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Iran: Recapping the year 2018

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With the year 2018 according to the Christian calendar now out and 2019 now setting in, people traditionally sum up the results of the past year. Even though the Iranian new year of 1398 is still three months away, we will stick to the Russian tradition and look back on 2018, which is already history now.

For the Islamic Republic of Iran, the past “Christian” year was one of the most trying in its recent history with a series of negative factors affecting the country’s foreign and domestic policy, the economy and national security. The worst of them all was Washington’s withdrawal from the Joint Comprehensive Plan of Action (JCPOA), commonly known as the Iran nuclear deal, resulting in a resumption of hard-hitting US sanctions and the exit of more than 100 big foreign companies, which had previously been doing business with Iran.

Socio-economic situation

The start of 2018 in Iran was marked by a series of mass-scale nationwide protests demanding better living conditions for the people and putting an end to the government’s policy of spending huge financial resources aimed at attaining military and political goals abroad.

The authorities managed to bring the situation under control, but the protests, though on a lesser scale, continued flaring up throughout the past year.

The situation was further exacerbated by President Donald Trump’s announcement in May of the US withdrawal from the Iran nuclear accord, and the subsequent introduction of anti-Iranian sanctions in August and November. Iran’s national currency, the rial, plunged to record lows hitting a dismal 190,000 rials to the US dollar in early September. Although it later stabilized somewhat at 100,000-110,000 to the greenback, the downfall led to an economic crisis: according to IMF estimates, inflation spiked to 30 percent, with Iran’s own Central Bank putting the figure at 40 percent. The country’s GDP slipped by more than 3 percent, many enterprises shut down, and unemployment reached 12 percent (18 percent among young people).

It should be noted that the hardest hit by the US sanctions was the Iranian economy, still reeling from the tough international sanctions imposed on the country between 2012 and 2015.

While blaming the economic problems on the country’s overdependence on oil exports, the Iranian President Hassan Rouhani also acknowledged the negative impact of the US sanctions on the living standards of ordinary Iranians. He still believes, however, that “the United States will fail, and the Iranian government, with the support of the parliament, the people and the country’s spiritual leader, will cope with difficulties.”

When unveiling the 2019 draft budget in parliament on December 25, President Rouhani promised that in the upcoming Iranian new year in March, civil servants and pensioners would see their incomes grow by 20 percent, and that state subsidies for the purchase of basic goods for the country’s poor would reach $14 billion.

Meanwhile, Russia, India and China are lending a helping hand to Iran, with Indian Ports Global Ltd (IPGL) taking over, in keeping with a bilateral agreement, the management of Iran’s Shahid Beheshti port for up to 18 months with the possibility of a 10-year renewal. The contract will facilitate the transit of goods between India and Afghanistan, bypassing the territory of Pakistan, and will significantly contribute to the region’s economic growth. Following the French oil company Total’s withdrawal from Iran, China’s CNPC Company has been moving in to fill the void.

Other countries are also offering their services in an effort to offset the negative impact of Washington’s sanctions on Tehran.

Domestic political situation

The outgoing year saw an increase in the activity of opposition forces, representing the radical, anti-Western segment of the Iranian establishment, including ex-President Mahmoud Ahmadinejad and the loser of the 2017 presidential election, hard-line Islamist Ibrahim Raisi.

Throughout the past year, the opposition was working hard, if not to remove Hassan Rouhani’s liberal reformers from power, than at least to target their individual representatives. In summer, they managed to force the resignation of the Minister of Economy and Finance Masood Karbasian and the Minister of Labor, Social Security and Cooperatives Ali Rabiyi. Earlier, the head of the Central Bank, Valiolla Safe, was equally dismissed, replaced by Abdnnacer Hemmati.

In 2018, divisions in the country’s ruling elite became increasingly visible, but it would still be premature to talk about any serious crisis, much hoped for by the US President Donald Trump. In fact, Trump has played right into the hands of Iran’s radicals and conservatives because instead of undermining Iran’s Islamic regime, the sanctions have hit President Rouhani and his team, who are looking for a dialogue with the West. With the Rouhani government losing its political clout in 2018, its radical and hard-line opponents have been strengthening their positions and their role in the country’s domestic and foreign policy.

