an umbrella organization of several parties and groups elected Azar Mansouri as the Front's leader last week to replace aging political heavyweight Behzad Nabavi who led the front during the past two years. Mansouri was the front's spokesperson during this period.

However, based on the experience of the last two elections in 2020 and 2021, an electoral watchdog controlled by Supreme Leader Ali Khamenei will determine who can become a candidate. In the 2020 parliamentary vote hundreds of reformist candidates were disqualified, allowing hardliners to dominate the parliament.

Ms. Mansouri took part in a meeting with former President Mohammad Khatami, who is considered the undeclared leader of Iran's reform movement although his recent stances indicate that he is not too eager to risk big changes in the current governing system.

According to Etemad Online, at the meeting Khatami endorsed Mansouri's qualifications as the leader of Iran's Reform Front and insisted on its independence. He said the power and capabilities of the Reform Front depends on its members' strengths and capabilities.

Azar Mansouri with former president Mohammad Khatami in June 2023
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Azar Mansouri with former president Mohammad Khatami in June 2023

Khatami called on the front's leaders to do their best to ensure its cohesion, while also benefitting from the views of experts outside the front. He added that the front's views should reflect the collective opinion of its members.

At the meeting, Mansouri said that Khatami is the Reform Front's focal point and that all of the reformists agree on his key role.

Meanwhile, according to conservative website Nameh News, Mohammad Ali Namazi, a member of the Centrist Executives of Construction Party (EoC), which is a part of the Reform Front, has said that the Reform Front would have been more successful if its members elected EoC leader Hossein Marashi as its chairman.

However, he added that Mansouri's election as the Reform Front's leader does not mean that the views of her party, the Unity of Nation Party will determine the underlying policies of the front. Ms. Mansouri will have only one vote in determining those policies.

He said a majority of the front's member wanted Nabavi to be elected as the leader, but the aging politician was not interested in the position.

Meanwhile, Namazi made it clear that he is aware that the conservative-led Guardian Council that vets election candidates has already made its decisions about who are those who are allowed to run for the upcoming election.

At the same time changes in the leadership of the conservative camp indicated their strong interest in the upcoming election. In one of the latest developments, political heavyweight Mohammad Reza Bahonar joined SHANA [Persian acronym for the conservative alliance council of revolutionary forces]. Despite what the word "revolutionary" might indicate, the alliance consists of elderly politicians such as Bahonar and former Majles Speaker Gholam Ali Haddad Adel who have been active in Iran's domestic politics for more than four decades.

However, Expediency Council member Bahonar's move to the forefront of electioneering could mean that traditional conservatives are serious in trying to keep their position in the Iranian political landscape despite the power of ultraconservatives, most notably the Paydari Party, to win the lion's share of the seats in the next parliament.

Nonetheless, as Namazi noted, getting through the Guardian Council's net is not guaranteed for anyone unless Supreme Leader Ali Khamenei pulls the right strings for them.

Islamic Jihad Leader Says Iran's Khamenei Ordered West Bank Turmoil

Jul 1, 2023, 22:13 GMT+1

The Islamic Jihad's Secretary-General, Ziyad al-Nakhala, has said that anti-Israeli actions in the West Bank reflect Iranian Supreme Leader’s directives.

He claimed in an interview with Al-Wefaq that to arm the West Bank resistance groups, weapons were either smuggled or purchased directly from the Israelis.

“There was a great focus in order for the West Bank to move from a state of coexistence and calm, to a state of resistance that we see today, and of course all of this is under the directives of Ali Khamenei,” stated al-Nakhala.

“During our last meeting with him in Tehran, he renewed the call for that and for the development of resistance in the West Bank.”

Al-Nakhala praised Iranian regime's support for the resistance, claiming: "There are those who think that Iran provides hundreds of millions of dollars a month, but I say with the least capabilities, a state of resistance has been created in Palestine, and therefore we must not exaggerate the aid."

According to Israeli Defense Minister Yoav Gallant in April, Iran is the “driving force” of a recent multi-front escalation with Israelis through its proxies across the region, funding Hamas – that rules the Gaza Strip -- with $100 million annually with additional funding worth tens of millions of dollars going to the second largest terror group in the Palestinian enclave, the Palestinian Islamic Jihad. Galant said the regime also provides Hezbollah in Lebanon with $700 million a year, as well as “knowledge and strategic weaponry” such as precision-guided munitions.

Iran To Kick Off Trial Over Killing Of Ex-IRGC Quds Force Commander

Jul 1, 2023, 19:38 GMT+1

The Iranian judiciary says a court hearing over the killing of the former IRGC Quds Force Commander Qassem Soleimani killed in a US air strike will begin soon.

Kazem Gharibabadi, the deputy of Iran's Judiciary for International Affairs, said three judges are appointed for the hearings and the process will get underway shortly.

On January 3, 2020, the US military, on the orders of President Donald Trump, killed Soleimani in a drone strike near Baghdad International Airport, saying that he had been "actively developing plans to attack American diplomats and service members in Iraq and throughout the region."

The so-called trial in Iran is a symbolic political gesture.

Soleimani, who was Iran’s top military and intelligence operator outside its borders, was in charge of supporting and organizing militant proxy forces, including the Lebanese Hezbollah and Iraqi Shiite militia groups that have repeatedly attacked US forces.

Last month, Tehran issued arrest warrants for former US President Donald Trump, Secretary of State Mike Pompeo and 71 others for Soleimani's assassination.

Iran had also asked Interpol to issue a Red Notice for 36 individuals, but the request was denied, explaining it was not in accordance with its rules and constitution. “It is strictly forbidden for the organization to undertake any intervention or activities of a political, military, religious or racial character.”

