Corporate & Business

Iran keen on expanding ties with Singapore (Mehr News Agency, 05 April 2017)

Iranian Deputy Foreign Minister Mr. Morteza Sarmadi met with Singapore’s Senior Minister of State (SMS) for Defense and Foreign Affairs Mr. Mohamad Maliki Osman on 4 April 2017. Mr.Sarmadi said that the lifting of sanctions provided new opportunies for the expansion of ties and cooperation between the two countries in all fields. Mr. Osman announced his country’s readiness to improve ties with the Islamic Republic, expressing hope that economic cooperation with Iran and investment of Singapore’s companies in Iran will soon reach new levels

IRISL signs co-op MOU with Kamigumi, SUZUE (Tehran Times, 04 April 2017)

The Islamic Republic of Iran Shipping Lines (IRISL) has signed a memorandum of understanding (MOU) with Japan’s SUZUE Corporation and Kamigumi Company in Singapore. The MOU includes cooperation on construction of dry ports in Iran as well as making investments on improvement of terminals in Iranian ports. The MOU will become operational after conducting the required studies and finalizing the related contract. Kamigumi, as an integrated logistics services provider, is active in warehouse storage, overland transport and heavy cargo transportation and also offers large-scale terminal operations, logistics outsourcing and overseas local transportation. SUZUE Corporation provides international transportation service besides marine logistics business service. Norway’s SKULD marine insurance company also signed a memorandum of understanding in the field of shipping insurance with IRISL in August 2016.

IDRO to ink contract with Renault in 2 weeks (Mehr News Agency, 04 April 2017)

Managing Director of Industrial Development and Renovation Organization of Iran (IDRO) Mr. Mansour Moazemi said that the Renault contract that faild to be completed in the last Iranian year (21 March 2016-20 March 2017) due to prolonged negotiations will be signed with the French manufacturer within two working weeks.

Iran, Norway to expand cooperation on fisheries, veterinary (Mehr News Agency, 04 April 2017)

Head of Iran Veterinary Organization (IVO) Mr. Mehdi Khalaj and Norway State Secretary for the Minister of Fisheries Mr. Roy Angelvik met in Oslo on 3 April 2017. he two sides underlined the need for the expansion of ties between Iran and Norway in the fields of fisheries, aquatic animal health and veterinary. Iran and Norway are scheduled to sign an MoU on aquatic animal health and veterinary cooperation.

Crude steel export up 108% in 11 months (Tehran Times, 06 April 2017)

Iran exported 3.225 million tons of crude steel during the first eleven months of the past Iranian  year 1395 (20 March 2016-18 February 2017), registering a 108 % increase compared to the same period last year. Maintaining its 2015 record the country ranked 14th among global crude steel producers in 2016. Europe’s steel import from Iran has increased by nearly eight times between 2013 and 2016, placing the it third behind Iran’s largest importers China and India. The country aims to increase total output to 55 million tons and export between 20 and 25 million tons of steel annually by the end of its 1404 (March 2025-March 2026) Outlook Plan.

Iran, Hungary set to sign deal for nuclear cooperation (Tehran Times, 05 April 2017)

Atomic Energy Organization of Iran (AEOI) spokesman Mr. Behrouz Kamalvandi has announced that Iran and Hungary plan to sign an agreement on 8 April 2017 to expand nuclear cooperation. In February 2016, AEOI Chief Mr. Ali Akbar Salehi said Iran had proposed a joint project with Hungary to design and develop a small nuclear reactor that could be sold across Asia and Africa and also built in the Islamic republic.

Iran is a good market for corn (Bayerisches Landwirtschaftliches Wochenblatt, 04 April 2017)

Iran remains a  a corn importer. IN 2016/2017, local production is likely to cover only 20% of its own needs, forcing Iran to introduce approximately 8.5 Mt. The corn cultivation area in Iran is estimated to be about 500,000 ha, of which 200,000 ha grain maize. The Iranian Minister of Agriculture has the clear ambition to promote this culture. However, two challenges must first be overcome: on the one hand a water deficit and on the other hand the salinisation of soils. These are challenges that can not be met by local maize varieties. The French maize and sorghum seed industry has agreed to cooperate with the Iranian Ministry of Agriculture and the Iranian Union of Agricultural Cooperatives, with a view to promoting modern hybrids with a short cultivation cycle. In addition, the cultivation of sorghum is to be promoted, as this culture has great potential for Iranian soil and weather conditions. In 2017, for example, several varieties of cultivars will be set up in strategic agricultural production zones in order to highlight the potential of powerful maize and sorghum varieties and to tackle the agricultural problems in this country.