While there were no signs last year of Hassan Rouhani being forced out as long as he enjoys the support, at least verbal, of the country’s spiritual leader, Ayatollah Khamenei, the president could still bend under the pressure from the opposition and change his domestic and foreign policy, and not necessarily in the direction of reforms and liberalization.

Foreign policy

In 2018, Iran continued its efforts to impact the situation in the Middle East, primarily in Syria, Yemen, Iraq, Lebanon and Afghanistan. President Trump’s decision to withdraw the US from the 2015 nuclear deal with Iran set forth a new, “offensive,” phase in Tehran’s foreign policy. On the one hand, this reflected the growing role of hardliners among those responsible for taking military and political decisions in Tehran. On the other, the US policy towards Iran has resulted in the moderates in Iran, including in the presidential administration and the government, toughening the country’s foreign policy.

In 2018, Iran ramped up the number of short- and medium-range missile tests, conducting seven test launches of medium-range missiles, five short-range missile launches, as well as a cruise missile launch. This was a significant jump from just four medium-range and a single short-range missile test carried out in 2017.

Russian-Iranian relations

The Russian-Iranian political dialogue in 2018 reflected the two countries’ shared view on some regional and global policy issues, above all the establishment of a multi-polar world order, strengthening the United Nations’ role in international affairs, countering new challenges and threats, on Syrian and Iraqi settlement as well as the situation in Afghanistan.

Moscow viewed cooperation with Tehran as an important condition for ensuring Russia’s national interests and strengthening stability in the South Caucasus, Central Asia and the Middle East.

In 2018, Russia maintained constant high-level contacts with Iran. Presidents Vladimir Putin and Hassan Rouhani have met 14 times since Rouhani’s election in 2013, and have on many occasions resolved important issues by telephone.

The Russian and Iranian foreign ministers met regularly in Moscow and Tehran, during UN General Assembly sessions, on the sidelines of other international events, and also communicated by phone.

In its relations with Tehran, Moscow proceeds from the assumption that cooperation with Iran is important for ensuring its national interests, strengthening stability in the region and elsewhere in the world. That is why throughout the past year Russia actively defended the Iran nuclear deal, which the US withdrawal threatens to unravel. There is a shared view in both Moscow and Tehran that the breakup of the Iran nuclear deal is fraught with the destabilization of the region and the whole world.

In 2018, Moscow and Tehran repeatedly reiterated their firm commitment to preserving the territorial integrity of Syria, and to a peaceful settlement of the Syrian crisis. They also voiced their concern about the continuing deterioration of the situation in Afghanistan and the growing threat of terrorist attacks by local extremist forces.

In August, as a result of efforts by Russian and Iranian diplomats, Azerbaijan, Iran, Kazakhstan, Russia and Turkmenistan signed an agreement of a truly historic significance – the Convention on the Legal Status of the Caspian Sea. The accord, the first of this kind in centuries, created real conditions that define and guarantee the signatories’ joint political, military, economic, and ecological activities in the Caspian.

Russian-Iranian relations were an important feature of the past year, the most notable being the decision to complete the creation of the 7,200 km North-South transport corridor to ensure faster and cheaper shipment of goods from China and India to Europe. Moscow and Tehran agreed to simplify customs procedures, remove existing barriers complicating the free flow of goods and services, and improve communications in the banking sector.

Not all problems existing in relations between Russia and Iran were resolved in 2018, of course. Russia and Iran are only “moving towards a strategic relationship.” Many problems still persist in trade and economic relations with a trade turnover of just $2 billion between two major powers looking nothing but negligible.

