Iran's Minister of Roads: France Should Not Miss $80 Billion Contracts

Iran's Minister of Roads and Urban Development has stated that contracts worth $80 billion in the transportation sector, one of the most important being the modernization of the country's air fleet, are under review. He warned France that if it does not change its stance regarding nuclear negotiations with Iran, it will be deprived of these contracts. According to Reuters, Abbas Ahmad Akhoundi said on Tuesday, June 16, during a conference at the International Diplomatic Academy in Paris: "France does not have a clear strategy regarding Iran, and this is regrettable. Sooner or later, the nuclear crisis will be resolved, and France must clarify its position now." Mr. Akhoundi discussed with executives from the French company Thales and the European aircraft manufacturer Airbus on the sidelines of the Paris Air Show. He added that after the lifting of sanctions, the modernization of Iran's air fleet will be one of the main priorities, as most of Iran's passenger aircraft will need to be decommissioned within the next ten years. Mr. Akhoundi stated: "We are considering purchasing 300 to 400 aircraft for the modernization of our air fleet, which will be worth at least $20 billion." France is one of the six global powers negotiating with Iran and has generally taken the strictest position regarding Iran's commitments. All parties involved in these negotiations are striving to reach a final agreement by the end of June. In that case, some of the international sanctions against Iran will be lifted, paving the way for large commercial transactions and investments in various sectors such as Iran's oil and transportation industries. In recent months, Iran has sought to attract the attention of major international companies for investment, especially in the energy sector. Reuters adds that the Iranian ambassador in Paris said last week that Iran has already begun negotiations with American companies, including Boeing, Airbus's main competitor. Abbas Akhoundi declined to comment on this issue but added: "Contrary to some dogmatic views in the West," if contracts are signed in the future, Iran does not intend to take retaliatory actions. He added: "There will be international competition for the awarding of these contracts, but we will never allow the West to economically dominate us again." Mr. Akhoundi stated that the potential investment volume in the transportation sector includes $25 billion for railway modernization and about $30 billion for road and highway improvements. A senior French government official also stated that they are "not worried" about losing contracts and investments in Iran, and when the time comes, French companies will certainly be ready.