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Promising market, energy supplier: Japan eager to clinch investment deal with Iran
TOKYO — Prime Minister Shinzo Abe’s government is moving quickly to lay the groundwork for Japanese investment in Iran, a youthful nation that may yet grow into a tiger economy.
Foreign Minister Fumio Kishida travels Monday to Tehran, where he is expected to reach a broad agreement with Iranian counterpart Mohammad Javad Zarif that would provide a framework for protecting Japanese corporate investments in Iran.
Representatives from 22 companies and other organizations in fields such as automobiles, engineering, medicine, energy and education will accompany Kishida to Iran. Japan and Iran will create councils for intergovernmental talks on partnerships involving transportation, the environment, health care and other themes.
Western nations imposed stiff economic sanctions on the Islamic republic after its nuclear program came to light in 2002. But an agreement in July between Iran and a group of six powers, including the U.S. and European nations, offers relief in exchange for curbs on nuclear development. Since then, some major European economies have sent ministers to Iran with business leaders in tow. French automaker PSA Peugeot Citroen has strengthened its cooperation with a major Iranian car company.
Not to be outdone, Japan dispatched Daishiro Yamagiwa, state minister for economy, trade and industry, to Iran in August. Reaching a broad agreement on an investment pact so swiftly is almost unheard of, as working-level negotiations began only last month. “We were able to agree on almost all the points in our first talks,” a senior Japanese foreign ministry official said.
Energy strategy is another important consideration for Japan in seeking closer ties with Iran, which boasts some of the world’s richest reserves of crude oil and natural gas. With a better economic climate, Iran could become a stable oil supplier to Japan. Tokyo looks to reclaim a Japanese ownership stake, abandoned in 2010, in the Azadegan oil field, one of the largest in the Middle East.
But embracing Iran too abruptly may rouse mistrust in the U.S., and Japan also cannot afford to ignore opinion in Saudi Arabia, Iran’s rival for power in the region.
“We are going to discuss things thoroughly with the U.S. and countries in the region as we move forward,” a senior foreign ministry official said.
(Nikkei)
Promising market, energy supplier: Japan eager to clinch investment deal with Iran
