Rouhani in France: hope for new investments

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Economy 28 January 2016 , by Margherita Genua

After sanctions against the Islamic Republic are lifted, Tehran re-approaches to Europe.

Rouhani’s visit to Paris is aimed at forging economic and trade relations and it is expected to result in the signing of major business contracts, on the heels of multi-billion-dollar deals in Italy. “Everyone understood that the nuclear negotiations represented a win-win situation for both sides, declared Rouhani. “Now we have created conditions for investment and for the transfer of know-how. There has to be an advantage for both sides: we invite you to invest and we will provide stability and ensure that you can make adequate returns.” he added, speaking to business leaders on Thursday at a Franco-Iranian forum.

As the Islamic Republic seeks to revive its economic growth and lower unemployment, Rohuani is trying to benefit form the nuclear deal with world powers reached in July, which paved the way for the lifting of economic sanctions. The removal of trade barriers may trigger at least $50 billion a year in foreign investment, according to the country’s Central Bank Governor. Although many sanctions relating to Iran’s nuclear program have been lifted, companies are worried about the sanctions snapping back if Iran violated the terms of the nuclear agreement.

France adopted a hard line in the nuclear negotiations, condemning Iranian support for Syrian President Bashar al-Assad and maintaining close ties with Sunni Gulf countries rivals of Iran. Nevertheless, since July, French trade delegations traveled to Tehran to explore investment opportunities.

So far, an order for 114 Airbus planes to modernise Iran Air’s ageing fleet is expected to be confirmed in France. Carmakers Peugeot and Renault may also agree a contract.