International business looks forward calm in Iran

International business looks forward calm in Iran

Azerbaijan, Baku, June 17 / Trend , A. Badalova/

Unstable post-election situation in Iran will not have a strong impact on flow of foreign investments in country's economy, specifically on oil and gas sector.

"In the short term current political instability is not likely to have a significant impact on foreign investment in Tehran's energy sector," Director of Middle East Studies Center at Pennsylvania University Gawdat Bahgat told Trend .

Protest demonstrations began in Tehran following publication of election results. Thousands of opposition supporters, unhappy with results of the vote, went out to streets. There was a clash between demonstrators and law enforcement agencies.

Mahmoud Ahmadinejad won 62.63 percent of votes as a result of presidential vote on June 12. "Liberal" candidate and former prime minister Mir Hossein Mousavi won 33.75 percent of votes.

Mousavi said he has won elections before the official results were released. But later he accused authorities of falsifying election results.

The ongoing unrest killed 7 Mousavi supporters.

The European Union also expressed concerns about the ongoing unrest in Iran. Earlier this week French Foreign Minister Bernard Kouchner appealed to EU foreign ministers to conduct an investigation into possible irregularities in the presidential elections in Iran. In response, Iran accused Paris with interfering with country's electoral process.

Bahgat said if this uncertainty about the country's future persists international companies are likely to be more hesitant to invest in Iran.

Iran holds the second largest world's oil proven reserves (after Saudi Arabia) and the second largest world's natural gas reserves (after Russia). Despite these massive reserves, Iran's current production does not match its potential.

Bahgat said despite American and European sanctions, the Islamic Republic has succeeded in signing major oil and gas deals with Russia, China and other Asian companies (as well as with a few European companies). Shell and Repsol look forward for improved investment climate in the country to get involved with development of South Pars field.

Bahgat said if the moderate candidate Mir Hussein Mussavi somehow succeeds and becomes president, the Islamic Republic is more likely to attract foreign investment than President Ahmadinejad.

U.S. Energy Security Analysis (ESAI) expert Andrew Reed says results of presidential elections will not have considerable direct impact on country's foreign policy.

"The outcome does not fundamentally change the nuclear standoff between the Islamic Republic and the West," Reed wrote to Trend via email.

It's doubtful that the protesters will dislodge Iran's clerical regime. Though Ahmadinejad's reelection will complicate American diplomacy the challenges before the administration are the same now as they were before the Iranian elections. Now as always progress in bilateral ties or the nuclear policy means inducing a change of heart in Ayatollah Khamenei.

Research fellow and expert on policy and management at the U.S. George Mason University Mark Katz said continued instability in Iran will have a negative impact on foreign

"At this point, though, it is not clear whether the current instability will continue, or whether the government will be able to halt it quickly," Katz said.

"Stabile policy is one of permanent terms to draw foreign investments in any country," professor of international relations at the University of Durham (Great Britain) Anoushirvan Ehteshami told Trend .

Presently, foreign companies wait for completion of events caused unstable situation in the country to make any decisions, he said.

"New agreements will be concluded with nations or companies irrespective of President Ahmadinejad's or Musavi's power sets in Iran, Ehteshami said. I think instability has temporary character. Foreign companies concerned in investments to Iran's oil and gas sector wait for completion of disorders in the country."  

If these events continue this way in Iran, investors are likely to increase insurance risks. But it will not happen soon, Ehteshami said.  

The last political events in Iran will create difficulties for European companies to invest the country's economy, Russian daily Kommersant editor-in-chief Azer Mursaliyev said.

"Iran's involvement in gas and oil supply of Europe has been discussed recently. Participation of the country as resources base for Nabucco gas pipeline was considered. Disorders in the country are sure to create difficulties for European countries," Mursaliyev told Trend over telephone. 

Political shock in the country is unlikely to scare such investors as China, Mursaliyev said.

E. Tariverdiyeva and T. Jafarov contributed to the article.

Do you have any feedback? Contact our journalist at: [email protected]

