Iran-focused Economic Press Digest (28 February 2017)

Corporate News & Business

Iran’s international steel exhibition to host 70 foreign companies(Tehran Times, 28 February 2017)

Over 70 foreign and 156 domestic exhibitors will participate in the 20th International Steel Exhibition of Iran which is to open on 28 February 2017 in the northwestern city of Tabriz. Secretary of Iron & Steel Society of Iran Mr. Ali Shafi’I noted that this year the exhibition is witnessing a threefold rise in the number of the foreign participants.

Australian companies eying expansion of ties with IMIDRO(Tehran Times, 27 February 2017)

In a meeting with Head of Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) Mr. Mehdi Karbasian on 27 February 2017, Australia’s Victorian Department of Economic Development, Jobs, Transport and Resources Secretary Mr. Richard Bolt expressed content about cooperation between Australian companies and IMIDRO during the past two years, hoping for a further expansion of ties. Mr. Karbasian pointed to Iran’s gas resources and Australia’s iron ore mines saying that the two countries can collaborate on converting iron ore to steel.

Car output up 31.9% in 11 months yr/yr(Tehran Times, 27 February 2017)

Iranian car makers manufactured 1.224 million vehicles in the first 11 months of the current Iranian calendar year (March 2016-February 2017), 31.9% rise compared to the same period last year. ran is scheduled to manufacture 1.35 million cars by the end of the current Iranian year (20 March 2017), Deputy Minister of Industry, Mining and Trade Mr. Mohsen Salehinia announced in April 2016.

Annual steel production planned to reach 18.5m tons(Tehran Times, 27 February 2017)

Deputy Industry, Mining and Trade Minister Mr. Jafar Sarqini said on 27 February 2017 that Iran’s annual crude steel production is planned to reach 18.5 million tons by the end of current Iranian calendar year (20 March 2017). Iran’s crude steel output stood at 16.708 million tons in the past calendar year and at 16.805 million tons in its preceding year. 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. As a major steel producer in the region, Iran boosted its steel mills across the country in recent years. Central Isfahan and southwestern Khuzestan provinces remain the major steel producers.

Iranian railways to be linked to Afghan network(AGC, 27 February 2017)

Iran’s and Afghanistan’s railways are to be connected in early 2018 announced Deputy Director of Iran Railway Company Mr. Hossein Ashouri. He said that Iran has already built a railroad to the border with Afghanistan, and the remaining stretch of railway in Afghanistan should be ready by 2018. Mr. Ashouri emphasized that connecting Iran’s railway with the rail networks of neighbouring countries is a priority for Tehran. Recently Iranian railways have been linked to Turkmenistan at Incheburun border control and they are also to be connected to Azerbaijan at Astara border control within three months. As part of its development plan, the Iran’s Railways Organisation is to cooperate with Germany’s Siemens company for electrification of the railway from Tehran to Mashhad and the construction of high-speed railway from Tehran to Isfahan as well as to update the entire railway system of the country. In December 2016, Iran and Kazakhstan signed an agreement for the establishment of a common transport company that could lead to the creation of a new transport corridor linking the southern ports of Iran to the upper parts of Central Asia. The agreement aims to facilitate maritime transport in the Caspian Sea, cooperation between Iran and Kazakhstan in ports and terminals.

Iran and New Zealand agree to resume trade(Press TV, 27 February 2017)

On 26 February 2017, New Zealand Primary Industries Minister Mr. Nathan Guy and Iranian Agriculture Minister Mr. Mahmoud Hojjati witnessed the signing of the agreement which provides for chilled and frozen sheep and beef exports to resume with Iran. Mr. Hojjati said Iran is ready to cooperate with New Zealand in such fields as research, exchange of germplasm, pasture pest management and hybrid seed production, adding that joint investment in cage fish farming and marketing for exports of products to other countries can be another field for cooperation between Iran and New Zealand. Meat is New Zealand’s second-largest commodity export after dairy, and was worth US$ 5.92 billion in 2016. Its meat exports to Iran failed to pick up following the lifting of sanctions last year because Iran required its vets to be present at the time of processing, while New Zealand meat exporters rely on their own workers for halal standards. New Zealand sent its Minister of Trade Mr. Todd McClay to Tehran in December 2016 at the head of a senior-level business delegation to look into the prospects of reviving trade. Iran’s Foreign Minister Mr. Mohammad JavadZarif then presented a US$1 billion prospect for New Zealand’s renewed trade with Iran.

