Ahani: Major French Banks Concerned About Potential US Sanctions

The Iranian ambassador to France announced the upcoming visit of the French Foreign Minister to Tehran next week, stating that the "caution and concern" of major French banks regarding potential US sanctions is hindering the development of economic relations between the two countries. According to the Iranian embassy in France, Ali Ahani declared at a conference titled "Iran; A Market for Opportunity Exploration" that the insurance company "Coface" is ready to cooperate and cover contracts of French companies with Iran. He added, "However, the caution and concern of major French banks regarding potential US sanctions is an obstacle to the development of economic relations that should be resolved with prudence." Ahani emphasized that the view of French companies towards Iran as a "reliable partner" rather than just a market for exports is a crucial factor for the success of French companies in the Iranian market. The state-owned insurance company "Coface" of France and the Central Bank of Iran reached an agreement during Hassan Rouhani's visit to Paris last February to settle debts that had been delayed since the implementation of international sanctions. The Central Bank of Iran stated that this agreement would pave the way for the resumption and development of trade relations between the two countries. Ahani's remarks come as the Iranian Foreign Ministry reported on Tuesday, January 17, in its fourth quarterly report on the implementation of the Vienna nuclear agreement that "all extensive obstacles and restrictions" resulting from nuclear sanctions have been removed. The report emphasized that none of the executive bodies reported any obstacles that the JCPOA was supposed to address and that they are still facing. According to the ministry, at the same time, statements by Donald Trump, the President of the United States, have caused "a kind of uncertainty and concern about the future of the JCPOA among several foreign companies," and they are waiting for "the strategy of the new US government." Recently, the Royal Bank of Scotland announced that it would not accept the pressures from the British government, which is a major shareholder of the bank, to encourage trading with Iran, as it still considers trading with that country to be risky. Abbas Araghchi, the Iranian Deputy Foreign Minister, has also stated several times that the problems of Iranian banks and insurance companies in cooperating economically with foreign countries have been "resolved," but there are issues, some of which are related to foreign countries and some due to the "outdated" nature of Iranian banks. Nevertheless, Valiollah Seif, the head of the Central Bank of Iran, announced on Saturday, October 16, that the current situation cannot be considered as "normalization of banking relations" and that "the existing conditions are not satisfactory compared to the expectations that existed before the JCPOA." Seif also stated that after the Vienna nuclear agreement, "relatively appropriate" relations have been established between Iranian banks and foreign banks, and this level of banking communication "partially resolves" the problems of Iran's foreign trade. The US Secretary of State and his counterparts from Britain, Germany, and France, along with the EU's foreign policy chief, issued a statement on May 20, urging banks and traders not to overlook legal investment opportunities in Iran. These countries have also expressed their readiness to alleviate doubts in this regard. Despite this statement, Iranian officials have repeatedly emphasized that sanctions against Iran have been lifted on paper, but European countries need to make "greater efforts" to eliminate the existing psychological atmosphere, especially regarding banking interactions. Ahani also mentioned the signing of 35 memorandums of cooperation during Hassan Rouhani's visit to France, announcing that Jean-Marc Ayrault, the French Foreign Minister, will visit Iran next week at the head of a political and economic delegation. He stated that the first meeting of the joint economic commission of the two countries will be held simultaneously with this visit. The purchase of 118 Airbus aircraft worth $25 billion and the modernization of Iran Khodro with a €400 million investment from Peugeot were among the contracts signed between Iran and France on Thursday, January 27, 2016, during Hassan Rouhani's visit to Paris. Meanwhile, the first Airbus aircraft purchased by Iran after the Vienna nuclear agreement landed at Tehran's Mehrabad Airport on Thursday, January 12. In this context, the Royal Bank of Scotland "does not accept the pressure from the British government to trade with Iran." The proposal for "non-nuclear sanctions against Iran" has once again been put forward in the US Senate.