This article was written by Abeer Mohammed and Anas al-Bdeer, and was originally published by the Institute for War and Peace Reporting, iwpr.net. It is reproduced by Iraq Business News with permission. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Reported comments by an Iranian Revolutionary Guards commander boasting of his country’s influence abroad have sparked controversy in Iraq. Analysts say the seriousness with which the incident was taken reflects the huge sensitivities surrounding sovereignty issues after the United States military withdrawal.

Tehran quickly moved to insist that the comments attributed to the commander of the Revolutionary Guards’ Quds Force, Qassem Sulaimani, in which he apparently suggested that both Iraq and southern Lebanon were under Iranian control, were badly misquoted.

“These statements are false. They are groundless and meant to achieve crooked aims,” a statement which the Iranian embassy in Baghdad sent IWPR on January 21 said.

The Iranian ambassador to Lebanon, Ghazanfar Roknabadi, said the actual comments Sulaimani made were mistranslated.

“In his original remarks, Brigadier-General Qassem Sulaimani said many countries in the region are inspired by the ideas of the Islamic revolution in Iran,” he told the As-Safir newspaper. “Unfortunately, his words have been deliberately twisted.”

The Managing-Director of Iran’s Ports and Maritime Organization (PMO), Seyed Ataollah Sadr, announced on Sunday that Iran and Iraq have reached an agreement on launching a joint shipping line.

Speaking to the Iranian Fars News Agency, Sadr said the move will provide the groundwork for private companies from both countries’ to set up a joint company to increase their cooperation.

“Iran can have desirable cooperation in maritime and port fields with the friendly and brotherly country of Iraq,” he added.

Sadr also expressed the hope that Tehran and Baghdad would activate a joint committee in the near future for maritime cooperation, following the signing of a number of bilateral agreements during Iraqi Transportation Minister Hadi Farhan al-Amiri’s recent visit to Iran.

During the visit, the Iranian and Iraqi officials also agreed to establish joint companies to facilitate transportation of goods and passengers between the two countries.

(Sources: FARS, Tehran Times)

The following is a presentation by General Barry R McCaffery (USA, retired), on the threat of an Iranian closure of the Strait of Hormuz.

Barry McCaffrey served in the United States Army for 32 years and retired as a four-­star General.

At retirement, he was the most highly decorated serving General, having been awarded three Purple Heart medals, two Distinguished Service Crosses, and two Silver Stars for valor.

Currently, General McCaffrey is President of his own consulting firm based in Alexandria, Virginia: www.mccaffreyassociates.com. He also serves as a national security and terrorism analyst for NBC News.

Please click here to download the presentation.

A delegation from the Iranian Farast Group visited the Basra Investment Commission (BIC) and met its chairman, Khalaf Al-Badran.

They discussed the possibility of obtaining investment opportunities in various sectors, including housing and electricity.

The representative of the group, Ridha Mudhahari, said that his group includes 78 foreign and local specialized companies and that they have executed projects in a variety of countries.

Al-Badran explained to the delegation the duties of BIC and the facilities it provides to the investor, and said that there were many investment opportunities in the housing sector ready for investment.

(Source: Basra Investment Commission)

Iraq would be drastically affected should Iran block the Hormuz Strait. Most of the oil Iraq produces is exported via the Strait. The scenario is seeing Iraq, distinct because of its good relations with both the US and Iran, practice its new diplomacy again, according to this article from NIQASH.

Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Iran’s threats to block seagoing traffic in the Hormuz Strait, one of the most important waterways in the world, have caused strong reactions in Iran’s neighbour, Iraq, as well. Iran has made the threats in response to possible European and US economic sanctions. And despite the current internal political turmoil in Iraq, it has also led to another significant attempt by Iraq at international diplomacy.

Around one fifth of all crude oil passes through the narrow shipping channel, which lies between the Gulf of Oman and the Persian Gulf. Iraq is currently heading OPEC (the Organization of the Petroleum Exporting Countries) and as such, Iraq’s Minister of Oil Abdul-Kareem Luaibi announced that he would be travelling to Tehran this week in order to extract assurances from Iran that they wouldn’t block the Strait.

