IRAN CONQUERS EUROPE

Over the past few days Iranian President Has-san Rouhani's tour of Europe has been one of the most widely discussed events in political circles. His visits to Italy and France were marked by landmark agreements, signifying another groundbreaking step in the Islamic Republic's path towards overcoming isolation in the international arena.

Contacts and contracts

The purpose of Hassan Rouhani's European tour was to renew cooperation with the West following the lifting of international sanctions against Iran. In the middle of last month the US and the EU, reacting to an IAEA report confirming Tehran's fulfilment of the conditions of the historic agreement with the international "six", lifted the economic restrictions against the Islamic Republic. And now Iran, faced since the lifting of sanctions with a sharp reduction in oil prices, is expecting to attract up to 50bn dollars of foreign investments annually for the restoration of its economy. A notable event in this direction was the Chinese leader Xi Jinping's visit to Iran, which preceded Rouhani's European tour, during which the sides signed 17 agreements in various spheres, agreeing to increase the volume of mutual trade to 600bn dollars in the next 10 years.

However, Europe is of special interest to Tehran. Before the imposition of sanctions, the European Union was Iran's biggest trading partner. And Rouhani's visits to Italy and France, in which the Iranian president was accompanied by 120 people, mainly representatives of big business, were intended to mark not only the resumption of economic cooperation between the Islamic Republic and the West, but also a breakthrough in the development of a political dialogue between Tehran and the Euro-Atlantic capitals.

The first port of call in Rouhani's European tour was Italy. Before the imposition of the anti-Iranian sanctions, Rome was one of Tehran's key partners. Trade turnover between them was 7.6bn dollars, which slumped in the recent "sanction" years to 1.5bn dollars. The fact that Rome and Tehran plan to make up at least half the leeway is shown by the signing by the Iranian delegation in the Appeninian country of agreements worth 17bn euros. Among the most important of these was a deal between the Italian oil company Saipem and the Iranian National Gas Company and the Persian Oil & Gas Company on the construction of a 1,800-km gas pipeline (there is also a report of an agreement on the construction of a pipeline without any details), as well as a contract involving the Italian metallurgical firm Danieli on the creation, jointly with Iran, of the Persian Metallic enterprise, which will supply machinery and equipment to the IRI. Besides this, the Italian State Railway Company has become the main partner in the development of Iran's railways.

No less impressive were the economic results of the Iranian president's visit to France, during which 20 agreements worth 15bn euros were signed. Unsurprisingly, Rouhani, speaking at a meeting with representatives of Medef, the French association of industrialists and entrepreneurs, said that Iran "was ready to turn a page towards new relations" between Paris and Tehran.  Shortly after this, French President Francois Hollande said at a joint press conference in the Elysee Palace that a new chapter had begun in relations between the two countries.

Confirmation of the validity of the statements by the Iranian and French leaders was the signing by the sides of contracts providing, among other things, for the creation of a joint enterprise of the motor-vehicle concern PSA Peugeot Citroen and the Iranian car manufacturer Khodro and the acquisition by the Iranian company IRAN Air of 118 Airbus passenger aircraft. In addition, the French company Vinci signed a protocol agreement on the construction and commissioning of new terminals of Mashhad and Isfahan airports, and the companies Bouygues and Aeroports de Paris signed an agreement on a project for the development of a new terminal for the Imam Khomeyni International Airport in Tehran. Paris and Tehran also agreed to work together in the railways sector, proposing the development of ties between French and Iranian railway stations, and also cooperation in operating the stations. 

Among other agreements was an agreement on Franco-Iranian cooperation in maritime transportation. Special mention should be made of an agreement between the French oil company Total and the Iranian NIOC, whereby the former will daily purchase from 150 to 200,000 barrels of "black gold" from Tehran. Thus, Paris has made a serious application to turn Tehran into a priority partner. However, Rouhani's European tour was probably just the beginning of long-term cooperation between the IRI and the countries of the West, which suggests not only increasing activity in economic relations as Iran comes out of international isolation, but also a widening of the political resources of Euro-Atlanticism in solving problems of the Middle East, making use of Tehran's potential as a leading regional player. This was also shown by the results of the Islamic Republic president's truly historic visit to the Vatican as part of his European tour.

In terms of security

Important problems of world security were discussed at a meeting between Iranian President Hassan Rouhani and Pope Francis. As the Italian media reports, the Pontiff urged the president of the influential Islamic state, together with other countries of the region, to work together towards adopting "the proper political solutions" to problems affecting the Middle East. The Pope's symbolic gift to Hassan Rouhani - a medal depicting St. Martin giving his cloak to a shivering man - was symptomatic. Rouhani, for his part, presented the Pontiff with a hand-made rug from the Iranian city of Qhom.

Pope Francis expressed the Vatican's interest as the most influential spiritual centre in the West in increasing Iran's role in settling the crises in Syria and Iraq which provides, first and foremost, for a struggle against the so-called Islamic State. As well as the Pope, this was also pointed out by Italy's Prime Minister Matteo Renzi, who stressed that the Iranian leader's visit to Europe "could play a fundamental role for the stability" of the Middle East, and French President Francois Hollande, who focused attention on the need of a struggle against terrorism in tackling political questions in the region and reaching an agreement on a "political transition" in Syria.

Hassan Rouhani, for his part, reaffirmed that the IS group carries a danger not just to Europe, but also to the Middle East. Separate mention should be made of the Iranian leader's appeal to boost the economic growth of the Middle Eastern countries as a key factor in the victory over terrorism. "If we want to stand up to terrorism in the world, one way is to create jobs and to increase the economy," Rouhani stressed. "Lack of growth gives strength to terrorism; unemployment creates the soldiers of terrorism."

However, from the results of the Iranian president's visits to Italy and France it would be wrong to draw a conclusion that all was idyllic in relations between the Islamic Republic and the West. Clearly, Europe, despite the realization of its own benefits in the developing economic cooperation with Tehran and the latter's role in Middle Eastern politics, is still apprehensive about Iran having too much influence on regional processes. The West's advanced guard - the United States, which in the run-up to Rouhani's European tour imposed new unilateral sanctions against a number of Iranian companies and private individuals in response to Tehran's latest tests of a ballistic missile - also sees a clear threat in Tehran's increasing activity. Washington appears to be making it clear to its European allies that they should be more careful in their dialogue with Iran. This, incidentally, could also be linked with the Americans' realization that as a result of the lifting of economic sanctions against Iran, the West has almost no serious levers of pressure on the IRI. 

However, Iran makes no secret of its own interest, both economic and political, in the development and expansion of a dialogue with the West, including the US. This is also indicative from Rouhani's statement during his European tour that the United States and the Islamic Republic could have friendly relations and the Iranians "would be pleased to have American investments in our country". There was also a reminder that "the US is not in a position to solve a single problem in the Middle East without Iran's help". 

So, lifting the anti-Iran sanctions regime has opened up new opportunities for the West and the IRI to develop broad cooperation. To what degree this will contribute to a real rapprochement between Iran and Europe and the US, and also influence the overall situation in the Middle East and throughout the world, is one of the more intriguing questions of modern geopolitics coming out of Iranian President Hassan Rouhani's European tour.