Prospects for Promotion of Tehran-Rome Economic Ties
March 10, 1999 - 0:0
TEHRAN President Khatami's 3-day state visit to Italy which began Tuesday, is considered as very important by international observers who believe Italy can pave the way for Iran's broader presence in the European Union and consolidation of ties with the European Union. At the same time, Iran can serve as a bridge linking Italy to Central Asia and Caucasia. Iran's strategic situation in the Middle East, the Persian Gulf and Central Asia and Italy's key position in the Mediterranean, Europe and North Africa require further promotion of bilateral cooperation on the basis of mutual interests.
The volume of trade between Iran and Italy during the past Iranian year (ended March 20) reached $2.6 billion of which Iran's exports accounted for $1.78 billion. Crude oil comprises a great part of Iran's exports to Italy. Last year Iran's surplus trade balance amounted to $420 million. Italy is among major trade partnes of Iran. The volume of trade exchanges between the two countries amounted to $13 billion in the years 1992-1996. The agreement on rescheduling Iran's debts to Italy signed between Italy's State Insurance Agency (SACE) and Iran's Central Bank was among important steps taken to boost Tehran-Rome relations.
According to the agreement, SACE agreed to reschedule 90 percent of Iran's outstanding debts amounting to $418 million. SACE director general said with respect to Iran's economic problems stemming from the fall in oil prices, the agency has rescheduled the payment of Iran's debts. Governor of the Central Bank of Iran, Mohsen Nourbakhsh said that it was agreed during talks with French and Italian state insurance agencies, that beside finance covers, Iran would enjoy two to five year facilities with respect to purchase of commodities such as machinery and spare parts.
Meanwhile, Italian and French economic delegations agreed in their talks with Iranian officials last spring to grant $1.6 billion in insurance and banking credit to Iran's private sector. Deputy for international affairs of Iran Chamber of Commerce, Industries and Mines Fereydoun Entezari said that Italy and France have agreed to grant $1.6 billion in new insurance and banking credits to the Iranian private sector.
According to Entezari the credits are designed to finance commercial, industrial and mining sectors in the country. He said that Italy has agreed to grant $1 billion in insurance credit. Tehran-Rome relations are expected to boost with respect to the act that Iran is Italy's fourth oil supplier after Egypt, Libya, Saudi Arabia. Italy's oil imports from Iran, up by 10.1 percent in the past 10 months compared to the same period last year, reached 10.050 million tons.
French oil company Elf Aquitaine and Italy's Eni signed a $1billion deal to develop Iran's offshore Doroud oilfield. Deputy Oil Minister for International Affairs Mehdi Husseini said that Italy has the potentials to invest in upstream and downstream sectors of Iran's oil and gas industries up to more than three billion dollars. The share of Italian oil companies in Iran's oil and gas projects are expected to increase in a near future and as Mehdi Husseini has put it, oil issues and cooperation in oil-related areas is one of the major topics of discussion between Iranian and Italian officials during President Khatami's visit to Rome. ENI is the largest Italian oil company which has taken part in Iran's tenders with a huge amount of investment, Husseini said, adding that talks are under way with the company.
Iran-Italy cooperation in mines and industries sector, during the sacred defense years (1980-1988) in particular, are of great importance. Concluding contracts to implement five steel projects worth $660 million with Danili company is of significance for expansion of Iran's steel industries. As per an agreement signed with Italy's Danili, the Italian firm is presently helping the Isfahan plant to produce 700,000 tons of steel plate annually.
The production of steel roll by Mobarakeh Steel Complex is to reach 600,000 tons by May. Plans are in progress to boost the annual production capacity of the complex to four million tons in a three year span. Mobarakeh Steel Complex because operational in cooperation with Danili company and is considered as a good sample of Tehran-Rome cooperation. Iran and Italy have entered a new era of cooperation after a lapse of eight years as the third session of joint Tehran-Rome economic commission was convened in Tehran last summer.
The third session, held in the first year of President Khatami's administration, heralded a promising prospect for bilateral cooperation in future. Following a meeting between Italian Foreign Trade Minister Augusto Fantozzi and Iranian Minister of Mines and Metals Eshagh Jahangiri during the third session of Iran-Italy Joint Economic Commission in Tehran, Italy agreed to grant a $-1.2-billion credit to Iranian banks.
The Italinan bank, Medio Banca, agreed to pay the credit to six Iranian banks to promote trade exchanges and industrial cooepration between small and medium industries of the two countries and to boost bilatearl trade exchanges. The two sides also decided to increase Iran's non-oil exports to Italy and export to Iran of Italian machinery needed by Iranian industries. Iran and Italy have also reached agreements on cooperation in agricultural and telecommunications fields which will broaden prospects for Tehran-Rome cooperation.
