Page 22 - IRANRptSep18

investing in Iran
EU provides €18mn in aid to Iran to offset the impact of US sanctions
Since the US announced its new sanctions campaign against the Iranian economy and any foreign companies that remain in business with Iran, the trend has been for the big European companies to pull out of the Islamic Republic but for small and medium sized players to either announce they are staying or to arrive in the country with the intention of forming trade or investment relationships. The former can typically be easily sanctioned given their clear links to the US financial system or even to US assets, while the latter may prove elusive to US sanctions officials given their lack of such links.
Air France and British Airways are among the latest big companies t o announce they are ending their Iran operations . Among smaller players to have committed to staying in Iran recently is Spanish oil and gas equipment and services firm Esproenko International.
Red Arrow Investment Group representative and business consultant David Whitefoot signed the memorandum with Farda Roshan’s Farzane Salimiyan on August 25 in Tehran to expand cooperation and investment over the next 12-month period as part of an initial expansion into the Iranian investment market.
The female-led Iranian investment firm, which invests in manufacturers, said the deal would enable it to build on previous investment in Iran’s business sector.
Salimiyan reportedly said the partnership was “exceptionally good news”, adding: “[That’s the case given] the introduction of new US sanctions applied to Iran which are unfair as Iran has adhered to the terms and conditions of the JCPOA [nuclear deal] agreement.”
Whitefoot was cited as saying Iran has a highly educated and dedicated workforce and that he was confident that with full cooperation from banks and financial institutions a unique partnership could be created by the two companies.
The European Union on August 23 decided to provide €18mn in aid to Iran to offset the impact of US sanctions. “This is a package that will help both sides have communication with each other and it doesn’t have anything to do with the nuclear agreement and other hype,” Iranian Foreign Minister Mohammad Javad Zarif said, according to ISNA.
The recently-appointed top US envoy on Iran, Brian Hook, criticised the EU aid to Tehran on August 24. It sent “the wrong message at the wrong time”, he said. “Foreign aid from European taxpayers perpetuates the regime’s ability to neglect the needs of its people and stifles meaningful policy changes,” Hook said in a statement.
The European funding is part of a wider package of €50mn earmarked in the EU budget for Iran. The aid will be split between Iran’s private sector, environmental projects and fighting harm caused by drugs. About $9.26mn will support Iranian small and medium sized enterprises as well as Iran’s Trade Promotion Organization. Another $9.26mn will support environmental efforts and $2.3mn will counter the effects of drug use.
22 IRAN Country Report September 2018 www.intellinews.com