The Iranian people associate a sense of dread with the term “state-owned companies.” These entities, often seen as synonymous with a monopolistic network, control a staggering 90% of Iran’s oil, gas, petrochemical, and steel production and sales.
While officially presented as government-owned, these companies are widely believed to be ultimately controlled by Supreme Leader Ali Khamenei. Three entities serve as nominal owners: Khamenei himself, the Iranian Revolutionary Guard Corps (IRGC), and Astan-e Quds. However, it’s important to remember that both the IRGC and Astan-e Quds are ultimately under Khamenei’s influence.
These companies, responsible for Iran’s most valuable resources like oil, gas, and steel, should be the primary source of government revenue. However, they are instead major recipients of the national budget, allocating a significant portion (reportedly 75%) back to themselves annually.
Furthermore, these entities are suspected of large-scale tax evasion. In a rare move for the regime, Tasnim News Agency recently disclosed the income figures of some of these companies.
The report, published on April 30th, revealed a stark discrepancy. While the central bank’s income in 2022 was 23 trillion tomans, Imidro, one of these state-owned companies, boasted a profit exceeding 50 trillion tomans – more than double the central bank’s revenue!
According to the report, the National Petrochemical Company followed with a profit of nearly 20 trillion tomans. Other companies included the mineral production and procurement company and the National Oil Company. The Organization for Collection and Sale of State-Owned Properties of Iran (OCSSPI) rounded out the top ten most profitable state-owned entities.
Tasnim claims these companies generated a collective profit of 100 trillion tomans in a single year. However, the report fails to mention how a controversial religious decree (fatwa) by Khamenei has essentially privatized these national resources – oil, gas, and mines – for the benefit of Khamenei, regime officials, and their affiliated companies, effectively disenfranchising the Iranian people.
This vast wealth extraction, coupled with the denial of the people’s right to self-determination, has severely impacted the lives of the vast majority of Iranians (estimated at 90%). It has also stifled peaceful avenues for protest.