The two countries are working to change this, though. According to a memorandum on the “oil for goods” program signed in 2014, Russia planned to buy 5 million tons of Iranian oil each year (about 100,000 barrels a day), and supply it to other countries. In return, Russia would provide $45 billion worth of goods to the Islamic Republic. Tehran, for its part, committed to spend half of the revenue from oil sales to Russia as payment for Russian goods and services, such as aircraft, airfield and railway equipment, trucks and buses, pipes and construction services in Iran.

In keeping with the program, in November 2017, Russia started importing limited amounts of Iranian oil. (Tehran, which was then emerging from sanctions, had no interest in selling more). With a new round of sanctions back in place, Iran may now have a greater deal of interest in implementing the terms of the 2014 plan.

In March 2018, the Russian and Iranian Agriculture Ministries reached a preliminary agreement for the supply of Russian wheat to the Iranian market.

Military-technical cooperation is another promising area of mutually-beneficial partnership between the two countries. A Russian military delegation visited Tehran in late-December to discuss pertinent contracts in this area.

Russia and Iran are implementing a number of large-scale energy projects, including the construction of the Sirik thermal power station and the electrification of the Garmsar-Inche Burun railway.

In 2018, Russia and Iran continued their cooperation also in the cultural, humanitarian, scientific and educational fields. A national competition in the Persian language and literature was held in Russia, and the program of student and teacher exchanges between Russian and Iranian universities continued unabated.

The “Orthodoxy-Islam” joint Russian-Iranian commission on dialogue is working equally well.

That being said, Moscow and Tehran still differ on certain global and regional issues. However, these differences can be sorted out on the basis of mutual confidence building, and this is probably the main goal Russia and Iran will be working to achieve in the new year of 2019.

First published in our partner International Affairs

Senior research assistant at RAS Institute of Oriental Studies, candidate of historical sciences

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Turkey and the time bomb in Syria

Mohammad Ghaderi

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The Turkish attack on northern Syria has provided conditions for ISIS militants held in camps in the region to escape and revitalize themselves.

Turkey launched “Operation Peace Spring” on Wednesday October 9, claiming to end the presence of terrorists near its borders in northern Syria. Some countries condemned this illegal action of violation of the Syrian sovereignty.

The military attack has exacerbated the Syrian people’s living condition who live in these areas. On the other hand, it has also allowed ISIS forces to escape and prepare themselves to resume their actions in Syria. Before Turkish incursion into northern Syria, There were many warnings that the incursion would prepare the ground for ISIS resurgence. But ignoring the warning, Turkey launched its military attacks.

Currently, about 11,000 ISIS prisoners are held in Syria. ISIS has claimed the responsibility for two attacks on Qamishli and Hasakah since the beginning of Turkish attacks.

Meanwhile, Donald Trump said that Turkey and the Kurds must stop ISIS prisoners from fleeing. He urged European countries to take back their citizens who have joined ISIS.

It should be noted that the U.S. is trying to prove that ISIS has become stronger since the U.S. troops pulled out before the Turkish invasion, and to show that Syria is not able to manage the situation. But this fact cannot be ignored that ISIS militants’ escape and revival were an important consequence of the Turkish attack.

Turkish troops has approached an important city in the northeast and clashed with Syrian forces. These events provided the chance for hundreds of ISIS members to escape from a camp in Ayn Issa near a U.S.-led coalition base.

 The camp is located 35 kilometers on the south of Syria-Turkey border, and about 12,000 ISIS members, including children and women, are settled there. The Kurdish forces are said to be in charge of controlling these prisoners.

Media reports about the ISIS resurgence in Raqqa, the former ISIS stronghold, cannot be ignored, as dozens of terrorists have shot Kurdish police forces in this city. The terrorists aimed to occupy the headquarters of the Kurdish-Syrian security forces in the center of Raqqa.  One of the eyewitnesses said the attack was coordinated, organized and carried out by several suicide bombers, but failed.

In response to Turkey’s invasion of Syria, the Kurds have repeatedly warned that the attack will lead to release of ISIS elements in the region. Turkey’s President Recep Tayyib Erdogan denied the reports about the escape of ISIS prisoners and called them “lies”.

