New Chapter in Iran-Germany Cooperation
Immediately after Iran’s recent nuclear deal with six world powers a high-ranking political, commercial and economic delegation from Germany visited Iran. The visit, which was led by German minister of economy Sigmar Gabriel, was an indication of the Germans’ willingness for presence in Iran. The development came more than a decade of breakup between Iran and Europe due to international sanctions. The Germans travelled to Tehran and announced their readiness for trade, economic and cultural cooperation with the Islamic Republic.
The 60-member German delegation travelled to Tehran at the invitation of Zangeneh. During their 3-day visit which started on July 19, the Germans were received by President Hassan Rouhani, Minister of Petroleum Bijan Zangeneh, Minister of Industry, Mine and Trade Mohammad-Reza Nematzadeh, Minister of Energy Hamid Chitchian, Governor of Central Bank of Iran Valiollah Seif, members of Iran Chamber of Commerce as well as senior petroleum industry managers.
The main German delegates included head of German Chamber of Commerce and managers from Siemens, Mercedes and Volkswagen.
After his arrival in Iran, Gabriel was received as a guest of honor by Zangeneh. During the several-hour meeting, the two sides spoke behind closed doors and then they discussed opportunities for cooperation in a conference.
Germany Constructive Role
Addressing Iran-Germany economic cooperation conference, Zangeneh said Iran feels committed to supplying energy to the world. He referred to Germany’s constructive role in Iran’s nuclear talks with world powers, saying Germany is a reliable partner for Iran. He expressed hope that the relations between the two countries would be revived after a long period of stagnation.
Referring to the planned unveiling of Iran Petroleum Contract (IPC) in September, Zangeneh said: “There are valuable grounds for cooperation with the Germans in various sectors: refining, gas storage, petrochemical, auto manufacturing and renewables.”
He said that Iran-Germany Business Council is expected to hold its fifth meeting soon.
“Cooperation between the two countries is not limited to big companies, but small and medium-sized companies in Germany and Iran will be present in the market of the two countries,” he added.
Zangeneh said Iran has changed since 15 years ago, adding: “German companies should take into account this point for their presence because we have gained good experience during years of sanctions. Therefore, it would be better for German companies to register a company in Iran for contractual work and choose Iranian partners.”
The minister said Iran’s gas production is expected to reach 1 bcm/d and its oil production would reach 4.7 mb/d. He said that Iran managed to enhance its gas production by 120 mcm/d last calendar year, despite tough sanctions.
Noting that Iran has qualified human resources who have graduated from universities, Zangeneh said German companies should be able to use them.
He stressed the need for the resolution of banking and insurance problems.
The minister also said that low-price petrochemical feedstock makes Iran’s petrochemical industry attractive to foreign companies.
Zangeneh said Iran-Germany Business
Council plans to hold a meeting after a 14-year hiatus.
Iran’s Industrial Renovation
Gabriel said his landmark visit to Iran would open a new chapter in cooperation between Iran and Germany in different economic, commercial and cultural sectors.
“Auto manufacturing, petrochemical production, renewable energies, energy efficiency and the environment are among sectors in which German companies are ready to cooperate with Iran,” he said.
Gabriel said Iran and Germany can resume economic cooperation, adding that more than 2,000 companies are members of Iran-
Germany Joint Chamber of Commerce. He said this high number of companies indicates the willingness of both parties for broadening economic interactions.
He said German companies will move to modernize Iran’s industries after sanctions are lifted on Iran.
“Not only are the Germans ready to sell products to Iran, but also they are looking for sustainable and lasting economic cooperation which could lie within the framework of selling technical knowhow and technology and training manpower,” he added.
Gabriel said the next step in Iran-Germany economic interaction would be next spring when the sanctions would have been fully lifted and foreign companies would have faced no restrictions for activity in Iran.
Readiness for Investment in Iran
Eric Schweitzer, President of the Association of Germany’s Chambers of Commerce and Industry, said in the conference that German companies are ready to invest in Iran’s oil and gas industry.
“Tehran and Berlin can resume cooperation through Iran-Germany Chamber of Commerce after a long hiatus and return to good old days,” he said.
Schweitzer referred to the four-decade history of establishment of Iran-Germany Chamber of Commerce, saying: “Economic and industrial cooperation between Iran and Germany started in 1857 and many German companies came to Iran in early 20th century.”
He said Iran is among Germany’s major non-European partners, although sanctions have reduced level of cooperation between the two sides.
Pointing to the fact that Iran holds the fourth largest crude oil and the first largest natural gas reserves in the world, Schweitzer said: “Under the aegis of cooperation between Iran and German companies, will we try to transform these potential reserves into practical opportunities.”
He said the removal of sanctions would create good platform for cooperation in energy, industry and environment sectors, adding that cooperation between Iranian and German economic and industrial activists is hoped to rise through Iran-Germany Chamber of Commerce.
He said Germany enjoys a specific economic position in Europe and in the world, adding that all German companies can find a way to cooperate with Iran through the chamber of commerce.
Schweitzer said the lifting of banking sanctions would let Iran-Germany Commercial Bank resume work in Hamburg.
Pointing to the presence of motivated and talented youths in Iran, he said Iran-Germany Chamber of Commerce can cooperate in technical training of youths.
Iran Private Sector Willing for Cooperation
Pedram Soltani, deputy head of Iran chambers of commerce, said the presence of Siemens, Mercedes and Volkswagen companies in the German delegation shows the significant position of Iran for these companies.
He added that petrochemical industries, power plant construction and telecom facilities are among potentialities of investment in Iran.
Soltani said communications between small and medium-sized industries in the two countries and exchange of commercial, industrial and specialized delegations would largely help Iran and Germany boost their ties. He said North-South Corridor, access to high seas and being located in the heart of a 300-million-strong region are among outstanding advantages of Iran.
He also said that governments are tasked with preparing the necessary grounds, guaranteeing economic security and the infrastructure, while the private sector is expected to explore economic opportunities and make investments.
“Iran’s Chamber of Commerce, Industries, Mines and Agriculture is ready to have close cooperation with Germany’s Chambers of Commerce and Industry to pave the required ground for the private sectors in both countries to find commercial and investment partners,” said Soltani.