Iran’s Raisi Pledges to Tackle Inflation

Iranian president Ebrahim Raisi speaks during a parliament session in Tehran, Iran, 22 January 2023. (EPA)
Iranian president Ebrahim Raisi speaks during a parliament session in Tehran, Iran, 22 January 2023. (EPA)
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Iran’s Raisi Pledges to Tackle Inflation

Iranian president Ebrahim Raisi speaks during a parliament session in Tehran, Iran, 22 January 2023. (EPA)
Iranian president Ebrahim Raisi speaks during a parliament session in Tehran, Iran, 22 January 2023. (EPA)

Iranian President Ebrahim Raisi on Sunday set the tackling of galloping inflation and currency devaluation as priorities for the 2023-2024 budget presented to parliament.

The pledge came as the rial touched a new low.

Addressing MPs, Raisi tried to reassure Iranians over the economy which faces a serious crisis due primarily to US sanctions, mainly on oil exports. These were reimposed after Washington's withdrawal from the Iran nuclear deal in 2018.

"Transparency, improving people's livelihoods... controlling inflation and costs and supporting the stock market" are the budget priorities for the year starting on March 21, Raisi said.

At the end of December, the governor of the central bank resigned after the rial lost around 30 percent of its value in two months, falling from 330,000 to 430,000 per US dollar.

On Sunday, the national currency traded at around 450,000 rials per dollar, a new all-time low.

At the same time, inflation reached 45 percent at the end of December.

"Know that the prices of (foreign) currencies and gold, as well as the prices of many expensive things in the country will decrease," the president promised, without explaining in detail the strategy of the government to achieve this.

Iran's economy has been subject to increasing pressure with fresh sanctions imposed by Western countries over the authorities’ response to protests sparked by the death of Mahsa Amini.

Iran has been gripped by the protests since the September 16 death in custody of Amini, a 22-year-old Kurdish Iranian, for an alleged violation of the country's strict dress code for women.

Western countries have also imposed sanctions on Iran over providing Russia with drones they say are used in the Ukraine war. Tehran had repeatedly denied supplying weapons "to be used" in the war, but later admitted sending drones to Russia before the invasion began in February.

"The enemy is trying to impose difficult conditions and despair on the people" but "the government and parliament must give people hope," Raisi said.

He assured that the government has "a short and long-term strategy" to support activity in the sectors of housing, health, food and transport.

Parliament on Sunday approved the budget which relied on projected exports of 1.4 million barrels of crude per day at an average price of $85 per barrel, state news agency IRNA reported.



NATO and Ukraine to Hold Emergency Talks after Russia’s Attack with New Hypersonic Missile

A missile shrapnel lies on the grass in front of damaged rehabilitation center for people with disabilities, following a Russian attack in the Ukrainian city of Dnipro, on November 22, 2024. (AFP)
A missile shrapnel lies on the grass in front of damaged rehabilitation center for people with disabilities, following a Russian attack in the Ukrainian city of Dnipro, on November 22, 2024. (AFP)
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NATO and Ukraine to Hold Emergency Talks after Russia’s Attack with New Hypersonic Missile

A missile shrapnel lies on the grass in front of damaged rehabilitation center for people with disabilities, following a Russian attack in the Ukrainian city of Dnipro, on November 22, 2024. (AFP)
A missile shrapnel lies on the grass in front of damaged rehabilitation center for people with disabilities, following a Russian attack in the Ukrainian city of Dnipro, on November 22, 2024. (AFP)

NATO and Ukraine will hold emergency talks Tuesday after Russia attacked a central city with an experimental, hypersonic ballistic missile that escalated the nearly 33-month-old war.

The conflict is “entering a decisive phase,” Poland's Prime Minister Donald Tusk said Friday, and “taking on very dramatic dimensions.”

Ukraine’s parliament canceled a session as security was tightened following Thursday's Russian strike on a military facility in the city of Dnipro.

