Archive for the ‘Iran’ Category

Iran breaking economic ties with oil

TEHRAN, Jan. 5 (UPI) -- An Iranian government spokesman said he expected the share of oil revenue designated in next year's budget to be down by about 30 percent.

The low price of crude oil is pushing economies like Russia's, which relies heavily on export revenue, toward the brink of recession. Iran historically has been a hawk in the global oil sector, advocating for a price per barrel of around $100.

Government spokesman Mohammad Bagher Noubakht said the share of oil revenues in the budget proposed for next year is down by about a third.

"Now the government has to try hard to pull two big stones -- inflation and recession -- out of the bottom of the well," he said Sunday.

Iran is restricted to exports of around 1 million barrels of oil per day under the terms of a multilateral agreement reached in November 2013. Last week, the government said non-oil exports from the beginning of the Iranian year, which starts in March, increased to $35 billion, or about 20 percent year-on-year.

Iran emerged from recession last month, which the government spokesman said came as a result of heavy government investments in national development projects. The economy, he said, is boasting two straight months of growth.

Iranian officials have said they envision a budget for the next calendar year based on oil priced at about $70 per barrel, about 20 percent higher than the current market price.

Mohammad Nahavandian, Iranian President Hassan Rouhani's chief of staff, said the share of oil in Iran's gross national product "is not so high."

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Iran breaking economic ties with oil

Iran's president signals a national referendum is possible

Iranian President Hassan Rouhani signaled that he could hold a national referendum that would bypass conservatives who control Parliament on key issues, possibly including the ongoing nuclear negotiations with the West.

CBS News State Department Correspondent Margaret Brennan told CBSN that in a speech Sunday, Rouhani said a referendum is allowed in the Iranian constitution and he would like to see the public take up such a vote.

"It will be good to, after 36 years, even for once, or even every 10 years if we implement this principle of the Constitution, and put important economic, social and cultural issues to a direct referendum instead of to the Parliament," Rouhani said Sunday, according to the New York Times.

Speaking to an economic conference in Tehran, Rouhani both countered hard-line critics worried Iran will give up too much while also attempting to signal his administration remains open to negotiation with the six-nation group leading the talks.

Brennan said that a referendum "could potentially bypass some of the clerics and conservatives who have a stranglehold on Iran's institutions and who have been opposed to this deal so it could empower some of the moderates who want to accept it."

Brennan added that ultimately Iran's Supreme Leader Ayatollah Ali Khamenei would decide on whether to accept such a deal, but a public vote could it make it harder for him to just outright reject one. Of course, Khamenei would presumably have to approve of a referendum in the first place.

Brennan says that Rouhani has been in "an uncomfortable position from the get go."

"He's been empowered to negotiate with the West but he's been walking a very careful line and it's not clear what powers he actually has beyond helping to negotiate this nuclear deal," Brennan said. "So he's already been very careful in his political choices and it could be a costly one to push for a referendum."

On Jan. 15, Iranian negotiators will meet in Geneva with officials from the U.S., Russia, China, Britain, France and Germany, hoping to hammer details out of a final deal. Iran reached an interim, one-year deal with world powers in November 2013 to freeze its nuclear program in exchange for the easing of some sanctions. Negotiators later agreed to extend talks until June 30, with hopes of reaching a rough deal in March.

The West fears Iran's nuclear program could allow it to build nuclear weapons. Iran says its nuclear program is only for peaceful purposes, like power generation and medical research.

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Iran's president signals a national referendum is possible

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