Companies Linked to the IRGC and the 'Profit' from the Nuclear Agreement

Reuters reports on the benefits that the start of the Joint Comprehensive Plan of Action (JCPOA) between Iran and world powers, following the achievement of a nuclear agreement, will have for companies affiliated with or linked to the Islamic Revolutionary Guard Corps (IRGC). The report also mentions some challenges and limitations these companies will face. Reuters states that dozens of companies linked to the IRGC, described as leading an 'industrial empire,' will benefit from the lifting of sanctions due to the nuclear agreement. This will anger critics of the agreement in the U.S. or Israel, but may be welcomed by Iranians eager for greater engagement with the global community, as the IRGC plays a crucial role in providing many Western companies access to lucrative sectors of the Iranian economy. However, Reuters notes that not all companies or organizations linked to the IRGC will benefit from the first phase of sanctions relief. Some will remain on the U.S. blacklist even in the second phase due to what the U.S. considers their 'support for terrorist groups.' A group of companies and organizations, including the IRGC itself, will be removed from the lists of the U.S., the European Union, or the United Nations with the start of the JCPOA, affecting nearly 90 companies and organizations. However, the lifting of sanctions is described as a 'complex' process, especially since it does not necessarily involve simultaneous action from all Western countries. Some companies will have to wait up to eight years to be removed from the blacklist. For example, the 'Khatam al-Anbiya Construction Headquarters,' which reportedly manages at least 812 subsidiaries, will be removed from the EU list after eight years, but U.S. restrictions against it will remain. Consequently, foreign companies dealing with Iran will find it challenging to avoid U.S. restrictions or penalties, particularly regarding the extent of cooperation they can have with organizations like 'Khatam al-Anbiya.' According to Adam Shubin, acting deputy secretary of the U.S. Treasury, banks that wish to engage with 'Khatam al-Anbiya,' Export Bank, or 'Mahan Air' after years will need to be aware that this will disrupt their access to the U.S. banking system. Any IRGC-affiliated company that is removed from the sanctions list can access the international banking system or SWIFT or obtain loans. Mark Dubowitz, executive director of the Foundation for Defense of Democracies, states that these companies can also benefit from cooperation with European economic experts. On the other hand, organizations like the Quds Force, the IRGC's foreign branch, will have to wait up to eight years for the lifting of European sanctions. However, even in this case, non-nuclear-related sanctions linked to 'terrorism' will remain in place by the U.S. One figure whose name could stir controversy, at least in the West, is Qassem Soleimani, commander of the Quds Force, who has recently been the subject of reports regarding his trip to Russia and its denial by Moscow. The EU will remove Soleimani from nuclear sanctions, but he will remain under sanctions related to issues like Syria or 'terrorism.' Iran has consistently denied allegations of supporting terrorism. Reuters states that dozens of small companies linked to the IRGC, some directly involved in weapon manufacturing, will be removed from the sanctions list. Among them is the 'Iran Aircraft Manufacturing Industries' (HESA), which has produced the 'Ababil' drone. HESA will be removed from the EU list after eight years, while the U.S. will maintain its sanctions. The news agency also states that without easing sanctions on certain companies, organizations, or banks linked to the IRGC, lifting sanctions in other areas will be difficult. In any case, foreign companies must approach the issue cautiously, even after EU sanctions are lifted. While some speak of profits from the lifting of sanctions for the IRGC, Reuters quotes some political officials saying that a significant portion of the revenues and capital resulting from the lifting of sanctions will likely be spent within Iran and will not go abroad, while the IRGC will maintain its business operations. James Kapler, director of U.S. National Security, emphasized in a speech at the Aspen Institute that 'they will certainly make money, but I don't think this [process] will be a windfall of wealth.' The U.S. government is currently trying to present the nuclear agreement to domestic critics, including the Republican majority in Congress, and foreign opponents like Israel or some regional countries. It seems that a significant part of the efforts to secure more than a third of congressional representatives' votes in support of the nuclear agreement is focused on what could allow the President to veto against the majority Republican opposition.