In a stark warning to the West, President Vladimir Putin said in a nationally televised speech to his nation that the attack with the intermediate-range Oreshnik missile was retaliation for Kyiv’s use of US and British longer-range missiles capable of striking deeper into Russian territory.

Putin said Western air defense systems would be powerless to stop the new missile.

Kremlin spokesman Dmitry Peskov kept up Russia's bellicose tone on Friday, blaming “the reckless decisions and actions of Western countries” in supplying weapons to Ukraine to strike Russia.

"The Russian side has clearly demonstrated its capabilities, and the contours of further retaliatory actions in the event that our concerns were not taken into account have also been quite clearly outlined," he said.

Hungarian Prime Minister Viktor Orban, widely seen as having the warmest relations with the Kremlin in the European Union, echoed Moscow's talking points, suggesting the use of US-supplied weapons in Ukraine likely requires direct American involvement.

“These are rockets that are fired and then guided to a target via an electronic system, which requires the world’s most advanced technology and satellite communications capability,” Orban said on state radio. “There is a strong assumption ... that these missiles cannot be guided without the assistance of American personnel.”

Orban cautioned against underestimating Russia’s responses, emphasizing that the country’s recent modifications to its nuclear deployment doctrine should not be dismissed as a “bluff.” “It’s not a trick... there will be consequences,” he said.

Separately in Kyiv, Czech Foreign Minister Jan Lipavský called Thursday's missile strike an “escalatory step and an attempt of the Russian dictator to scare the population of Ukraine and to scare the population of Europe.”

At a news conference with Ukrainian Foreign Minister Andrii Sybiha, Lipavský also expressed his full support for delivering the necessary additional air defense systems to protect Ukrainian civilians from the “heinous attacks.”

He underlined that the Czech Republic will impose no limits on the use of its weapons and equipment given to Ukraine.

Three lawmakers from Ukraine's parliament, the Verkhovna Rada, confirmed that Friday's previously scheduled session was called off due to the ongoing threat of Russian missiles targeting government buildings in central Kyiv.

In addition, there also was a recommendation to limit the work of all commercial offices and nongovernmental organizations "in that perimeter, and local residents were warned of the increased threat,” said lawmaker Mykyta Poturaiev, who added this is not the first time such a threat has been received.

President Volodymyr Zelenskyy’s office continued to work in compliance with standard security measures, a spokesperson said.

Ukraine’s Main Intelligence Directorate said the Oreshnik missile, whose name in Russian means “hazelnut tree,” was fired from the Kapustin Yar 4th Missile Test Range in Russia’s Astrakhan region, and flew 15 minutes before striking Dnipro. The missile had six nonnuclear warheads each carrying six submunitions and reached a spoeed of Mach 11, it said.

Test launches of a similar missile were conducted in October 2023 and June 2024, the directorate said. The Pentagon confirmed the missile was a new, experimental type of intermediate-range missile based on its RS-26 Rubezh intercontinental ballistic missile.

Thursday's attack struck the Pivdenmash plant that built ICBMs when Ukraine was part of the Soviet Union. The military facility is located about 4 miles (6 1/2 kilometers) southwest of the center of Dnipro, a city of about 1 million that is Ukraine’s fourth-largest and a key hub for military supplies and humanitarian aid, and is home to one of the country’s largest hospitals for treating wounded soldiers from the front before their transfer to Kyiv or abroad.

The stricken area was cordoned off and out of public view. With no fatalities reported from the attack, Dnipro residents resorted to dark humor on social media, mostly focused on the missile’s name, Oreshnik.

Elsewhere in Ukraine, Russia struck a residential district of Sumy overnight with Iranian-designed Shahed drones, killing two people and injuring 13, the regional administration said..

Ukraine’s Suspilne media, quoting Sumy regional head Volodymyr Artiukh, said the drones were stuffed with shrapnel elements. “These weapons are used to destroy people, not to destroy objects,” said Artiukh, according to Suspilne.