In terms of diplomacy, this is another notable attempt at mediation by Iraq. The most recent involved Iraq’s intervention between the Arab League and Syria, which continues this week with Iraq declaring further intentions to continue to assist in trying to defuse the Syrian crisis.

In terms of the Hormuz Strait issue, Iraq is really the only nation that can do this kind of thing, as it has good relationships with the US and Iran. Iraq also sits in the middle between the nations like Saudi Arabia who are friendly towards the US and nations that consider themselves resistant to US influence, such as Iran. It’s hard to say whether this diplomatic role will continue in the future – some believe that Iran’s influence will grow and lead Iraq into that country’s corner whereas others say that US influence will remain strong.

Iraq Business News is delighted to bring you the latest Iraq Market Tracker report from Dunia Frontier Consultants. The market tracker highlights the activities and market performance of a basket of publicly traded firms who derive a significant percentage of their revenues from operations in Iraq, but are traded on foreign exchanges: a proxy Iraq play as much as practicable. It also identifies and analyzes the primary political and security events that occur in country that have market-moving implications.

Click here to access the report.
 

Companies Mentioned:

DNO, ExxonMobil, Genel, Gulf Keystone, Marathon, Oil Search, ShaMaran, WesternZagros

Action Calls:

• Allawi defiant, Kurdish silence is deafening: Allawi boycott helped scuttle parliamentary quorum, but again, Iraqiya is weak; watch the Kurds.
• Hayward, Vallares founders stand to pocket $247 million in Genel shares: Indicator of short-term and long-term plays on Kurdish oil shares.
• ShaMaran relinquishes Pulkhana, Arbat: ShaMaran focuses its exploration efforts, hopes to become acquisition target.

Headlines:

• IRGC statement angers Sadrists: Confirms that Iran will have influence in Iraq, but that Iraq’s Shiites are not puppets.
• Hashemi bodyguards tortured: Reminder of just how powerful Maliki’s intimidation campaign is.

Calendar:

• 28 Jan – Parliament to reconvene (second try)
• Next month – Reconciliation meeting

Click here to access the report, or to add your email address to Dunia’s mailing list to receive the Iraq Market Tracker via email.

Mehdi Fakour (pictured), Managing Director of the Iranian Central Oil Fields Company (ICOFC), has announced that Tehran and Baghdad have decided to establish a joint company to developing three joint oil fields, according to the Iranian Fars News Agency.

“An Iraqi delegation will visit Iran on February 6 to finalize the establishment of the company,” Fakour said in a press conference on Monday.

The two countries are willing to sign agreements with Iranian and Iraqi contractors to develop the three fields.

Tehran and Baghdad worked out an agreement in August 2011 to develop joint oil fields along the two countries’ shared borders.

Iranian Oil Minister, Rostam Qassemi, had previously underlined that the development of Iran’s Joint Oil and Gas fields was the main priority for his ministry.

(Source: PanArmenian)

A 3,000 acre industrial town is to be built in the Arbat district of Sulaymaniyah Governorate, according to a report from AKnews.

Sulaymaniyah Investment Commission met with a number of private companies this week to discuss the master plan for “The Industrial Town of Arbat District”, which will involve an initial investment of $3 billion USD (3,500 billion IQD).

Yasin Mahmoud, spokesman for Kurdistan Investors Union, told AKnews the construction of almost 450 factories of various sizes will begin this year because all formal bureaucratic boxes have been ticked.

Mahmoud said that Iran is especially interested in the project because the EU and U.S. are imposing economic sanctions on the Islamic Republic. It hopes the project is launched soon so that it can rescue some of its factories by relocating them to Arbat district, explains Mahmoud.

“It will become a very important project for Sulaymaniyah because it will change the city from a tourist destination to an industrial hub,” he added.

Farman Gharib, Sulaymaniyah investment director told AKnews that after the master plan for the project is approved, the plan will be opened to competing companies to bid for spaces.

(Source: AKnews)