Russia’s Rosneft hopes Iran rulings can help it beat EU sanctions (Euronews, 04 April 2017)

Russian oil major Rosneft hopes to benefit from European court rulings that have allowed some Iranian banks to escape from European Union sanctions. Russia’s largest oil firm has been subject to sanctions since 2014, following Russia’s annexation of Ukraine’s Crimea region. Chief Executive Igor Sechin, a close ally of Russian President Vladimir Putin, is himself under sanctions. Sanctions complicate fund-raising for the state-run Rosneft and have prevented western companies from helping it develop deepwater, shale and Arctic oil deposits, including a large venture with Exxon Mobil. Rosneft is attempting to annul EU sanctions in the European General Court, following a ruling by the European Court of Justice that the matter can be heard in Brussels. Rosneft is challenging the legality of sanctions, saying the General Court set a precedent when it annulled some EU sanctions against Iranian banks. The decision was later confirmed by the European Court of Justice. Rosneft said the Iranian banks had successfully challenged sanctions intended to curb Iran’s nuclear programme because there was no evidence of wrongdoing by the banks. The General Court had recognised that the banks were not involved in Tehran’s nuclear activities, Rosneft said in legal arguments. Rosneft is hoping to benefit from a similar attitude to sanctions imposed over Ukraine. In 2014, the European Court of Justice struck down an EU decision to freeze the assets of Iran’s central bank, a measure put in place prevent Iran developing nuclear weapons. Last year, Iran’s Bank Mellat also won a case that its assets should not have been frozen. It argued that it was not linked to Iran’s nuclear programme.

Finance

Investors from 37 countries active in Iran’s capital market (Tehran Times, 03 April 2017)

According to the Iranian news agency ISNA, investors from 37 countries are currently active in Iran’s capital market.Investors from the United States, Britain, Spain, Russia, Germany, Switzerland, Sweden, Poland, Uzbekistan, Azerbaijan, China, the Netherlands, India, Turkey, Lebanon, South Africa, Japan, Cyprus, Italy, the United Arab Emirates, Norway, Greece, Indonesia, Maldives, Hong Kong, Qatar, Iraq, Pakistan, Syria, Luxemburg, Kuwait, New Zealand, Malaysia, South Korea, Georgia, Armenia, and Afghanistan have initiated their activities in Iran’s capital market. About US$ 36.87 million of foreign investments had been made in Iran’s capital market in the early months of the Iranian calendar year 1392 (March 2013-March 2014), while the figure mounted to about US$ 326.79 million in the ninth month of the past Iranian year 1395 (21 November 2016-20 December 2016).  The government ratified more than $9 billion of foreign investment plans in 1395 (ended March 20, 2017) said Mr. Ahmad Jamali, an official with the Ministry of Finance and Economic Affairs, as saying. He added that during the past 11 months, 5,200 investment opportunities have been identified in the country, among which 825 ones have been finalized and introduced to foreign investors.

Iran resumes cooperation with international financial institutions (Mehr News Agency, 03 April 2017)

Head of Office for Loans and International Institutions at the Organisation for Investment Economic and Technical Assistance of Iran (OIETAI) Mr. Saeed Khani Oshani said in the past few years, the OIETAI had taken steps to resume cooperation with international financial institutions, adding that implementation of these measures were made possible by the Joint Comprehensive Plan of Action (JCPOA). Mr. Oshani explaibned that since the nuclear deal was reached, Iran  has been able to both resume collaborations with international financial  institutions -such as the World bank – and gained membership of institutions in which Tehran was not part of – such as the Asian Infrastructure Investment Bank (AIIB). The OIETAI official said these institutions could directly pay funds to the Islamic Republic of Iran underlining that by identifying projects, the World Bank is able to grant funds to Iran. Mr. Oshani added that the AIIB identified its primary projects in several major cities of Iran in late February 2017 and is now seeking to finance them. He concluded that the presence of international institutions will give trust and credibility to investors.

CBI favours 10% lending rate (Financial Tribune, 06 April 2017)

Banks’ lending rates are still high and the government is making efforts to lower the lending rates in line with the inflation rate, has said Central Bank of Iran (CBI) Governor Mr. Valiollah Seif. Iran’s inflation rate eased into single digits in June 2016 for the first time in a quarter century following the lifting of sanctions against Tehran after the implementation of the July 2015 nuclear agreement. The Money and Credit Council (MCC) – the highest monetary decision-making body – voted on June 2016 to lower lending rates by two percentage points. The decision came after private banks decided to voluntarily lower their one-year deposit rates from 18% to 15%–a move soon embraced by public-sector lenders. According to MCC’s vote, the interest for both Musharaka (joint partnership) and regular non-Musharaka loans is 18%. The rate for these two types of loans previously was 20% and 22% respectively. Cutting loan rates will help industries increase their production.

