Why is Rouhani backing off from those profiting from sanctions?
Is Rouhani's softer tone against those who've benefited from the sanctions on Iran a tactic to win them over — or is he just giving up?
TEHRAN, Iran — Economists in Iran are encouraging the administration of President Hassan Rouhani to take a softer position on those who accumulated questionable wealth between 2005 and 2012, when the country enjoyed oil revenues totaling a record $700 billion — amid harsh sanctions. Indeed, some economists are now warning that capital flight will be exacerbated should the administration not allow this “new social class” to play a role in the Iranian economy.
The advice appears to have been heeded by Rouhani. In an Oct. 12 address in the northern province of Mazandaran, he moderated his previously harsh tone toward the “dealers of sanctions” — a term referring to the individuals and influential firms affiliated with military and political organizations that made astronomical profits while the country was under crippling economic sanctions.
During his visit to the northern city of Sari, the moderate president reassured the “dealers of sanctions” that they will not make a loss when the external pressure is removed. “I swear to God: You will not make a loss. You, too, will enjoy the benefits of the sanctions relief. Don’t worry, your business won’t become stagnant,” said Rouhani, obviously to those opposing the Joint Comprehensive Plan of Action — the historic July 14 deal with six world powers that it set to put an end to nuclear-related sanctions by early 2016.
Indeed, the remarks can be interpreted as a fresh attempt by moderates to calm the domestic political atmosphere, which has been tense after the hammering out of a diplomatic resolution to the 12-year-long nuclear dispute with the West. However, it could also be an indication that the Rouhani administration has failed to push back the “economic mafia,” and is now begging for the latter’s participation in the revival of the ailing Iranian economy.