The hardliner President Ebrahim Raisi also vowed revenge in January for Soleimani's killing unless former US President Donald Trump is put on trial.

Iran’s Supreme Leader Ali Khamenei also vowed revenge in a speech on January 1, saying, “Trump and others like him will be forgotten and lost in the dustbin of history, of course after paying for their crimes in the world.”

Iran’s Losses From Nuclear Sanctions Runs Into Trillions Of Dollars

Jul 1, 2023, 19:02 GMT+1
•
Mardo Soghom

Iran aims to start oil for goods barter with Pakistan as Tehran’s finances remain bleak with rising food, medicine prices and shortages amid ongoing sanctions.

Hadi Talebian Moqaddam, a trade official, told a news website in Tehran that soon Iran will invite Pakistan to hold talks about bartering commodities and goods, with an eye “on creating free trade.” He mentioned textiles as an area where Pakistan can supply Iran, although importing rice also has a long history.

US sanctions imposed since 2018 have seriously limited Iran’s oil exports and its revenues, which are vital for supplying hard currency to a government that controls the economy and is responsible for providing food and medicine to the population.

Although the oil exports have substantially increased in the past two years, the revenues have not been sufficient for all the needs of a population reaching 85 million and an inefficient economy mired with corruption and international isolation.

The US Energy Information Administration recently estimated that Iran’s total oil exports in 2023 will reach $46 billion, but it admitted that this a rough calculation based on global energy prices, not on actual amounts Iran charges its customers.

In fact, Iran and Russia, two sanctioned countries, offer large discounts to their buyers. The amount of the discounts remains secret, but some have said that Iran might be selling its oil in clandestine ways to small Chinese refineries for as low as $40 per barrel.

An IMF chart that shows even with $60 billion annual revenues Iran was not able to generate sufficient economic growth
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An IMF chart that shows even with $60 billion annual revenues Iran was not able to generate sufficient economic growth

What is clear is that Iran must use middlemen who mix its oil shipments with cargoes from other countries, transfer the oil to other tankers somewhere in south-Asian waters and deliver it to China as Omani, Malaysian or Iraqi oil.

In addition, it is not easy to repatriate the money in hard currency since Iran is cut off from the international banking system mainly due to US sanctions. That too costs money. All these cuts into Iran’s oil revenues, which are probably half of what the US estimate shows.

Iran’s confrontational foreign policy and its controversial nuclear program have left it far behind other regional countries like Saudi Arabia that have huge oil revenues and invest it back into infrastructure. Saudi oil revenues in 2023 are expected to reach $223 billion – at least five times that of Iran.

The picture becomes clearer if per-capita oil revenues are considered. Saudi per capita income from oil in 2023 is estimated at $6,450 and Iraq’s $2,356, while Iran’s per capita revenue is a meager $516.

In this situation, the clerical regime in Tehran boasting of its revolutionary credentials has to turn to barter trade with Pakistan, a country facing its own serious financial crisis.

Current US sanctions are not the only external reason for Iran’s economic crisis. The first serious economic sanctions began appearing 15 years ago when the international community discovered a secret Iranian nuclear program, and the UN Security Council began imposing sanctions. Since then, Iran’s average rate of economic growth has been zero, although international sanctions were lifted when the JCPOA nuclear deal with world powers was signed in 2015. After a two-year reprieve, the United States pulled out of that accord and imposed its own unilateral sanctions.

In a recent article, a relatively independent website in Iran argued that the nuclear program has cost the country 4 trillion dollars in the past 15 years, in lost growth, inflationary damage, and lack of domestic and international investments. The issue, the article argued is not just lost oil revenues but its cumulative impact on the economy, including loss of business confidence.

While Iran sits on the world’s second largest natural gas reserves, its tiny Persian Gulf neighbor Qatar exports $120 billion of LNG annually. Iran cannot match that because no Western company is willing to provide capital and technology to expand Iran’s gas fields or tap into new ones. Iran's annual losses are estimated to be much more than what Qatar is exporting.

Senator Hagerty Raises Questions About US Iran Envoy Malley

Jul 1, 2023, 15:26 GMT+1

US Senator Bill Hagerty (R-TN) has raised a series of questions about US envoy to Iran Robert Malley being on a long unpaid leave and remaining in his position.

Iran International first reported Thursday that Malley has long been absent from his job and his security clearance status was under review. The State Department after hours of delays finally admitted that Malley had been on leave. Quickly information emerged that on the same day his paid leave had turned into “unpaid leave.”

“When did the investigation that led to the suspension of Malley’s clearance begin?”, asked Sen Hagerty, and added, “When were Secretary of State Antony Blinken and President Joe Biden informed of it?”

Malley had been conspicuously absent from a Congressional briefing in May and the State Department had said that he was on personal leave due to the illness of a family member. The question raised by lawmakers is why the administration did not tell the truth to Congress about his security clearance issue.

Senator Hagerty further asked, “Why did they allow Malley to continue in his diplomatic role while under investigation?” He went further questioning Malley’s appointment in the first place, mentioning that his “contacts with Hamas and other extremist groups raised concern in the past.”

Hagerty last week introduced a bill to notify the administration that any sanctions relief for Iran must be submitted to Congress for review.

Given the fact that Malley was the US negotiator in nuclear talks with Iran and played a major role in shaping the Biden administration’s Iran policy, Sen Hagerty asked why the President created "such a powerful position for Malley" and refused to make it Senate-confirmed.

US Special Envoys normally require Senate confirmation. If they received earlier confirmation as ambassadors, administrations skip the process.