Iran's Reaction to Europe's 18 Million Euro Aid: 'A Positive but Weak Action'

The head of the Iranian Parliament's National Security and Foreign Policy Commission described the European Union's 18 million euro aid to Iran as 'a positive but weak action.' The Foreign Ministry spokesman also stated that this aid 'has nothing to do with the economic package proposed by Europe, which is supposed to be provided within the framework of the JCPOA to counter U.S. sanctions against Iran.' According to IRNA, Bahram Qasemi, the spokesman for Iran's Foreign Ministry, said on Friday, September 2, that this budget 'relates to Iran's cooperation with the European Union's institution and has no connection to the economic package proposed by Europe that is intended to be provided within the JCPOA framework to counter U.S. sanctions against Iran.' Qasemi stated that this budget pertains to the EU's support for projects anticipated in a previous agreement between the parties on April 16, 2016. He noted that following the signing of this cooperation agreement, collaborations in various fields, including agriculture, migration, industry, and higher education, have entered the implementation phase. On Thursday, the European Commission approved its first package for 'supporting sustainable economic and social development' in Iran 'with an emphasis on the private sector.' The financial value of this package is reported to be 18 million euros, which includes 8 million euros in aid to the private sector in Iran. This package is part of a larger 50 million euro package aimed at 'supporting Iran in addressing key economic and social challenges.' In a statement quoted from Federica Mogherini, the EU's foreign policy chief, it is mentioned: 'We are committed to maintaining [cooperation with Iran], and this new package will help expand our economic relations in areas that will directly benefit our citizens.' However, the head of the National Security and Foreign Policy Commission of the Iranian Parliament described the allocation of this budget as 'a positive but weak action' and called for incentives for European companies to cooperate with Iran. He also demanded that the EU impose penalties on companies that do not cooperate with Iran. Heshmatollah Falahatpisheh called for the EU to 'consider penalties and incentives for European companies within the framework of the Blocking Statute so that there is a distinction between companies that cooperate with Iran and those that cut off their cooperation with Iran.' Previously, both the Foreign Minister and the Oil Minister of Iran expressed dissatisfaction with the proposed European package to maintain the JCPOA without detailing specifics. According to reports from some media in Iran, a guarantee for the purchase of one million barrels of Iranian oil by the EU is among the demands of Iranian officials. Guaranteeing oil sales is also one of the main conditions set by Ayatollah Khamenei, the leader of the Islamic Republic, for remaining in the JCPOA. However, despite negotiations between Iran and Europe to continue the JCPOA and the emphasis of European officials on maintaining it, several European companies have exited the Iranian market. French oil company Total, British Airways, KLM, and Air France, as well as automotive manufacturers Daimler, Renault, Mazda, Hyundai, and PSA, are among the companies that have exited the Iranian market in just the past two months. Meanwhile, Heiko Maas, the German Foreign Minister, stated in an article on Wednesday, August 31, that if the EU wants to save the JCPOA, it needs 'a payment system independent of the U.S.' The following day, however, 16 Republican senators urged the U.S. Treasury Department to take 'all necessary actions' to expel Iran from the SWIFT financial system.