Sunday 24 January 2016 - 18:09
Story Code : 198358
World Economic Forum wraps up in Davos with oil prices, Iran in limelight
MOSCOW (Sputnik) The main theme ofthe 2016 forum, which run fromJanuary 20 toJanuary 23, was the Fourth Industrial Revolution.
Oil Becomes Cheaper
A slide inglobal oil prices made the forum's agenda onWednesday, asWTI crude oil dropped toless than $28 a barrel, hitting the lowest levels since2003, mostly because ofa prolonged global oversupply and low demand.
One ofthe factors toinfluence oil prices is the removal ofsanctions againstIran, although experts believe its importance is exaggerated.
On January 16, the European Union and the United States lifted oil and financial sanctions imposed onIran afterthe International Atomic Energy Agency verified Tehrans compliance withthe nuclear agreement. Japan followed suit earlier onFriday.
Iranian Foreign Minister Javad Zarif expressed hope that oil prices should adjust afterTehran returns tothe market assanctions are lifted.
"I believe we have a share inthe market which was removed fromus. Now we have toreturn our share and the market has toadjust," Zarif told Sputnik onthe sidelines ofthe forum.
Iranian President Hassan Rouhani's Chief ofStaff Mohammad Nahavandian said that Tehran may contribute tothe energy security ofthe European Union.
"Iran has the world's largest oil and gas resources. These resources can be beneficial forenergy security, especially inEurope. In particular, new opportunities open forthe development ofgas projects, LNG projects," Nahavandian told Sputnik.
A number offorum participants predicted a rise inoil prices and the establishment ofwhat they called a fair price.
Azerbaijani President Ilham Aliyev said that $60-70 a barrel would be an optimal price forboth companies and forgovernments.
Meanwhile UAE Energy Minister Suhail Mohammed Mazroui said the fair price ofoil is "somewhere inthe middle" between $40 and $100.
Executive Director ofthe Economic Development Board ofBahrain, Khalid Rumaihi said that the decline inoil prices was a "blessing" tohelp move toeven more innovative form ofdevelopment.
Nigerian Petroleum Resources Minister Emmanuel Ibe Kachikwu said that the OPEC cartel's extraordinary meeting may take place inearly March, butthe formal decision has not been made yet.
The organization had agreed tohold a meeting incase prices tumbled below $35 per barrel, the minister said, adding that OPEC is still split onthe issue oftaking action tostem the free fall.
Iran's Renewed Opportunities
As the sanctions were lifted offIran, the country's authorities used the Davos platform toremind the forum members ofthe possibilities and capacities ofthe Iranian economy.
Iran's economy is expected togrow afterthe lifting ofWestern sanctions atan annual rate ofleast 5 percent, Mohammad Nahavandian said.
"The GDP growth forthe Iranian economy just this year, 2016, and coming years will be more thanthe average forglobal growth rates. It is predicted, [GDP growth will amount to] atleast five percent," Nahavandian said, adding that the government's five-year plan foresees an 8-percent growth.
The Iranian authorities will take steps forthe economic development and attracting ofinvestment, he stressed.
He later told Sputnik that Tehran was interested ininvesting inthe Russian economy, particularly inthe area ofresearch and development,
"And now that the sanctions are lifted we have many opportunities toexpand economic ties withRussia," Nahavandian said.
The Iranian official said that any possible restoration ofinternational sanctions againstIran will not have a negative impact onthe investment contracts that will be signed followingthe lifting ofnuclear-related restrictive measures.
This would be another advantage "to international companies toengage indifferent kinds ofbusiness withIran," he noted.
Nahavandian told Sputnik that his country hoped tojoin the World Trade Organization (WTO) this year, adding that the request had already been sent.
Iran is currently an observer inthe organization.
Anti-Russian Sanctions
Anti-Iran sanctions atthe Davos forum were primarily spoken ofin the pasttense, while forRussia the issue remains the matter ofthe current and future relations withthe West.
But the forum sounded new hints tothe fact that Western anti-Russia sanctions might be lifted soon.
Finnish Finance Minister Alexander Stubb told Sputnik that Finlands economic downturn is related toits failure toimplement structural reforms inthe labor market and, tosome extent, toits sanctions onRussia.
"When the Russian economy is going down, the Finnish economy goes down. So everything is linked toeverything," he observed.
In 2014, Finland imposed economic sanctions onRussia aspart ofthe common EU response towhat the West views asMoscows involvement inthe Ukrainian crisis.
In late December 2015, the European Union extended the economic sanctions againstRussia foranother six months untilJuly 31, 2016.
The minister also said that relations betweenRussia and the West, inparticular, betweenRussia and the European Union are currently "much warmer thana year ago."
The chairman ofthe Munich Security Conference (MSC) said that German companies would liketo see the Western sanctions againstRussia lifted assoon aspossible.
"I see a couple ofCEOs ofmajor German companies inthis room, they would love, and I have a great sympathy forthat, they would love tosee the sanctions ended today rather thanin a year fromnow," Wolfgang Ischinger said atThe Outlook forRussia WEF session.
In turn, French Foreign Minister Laurent Fabius told Sputnik that Russia and the countries ofEurope should and "need" towork together toimprove ties.
US Secretary ofState John Kerry said that the restrictive measures could be gone infew months should the Minsk agreements be implemented.
"I believe that witheffort and withbona fide, legitimate intent tosolve the problem onboth sides, it is possible inthese next months to get toa place where sanctions can be appropriately removed," Kerry said duringa speech inDavos.
By Sputnik
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