Oil, Gas, Petrochem Sectors Pivotal in Post-Sanctions Iran

Oil, Gas, Petrochem Sectors Pivotal in Post-Sanctions IranOil, Gas, Petrochem Sectors Pivotal in Post-Sanctions Iran

Oil, gas and petrochemical sectors will have the most attractive environments for foreign investment after the removal of sanctions, head of the Tehran Chamber of Commerce, Industries, Mines and Agriculture said.

"The removal of sanctions will help revitalize the country's business environment and bolster ties with international markets in the short run," Masoud Khansari added, placing great importance on the oil, gas and petrochemical industries, Tasnim News Agency reported.

"Lifting the sanctions and implementing the Joint Comprehensive Plan of Action are a major step in Iran's history," Khansari told Tasnim News Agency.

However, he warned that the country's economic woes in recent years are not bound to disappear merely through the lifting of oil and trade embargoes against the Islamic Republic.

Splashing billions of dollars in annual cash and fuel subsidies, having two foreign exchange rates, the size of the government and its manipulative role in the economy are "fundamental issues" that should be addressed regardless of lifting the sanctions, he said.

Under a five-year plan started in December 2010, and promoted as an “economic revolution” by former president Mahmoud Ahmadinejad, Iran began slashing three-decades-old subsidies on sensitive energy and food items, replacing them with cash payments. Iran and six world powers reached a historic deal on July 14 in Vienna that would limit the Persian Gulf country’s nuclear program in return for removing sanctions on its energy and financial industries.

Khansari also said there is little excitement about the rush of foreign companies to the Iranian market.

"We've had a lot of foreign brands coming to Iran in the past … But we should attract them for production and investment," he said. Over the past few months, Tehran has hosted top trade delegations from Russia, Spain, France, Germany, South Korea and Japan, preparing multibillion-dollar agreements in economic and energy sectors for the post-sanctions period.