Money is no object for Iran's nuclear program, atomic energy chief says

The costs of Iran’s nuclear program are negligible compared to the achievement of gaining nuclear technology despite sanctions, the country’s atomic energy chief said on Sunday.

"We shouldn’t focus on weighing costs against benefits. While we are paying a heavy price due to sanctions, the emphasis is not on the costs," said Mohammad Eslami, an Iranian vice president and head of the Atomic Energy Organization.

When asked by a state TV interviewer to explain how the expenses are justified, he underscored the importance of acquiring advanced technology that so-called arrogant global powers seek to deny other nations, particularly Iran.

Eslami argued that evaluating the program’s costs and benefits should occur only after what he described as the required technological capabilities were achieved.

“We are now on this path. We’ve reached a stage where we can apply nuclear technology in various fields,” he added.

He maintained that Iran’s nuclear program is transparent and peaceful, accusing critics of using it to fuel what he called Iranophobia internationally.

Eslami's remarks came after Ali Larijani, an advisor to the Supreme Leader, signaled a softer stance on Iran’s nuclear program, calling it vital but stressing that it should not overshadow broader progress as “people must live their lives.”

The nuclear program is a pillar of our development, but not its entirety, he said on Saturday, stressing that despite his direct role in past negotiations, its scope must remain within defined limits.

"The nuclear issue is part of our national strength, but it is not all of it. People must live their lives, and progress must be achieved in various fields. The nuclear agreement [JCPOA] preserved nuclear knowledge, ensuring its continuation, but reduced the number of centrifuges from 9,000 to 5,000," Larijani, who is considered a moderate conservative in the Islamic Republic's political spectrum, argued.

Iran has faced ongoing electricity and gas shortages due to underinvestment and the impact of US-led sanctions which have hindered modernization efforts in its power, oil and gas sectors.

Iran’s leadership has been wrestling with the idea of re-engaging with Washington over the nuclear program in order to reduce US economic sanctions.

Iran's nuclear program: costs vs benefits

On January 23, Eslami highlighted the economic benefits of the Bushehr Nuclear Power Plant, saying it cost $1.8 billion but has supplied 70 billion kilowatt hours of electricity to the grid in more than a decade. He estimated that producing the same amount of energy from fossil fuels would have cost $8 billion. However, government data shows that the reactor produces just 2% of Iran's annual electricity needs.

Critics argue the program’s costs outweigh its benefits.

Outspoken reformist commentator Sadegh Zibakalam criticized the nuclear program in a post on X on January 23, questioning its value.

“Mr. Zarif says we had no intention of producing nuclear weapons and could have built them if we wanted. So why incur such enormous costs for over 20 years?” he wrote. Zibakalam also cited unfulfilled promises to build five nuclear plants comparable to Bushehr.

In a letter to hardline lawmaker Hamid Rasaei in February 2023, Zibakalam argued that Iran could procure fuel for its Bushehr power plant through the International Atomic Energy Agency (IAEA).

“Not only does our insistence on producing nuclear fuel domestically have no economic justification due to its high cost, but also other things like speaking of 'our proud nuclear achievements' are one-sided and exaggerated.”

Since US President Donald Trump imposed what he called maximum pressure sanctions in his first term starting in 2018, Iran’s national currency has depreciated nearly 20-fold, and inflation has surged to 40%.

The sanctions severely disrupted the economy, particularly in the banking, trade, transportation and insurance sectors.

Sanctions have severely disrupted multiple sectors of Iran’s economy, particularly international trade, which has been hit hard by rising costs in banking, transportation, shipping, and insurance.

In a recent state-run television program, Saeed-Reza Ameli, former secretary of Iran's Supreme Cultural Revolution Council, said sanctions have cost the Iranian economy $1.2 trillion over the past 12 years.

Economist Vahid Shaghaghi-Shahri echoed similar concerns in an interview with the Etemad newspaper last week, saying Iran’s gross domestic product has shrunk from $640 billion to $400 billion over the same period.

Without sanctions, he estimated, the economy could have grown to $1 trillion.