August 10, 2015 | Quote

Firms Linked to Revolutionary Guards to Win Sanctions Relief Under Iran Deal

Dozens of companies tied to Iran's elite Revolutionary Guards, a military force commanding a powerful industrial empire with huge political influence, will win sanctions relief under a nuclear deal agreed with world powers.

Such is the clout of companies with ties to the Islamic Revolutionary Guards Corps (IRGC), which sees itself as the defender of Iran's Islamic revolutionary ideals and bulwark against U.S. influence, that their release from financial curbs could of itself help ease return of swathes of the economy to the mainstream of world trade.

The process is complex and will unfold in stages, with some firms obliged to wait eight years for sanctions relief and others who can expect no concession even then from Washington, a reflection of concerns over activities beyond Iran's borders.

Among the latter is the IRGC's construction arm Khatam al Anbia, controlling at least 812 affiliated companies worth billions of dollars and deemed by Washington “proliferators of weapons of mass destruction”.

In all, about 90 current and former IRGC officials, entities such as the IRGC itself, and firms that conducted transactions for the Guards will be taken off nuclear sanctions lists by either the United States, EU or United Nations, according to a Reuters tally based on annexes to the text of the nuclear deal.

A handful will see EU sanctions removed once the nuclear deal is enacted on “Implementation Day” expected within the next year. Others such as Bank Saderat Iran (BSI), accused by Washington of transferring money to groups it deems “terrorist”, such as Hezbollah and Hamas, will have EU sanctions lifted in eight years; but U.S. measures will remain in place.

Any IRGC companies delisted at the implementation stage would be able to “move money through global banks, access the SWIFT financial system, obtain and extend credit”, among other activities, said Mark Dubowitz, executive director of the Foundation for Defense of Democracies. They could also get the backing of European export financing.

Now, the Guards will be able to lever their dominance in Iran’s economy to serve as a conduit for the new business flowing into Iran, and will likely demand joint ventures, shared profits, and other benefits from companies seeking to access Iran’s lucrative markets, Dubowitz said.

“Any company that wants to do business in a key strategic sector of Iran’s economy will have to do business with the Revolutionary Guards,” he said.

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Issues:

Iran