Iran and France sign major trade deals

Rome:- Iran and France on Thursday signed a series of basic trade deals thought to be worth billions of dollars during a historic visit to Paris by the Iranian President Hassan Rouhani.

Rouhani and his French peer Francois Hollande oversaw the signing of the deals that concerned cooperation in a range of sectors such as aviation, car manufacturing and oil among others.

One specifically concerned the purchase of 118 Airbus planes by Iran worth a total of $25 billion. The deal to purchase 73 long-haul and 45 medium-haul planes will be finalized once international sanctions against Iran are fully lifted. 

The deal covers “the acquisition of 118 new aircraft, the training of pilots, airport operations and ATM (Air Traffic Management) support,” Airbus said in a statement as reported by AFP.

Another key basic deal was a framework agreement that Iran signed with Total over the purchase of crude oil.

Total, as it has announced through a separate statement, has also signed a Memorandum of Understanding (MoU) with the National Iranian Oil Company (NIOC) to have access to the technical data of certain Iranian oil and gas projects to assess their development potentials. 

The two also signed a framework agreement which will allow Total to take between 150,000 and 200,000 barrels of crude from Iran a day for delivery to French and European refineries.

Other key basic deals that were signed included one for construction giant Bouygues and Aeroports de Paris (ADP) to upgrade airport facilities in Iran. 

The French major carmaker Peugeot Citroen PSA earlier announced that it had finalized a binding contract with Iran’s leading automobile manufacturer Iran Khodro over the production of cars in the country.

The contract whose value stands at €400 million envisages the investment by Peugeot in modernizing platforms, particularly in the main Iran Khodro site near Tehran. The investment will also allow for the export of vehicles to the region. 

PSA will beging by producing 200,000 cars a year in a 50:50 joint venture, producing the Peugeot 208, 2008, and 301 models. Vehicle production will start in the second half of 2017, the reports said.

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