Observers believe that the visit to Italy of First Vice-President Hassan Habibi and the visit to Tehran of the then Italian Prime Minister were turning point in Tehran-Rome relations. Iranian officials have always taken into consideration Italy's positive stands and outloods towards political and economic relations at international arena. Meanwhile, Italian officials welcomed President Khatami's statements on dialogue among civilization and with respect to their traditional civilizations and the fact that Iran is the cradle of Islamic civilization and Italy representative of Western civilization, the two nations can establish model relations.
The volume of trade between Iran and Italy during the past Iranian year (ended March 20) reached $2.6 billion of which Iran's exports accounted for $1.78 billion. Crude oil comprises a great part of Iran's exports to Italy. Last year Iran's surplus trade balance amounted to $420 million. Italy is among major trade partnes of Iran. The volume of trade exchanges between the two countries amounted to $13 billion in the years 1992-1996. The agreement on rescheduling Iran's debts to Italy signed between Italy's State Insurance Agency (SACE) and Iran's Central Bank was among important steps taken to boost Tehran-Rome relations.
According to the agreement, SACE agreed to reschedule 90 percent of Iran's outstanding debts amounting to $418 million. SACE director general said with respect to Iran's economic problems stemming from the fall in oil prices, the agency has rescheduled the payment of Iran's debts. Governor of the Central Bank of Iran, Mohsen Nourbakhsh said that it was agreed during talks with French and Italian state insurance agencies, that beside finance covers, Iran would enjoy two to five year facilities with respect to purchase of commodities such as machinery and spare parts.
Meanwhile, Italian and French economic delegations agreed in their talks with Iranian officials last spring to grant $1.6 billion in insurance and banking credit to Iran's private sector. Deputy for international affairs of Iran Chamber of Commerce, Industries and Mines Fereydoun Entezari said that Italy and France have agreed to grant $1.6 billion in new insurance and banking credits to the Iranian private sector.
According to Entezari the credits are designed to finance commercial, industrial and mining sectors in the country. He said that Italy has agreed to grant $1 billion in insurance credit. Tehran-Rome relations are expected to boost with respect to the act that Iran is Italy's fourth oil supplier after Egypt, Libya, Saudi Arabia. Italy's oil imports from Iran, up by 10.1 percent in the past 10 months compared to the same period last year, reached 10.050 million tons.
French oil company Elf Aquitaine and Italy's Eni signed a $1billion deal to develop Iran's offshore Doroud oilfield. Deputy Oil Minister for International Affairs Mehdi Husseini said that Italy has the potentials to invest in upstream and downstream sectors of Iran's oil and gas industries up to more than three billion dollars. The share of Italian oil companies in Iran's oil and gas projects are expected to increase in a near future and as Mehdi Husseini has put it, oil issues and cooperation in oil-related areas is one of the major topics of discussion between Iranian and Italian officials during President Khatami's visit to Rome. ENI is the largest Italian oil company which has taken part in Iran's tenders with a huge amount of investment, Husseini said, adding that talks are under way with the company.
Iran-Italy cooperation in mines and industries sector, during the sacred defense years (1980-1988) in particular, are of great importance. Concluding contracts to implement five steel projects worth $660 million with Danili company is of significance for expansion of Iran's steel industries. As per an agreement signed with Italy's Danili, the Italian firm is presently helping the Isfahan plant to produce 700,000 tons of steel plate annually.
The production of steel roll by Mobarakeh Steel Complex is to reach 600,000 tons by May. Plans are in progress to boost the annual production capacity of the complex to four million tons in a three year span. Mobarakeh Steel Complex because operational in cooperation with Danili company and is considered as a good sample of Tehran-Rome cooperation. Iran and Italy have entered a new era of cooperation after a lapse of eight years as the third session of joint Tehran-Rome economic commission was convened in Tehran last summer.
The third session, held in the first year of President Khatami's administration, heralded a promising prospect for bilateral cooperation in future. Following a meeting between Italian Foreign Trade Minister Augusto Fantozzi and Iranian Minister of Mines and Metals Eshagh Jahangiri during the third session of Iran-Italy Joint Economic Commission in Tehran, Italy agreed to grant a $-1.2-billion credit to Iranian banks.
The Italinan bank, Medio Banca, agreed to pay the credit to six Iranian banks to promote trade exchanges and industrial cooepration between small and medium industries of the two countries and to boost bilatearl trade exchanges. The two sides also decided to increase Iran's non-oil exports to Italy and export to Iran of Italian machinery needed by Iranian industries. Iran and Italy have also reached agreements on cooperation in agricultural and telecommunications fields which will broaden prospects for Tehran-Rome cooperation.
Observers believe that the visit to Italy of First Vice-President Hassan Habibi and the visit to Tehran of the then Italian Prime Minister were turning point in Tehran-Rome relations. Iranian officials have always taken into consideration Italy's positive stands and outloods towards political and economic relations at international arena. Meanwhile, Italian officials welcomed President Khatami's statements on dialogue among civilization and with respect to their traditional civilizations and the fact that Iran is the cradle of Islamic civilization and Italy representative of Western civilization, the two nations can establish model relations.