It is “not surprising” that Italy and France have been first-movers in drumming up business with Iran after the lifting of sanctions, given that prior to 2011 some 20 percent of the Middle Eastern country’s trade was with Europe, Florence Eid- Oakden, chief executive officer at Arabia Monitor, said in a Bloomberg Television interview.
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Peugeot-Citroen is the first to benefit from this decision of opening commercial borders between Iran and France, planning a joint venture with Iranian auto manufacturer Khodro in order to produce over 200,000 cars outside of Teheran.
France’s government welcomed Iranian President Hassan Rouhani on Thursday with promises of a new beginning in an old relationship, starting with investments to boost Iran’s flagging economy crippled by decades of sanctions over its nuclear activities.
“Let us forget the resentment”, Rouhani said.
French Green MEP and veteran activist Jose Bove told the crowd: “Human rights must be put ahead of business interests”, adding: “Iranians should be able to live in a secular state”.
Iran’s industry minister Mohammad Reza Nematzadeh said an agreement between French export-credit group Coface (COFA.PA) and the Iranian central bank signed this week was an important step in the right direction.
“A new era in our relationship starts today”, Hollande said at a press conference with Rouhani.
“France has for a long time turned itself towards Iran, fascinated by its history, attracted by its culture, seduced by this great nation which is so incomparable”, he said.
Some 30 agreements were signed yesterday between governments and between companies, Mr Hollande said.
The Iranian president called earlier for both countries to take advantage of the “positive atmosphere” following the lifting of sanctions over the Islamic Republic’s nuclear programme.
Exactly what stage the Airbus deal was at remained unclear, but French officials said Iran was putting the finishing touches to it. Iranian Transport Minister Abbas Akhoundi said a deal had been reached, but declined to give further details.
The real business of the visit will come when Rouhani officially signals Iran’s intention to buy more than 100 passenger planes from European aircraft maker Airbus.
“We will maintain our commitments [regarding the nuclear program agreement] provided that the other party also fulfills all its commitments”, emphasized the Iranian president.
A member of the radical feminist group Femen dangled from the bridge in a mock hanging, wearing only flesh-coloured panties and an Iranian flag on her chest.
The United States had imposed new sanctions over the firing of a medium-range Iranian ballistic missile shortly before the reported French request. The French carmaker pulled out of the country in 2012 as sanctions began to bite.
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President Rouhani, whose visit also saw its share of protests, was scheduled to meet French President François Hollande later Thursday. The revamped factory, which opened about 50 years ago, will make Peugeot’s 208 hatchback, 301 sedan and 2008 crossover.
