Europeans eyeing Iran’s market despite Trump’s rhetoric

September 27, The Iran Project – Despite the US President Donald Trump’s endeavors to accused Iran of violating the spirit of the 2015 nuclear agreement and threatening to tear it up, a large number or European countries have voiced their willingness to make investment in the Islamic Republic.

Investment Opportunities

Recently the CBI Chief Valiollah Seif has announced that the some very lucrative investment opportunities for the Iranian marketplace are underway thanks to the integrity of the Iranian government in targeting macroeconomic goals and implementation of resistance economy in the country.

He said that in the coming weeks scores of financial deals with foreign investors will be signed which will create suitable employment opportunities along with production growth.

There are huge numbers of demands for signing financial transactions with Iran and in the near future some very good news will be heard in this regard, he said.

The remarks and advises of the Supreme Leader in dealing with domestic and foreign economic shocks were heeded, Seif said, adding that the government is to focus on creation of job opportunities as well as production of homemade products at large, he said.

Breaking 15-year Spell

In the meantime, the Islamic Republic of Iran broke the 15-year spell of not obtaining any finance from European banks by signing major deals with Austrian and Danish banks to secure funding for its development projects.

The contracts were signed in the Austrian capital of Vienna by an Iranian banking delegation which included representatives of 14 domestic banks headed by Mohammad Khazaei, the president of the Organization for Investment Economic and Technical Assistance of Iran. Deputy Head of the Central Bank of Iran (CBI) for Foreign Exchange Affairs Ahmad Araqchi was also a member of the delegation.

And despite US saber-rattling, Austria’s Oberbank signed a finance deal worth €1 billion with 14 Iranian banks Thursday in Vienna.

The Austrian finance is set to be used for development of civil and production projects in Iran, Central Bank of Iran’s website reported.

Karafarin Bank, Saman Bank, Bank Refah, Bank Mellat, Tejarat Bank, Bank Melli Iran, Bank of Industry and Mine, Bank Sepah, Middle East Bank, Export Development Bank of Iran, EN Bank, Bank Keshavarzi, and Parsian Bank will act as the agent banks providing public and private sector with financial support.

Oberbank is Austria’s seventh-biggest lender, with a balance sheet of roughly €20 billion ($24 billion).

Unreliability of Trump’s Positions

Iranian Ambassador to London Hamid Baeedinejad has recently pointed to manufacturing of a 600-MW solar power plant by a British firm as indicative of unreliability of President Trump’s positions.

Baeedinejad said after one month of negotiations, an MoU was signed between Iran and a British company to build a huge solar power plant with the capacity of 600 MW in Iran and the volume of investment would be 800 million Euros.

The deal was inked just one day after US President Donald Trump’s hateful allegations in the United Nations General Assembly meeting.

The mentioned plant will be the sixth biggest solar power plant in the world and it is scheduled to be finished in three months, Baeedinejad said, adding that generating electricity using solar energy is advantageous for Iran.

Germans Investment

For the moment, several major oil and petrochemical companies from Germany have expressed their interest in investing in the Iranian oil sector.

The companies including BASF say they are ready to invest a total of $12bn in Iran.

BASF has offered to invest in a six-billion-dollar project to establish petrochemical sites in southern parts of Iran.

The company’s managing director was a member of an official delegation that visited Iran in 2016 headed by German Economy Minister Sigmar Gabriel.

Wintershall Holding GmbH, Germany’s largest crude oil and natural gas producer and a wholly owned subsidiary of BASF, has already signed a memorandum of understanding (MoU) with the National Iranian Oil Company (NIOC) to conduct research on four oil fields west of Iran.

Iranian oil officials held a number of meetings with German companies last year. If finalized, the talks can lead to signing several contracts worth $12b between the two sides.

The European countries’ passion for returning back to the Iranian markets indicates that as international sanctions are lifted in the wake of the nuclear deal, European companies are rushing to have first access to the lucrative, almost 80-million-person strong Iranian economy. The move indicates that they do not pay attention to Trump’s hue and cry against Iran and are utilizing the opportunities to make investment in Iran.