Iran seeks German partnership in water treatment(Mehr News Agency, 27 February 2017)

CEO of Iran’s Water and Wastewater Engineering Company Mr. HamidrezaJanbaz has voiced Energy Ministry’s readiness to launch partnership with German firms for refurbishing Iran’s water and wastewater treatment facilities. Mr. Janbaz added that presently, Iran only partially relies on foreign countries in the field of precise instrumentations, an issue which will be hopefully resolved during future joint projects. He stated that Iran was seeking to adopt technologies with high rate of environmental productivity. Mr. Janbaz further underlined that Iran was willing to strengthen relation with Germany in a bid to tackle emerging challenges like design and implementation of long transmission lines, using smart networks, instrumentation, artificial intelligence and technologies of waste collection for recycling and water supply to agriculture and industry sectors.

Finance

Bank Sepah expanding ties with Iraq(Financial Tribune, 28 February 2017)

During a meeting with Iraqi Ambassador to Iran Mr. RajehSaberAbboud al-Mousavi on 27 February 2017, Bank Sepah’s CEO Mr. Mohammad KazemChoghazardi said that since the sanctions imposed on our banking system were lifted about a year ago, Bank Sepah equipped its offshore branches and its foreign exchange transactions exceeded US$ 5 billion.Choghazardi mentioned that Bank Sepah is among the top Iranian banks in financing strategic projects and providing loans to startup businesses. The bank’s financial indexes place it among strong banks in the country. Omid Investment Group, whose main shareholder is Bank Sepah, has invested in some of the major projects in the country, such as petrochemicals, cement, steel, power plants, stock brokerage firms and currency exchange facilities.

Oil & Gas

Russia says in talks over Iranian oil purchases(Tehran Times, 28 February 2017)

On 27 February 2017, Russia’s Energy Minister Mr. Alexander Novak confirmed that Moscow was in talks to buy oil from Iran, adding that he expected a deal to be reached within weeks. Purchases will be carried out via Promsirieimport, a trading unit of Russia’s Energy Ministry. ast week, Iranian Students’ News Agency (ISNA) reported that Iran would soon begin selling 100,000 bpd of oil to Russia.

Indonesia seeks exploration of two oil fields in Iran(The Jakarta Post, 27 February 2017)

Office of the Coordinating Economic Minister published a statement saying thatstate-owned energy company Pertamina will submit proposals to the Iranian government for the exploration of two oil fields located at Ab Teymour and Mansouri in Iran’s Bangestan province. Based on a study conducted by Pertamina, the oil reserves in the two fields amount to 1.5 billion barrels and production potential reaches 200,000 barrel per day in each field. Indonesia also plans to buy natural gas at competitive prices from Iran to meet domestic energy needs, particularly for power plants to supply electricity to the petrochemical and fertilizer industry, as well as for special economic zones.

Extracting gas from South Pars platform 20 begins(Tehran Times, 27 February 2017)

Operator of South Pars (SP) Phases 20 and 21 Development Project announced on 26 February 2017 that gas extraction had started at SP Phase 20, which is to produce one billion cubic feet (around 25 million cubic meters) of gas per day.

International

Iran, EU to hold joint seminar on nuclear cooperation(Mehr News Agency, 28 February 2017)

Iran and the European Union will hold a two-day high-level seminar on nuclear cooperation starting on 28 February 2017 in Brussels. The seminar aims at reviewing various ways for expansion of bilateral cooperation on nuclear technology and represents an important indication of the growing cooperation between Iran and the EU, and the concrete and practical sign of moving forward on this path following the implementation of the Joint Comprehensive Plan of Action (JCPOA), known as Iran’s nuclear deal. The seminar will be attended by a high-level delegation from Iran, including prominent parliamentarians and senior officials from the AEIO and the Foreign Ministry. Members of the European Parliament, representatives of a number of European External Action Service units, representatives of the 5+1 countries (China, France, Germany, Russia, the UK and the US) as well as the International Atomic Energy Agency (IAEA) will also participate in the event.