Eni Turkmenistan Ltd opens tender for provision of directional drilling services
Eni Turkmenistan Ltd opens tender for provision of directional drilling services
New oil drilling platform activated in Turkmen sector of Caspian Sea
New oil drilling platform activated in Turkmen sector of Caspian Sea
Turkmenistan's Mary region opens tender for construction of schools
Turkmenistan's Mary region opens tender for construction of schools
Loading Bars
Turkey registers more than 54 560 new coronavirus cases
Yuri Gagarin image lights up Dubai’s Burj Khalifa
Korean battery makers rally after battery dispute settlement
Inventory of basic goods in Iran's ports increase
Eni Turkmenistan Ltd opens tender for provision of directional drilling services
Azerbaijan's Nakhchivan records industrial production value growth in 1Q2021
Azerbaijan's housing agency talks further plans on building residential complexes
Georgia not to cut economic growth forecast - Minister of Economy
Russia restricts air service with Turkey from April 15 to June 1
Iran, Afghanistan discuss bilateral ties, latest developments
Georgia faces third coronavirus wave - NCDC
Turkey welcomes Ramadan with tight measures against COVID-19
Operator of Kazakh Kashagan to hold open round-table on Marine Access Channels Project
Nvidia to directly challenge Intel with Arm-based 'Grace' server chip
New oil drilling platform activated in Turkmen sector of Caspian Sea
War Trophy Park to open for visitors in Azerbaijan’s Baku soon
Azerbaijani, Maldives FMs hold exchange views issues mutual interest
Uzbekistan discloses progress on construction of new plant of Navoiazot company
Azerbaijani FM receives delegation of Italian Senate (PHOTO)
Azerbaijan’s Baku Metro introduces solution for automatic supply of voltage to trains (PHOTO)
Several audit companies in Azerbaijan included in network of int’l organizations
Current interest rate in Azerbaijan to improve position of local capital market - Unicapital
International IT Holding of Belarus implementing big transport project in Azerbaijan
Russia's Red Wings may launch flights from Yekaterinburg, Chelyabinsk to Uzbekistan
Iran's Energy Exchange announces products to be on sale on April 13
Bahar Azadi gold coin price rebounds in Iran
Uzbekistan increases export volume of clothing to Kazakhstan
Iran's Natanz nuclear facility continues to operate – AEOI
UAE reports 1,928 new COVID-19 cases, two deaths
Russia allows import of tomatoes to several Azerbaijani enterprises
Israel's fiscal deficit narrows as economy begins recovery
IMF makes prediction regarding Georgian external debt
UK, EU talks on Northern Ireland are constructive, differences remain
Georgian E-Space actively cooperating with car dealers to bring new electric vehicles
Russia, Uzbekistan approve text of space co-op agreement
Uzbekistan joins CIS industrial agreement
Uzbekistan, Kuwait launching direct flights
Georgia's external debt up due to COVID-19 shock - IMF
Azerbaijan's CBA signs contract to acquire licenses for cybersecurity
Uzbekistan’s centers of public services improve work on basis of Azerbaijan's ASAN
Iran's LPG exports decreases
USDA unveils forecast for Azerbaijan's barley production
Russian Technonikol looks to build thermal insulation plants in Kazakh Almaty region
Indian-American, 5, Reads 36 Books Nonstop In 105 Minutes, Sets Record
Weekly review of Georgian's capital markets
Georgian Inert Materials Complex company investing in extraction of gravel materials
Nar’s renovates its service centers in Baku and regions (PHOTO)
India becomes largest buyer of US crude in first quarter of 2021
Turkmenistan's Mary region opens tender for construction of schools
Iran implements its plan on domestic production in full - deputy minister
Azerbaijan publishes latest data on COVID-vaccinated citizens
Investments in Kazakhstan's agriculture surge
Several international companies express interest in Georgian FDI Grant
Minister discloses amount of export of Azerbaijan’s non-oil products
Iran tightens restrictions for travelers on borders with Turkey, Iraq
Azerbaijan confirms 1,151 more COVID-19 cases, 1,052 recoveries
Georgia to place new Eurobonds
Iran looks to set up advanced centrifuges at Natanz nuclear plant
Kazakhstan increases exports to UK
Iran Oil Ministry to fund startups
Iran unveils generation capacity of thermal power plants
Azerbaijan temporarily bans import of poultry meat from several countries
Georgia shares data on revenues from tobacco excise duty
S.Korean PM, Iranian Supreme Leader's Advisor discuss frozen Iranian funds
Kazakhstan, Belarus trade surges
Potato, onion planting completed in Dashoguz region of Turkmenistan
Iran's TEDPIX sees decline
Swiss government urges voters to back COVID-19 law that foes want to ditch
Kazakhstan exceeds plan on petroleum products output
High-voltage substation with digital control system to be built in Uzbek Jizzakh region
Azerbaijani president signs order to set up new enterprises in Balakhani Industrial Park
Revenues of Azerbaijan's Nakhchivan from communication services increase
Turkish Aksa Enerji building thermal power plants in Uzbek Tashkent region
Maersk Explorer completes drilling activities for Shah Deniz
Unicorns of 2021: Gupshup, ShareChat latest entrant to $1B club; total number rises to 10
In a first, surgery restores 'right' music to man's ear
Cargo transportation in Azerbaijan's Nakhchivan increases
Georgia reveals volume of pension fund's assets
Volume of SOCAR Ukraine’s aviation fuel supplies revealed
Baku Heydar Aliyev Airport gains 5-Star COVID-19 Airport Safety Rating
U.S., European consumers warm up to electric vehicles, but remain wary of price
Kazakhstan’s KAZAKHALTYN delists its shares from Stock Exchange
Azerbaijan's Nakhchivan sees increase in investments in fixed assets
Several contracts signed in Iran’s oil sector
Azerbaijan announces restoration of Araz newspaper's office building in liberated Fuzuli (PHOTO)
Domino's, Nuro to start robot pizza delivery in Houston
Turkmenabat cotton spinning factory of Turkmenistan exports most of its products
GDP of Azerbaijan’s Nakhchivan shows increase
Turkmenistan’s Foreign Economic Affairs bank talks volume of net profit for 2020
Average monthly nominal salary in Azerbaijan's Nakhchivan continues to grow
Kazakhstan Railways opens tender for rolling stock repair
Turkish Ziraat Bank shares forecast for Azerbaijan's GDP in 2021-22
Kazakhstan's gas consumption exceeds plan in 1Q2021
Kazakhstan’s Ulba Metallurgical Plant announces tender for equipment repairs
Iran has greater potential in technology than in oil sector - minister
Azerbaijan discloses daily volume of oil production for March 2021
Assets of Kazakhstan’s National Fund decrease
Iran's CBI allows some traders to import commodities, instead of revenues
Iranian technology companies produce number of aviation products
OECD countries’ crude oil imports fell in 2020
All news