While the United States seems stuck on increasingly using sanctions against many nations in the world, particularly the Russian Federation, Somalia, Syria, Yemen, North Korea, Libya and Iran, the imposition of sanctions has provided business opportunities that would not otherwise have existed. This is particularly the case for Russia and Iran who have recently inked a multi-billion dollar deal that may otherwise have gone to an American company.
According to the Tehran Times, the voice of Iran, Iran has signed a deal with Russia to jointly manufacture passenger and cargo train cars worth €2.5 billion. The deal was signed by Iran’s Industrial Development and Renovation Organization (IDRO) and Russia’s Transmashholding, Russia’s largest manufacturer of rail locomotives and other equipment. The joint company that the two parties are forming will be owned 80 percent by Russia and 20 percent by Iran with all funding coming from Russia. Given Iran’s geographical position along China’s Belt and Road Initiative, it is quite logical that Iran would want to develop its rail industry to play a role in trade between the Far East and Europe.
Here is a screen capture showing the signing of the deal:
– Promotion of local and foreign investments with minority holdings owned by IDRO (less than 50% of the shares) with particular emphasis on new, Hi-tech and export-oriented industries.
– Restructuring the existing industries through participation of reputable foreign companies in order to transfer new technologies and to enhance the non-oil exports of Iran.
– Development of general contracting activities with the participation of the Iranian private sector and credible foreign companies.
– Rendering consultancy and support services to foreign investors.
– Privatization of the existing subsidiaries.
As you will see in this posting, there are many opportunities for investment in Iran’s economy.
IDRO has partnered up with South Korean and Japanese companies to develop one of the world’s largest natural gas resources as shown here:
As well and as an aside, since Western sanctions were loosened, France’s Total has signed a 20 year, two-phase deal with the first phase being worth $2 billion to drill 30 wells and install two wellhead platforms in the South Pars field (Phase 11), partnering with China’s National Petroleum Company (CNPC) and Iran’s Petropars as shown here:
The absence of American companies has led to significant investments in Iran’s key natural resource by CNPC since 2004 with the focus on the NIS oifield, the North Azadegan project, the Zagreb Basin in southern Iran and the aforementioned South Pars field as you can see here:
Let’s go back to IDRO for a moment. IDRO is also assisting in the development of shipbuilding, particularly as it relates to oil and gas production:
IDRO is also working on a significant number of high-tech projects as shown here:
As you can see from this posting, there are a significant number of economic opportunities in Iran that are being blocked by Washington’s sanctions. The imposition of increasing sanctions has forced Iran to partner with other nations, most particularly China and Russia. Given that Iran has the world’s second-largest proved reserves of natural gas as shown here:
…and fourth largest proved reserves of crude oil as shown here:
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