Renzi in Iran to win back economic clout

Italy’s prime minister looked to restore his country’s economic clout in Iran yesterday as he became the highest-ranking European leader to visit Tehran since its nuclear deal with world powers.
Accompanied by a 250-member delegation, Matteo Renzi began a two-day trip aimed at rebuilding ties that before sanctions had seen Italy ranked as the Islamic republic’s top European trading partner.
A deal to build two high speed rail lines was among projects announced.
After an official welcoming ceremony Renzi held talks with President Hassan Rouhani, who visited Rome in January days after sanctions were lifted under the nuclear accord.
“Italy has a special place among Iranians. Its companies and its industry are appreciated here,” Rouhani said at a joint press conference after signing provisional agreements on energy, tourism and infrastructure.
“Italy is at the forefront among EU countries wanting to develop relations with Iran,” he added.
Annual trade between Iran and Italy - a member of the G7 group of leading industrialised nations - once peaked at about $8bn (7bn euros).
A decade of nuclear-related sanctions has seen the figure plummet to $1.8bn.
When Rouhani visited Rome the two countries agreed initial terms on long-term contracts that could be valued as high as $19.4bn, including deals in the oil, transport and shipping sectors.
Iran has said it wants European help to modernise and expand its rail, road and air networks, as well as seeking investment to boost its manufacturing base, notably in the automobile industry. All were severely damaged by sanctions.
Yesterday’s rail agreement between Italy’s state railways and its Iranian counterpart will see a new line built between Tehran and Hamedan, in the northwest of the Islamic republic.
A second line between Qom, south of Tehran, to Arak in the north will also be constructed. No details on the value of the agreement or the date of completion were immediately given.