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the Iranians of $6bn with another $5bn to be spent on constructing a liquefied natural gas export facility on the Iranian mainland. But given the US pressure, progressing the offer to acceptance may not be feasible for New Delhi.
In October 2017, former Indian ambassador to Tehran Saurabh Kumar said that “we hope that the two sides would conclude a win-win contract, beneficial for both. Farzad B is an important element of [our energy cooperation]. We would, therefore, like to see the contract concluded”.
ONGC Videsh and Indian Oil each own a 40% interest in the Farsi block that holds the Farzad-B field, while Oil India retains 20%.
9.2.2 Automotive corporate news
Production of the new Peugeot 207 will begin at an Iranian-backed plant in Azerbaijan's Neftchala Industrial Zone in the summer, AzerMash board chairman Emin Akhundov was cited as saying by Trend on May 2.
"The price of Peugeot 207 cars, equipped with an automatic transmission will be 17,500 manats [$10,315]. We are currently negotiating with the French side and are discussing some details, and we plan to start production in early July," Akhundov reportedly said.
Assembly of the Peugeot 407 began at Azermash’s car plant in Neftchala in February, he added.
Production of cars in the Neftchala Industrial Zone was established by AzerMash and Iranian automaker Iran Khodro Industrial Group (IKCO). Also, the $14mn Azerbaijani-Iranian Khazar plant opened in March last year. The Iranians hold 25% of that project.
Currently, cars produced at Khazar are sold on the local market, but there are export plans for CIS countries.
In 2018, more than 1,000 cars were produced at Khazar. The plan is to produce three times that number in 2019.
Trend referred to Market Analysis Azerbaijan 2019 data as showing the production value of the country’s automotive industry would reach $20mn this year and $70mn by 2022.
A possible joint venture between Russian automotive giant LADA and third largest Iranian carmaker Pars Khodro has been cancelled, according Asbe Bokhar automotive magazine wrote on April 30. Following last year’s US reimposition of sanctions against Iran and foreign companies who choose to stay in business with the country, investment-starved Iranian carmakers looked to tie up with firms that have no presence on the American market and thus less risk of being caught out by Washington’s hardball policies.
The worsening economic situation in Iran caused by the US sanctions regime is believed to be the reason behind the Russian firm deciding to pull out of talks for the JV. Iranians’ spending power has been drastically curtailed amid the recession-hit economy bearing the strain of a collapsed Iranian rial. Companies including France’s Renault and PSA Group’s Peugeot have pulled out of Iran.
China’s auto market players, unlike their French counterparts have no plans for the US market, but they have also found it increasingly challenging to continue with their Iranian operations.
Firms like Chery , which invested in a multimillion-dollar factory in the Bam Special Economic Zone—a tax-free industrial zone in the south of Iran—have struggled to repatriate revenue from Iran due to closures that keep hitting Iranian bank accounts in China.
48 IRAN Country Report July 2019 www.intellinews.com