These Billions in Deals Can Help Iran Counter Trump

It hasn’t been the investment bonanza Iran hoped for, but the billions of dollars unlocked by its 2015 nuclear deal with world powers might help cushion the impact of any future US assault on the accord.

The mood has shifted since this time last year, when following the January 2016 lifting of sanctions, trade delegations crammed Tehran’s hotels as investor interest peaked. Now, with US President Donald Trump adding new sanctions and expressing frustration that his administration continues to find the Islamic Republic in compliance with the accord, the talk is of whether it can survive. Of critical importance will be the support flowing from other parties–China, Russia, France, Germany and the UK–whose companies have put up much of the money invested in Iran so far, reads a Bloomberg article. The full text follows:

“There is pressure coming from the business establishment in these countries to maintain access to the Iranian market,” said Sanam Vakil, an associate fellow at Chatham House’s Middle East & North Africa Program in London. At the same time, most of their governments “recognize that marginalizing and isolating Iran is not in their interest,” she said.

Here are some of the agreements–final or preliminary–reached in the last 18 months.

 Energy and Power

Total SA along with China National Petroleum Corp. signed a 20-year agreement valued at $5 billion to develop Phase 11 of the South Pars offshore gas field.  

South Korea’s SK E&C signed a €1.6-billion ($1.8 billion) preliminary agreement with the National Iranian Oil Engineering and Construction Company to upgrade the Tabriz refinery in northwest Iran.

Turkey’s Unit International signed a $4.2 billion deal with Iran’s Energy Ministry to build seven natural gas plants throughout Iran.

China’s Sinopec reached a $1.2-billion agreement with the National Iranian Oil Refining and Distribution Company on development of Phase 1 of Abadan refinery in the southwest province of Khuzestan.

Royal Dutch Shell Plc signed an agreement to assess three of Iran’s largest oil and gas fields, including the Azadegan and Yadavaran oilfields near the Iraqi border.

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

 Transportation

Renault SA signed a €660-million pact with the Industrial Development & Renovation Organization of Iran and Parto Negin Naseh Company, an importer of Renault products, to set up a joint venture and boost car manufacturing in Iran.

Volkswagen AG reached an agreement with Iran’s Mammut Khodro to sell two car models, marking the company’s return to the Iranian market after more than a decade.

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.

Boeing and Iran’s Aseman Airlines signed a $3 billion agreement for 30 737 Max jets; the US company also struck a $16.6 billion deal with national carrier Iran Air for 80 aircraft.

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.

Russia’s Transmashholding signed a $3 billion with IDRO to jointly produce rail carriages.

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

 Industries and Telecommunications

China’s CREC reached an agreement valued at $2 billion with Iran Aluminum Company, known as Iralco, to start operations at a unit in Markazi Province, south of Tehran.

MTN Group Ltd. agreed to buy a 49% stake in an Iranian state-owned Internet provider for 540 million rand ($40 million). It’s also seeking to invest $750 million in an Iranian fiber-optic project.