Any business transactions in Iran will go through Revolutionary Guards

By Amir Basiri

Following a nuclear deal signed between the international community and Iran, companies across the globe seem thirsty to cash into this country’s market, eyeing the young and very energetic population with similar consumption habits as that of the West. However, it would be quite naïve if these companies fall short of practicing caution because in most cases they would be dealing with the regime’s worst elements: the notorious Revolutionary Guards (IRGC).

Usually a country’s capital would be the logical host of senior level foreign delegations seeking to sign profitable business deals. However, why did we see a French delegation travel to the holy city of Mashhad last month? The answer may be a bit complicated, but understandable if it is brought down to Earth. Mashhad is home to the shrine of a celebrated Shiite Imam and a major holy end point for Shiites from across the globe. And the custodian of this shrine is a colossal commercial enterprise named the Astan-e Qods-e Razavi, being one of the most lucrative elements of the Iranian leader Ali Khamenei’s massive commercial empire. A wide variety of agriculture interests are under the control of this company. French and Iranian agriculture ministers signed five trade contracts in this field last month alone. This was part of a waterfall of foreign interests pouring into Iran’s untouched economy. However, what is concerning to many experts about this process is that Iran’s economy is mainly controlled by the regime’s own foundations, with Astan being such an example, and not to forget, the IRGC. What is unfortunately neglected in these business transactions is that these entities are deeply involved in the export of extremism, terrorism and fundamentalism across the region and even around the world. Some estimates have gone as far as indicating that IRGC-controlled entities have a major grip over nearly two-thirds of Iran’s entire economy.

An interesting factor is that many firms involved in business in Iran are finding that their correspondents are holding groups that actually have two different identities. One is the professional and presentable face that shows up, smiles, shakes your hand and signs the deal. The other side, being the actual identity of the company, is in charge of channeling all the profits to be used for their ruthless domestic crackdown, beefing up Bashar Assad in Syria, aiding the Lebanese Hezbollah and backing Quds Force operations in Iraq and Yemen. Another interesting subject, actually a paradox, is the fact that these issues all threaten the interests of western businesses.

In addition to all this, there are even more reasons that companies in the West should be very careful before rushing into any serious trade in Iran.

Firstly, what is left of Iran’s infrastructure is rapidly crumbling. An advisor to Iranian president Hassan Rouhani said the infrastructure deficit has “reached a dangerous threshold. In many areas, we are at full capacity.”

Secondly, there are endless legal obstacles that are very widespread and deeply rooted, causing major risks and may lead to a serious absence of transparency in nearly all business deals.

To make a long story short, the threats of socializing with Iran’s mafia-like entities is that they can specify the rules and also violate them while enjoying the utmost impunity. What Western businesses must understand is that politics and the economy in Iran are extremely unstable, mainly due to the Iranians’ utter hatred of the ayatollahs. Therefore, getting involved with Iranian businesses is not as profitable as the first look may portray.

Basiri is an Iranian human rights activist and supporter of democratic regime change in Iran. Follow him on Twitter: @Amir_bas