Investment in Iran protects it from US nuclear deal sanctions

BILLIONS of dollars unlocked by Iran’s 2015 nuclear deal with world powers might help cushion the impact of any future US assault on the accord.

The mood has shifted since this time last year, following the lifting of sanctions in January 2016 that saw trade delegations cramming Tehran’s hotels as investor interest peaked.

Now, with US President Donald Trump adding new sanctions and expressing frustration that his administration continues to find the Islamic Republic in compliance with the accord, the talk is of whether it can survive.

Of critical importance will be the support from China, Russia, France, Germany and the UK – whose companies have put up much of the money invested in Iran so far.

“There is pressure coming from the business establishment in these countries to maintain access to the Iranian market,” said Sanam Vakil, an associate fellow at Chatham House’s Middle East and North Africa Programme in London.

At the same time, most of their governments “recognise that marginalising and isolating Iran is not in their interest”, she said.

There’s a lot at stake: Iran says it wants to sign oil and gas contracts worth as much as $60 billion (R792bn) in the Iranian year that ends next March.

Recent agreements include a 20-year deal struck by Total along with China National Petroleum valued at $5bn to develop phase 11 of the South Pars offshore gas field. In addition, Turkey’s Unit International recently signed a $4.2bn deal to build seven natural gas plants in Iran