European Companies Compete to Sign Contracts with Tehran

Tehran is currently experiencing one of its busiest days hosting high-ranking European guests. A city that had lost its appeal for traders, businessmen, industrialists, and investors until recently is now bustling with activity. From Sigmar Gabriel, the Deputy Chancellor of Germany, to Federica Mogherini, the head of European diplomacy, and Laurent Fabius, the French Foreign Minister, and now Paolo Gentiloni, the Italian Foreign Minister, all have visited Tehran in quick succession. Meanwhile, the President of Austria is also set to travel to Tehran next month, all accompanied by large delegations of investors and industry leaders. Mehrdad Emadi, an economist based in London, states: "I believe these weeks until the end of October are very valuable for laying the groundwork for negotiations. Given that the new budget is being prepared, all these contracts we see, with delegations coming and going, are aimed at ensuring that foreign companies can align with these contracts as soon as possible, at least to start conditions for agreements. Therefore, time is limited. It is true that this package will not be finalized, but for Western companies, especially in Europe, there is concern that if we cannot do this now, our neighboring country or two countries further away might secure those contracts. Hence, a competition has arisen for everyone to send their teams to Tehran for discussions before others do." Although the main focus of the traffic of high-ranking officials from major European powers is economic and commercial, its political aspect is also significant. Hossein Alizadeh, a former Iranian diplomat residing in Helsinki, states: "The overall meaning of these trips, whether before or after the nuclear agreement, compared to the eight years of Ahmadinejad's government, during which he did not even have a bilateral foreign trip to the European Union... is that Iran was in a state of absolute isolation at that time, and now these trips are evidence of Iran's exit from the severe isolation it was under." Paolo Gentiloni, the Italian Foreign Minister, along with his delegation, who met with President Hassan Rouhani, Akbar Hashemi Rafsanjani, the head of the Expediency Discernment Council, and Iranian economic officials, states that Italy is striving to become Iran's primary trading partner. This effort is not hidden from other European powers either. It is not enough to see that this is the best oil contract and then we choose. No. How does this best oil contract sit alongside the best gas contract, how does it sit alongside our best shipbuilding contract? We must look at these in the context of their complementarity. This is what South Korea did in the 1970s and was very successful. Mehrdad Emadi, the economist based in Britain, adds: "It would be a very costly option for us to get excited. The reality is that macroeconomic managers now need to look carefully at which countries and companies offer the best conditions to Iran. This is no longer three, five, or seven years ago when we had many restrictions. These contracts may affect the economy's progress and growth rate for many years, perhaps 10 to 15 years. Therefore, it is very important for the government to have a strategic vision here to consider all these delegations together and see which of them works better in overall macroeconomic management. It is not enough to see that this is the best oil contract and then we choose. No. How does this best oil contract sit alongside the best gas contract, how does it sit alongside our best shipbuilding contract? We must look at these in the context of their complementarity. This is what South Korea did in the 1970s and was very successful." However, these visits have also been well received in Tehran's morning newspapers. Although some conservative newspapers criticized the world's desire to resume warm relations with Iran. "The issue is not merely Iran's exit from isolation. Rather, I consider these trips from Tehran's perspective as strategic visits. This means we have seen Mr. Zarif invite many officials to visit Tehran. Hossein Alizadeh, a former Iranian diplomat, states: "The issue is not merely Iran's exit from isolation. Rather, I consider these trips from Tehran's perspective as strategic visits. This means we have seen Mr. Zarif invite many officials to visit Tehran. Of course, other countries also have the same desire reciprocally. There are two points in these trips. One, that Iran is exiting isolation, and two, that Tehran has a strategic view of these trips, which almost eliminates the issue of the return of sanctions, and third, that certainly the revival of Iran's ailing economy will also result from these meetings and business trips." The Italian Foreign Minister has officially invited Mr. Hassan Rouhani for an official visit to Rome. This is while the invitation from the French President for Mr. Rouhani to visit Paris is also on the Iranian President's desk.