TEHRAN, Dec. 06 (Shana) -- Iranian Minister of Petroleum Bijan Zangeneh hosted a meeting with Swedish Industry Minister Mikael Damberg in Tehran on Sunday to discuss future ties with the European country.

Following the meeting, Zangeneh said optimization of energy use, petrochemical industry and construction of equipment are the niche areas for cooperation with Swedish companies after the sanctions removal.
"We are hopeful to see mutual ties between the two countries enhance after removal of the draconian sanctions," he told Shana.

He said the two countries have been cooperating in the energy sector and can expand their ties in the field.

"In the past, Swedish companies have supplied Iran with oil machinery and in the post-sanctions era, they will be able to build them with the partnership of Iranian companies," he added, saying that the machinery will be used to supply the regional markets as well.

Zangeneh further said cooperation in the petrochemical sector was another highlight of the meeting.
"Iran enjoys the cheapest, most accessible [petrochemical] feedstock supplies in the region," which can be used to feed petrochemical plants.

Regarding energy use optimization, the top Iranian energy official said Volvo and Scania are two Swedish companies operating in Iran currently, adding that Iran's transportation fleet is aging and needs renovation, making a niche market for Swedish firms to win shares in.
"With the cooperation of Swedish firms, fuel consumption of trucks and buses can be reduced and Iran can be viewed as a big market for Swedish companies in this regard,' he added.

He further said Swedish companies must finance replacement of aging transportation machinery in Iran.

Swedish Volvo Trucks Corporation even didn�t wait for those talks to conclude, resuming its production in Iran in May by opening a line for a new generation of Volvo FH trucks at Saipa Diesel west of Tehran.

Sweden is one of the few countries in the European Union supporting Iran�s peaceful nuclear program, and a staunch opponent of sanctions on Tehran.
Swedish Minster of Enterprise and Innovation Mikael Damberg headed a trade delegation to Iran.

Sweden has been involved in industrial, mining, and telecommunication projects in Iran for decades which it has kept going over recent years. Bilateral trade reached $500 million in 2007 before Western sanctions brought them down to $242 million in 2014.
Before his arrival to Tehran, Damberg described the new era in Iran after the sanctions as "huge opportunity" during a briefing where 70 representatives of various companies attended before the trip.

"An opener Iran entails huge opportunities for Swedish companies," he said, adding the competition ahead is fierce.
The dismantling of European sanctions against the Islamic Republic is expected to begin in the first quarter of next year. US sanctions remain in many respects, but the difference will nevertheless be evident for many foreign companies awaiting the new market.

"There is great potential in Iran. They have 80 million inhabitants, many of them young, who are craving Western quality goods. There is a huge interest among Swedish companies for the Iranian market, "said Mikael Damberg.

"In the next stage we anticipate more visits and business delegations on niche areas. Where I think there could be many more companies that are currently in completely different sectors," he said.

Swedish exports to Iran have, for obvious reasons, declined significantly since the sanctions were intensified in 2012. Exports in 2013 had plummeted to about 1.2 billion from 6.7 billion in 2012.
"But it depends entirely on whether the sanctions are really lifted. For there will be setbacks in the process so it can really fall back quickly," he added.

By SHANA