Oil & Gas

ONGC Videsh revises proposal for Iran’s Farzad gas block (India Times, 05 April 2017)

State-run ONGC’s overseas arm, ONGC Videsh has revised its proposal to develop Iran’s Farzad B gas block and could potentially invest over $3 billion on the project, a top executive from the company said on 4 April 2017. Videsh sees output from the asset rising to 1billion- 1.6 billion cubic feet per day of gas in five years from the launch of the project, ONGC Videsh Managing Director Mr. NK Verma. As a part of its strategy to secure energy overseas, India has been trying to close the deal for the Farzad B block using diplomatic ties but has not succeeded so far. ONGC Videsh had discovered the Farzad B gas field in 2008 and had submitted plans to develop it in 2010 but due to geopolitical reasons, the state-run companies had to surrender the block and it was later put up for a fresh bid by Iran. After the sanctions on the country were lifted, the block evoked interest in many investors, making India’s position uncertain.  ONGC Videsh in now confident that the revised plan would work in its favour. Mr. Verma said that ONGC Videsh is working on scaling up productions and pegs FY18 output at 14 million tonnes oil equivalent as against 12 million tonnes in FY17. He said that the company will invest $45 million to produce gas from its Imperial Energy asset.

Crude oil exports exceed 3mn bpd (Mehr News Agency, 04 April 2017)

The export of crude and gas condensates hit 3.050 million barrels per day in the last Iranian month (20  February 2017- 20 March 2017) marking a new record high level. Asian countries like China, India, Japan and South Korea as well as European countries like Britain, the Netherlands, France, Greece and Italy are major customers of Iranian oil. Presently, over one third of Iran’s exported oil which equals 700 thousand barrels per day is shipped to European companies.

Six South Pars phases become operational (Mehr News Agency, 04 April 2017)

While pointing to operation of six new South Pars phases, Oil Minister Mr. Bijan Zanganeh said the Government and Judiciary could pave the way to attract new investments. He added that besides supplying feedstock to petrochemical plants of South Pars joint gas field, de-ethanizing at Phase 12 marks another priority in order to alleviate concers about feedstock supply.

Qatar lifts moratorium on North Field development with the objective of increasing gas production (Agenzia Nova, 03 April 2017)

The cancellation of the moratorium on the Qatari side (North Field) of the gas field comes as Iran has for over a year rapididly started infrastructure development at the shared gas field –  called South Pars on the Iranian. South Pars development is one of the priorities of the government in Tehran. In November 2016, Iran signed a multi-billion dollars preliminary agreement with France’s Total to launch the project of South Pars II development. however, in its press conference, Head of Qatar Petroleum stated that the decision to lift the moratorium had nothing to do with Iran’s plan to develop a part of the shared gas field.

Iran not concerned by Indian threat to cut oil imports (Tehran Times, 05 April 2017)

Iran does not consider India’s decision to cut oil imports from Tehran in 2017/18 by a fifth as a threat said Oil Minister Mr. Bijan Zanganeh on 5 April 2017. Indian state refiners were going to cut oil imports from Iran, as New Delhi seeks to put pressure on Tehran to award the Farzad B gas field to an Indian consortium. India, Iran’s biggest oil buyer after China, was among a handful of countries that continued to deal with the Tehran despite Western sanctions over its nuclear program. A consortium headed by ONGC Videsh Ltd (OVL), the overseas investment arm of Indian explorer Oil and Natural Gas Corp, discovered Farzad B in the Farsi offshore block in 2008.

 

Economy & Society

President Rouhani to run for a second term (Mehr News Agency, 04 April 2017)

Cabinet Spokesperson Mr. Mohammad Bagher Nowbakht has said President Mr. Hassan Rouhani will be the only cabinet member to register in the presidential elections to take place on 19 May 2017. From 11 April 2017, candidates have five days to register at he Interior Ministry. They will tehn have to be vetted by the Guardian Council, which is to communicate to the Interior Ministry the final lisy of approved candidates on 27-28 April 2017. Mr. Nowbakht also said that  President Mr.  Rouhani would welcome debate with any candidate including Mr. Hamid Baghaei, a close associate of Mr. Mahmoud Ahmadinejad’s and his aid who will be the party’s nominee for the presidential elections.

Transport infrastructures development needs $127b by 2026 (Tehran Times, 05 April 2017)

According to the Ministry of Transportation and Urban Development, developing transportation infrastructures in Iran requires about US$ 127 billion investment by  the end of the country’s outlook plan for the Iranian year1404 (21 March 2025- 20 March 2026). About $10.16 billion have been expended for development of transportation infrastructures during the past three years.

Tehran, Berlin sign MoU on joint water research (Mehr News Agency, 04 April 2017)

A Memorandum of Understanding (MoU) has been signed between Iran and Germany to  conduct joint research on water. Attending the International Trade Fair and Congress for Water and Wastewater in Berlin, Iran’s Deputy Energy Minister Mr. Rahim Meidani said that tbarriers to investment in various sectors of water industry had been removed in the post-sanction era, stressing that Energy Ministry of Iran would spare no effort to support credible German firms active in the industry.

Discovering the secrets of Iran’s Pompeii (Repubblica, 03 April 2017)

Since January 2016, a delegation of archaeologists from the University of Salento led by Professor Enrico Ascalone is working at Shahr-e Soukhte (the burnt city), an UNESCO World Heritage site located in the Lut Desert in Sistan-Baluchistan province. They are working to understand why and one of the oldest civilisations in the world suddenly disappeared in 1800 BC.

By Natela Outtier

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