European officials fear that ISIS prisoners with European nationality, who have fled camps, will come back to their countries.

Kurdish forces are making any effort to confront Turkish troops in border areas, so their presence and patrol in Raqqa have been reduced.

Interestingly, the Turkish military bombarded one of temporary prisons and caused ISIS prisoners escaping. It seems that ISIS-affiliated covert groups have started their activities to seize the control of Raqqa. These groups are seeking to rebuild their so-called caliphate, as Kurdish and Syrian forces are fighting to counter the invading Turkish troops. Families affiliated with ISIS are held in Al-Hol camp, under the control of Kurdish forces. At the current situation, the camp has turned into a time bomb that could explode at any moment. Under normal circumstances, there have been several conflicts between ISIS families in the camp, but the current situation is far worse than before.

There are more than 3,000 ISIS families in the camp and their women are calling for establishment of the ISIS caliphate. Some of SDF forces have abandoned their positions, and decreased their watch on the camp.

The danger of the return of ISIS elements is so serious, since they are so pleased with the Turkish attack and consider it as an opportunity to regain their power. There are pictures of ISIS wives in a camp in northern Syria, under watch of Kurdish militias, showing how happy they are about the Turkish invasion.

In any case, the Turkish attack, in addition to all the military, political and human consequences, holds Ankara responsible for the escape of ISIS militants and preparing the ground for their resurgence.

Currently, the camps holding ISIS and their families are like time bombs that will explode if they all escape. Covert groups affiliated with the terrorist organization are seeking to revive the ISIS caliphate and take further actions if the Turkish attacks continue. These attacks have created new conflicts in Syria and undermined Kurdish and Syrian power to fight ISIS.

From our partner Tehran Times

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The Turkish Gambit

Dr. Arshad M. Khan

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The only certainty in war is its intrinsic uncertainty, something Turkish President Recep Tayyip Erdogan could soon chance upon.  One only has to look back on America’s topsy-turvy fortunes in Iraq, Afghanistan and even Syria for confirmation.

The Turkish invasion of northeastern Syria has as its defined objective a buffer zone between the Kurds in Turkey and in Syria.  Mr. Erdogan hopes, to populate it with some of the 3 million plus Syrian refugees in Turkey, many of these in limbo in border camps.  The refugees are Arab; the Kurds are not.

Kurds speak a language different from Arabic but akin to Persian.  After the First World War, when the victors parceled up the Arab areas of the Ottoman Empire, Syria came to be controlled by the French, Iraq by the British, and the Kurdish area was divided into parts in Turkey, Syria and Iraq, not forgetting the borderlands in Iran — a brutal division by a colonial scalpel severing communities, friends and families.  About the latter, I have some experience, having lived through the bloody partition of India into two, and now three countries that cost a million lives.   

How Mr. Erdogan will persuade the Arab Syrian refugees to live in an enclave, surrounded by hostile Kurds, some ethnically cleansed from the very same place, remains an open question.  Will the Turkish army occupy this zone permanently?  For, we can imagine what the Kurds will do if the Turkish forces leave.

There is another aspect of modern conflict that has made conquest no longer such a desirable proposition — the guerrilla fighter.  Lightly armed and a master of asymmetric warfare, he destabilizes. 

Modern weapons provide small bands of men the capacity and capability to down helicopters, cripple tanks, lay IEDs, place car bombs in cities and generally disrupt any orderly functioning of a state, tying down large forces at huge expense with little chance of long term stability.  If the US has failed repeatedly in its efforts to bend countries to its will, one has to wonder if Erdogan has thought this one through.

The Israeli invasion of Lebanon in 1982 is another case in point.  Forever synonymous with the infamous butchery at Sabra and Shatila by the Phalange militia facilitated by Israeli forces, it is easy to forget a major and important Israeli goal:  access to the waters of the Litani River which implied a zone of occupation for the area south of it up to the Israeli border.

