Cameron to Rouhani: Britain Wants to Reopen Its Embassy in Tehran

David Cameron, the Prime Minister of Britain, spoke with Hassan Rouhani, the President of Iran, on Thursday, July 25, stating that the nuclear agreement represents a new beginning in the relations between the two countries and that he is committed to reopening the British embassy in Tehran. A spokesperson for Cameron's office noted that the Prime Minister expressed hope that this agreement could mark a fresh start in bilateral relations between Britain and Iran. According to Reuters, he clarified that he is committed to reopening the British embassy in Tehran. The British embassy in Tehran was attacked by hundreds of individuals known as Basij students in December 2011, resulting in significant damage. Since then, the embassies of both countries have been closed in London and Tehran. Philip Hammond, the British Foreign Secretary, also stated on Wednesday that the country is committed to reopening its embassy in Tehran. Meanwhile, the British Export Credit Agency announced on Thursday that it will review Iran's credit rating. This is the first step towards normalizing trade relations between the two countries following the comprehensive nuclear agreement between Iran and global powers. Reuters reports that Iran, with a population of about 80 million and an economic volume of nearly $400 billion annually, has been the largest economy in the region for about two decades since the dissolution of the Soviet Union, and it could join the global financial and trade system. However, it seems that many sanctions against the country will continue in the coming months. For instance, EU and US sanctions regarding Iran's use of the financial and banking network will be lifted only when the International Atomic Energy Agency confirms that Iran has fulfilled its commitments. The British Export Credit Agency, which guarantees banks' and insurance companies' investments in support of the country's exports, stated on Thursday, July 25, that 'as a result of the recent nuclear agreement and its positive implications for Iran's economy, we will soon begin the process of reviewing and reassessing Iran's credit position. There are old disputes and financial claims regarding Iran's credit status, and these debts must be clarified before our credit support for transactions with Iran can normalize.' A spokesperson for this agency mentioned that no specific date has been set for reviewing and reassessing Iran's credit position, and he did not provide specific information to Reuters regarding the disputed claims and overdue debts. Before the imposition of past sanctions, Britain was one of Iran's key trading partners. The Shell oil company, registered in London, recently announced its interest in trading and investing in Iran. The British financial services sector, one of the most lucrative economic sectors in the country, including major insurance companies and banks like Lloyd's, is also interested in trading and investing in Iran. However, Britain will face competition from others in increasing its economic relations with Iran. The Italian Export Credit Agency also announced on Tuesday that the gradual lifting of sanctions would lead to an increase in Italy's exports to Iran to about three billion euros over the next four years. Experts believe that, given past negative experiences, British banks will be more cautious this time in investing in Iran. Influenced by scandals related to the illegal activities of major banks that have been revealed in recent years, it seems they have reduced their international activities. HSBC was fined $1.9 billion by the US in 2012 for violating international commitments, including dealings with Iran. Standard Chartered Bank was also fined about $1 billion in 2012 for violating US-imposed sanctions by the US government. On Tuesday, Britain issued a new statement regarding its trade relations with Iran, stating, 'If Iran fulfills its commitments and sanctions are gradually lifted, the government will assist the economic and financial sectors of the country to seize new opportunities and expand investment and trade relations between the two countries.' Nigel Kushner, an official at the British-Iranian Chamber of Commerce, stated that the future of trade relations between the two countries depends on Iran's fulfillment of multiple commitments. Mr. Kushner, who is a senior legal expert in international sanctions, added, 'The reality is that there will be no significant changes in US and EU sanctions against Iran for at least the next six to nine months.'