Italy intend to revive Iran ties

/By AzerNews/

By Sara Rajabova

In line with improvement of Iran’s relations with the West after the Vienna deal, Iran signed the first economic document with the European country since the clinching the nuclear agreement with six world powers.

Memorandum of understanding was signed in Tehran between Iran Trade Promotion Organization and the Italian Institute for Foreign Trade, Iranian media reported.

The document was inked following the meeting between Iranian Minister of Industry, Mine and Trade Mohammad Reza Nematzade and Italy’s Economic Development Minister Federica Guidi.

The memorandum envisages exchange of commercial and trade information, as well as mutual visits of trade and educational delegations between the two countries.

Furthermore, a MoU was signed between Italy’s investment bank Mediobanca along with its development ministry and export credit agency SACE in Tehran with Iran’s economy ministry and central bank.

Under the document Italy agreed to provide funding and insurance coverage for industrial, construction and infrastructure projects worth $2 billion in Iran.

In a statement, Mediobanca said the aim of the agreement was "to facilitate future economic and commercial relations between the two countries".

An Iranian official said the MoU will be executed upon the removal of the sanctions, with Mediobanca providing credit and SACE insurance for projects in Iran.

The document was clinched at the meeting between Iranian Minister of Economic Affairs and Finance Ali Tayyeb-Nia and Guidi.

Iranian minister stressed the necessity for doubling the current $ 1.5 billion volume of trade exchange between the two countries in near future.

Italy remains one of Iran’s main commercial partners despite a steep decline in trade because of the sanctions. According to SACE, oil and gas, automotive, defense, transport and real estate offer the best opportunities for cooperation.

European countries have lined up to restore relations and trade with the Islamic Republic in expectation of soonest removal of international sanctions on Iran.

High-ranking officials from Europe have begun to visit Iran to restore relations with Tehran previously halted as a result of its nuclear energy program.

Following the Vienna nuclear deal, Rome voiced intention to revive relations with Tehran and interest in developing trade and economic relations with the Islamic Republic.

Guidi headed delegation of Italian entrepreneurs, who arrived in Iran on August 4. Italian Foreign Minister Paolo Gentiloni led the Italian political and economic delegation on the visit to Tehran.

Iran's Foreign Minister Mohammad Javad Zarif said in a meeting with his Italian counterpart that the level of Iran’s trade with Italy is "above normal" and the two countries are planning balanced and long-term bilateral economic relations.

Tayyebnia said annual trade stood at $7 billion before sanctions slashed it to $1.5 billion.

According to SACE projections, removal of the sanctions against Iran could lift Italian exports to Iran by $3.3 billion in the next four years.

The Italian representatives also said Italy will certainly invest in Iran's car industry in near future. IRNA news agency quoted Guidi as saying that the number of cars produced in Iran is high and this will not be limited to Iran's market.