Southern Lebanon is predominantly Shia and at the time of the Israeli invasion they were a placid group who were dominated by Christians and Sunni, even Palestinians ejected from Israel but now armed and finding refuge in Lebanon.  It was when the Israelis looked like they were going to stay that the Shia awoke.  It took a while but soon their guerrillas were harassing Israeli troops and drawing blood.  The game was no longer worth the candle and Israel, licking its wounds, began to withdraw ending up eventually behind their own border.

A colossal footnote is the resurgent Shia confidence, the buildup into Hezbollah and new political power.  The Hezbollah prepared well for another Israeli invasion to settle old scores and teach them a lesson.  So they were ready, and shocked the Israelis in 2006.  Now they are feared by Israeli troops.   

To return to the present, it is not entirely clear as to what transpired in the telephone call between Erdogan and Trump.  Various sources confirm Trump has bluffed Erdogan in the past.  It is not unlikely then for Trump to have said this time, “We’re leaving.  If you go in, you will have to police the area.  Don’t ask us to help you.”  Is that subject to misinterpretation?  It certainly is a reminder of the inadvertent green light to Saddam Hussein for the invasion of Kuwait when Bush Senior was in office. 

For the time being Erdogan is holding fast and Trump has signed an executive order imposing sanctions on Turkish officials and institutions.  Three Turkish ministers and the Defense and Energy ministries are included.  Trump has also demanded an immediate ceasefire.  On the economic front, he has raised tariffs on steel back to 50 percent as it used to be before last May.  Trade negotiations on a $100 billion trade deal with Turkey have also been halted forthwith.  The order also includes the holding of property of those sanctioned, as well as barring entry to the U.S.

Meanwhile, the misery begins all over again as thousands flee the invasion area carrying what they can.  Where are they headed?  Anywhere where artillery shells do not rain down and the sound of airplanes does not mean bombs.

Such are the exigencies of war and often its surprising consequences. 

Author’s Note:  This piece appeared originally on Counterpunch.org

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Could Turkish aggression boost peace in Syria?

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On October 7, 2019, the U.S. President Donald Trump announced the withdrawal of American troops from northeast Syria, where the contingent alongside Kurdish militias controlled the vast territories. Trump clarified that the decision is connected with the intention of Turkey to attack the Kurdish units, posing a threat to Ankara.

It’s incredible that the Turkish military operation against Kurds – indeed the territorial integrity of Syria has resulted in the escape of the U.S., Great Britain, and France. These states essentially are key destabilizing components of the Syrian crisis.

Could this factor favourably influence the situation in the country? For instance, after the end of the Iraqi war in 2011 when the bulk of the American troops left the country, the positive developments took place in the lives of all Iraqis. According to World Economics organization, after the end of the conflict, Iraq’s GDP grew by 14% in 2012, while during the U.S. hostilities the average GDP growth was about 5,8%.

Syria’s GDP growth should also be predicted. Not right away the withdrawal of U.S., French, British, and other forces, but a little bit later after the end of the Turkish operation that is not a phenomenon. The Turkish-Kurdish conflict has been going on since the collapse of the Ottoman Empire when Kurds started to promote the ideas of self-identity and independence. Apart from numerous human losses, the Turks accomplished nothing. It is unlikely that Ankara would achieve much in Peace Spring operation. The Kurds realize the gravity of the situation and choose to form an alliance with the Syrian government that has undermined the ongoing Turkish offensive.

Under these circumstances, Erdogan could only hope for the creation of a narrow buffer zone on the Syrian-Turkish border. The withdrawal of the Turkish forces from the region is just a matter of time. However, we can safely say that the Turkish expansion unwittingly accelerated the peace settlement of the Syrian crisis, as the vital destabilizing forces left the country. Besides, the transfer of the oil-rich north-eastern regions under the control of Bashar Assad will also contribute to the early resolution of the conflict.

It remains a matter of conjecture what the leaders of Saudi Arabia, the United Arab Emirates, and Russia agreed on during the high-level talks. Let’s hope that not only the Syrians, but also key Gulf states are tired of instability and tension in the region, and it’s a high time to strive for a political solution to the Syrian problem.

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