Iran’s tough job of finding billion-dollar oil financers

Business Materials 22 April 2017 15:04 (UTC +04:00)

Tehran, Iran, April 22

By Mehdi Sepahvand –- Trend:

Although it is possible to find hundred-million-dollar or euro financers to attract into Iran’s oil industry, it is quite the contrary about billion or multi-billion-dollar projects, said Stefan Kratz, managing director of Ferrostaal Topsoe Projects.

“Banks are not so open about Iran. There are very view available and they mostly do business with those whom they know for long,” Kratz, whose company has been working in Iran for some 90 years, told Trend April 22.

“Technology is no big deal, we can get export license for them and bring them here to Iran. But the main challenge is still financing,” he said.

Iran’s Oil Ministry used to envision bright days when the country was striking the landmark nuclear deals with world powers in 2015, hoping to be able to finance many due projects and bring the oil industry back to its feet after years of crushing sanctions.

Since sanctions were lifted in early 2016, however, Iran has not been able to make foreign banks dare invest in its projects. The banks fear that with a set of primary US sanctions still in place which restricts the use of the dollar, they face difficulties and even punishment.