The first indications of future business between Slovakia and Iran

The first indications of future business between Slovakia and Iran  after the release of sanctions

Tehran, Tabriz, 8. march 2017 (SARIO) – Slovak machine manufacturer for rubber industry Mesnac European Research and Technical Centre s.r.o. (MERTC) have signed a memorandum with the Iranian partner Barez Industrial Group, which should increase the supply of Slovak machines for the manufacturing of tires for trucks to one of the biggest tire companies in the Middle East.

With the goal of strengthening and development of bilateral, political and economic, relations with Iran and with the purpose of paving a road to future contacts for Slovak businesses at this progressively growing market, Peter Pellegrini, the Deputy Prime Minister for Investments and Informatization of the Slovak Republic visited Tehran and Tabriz. He was accompanied by Peter Kažimír, the Minister of Finance and the Minister of Economy of the Slovak Republic. On 6th - 8th March 2017 they met with important Iranian partners – with Eshaq Jahangiri, the First Vice President,  Soren Sattari, Vice President for Science and Technology, Ali Tayebnia, Minister of Economy and Finance and Ali Salehi, the Vice President of Iran and the Head of the Atomic Energy Organization of Iran. Afterwards, they visited a technology park Pardis, Research Institute of Petroleum Industry and the East Azerbaijan Province, where they were greeted by its governor in the city of Tabriz.

The official visit was accompanied by a business delegation of 16 Slovak companies from the fields of energy, mechanical engineering, health and pharmaceutical sector, building industry, information and telecommunication technologies and banks. The coordinator of this business mission was Slovak Investment and Trade Development Agency (SARIO), with the significant support of the Embassy of the Slovak Republic in Tehran. The entrepreneurs attended four forums during which they had an opportunity to discuss new possibilities for cooperation with Iranian partners.

On March 6, 2017 at the Research Institute of Petroleum Industry they were establishing contacts with the members of the Czech-Slovak-Iranian Chamber of Commerce and on March 7, 2017 in the Tehran Chamber of Commerce, Industries, Mines & Agriculture with more than 80 Iranian businesses. In the afternoon they visited the Industrial Development & Renovation Organization of Iran (IDRO), which is a significant conglomerate of state owned industrial companies in the most important fields of Iranian industry. Very important meetings of Slovak company MERTC took place on the soil of both organizations. MERTC signed a Memorandum of Understanding with the company Barez in TCCIM and in IDRO they held meetings with the representatives of the automotive division. On Wednesday, the entrepreneurs visited East Azerbaijan Province, where in Tabriz Chamber of Commerce  B2B meetings with the local companies took place. Tabriz is an important industrial, mining and agricultural region of the country, with the size similar to the Slovak Republic, The visits of Iranian regions have a potential for activation of regional economic cooperation and are increasing chances for Slovak entrepreneurs for establishing themselves in the country.

The next significant output of this mission was the signature of the Memorandum of Understanding between EXIMBANKA SR and the Organization for Investment Economic and Technical Assistance of Iran (O.I.E.T.A.I.), which should mitigate the risk in the support of Slovak exports to Iran, to allow the continuation of development of economic cooperation and also help in the search of new opportunities for the development of direct contacts of entrepreneurs of both countries.

The question of relations between banks and project financing in Iran is still topical. The administratively held high country risk of Iran (despite the shift from the 7th to the 6th risk group according to the OECD ranking), makes the insurance of mutual transactions and trade more expensive. Additionally, the commercial banks are waiting for best practices and first successful transactions, which would send a positive signal for others. During the official meetings a discussion about state guarantees for Slovak–Iranian projects to facilitate their funding took place. Peter Kažimír, the Minister of Finance of the Slovak Republic announced an increase in the framework for insurance of Slovak business with Iran. EXIMBANKA SR should be able to insure in the next period businesses up to 100 mil. Eur.

The Deputy Prime Minister Peter Pellegrini advocated in particular the possibilities of exchange of scientists, researchers and students within various research and scholarship initiatives. Similarly, forums in the format of V4 plus Iran, or Tatra summit with the participation of representatives of Iran could positively contribute to building of bilateral relations.

Peter Žiga, the Minister of Economy of the SR, who held meetings with Ali Salehi, the Head of the Atomic Energy Organization of Iran, remarked that Slovakia has experience with every phase of nuclear circuit, with designing, construction, operation and decommissioning of nuclear power plants. He also informed him that Slovak companies showed interest in negotiations with the Iranian partners on supplies of solutions for civilian and research applications in atomic energy.

Róbert Šimončič, SARIO CEO negotiated with the Vice President of the partner organization O.I.E.T.A.I. Jamal Hossini. They both stressed the efforts to focus on support of particular businesses on both sides, prioritizing sectors for cooperation and the exchange of information about the current investment environment, its legislation and mutual stimuli.

The business mission accompanying the official visit of the Deputy Prime Minister for Investments and Informatization of the Slovak Republic in Iran was the third successful mission organized by SARIO agency after the release of sanctions on Iran in January 2016.