Iran-EU Trade Value Doubles

Iran’s trade with the European Union topped €9.9 billion in the first half of 2017, registering a 95% rise compared with last year's corresponding period.

Exports to EU’s 28 nations exceeded $5 billion, indicating a 227% rise year-on-year, Eurostat data shared with Financial Tribune show.

Eurostat is a directorate general of the European Commission located in Luxembourg. Its main responsibilities are to provide statistical information to institutions of the European Union and to promote the harmonization of statistical methods across its member states and candidates for accession.

Petroleum, petroleum products and related materials accounted for a majority of Iran’s exports to the EU during the period, with a total value of €4.4 billion.

Iran has been ramping up exports, particularly hydrocarbons, over the past year to regain a market share it lost during the years it was under trade sanctions imposed by the United Nations Security Council over Tehran's nuclear energy program.

Efforts have been underway to restore traditional markets such as Greece and Italy, alongside a push to win new customers ever since the sanctions were lifted in January last year, as part of a landmark nuclear deal Tehran clinched with world powers in 2015.

Italy was the biggest importer from Iran in H1 among all the European states, as it bought €1.54 billion worth of Iranian goods during the period.

France, Greece and Spain followed with €1.26 billion, €638.5 million and €609.4 million worth of imports respectively.

Iran imported €4.94 billion worth of commodities from the European Union during the same period, recording a %38.5 YOY rise.

The imports mainly included manufactured goods and chemicals.

Germany topped the list of exporters to Iran, shipping €1.39 billion worth of goods to the Islamic Republic. Italy came second with €849.6 million and France followed with €763.7 million.

According to the European Commission, the EU exported over €8.2 billion worth of goods to Iran in 2016, up 27.8% YOY. The exports mainly included machinery and transport equipment (€3.8 billion, 46.2%), chemicals (€1.8 billion, 22.2%) and manufactured goods (€0.7 billion, 8.8%).

The European bloc imported about €5.5 billion worth of goods from Iran in 2016, up 344.8% YOY. The imports were mainly energy-related, including mineral fuels (€4.2 billion), manufactured goods (€0.4 billion) and food (€0.3 billion).

Iran has become a popular destination for EU businesses, since the nuclear deal and the ensuing lifting of nuclear sanctions against Iran were lifted in January 2016.

French automaker Renault recently signed a contract to set up a €660 million joint venture with Iranian firms for increasing car production inside the country by 75%. The European firm will work with Industrial Development and Renovation Organization of Iran and local trader Parto Negin Naseh Company to manufacture 150,000 vehicles per year.

French energy giant Total, together with Chinese state-owned China National Petroleum Corp, signed a $5 billion deal with Tehran last month to develop Phase 11 of Iran’s South Pars, the world’s largest gas field.

Switzerland’s MECI Group International signed an agreement with Iran’s government to build a €750-million wind farm in northern Iran.

PSA Peugeot Citroen and long-time partner Iran Khodro signed a joint venture contract to invest €400 million to upgrade their auto plant. The French company also signed an agreement with local manufacturer SAIPA to invest €300 million in five years in manufacturing and R&D.

ATR sealed a deal with Iran Air worth $536 million for 20 ATR turboprop aircraft.

Airbus Group SE signed a contract with Iran for 100 jetliners worth about $19 billion at list prices.

Alstom SA, the Industrial Development & Renovation Organization of Iran and Iranian Rail Industries Development reached a preliminary agreement to build train and metro cars.

Siemens AG signed a contract worth at least €1.5 billion to build rail coaches and upgrade tracks.