Stepping up their challenge to the Rouhani Government, the Revolutionary Guards have publicly criticized a new oil contract with foreign companies which is vital to Iran’s economic recovery.

Since January’s implementation of the nuclear deal with the US and other powers, the Government has been trying to complete the Iran Petroleum Contract, establishing the terms for necessary foreign investment in oilfields. The contract replaces buy-back contracts, in which companies received a percentage of revenue, with equity shares for outside firms alongside Iranian partners.

The Guards have been wary of the initiative because of their extensive holdings in the oil and gas sector, including the contracts for engineering and logistics.

On Wednesday, the commander of the Guards’ engineering branch, Khatam al-Anbia, said that it “is a shame for the Islamic Republic that talented and capable individuals who 37 years ago were in the Islamic Revolution” are now involved in oil projects with foreigners.

Brigadier General Abdollah Abdollahi added, “No one is denying that there is cooperation with foreigners, since we are in contact with others in a society. But this contact must be defined and specified within a framework, and we should possess control.”

He assured that the Guards are “completely ready” to take on the upstream projects, for exploration and production of new fields, that would be given to foreign investors.

Escalating Fight Between Guards and President

The public challenge over the oil contracts follows a sharp escalation of Guards’ criticism of President Rouhani over an economic policy that includes cooperation with foreign companies.

On October 17, Guards commander Mohammad Ali Jafari claimed “some officials” have “conflicting views” with the Supreme Leader because they are “looking outwards” for “solutions to the country’s problems”.

President Rouhani tried to respond three days later with the declaration, ““We must be hospitable to traders, merchants, and investors who want to enter the country.”

However, Rouhani — who is promising a return to growth of at least 5% following years of stagnation amid sanctions, mismanagement, and corruption — has been checked by the Supreme Leader’s high-profile call against any links with the US.

Friday Prayer Leaders, acting on guidelines from the Supreme Leader’s office, criticized the President’s “constructive engagement”, denouncing “those individuals who want to open Iran up to the world and believe that we cannot live without the US”.

See Iran Daily, Oct 22: Clerics Support Revolutionary Guards in Fight with Rouhani