Jahangiri's Response to IRGC Criticism Over Shipbuilding Contract with South Korea

The First Vice President of Iran, Eshaq Jahangiri, responded to criticisms regarding the awarding of a contract for the construction of 10 ships to Hyundai of South Korea, stating that this contract was signed in 2008 and that 25% of the contract amount had been paid. According to ISNA news agency, on Tuesday, December 13, Jahangiri mentioned during a meeting with managers of the IRGC's Khatam al-Anbiya Headquarters that this contract dates back to 2008, and at the time of signing, over 25% of the contract amount was paid to the South Korean side. Jahangiri explained that due to sanctions, it was impossible to pay subsequent installments of this contract, leading the South Korean company to halt work and file a lawsuit against Iran. He announced that the South Korean side had agreed to execute the previous contract 'with 25% less from their side' after the JCPOA (nuclear deal). He emphasized that the government and the Resistance Economy Executive Headquarters 'always insist' that in contracts with foreign companies, 'domestic capacities should be fully utilized and technology transfer should be considered.' Jahangiri's remarks were in response to objections raised by Abdollah Abdollahian, the commander of the IRGC's Khatam al-Anbiya Headquarters, who complained about the contract being awarded to the South Korean company instead of the IRGC. Abdollahian had also requested the cancellation of this contract and its transfer to the IRGC, stating that 'the Koreans took our $215 million eight years ago and did nothing for ship construction.' Hossein Shariatmadari, representative of the Supreme Leader in Kayhan newspaper, also labeled this contract and similar oil contracts as a 'new conspiracy' and 'treason to the homeland.' In contrast, Ali Akbar Ghanji, advisor to the CEO of the Islamic Republic of Iran Shipping Lines, noted that 'currently no money has been allocated for the construction of these ships. The lost money has been revived, and in addition, the Koreans have withdrawn their lawsuit against Iran.' On Friday, December 10, Iranian media reported that the Islamic Republic of Iran Shipping Lines signed the first contract for the order of 10 ships with Hyundai of South Korea. According to this report, these ships will be used for transporting oil and chemical materials. Under the executive agreement of this contract, Hyundai has committed to transferring design, engineering, technical information, and software models to one of the shipbuilding companies in Iran within a maximum of four months and to utilize the products and technology of Iranian companies in the construction and installation of marine equipment. The IRGC's efforts to seize this contract come amid previous announcements by some government officials that this organization had not delivered some of its previous projects after the designated deadline. For instance, Akbar Turkan, Secretary of the Free Zones Coordination Council of Iran, criticized the Khatam al-Anbiya Headquarters for 'not attracting' foreign financing for the Persian Gulf Bridge project on Qeshm Island, stating that 'the government's power does not reach the Khatam Headquarters.' According to him, this project, which was supposed to be operational in 2013, had only achieved 3% physical progress by the time it was handed over to the new government.