Shareholders' protests over the Zanjan Petrochemical project have once again brought one of the country's longest-standing incomplete industrial projects to the forefront of attention. Despite nearly two decades since its inception and the attraction of hundreds of millions of euros in financial resources, this project has not yet achieved sustainable commercial production, and its small investors are concerned about the fate of their investments.
In images released from the company's assembly, Asghar Fakhrieh Kashan, a key member of the Zanjan Petrochemical corruption ring and a manager and decision-maker of this petrochemical, appeared among the shareholders and provided explanations about the project's status. However, protesters believe these explanations do not clearly address the main questions about the project's prolongation, the status of financial resources, and shareholders' losses.
Promises to overcome the project's difficulties have been made, yet clear evidence of the project's halt and ongoing misuse of the invested capital has been repeatedly published.
Film of Fakhrieh Kashan's Speech
The Zanjan Urea and Ammonia project, now pursued under the Zanjan Agricultural and Fertilizer Industries Company, entered its operational phases around 2006, with its groundbreaking in 2009. Despite nearly 19 years passing, this project still lacks production, sales, and a sustainable cash flow from operations.
The Role of the "Zanjan Ring" and Shell Companies
Based on information and documents regarding the financial case of this project, critics speak of a network of related and intermediary companies referred to as the "Zanjan Ring." In these claims, names such as Hossein Abdeh Tabrizi, Asghar Fakhrieh Kashan, Mohammadreza Modiri, Babak Jahanara, and Farhoud Saberi Sarabi have been mentioned.
These are claims and published documents about the case, and determining the legal or criminal responsibility of each named individual requires investigation and a verdict from competent judicial authorities.
One of the focal points is the company's shareholding structure. According to the provided information, Taban Investment Management Company holds about 19% of Zanjan Petrochemical's shares. Babak Jahanara previously chaired the company's board, and its current chairman is attributed to Majid Parsa. Danayan Financial Group, with a 6.35% ownership of Zanjan Petrochemical shares, is part of Taban's shareholding structure, and Mohammadreza Modiri is introduced as its board chairman.
Major Ambiguity Regarding 350 Million Euros
One of the most critical parts of the case relates to the foreign exchange resources allocated to the project. According to referenced documents, for the execution of the Zanjan Agricultural and Fertilizer Industries project, a resolution worth 350 million euros from the Foreign Exchange Reserve Fund was obtained, and Bank Melli Zanjan, Khorramshahr branch, played a role in the process of opening a letter of credit.
In the published information, it is claimed that subsequently, a company based in Munich, Germany, was introduced as the foreign party, and about 150 million euros of the mentioned credit were received through this route. Critics claim this company did not have real activities commensurate with the claimed transaction volumes, and part of the resources was transferred through a network of intermediaries and exchange offices instead of purchasing equipment and advancing the project.
Also, in the claims made about this case, the name Mohammad Ali Abdihas is mentioned as the CEO of the referenced company in Germany, and Abbas Akhoundi, the former Minister of Roads and Urban Development, along with several economic managers of the time. Regarding the exact role of each of these individuals and their connection to the project's financial decisions, the publication of official documents and responses from responsible agencies is necessary.
What today most confronts shareholders with questions is the significant gap between the attracted financial resources, the announced percentages for physical progress, and the project's actual outcome. At various times, progress of about 40 to 50 percent of the project has been mentioned, but after nearly two decades, sustainable commercial production, product sales, and revenue flow from operations have not materialized.
While the execution of a petrochemical project of such scale should typically reach operational status within a few years, Zanjan Petrochemical has effectively become one of the country's long-term industrial projects.
The recent gathering of shareholders shows that the issue is no longer just the delay in constructing a petrochemical complex. The main question now is exactly how the hundreds of millions of euros allocated to this project were spent, how much real equipment was purchased against these resources, what role the structure of intermediary and related companies played in the circulation of resources, and which entity will be responsible for compensating the small investors' losses.
Answering these questions requires the publication of financial statements, foreign purchase contracts, documentary credits, and a complete report from supervisory bodies; documents that can clarify how a project that was supposed to turn into a production unit within a few years, after nearly two decades, remains a subject of protest by shareholders awaiting the determination of their investments.