Page 4 - AsianOil Week 07 2023

AsianOil COMMENTARY AsianOil

Iran’s president pays ‘Look to

the East’ visit to Beijing

Iran is reaching out to China for oil and gas sector financing.

INDIA EBRAHIM Raisi is paying his first visit as Iran’s affairs as well as the country's top nuclear nego-
president to Beijing, with the start of the occa- tiator and the central bank governor.
WHAT: sion on February 14 receiving all the pomp and As the visit got under way, Iranian state-run
Ebrahim Raisi is paying ceremony of an official state visit, Hamshahri IRNA news agency reported that 20 memoranda
his first visit as Iran’s newspaper has reported. of understanding (MoUs) were signed by the two
president to Beijing. The three-day visit follows the December visit sides. They covered fields including trade, agri-
to Gulf Cooperation Council (GCC) Arab states culture, information technology, health care, the
WHY: by Chinese President Xi Jinping that caused environment and tourism.
Tehran is reaching out much upset in Tehran. Xi signed significant Officials were also expecting to ink a key
to China after Beijing deals with Iran’s Gulf arch-rival Saudi Arabia and $12bn transport agreement that would allow
caused upset by reaching supported some claims made by GCC member Chinese investment in a high-speed rail link pro-
significant deals with states in relation to the sovereignty of some Gulf ject connecting the northeastern Iranian city of
rival Saudi Arabia in islands that are part of present-day Iran. Many Mashhad with Tehran. Major Chinese projects
December. Iranians frowned on the development as Iran’s in the development of Iran's strategic southeast
Arab neighbours are usually seen as on better Makran coast were thought to be on the agenda
WHAT NEXT: terms with the US and other Western countries, as well.
Iran is seeking Chinese while Iran relies on China as an ally that, for Under Iran’s “Look to the East” policy, which
funding for its petroleum instance, imports Iranian oil despite Washing- advocates building up links with the Russian,
sector in return for ton’s sanctions, albeit at generous discounts. Chinese and other Eastern markets in the face of
oil, oil product and In Beijing, Raisi is heading a high-level dele- Western sanctions that exclude other trade and
petrochemical supplies. gation comprising of the ministers of oil, finance, investment, Tehran in 2021 signed a 25-year
transport, agriculture, industry and foreign strategic cooperation deal with China. However,

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