Total’s deal bares Europe-US split on Iran
… from Press TV, Teheran
[ Editor’s Note: A train load of major infrastructure and development deals are flowing into Iran, after many months of final negotiations and working out ways of protecting them from the US Treasury Commissars, who feel they have the right to sign the kosher certificate on all international commerce.
While this communist central planning attitude at Treasury has been a major annoyance and a barrier at times, it has also provided high octane jet fuel for the construction of a whole new financial system that is insulated from US extortion, despite the US continuing to use the volunteer American military as an enforcer for US commercial interests.
And by that, I do not mean the interest of the American people, but the Deep State actors who always feel their interests come first. That is why we saw the quiet, but hugely important shift away from the US using the term “our national security interests”, to just “our interests”. Our fake news media let this huge shift pass by without uttering a word as to the domestic enemy threat it represented long-term.
The big gas deals in Iran are also a sleeper. The supply is far greater than the current demand, albeit some competition for the European market still exists, as the EU’s own gas production is declining, while demand is rising.
The big game with the developing gas fields is the pipelines needed to open up new markets like India; but the New Silk road project and the anticipated generational demand for the new cities and industries that will be springing up all along its various routes, over a land rich in natural resources, but with a major problem with scarce water for Western China.
And no, the US Navy will not be able to threaten shutting this commerce off. The combined defense budgets of all the countries involved, with interior lines of supply, will be able to defend their outer perimeter quite well. Their wise investment focus on missile technology, electronic warfare and modular weapon system designs, where improvements do not require a ground-up expensive redesign process.
Compare this to the US defense industry corporate welfare that exploits the American people with super expensive defensive and offensive hi-tech systems, all debt-funded, and the manufactured threats to keep the money flowing.
The veteran community has basically rolled over on all this. Will that Rip van Winkle community ever wake up? I would not bet on it. They have had plenty of time and access to all the information they need, and have remained quiet, wanting to avoid a battle where they fear their veterans benefits would be targeted in retribution for exercising their citizens rights. The Minuteman days are long gone, and forever it seems… Jim W. Dean ]
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– First published … July 05, 2017 –
One German automaker has finally made its mind to resume business in Iran after a 17-year gap, as more European companies seem to be dropping their qualms about trade with the Islamic Republic. French energy giant Total’s signing of a $5 billion contract on Monday to develop phase 11 of Iran’s South Pars offshore gas field has sparked fresh interest in business opportunities in the Islamic Republic.
An Indian consortium said after the deal that it was willing to spend as much as $11 billion to develop Iran’s giant Farzad-B field and build the infrastructure for exports of gas from the repository.
Italy’s state railway company Ferrovie dello Stato (FS) will send its CEO Renato Mazzoncini to Tehran next Tuesday to sign a 1.2 billion euro contract for the construction of a high-speed railway in Iran. And Volkswagen announced it would resume selling cars in Iran from August after signing a deal with local importer Mammut Khodro. The German car giant is already selling trucks in Iran through its Scania division.
Volkswagen will now export VW brand models Tiguan compact SUVs and Passat family car via eight dealerships, focusing on the greater Tehran area, the company said on Tuesday.
A statement issued by the company said it sought “to gain an insight into current market needs, establish the Volkswagen brand in Iran, and offer Iranians modern technologies ‘made in Germany’.”
For years, international carmakers have been salivating at the prospects of a buoyant market in Iran where some three million new passenger cars are estimated to be sold per year in the medium to long term. According to a report by Fitch Group’s BMI Research in April, Iran’s auto production growth will average 11 percent through 2021 and the return of European carmakers will boost the sector.
Volkswagen’s ebullient presence in Iran was related to the years before the 1979 Islamic Revolution when the automaker sold the Beetle and the Bulli van in the Middle Eastern country.
The company’s last venture in Iran after the revolution involved the production of the Gol compact with Iran’s Kerman Khodro before withdrawing under US pressures.
Among other German carmakers, Mercedes-Benz and Daimler have held partnership talks with Iranian automotive sides but they have been cooling their heels for a safer trade environment in the face of an unpredictable US regime. Mercedes has indicated interest in forging a joint venture for production of trucks and powertrain components plus the establishment of a sales company for trucks and components.
Daimler plans to return as a shareholder in the former engine joint venture Iranian Diesel Engine Manufacturing Co. (IDEM) based in Tabriz. However, they are facing a bumpy road for their return to Iran where French rivals PSA Peugeot Citroen and Renault have built a strong footing since the Islamic Republic’s 2015 nuclear deal.
Total and the other international companies have taken heart from the global aerospace industry’s engagement with Iran prevailing over increased hostility by the Trump administration.
Over the past year, Iran has finalized deals to buy up to 140 planes from Boeing and 100 from Airbus. Last month, two more Iranian airlines made prospective deals with Airbus to buy 73 jetliners worth $2.5 billion. Experts believe Total’s landmark deal is expected to have far-reaching implications, setting a path for other international companies also to follow.