The European Commission’s €18 million support package for Iran is separate from the economic proposal the EU is expected to offer to help save the 2015 nuclear deal after the US exit, says a senior official.
“The money is related to Iran’s cooperation with the European Union and has nothing to do with the economic proposal Europe is supposed to make within the framework of the JCPOA to help ease US sanctions,” Foreign Ministry Spokesman Bahram Qasemi told reporters in comments published on Friday, in reference to the nuclear accord known as the Joint Comprehensive Plan of Action, IRNA reported.
In a press release issued on August 23, the European Commission announced that it has adopted a package of €18 million for projects in support of sustainable economic and social development in Iran, including €8 million assistance to the private sector.
First Tranche
It said the projects are the first of a wider package of €50 million for the Islamic Republic, aiming to support the country to address key economic and social challenges.
“They are part of the renewed cooperation and engagement between the European Union and Iran following the conclusion of the Joint Comprehensive Plan of Action,” the commission noted.
EU-Iran Cooperation
Qasemi said Foreign Minister Mohammad Javad Zarif and EU foreign policy chief Federica Mogherini had signed a joint statement on April 16, 2016 regarding Tehran’s cooperation with the European Commission as the executive arm of the European Union.
Following the exchange of high-level delegations, this cooperation has entered a new stage in various areas, the Foreign Ministry spokesman said without elaboration.
According to the 2016 statement, the agreed areas of cooperation include political consultations, human rights, economic cooperation, trade and investment cooperation, agriculture, transport, energy and climate change, civil nuclear cooperation, environment, civil protection, science, research and innovation, education, culture, drugs, immigration, regional issues and humanitarian cooperation.
Crucial Role
Qasemi said the European Commission has played a “significant” role in strengthening relations between Iran and the EU.
“Support for small and medium-sized businesses and provision of technical assistance to the Trade Promotion Organization will take place within the framework of the defined projects. The Iranian side is due to cooperate with the International Trade Center, EU member states’ agencies and other organizations for the implementation of the projects,” he added.
Direct Benefit
On the €18 million support package, Mogherini said, “Since the renewal of the EU-Iran relations as a result of the nuclear deal, cooperation has developed in many sectors. We are committed to sustain it and this new package will widen economic and sectoral relations in areas that are of direct benefit to our citizens,” according to the European Commission’s press release.
European Commissioner for International Cooperation and Development Neven Mimica said, “With these measures, the EU demonstrates its support to the Iranian people and their peaceful and sustainable development. It encourages stronger involvement of all actors in Iran and in particular the private sector.”
Private Sector
Activities supporting the private sector will include support to high-potential Iranian small and medium-sized enterprises, the development of selected value chains and technical assistance to Iran’s Trade Promotion Organization.
As part of the €18 million, the commission will provide technical support in the area of environmental challenges for €8 million and support drug rehabilitation to the tune of €2 million.
