Japan Provides $10 Billion Credit Line to Iran for Joint Projects

On Friday, February 5, the economy ministers of Iran and Japan signed a memorandum of understanding for cooperation, under which two Japanese financial institutions will provide financial facilities for the implementation of joint economic projects in Iran, up to $10 billion. According to the state news agency IRNA, these facilities will be provided by the Japan International Cooperation Bank (JBIC) and the Japan Export-Import Bank (NEXI), and this cooperation memorandum has also been signed by the heads of these two financial institutions. Based on this cooperation memorandum, a trade and investment working group between the Japanese Ministry of Economy and the Iranian Ministry of Economy will be established to identify eligible projects for utilizing these financial facilities. Meanwhile, according to German news agency reports, Japanese Foreign Minister Fumio Kishida stated that Iran, with its large economy, is an important trading partner for Japan. He emphasized that Iran has great potential for the presence of Japanese companies, referring to its 78 million market and investment opportunities in the oil and gas industry. Additionally, Iranian Minister of Economy Ali Tayebnia expressed Tehran's interest in having more Japanese investors participate in project implementation in Iran during his visit to the Japan Energy Economics Institute. Iranian media reported that representatives from 60 prominent Japanese companies, including those in the automotive, electronics, oil, and banking sectors, met with Mr. Tayebnia. The Japanese government lifted sanctions and restrictions against Tehran on January 22, following the implementation of the Iran nuclear agreement. With the lifting of sanctions, Japanese insurers will be able to insure transactions with Iran, and companies from that country can participate in new oil and gas projects in Iran. Meanwhile, Suzuki has announced that it is assessing the conditions for returning to the Iranian market. The two sides had taken measures to enhance their relations before the implementation of the nuclear agreement on January 15. Last summer, a month after the nuclear agreement in Vienna, an economic delegation from Japan visited Iran, and the Japanese Foreign Minister also traveled to Tehran shortly thereafter. Due to international sanctions and unilateral sanctions from the U.S. and the West, Japan, one of Iran's main oil customers, reduced its energy imports from Iran. Over the past years, the cessation of cooperation from some refineries or insurance companies was among the other restrictions that Tokyo imposed on Tehran. After the Vienna nuclear agreement, Iran has also signed cooperation memorandums with several European and Asian countries. Among these, the recent visit of Iranian President Hassan Rouhani to Italy and France resulted in the signing of several economic memorandums between Tehran and Paris and Tehran and Rome, including a memorandum for the purchase of 118 Airbus aircraft from France.