Iran's Pick for Oil Post Signals Power Shift

29 July 2011 | 17:23 Code : 14953 Latest Headlines
Iran's President Mahmoud Ahmadinejad nominated a sanctioned senior official from the powerful Islamic Revolutionary Guard Corps to take the role of oil minister, his latest push to tighten control over the country's most strategic sector.
Brig. Gen. Rostam Ghasemi heads Khatam al-Anbiya, the most powerful economic wing of the Revolutionary Guards, with diverse interests in construction, oil and gas, telecommunications and other sectors. He would be the first commander from the elite paramilitary force to move into a ministerial post not related to defense.
The nomination is a strategic gain for the Guards, which is responsible for safeguarding Iran's Islamic revolution and defending its borders. Whoever heads Iran's oil ministry will be in a position to oversee energy contracts and will have an international platform at the Organization of Petroleum Exporting Countries, where the Islamic Republic now holds the rotating presidency.
Gen. Ghasemi is subject to sanctions by the U.S. and European Union for his role in helping Iran's nuclear program.
Since Mr. Ahmadinejad took office in 2005, the Revolutionary Guards has won multiple contracts in the oil-and-gas sector, signaling the group's rising political and economic influence. That influence has grown, notably in the oil-and-gas industry, as sanctions force international companies to pull out of Iran.
"After my appointment is approved I will be using Khatam al-Anbiya for oil contracts along with other domestic contractors," Gen. Ghasemi told the semiofficial Fars News Agency on Wednesday.

The general's name was submitted in a list of candidates for four ministries to be approved by Iran's Parliament as soon as next week, according to Parliament's website.

Gen. Ghasemi, if confirmed, would preside over OPEC at a difficult time for the group, which ended a June meeting acrimoniously after Iran successfully thwarted a push by its regional foe Saudi Arabia for the group to boost output.

The Iranian president has moved to extend his influence over Iran's oil-and-gas industry. He named himself caretaker of the oil ministry in May, after firing the oil minister and reorganizing the ministry.

Parliament criticized the move and voted to refer Mr. Ahmadinejad to the judiciary, saying he had violated the law. A day later, Mr. Ahmadinejad named a close ally, Sports Minister Mohammad Aliabadi, as caretaker oil minister. Mr. Aliabadi represented Iran during OPEC's June meeting, though his appointment prompted heavy criticism at home because of his lack of experience in the energy sector.

It remains to be seen if Mr. Ahmadinejad's nominations will be approved by the Parliament, which has rejected his candidates on several occasions.

Gen. Ghasemi's nomination comes as international pressure has started to hit Iran's ability to sell crude. India is now buying more Saudi oil after Iran, unable to get paid because of banking sanctions, threatened to cut its supplies.

Mr. Ahmadinejad also nominated ministers for sport and youth; industry, mines and trade; and cooperatives, labor and social security.