“Other countries profit from the sanctions against Iran”

In line with the current Five-Year-Plan of his government, Iran is planning to develop its industry and economy, said the Iranian Vice Minster for Economy and Finance. In order to realize this plan, the Iranian government intends to privatize up to 80 percent of its share in public enterprises. The abolition of subsidies of the petroleum industry is also planned in order to reduce the waste of energy within the country, as well as the privatization of the mineral oil and petrochemical industry. In addition, Tehran wants to establish chemical cities as well as to invest in the development of its natural gas resources and in renewable energies.

In order to attract investors, his government has improved the general conditions for foreign investment such as tax and custom’s reductions. Iran particularly hopes for the know-how of German enterprises. “Germany and Iran can look back to a long history of common trade,” said the vice-minister. However, the bilateral trade is hampered by the sanctions imposed by EU and UN.   

“You are suggesting that Iran is a normal goal for investment which is not true,” said Prof. Dr. Eberhard Sandschneider, director of DGAP’s Research Institute, who moderated the event. “The sanctions have political reasons which can only be solved by a bilateral dialogue.”

The sanctions had not harmed his country, the Iranian Vice Minister stressed in return. Instead, the trade volume has been transferred to the East. The current trade exchange volume of Iran with other countries is about  140 bio dollar, the share of Europe is 33 percent. “If the west imposes sanctions against Iran, other countries profit therefrom,” Farzin said. According to him, his country  currently has trade relations with 159 countries. “If Germany does not participate, we will trade with China.” The  sanctions are not the right way and had missed the target.

However, it it the interest of Iran to improve the economic cooperation with the west. Due to the sanctions, Iran has to pay higher prices and problems with the transfer of money. In his view, also the Iranian president has confirmed that he welcomes the negotiations on the nuclear program. “In you deliver fuel cells with 20percent of enrichment to us, we will stop our own nuclear enrichment. This shows that we welcome the dialogue.”

His country plans to become the largest economic power in the region within the next 13 years, Farzin continued. Moreoever, Iran has a young population which needs employment. In order to create enough jobs, an economic growth of eight percent  and investments of 300 bio dollars are necessary. “We plan to use 20 percent of the income from the mineral oil industry for this purpose. For the rest, we need investment from abroad.”