The Central Bank of Iran (CBI) says Asian credit cards provided by the Japanese and Chinese banks will be available to the Iranians before September.

Iran says it is preparing the grounds for its nation to use credit cards provided by Asian banks until the restrictions for using American payment operators like Visa and MasterCard are removed.

The country’s media have quoted an official with the Central Bank of Iran (CBI) as saying that negotiations to the same effect are currently underway with Japan Credit Bureau (JBC) as well as China UnionPay (CUP).

Davood Mohammad-Beigi, the CBI director for payment affairs, has told been quoted as saying that JCB and CUP cards will be available to the Iranians before September.

Mohammad-Beigi has further emphasized that the CBI is determined to bring the global credit card payment systems into the country, stressing that the related technical talks on the same front have been going on with international suppliers for the past five months.

The official added that certain steps have also been planned to prepare the infrastructure required for using international credit cards in Iran, including connecting the domestic banking payment transfer systems to overseas payment networks like the ones that Visa and MasterCard are using.     

Mohammad-Beigi said the conditions for using Visa and MasterCard services are not prepared yet. This, he added, is because both are US enterprises and are still subject to the sanctions that the US government has put in place in dealing with Iran.

The legal department of the CBI is nonetheless preparing to take actions to remove the obstacles that are hindering Visa and MasterCard from operating in Iran in light of the openings that have been created after the January removal of anti-Iran sanctions, Mohammad-Beigi emphasized.

A fresh round of talks between Iran and Germany’s Siemens was held in Tehran revolving around partnership in petrochemical industries during post-sanction era.
Siemens AG company of Germany, after returning properties of Iran’s oil industry which had been blocked due to international sanctions, has launched new negotiations with Iran over petrochemical cooperation in the post-JCPOA period.

Accordingly, delegation comprising high-ranking directors of the German firm have travelled to Tehran and held meetings managers of Iranian petrochemical industries as well as the Association of Petrochemical Industry Corporations (APIC).

The main axes of talks between the two sides include expansion of bilateral ties as well as boosting activities of the German firm in Iranian petchem industries by equipment and supply of parts to technical and management systems.

In addition to Germany, Iran has so far inked several Memoranda of Understanding (MoUs) for investment in petrochemical industries with Total of France, BASF of Germany, Japan’s Mitsubishi as well as Germany’s Linde.

On the other hand, Managing Director of Pars Oil and Gas Company (POGC) Ali Akbar Shabanpour had earlier referred to the release of turbo compressors of Phases 17 and 18 in South Pars field on the part of Siemens Company adding “the frozen assets in Europe and the United Arab Emirates have been freed."

Meanwhile, Member of the Managing Board of Siemens AG Siegfried Russwurm had also stressed “by the implementation of Iran’s nuclear deal, legal restrictions for the delivery of Iran’s oil properties have been eliminated and the equipment can be transferred to Iran.”

Iran will inaugurate 15 new petrochemical  projects by March 2017.

Marzieh Shahdaee, Director of the National Iranian Petrochemical Company’s plans, said this will boost the country’s petrochemical capacity by ۸.۵ million metric tons.

“There are 60 petrochemical plans underway in the country, " she said, adding that plans which are over 60 percent complete are main priority. She said the mentioned plans require $33.4 billion worth of investment to come on stream.

Seven petrochemical units, with a total capacity of 2.7 million tons, will come on stream by March 2016, she added.

The country has exported some 12 million metric tons of petrochemicals so far.
Iran plans to increase the number of its petrochemical units to 100 and the value of petrochemical exports to $70 billion over the course of 10 years, he said.

Iran’s petrochemical output has exceeded 40 million metric tons since the beginning of 2014.

Iswaran signs agreement in Tehran as part of effort to explore business opportunities


Singapore has moved quickly to sign an investment treaty with oil-rich Iran to support Singapore firms investing in an economy that is emerging after the recent lifting of global sanctions.

The treaty offers a legal framework to protect investors and promote bilateral investments.

Minister for Trade and Industry (Industry) S. Iswaran signed an Agreement on Reciprocal Promotion and Protection of Investments, also known as a bilateral investment treaty, with Iran's Minister of Finance and Economic Affairs Ali Tayyebnia in Teheran yesterday.

Singapore is the second country, after Japan, to sign a bilateral investment treaty with the Middle Eastern nation after international sanctions were lifted in mid-January.

"We are here now to deepen the economic collaboration between our two countries," Mr Iswaran told the media after the ceremony.

"We see significant opportunities to do so because of the size of the market in Iran and in the region, and the capabilities of the people.

"For Iranian businesses, there are interesting opportunities in Singapore and through Singapore into South-east Asia and the larger market of Asia," he added.

Mr Iswaran arrived in Teheran on Sunday for a three-day visit to explore new business and investment opportunities. His trip coincides with a one-week mission by the Singapore Business Federation (SBF) to the Iranian capital.

Mr Iswaran also met Iranian Minister of Industries and Business Mohammad Reza Nematzadeh and Minister of Cooperatives, Labour and Social Welfare Ali Rabiei.

With this agreement, Singapore investments will be treated as favourably in Iran as any other investments - foreign or local. And businesses can transfer capital and returns between the two countries without obstacles.

The treaty also provides Singapore investors with the option to resolve investment disputes through international arbitration.

The Ministry of Trade and Industry said Singapore's bilateral trade with Iran was $6.6 billion in 2011, before the sanctions were imposed. It fell to $2.6 billion in 2012, after the sanctions kicked in. Last year, trade stood at $171.4 million, with Singapore exporting $158 million worth of goods to Iran, while imports from Iran to Singapore amounted to $13.4 million.

Singapore firms have shown renewed interest in the oil-rich country, which is just re-opening its doors after a prolonged period of under-investment.

A total of 51 firms from various sectors, including oil and gas, petrochemicals, logistics and information communications technology, have been in Teheran since last Friday, gaining first-hand knowledge about the business environment and investment opportunities.

This is the SBF's fifth delegation to Iran, and the largest group that it has taken to the Middle East so far.

The delegation comprises two main groups - companies that were previously doing business in Iran and are now seeking to re-establish dealings after the lifting of the sanctions, and companies that are completely new to the market.

"Singapore companies are known for our quality, reliability and the service we deliver... but competition is greater than before and others are running very fast," said Mr Teo Siong Seng, SBF chairman and leader of the business mission.

Singapore businesses are facing stiff competition from South Korean and European companies, which are pursuing deals in Iran, he noted.

According to the Teheran Times, South Korea on Sunday signed a memorandum of understanding with Iran to provide €5 billion (S$7.7 billion) in financing for infrastructure, development and manufacturing projects in the country.

Many of these businesses tend to be bold and are willing to put in huge investments. Singapore companies, however, tend to be more careful, said Mr Teo.

"We could start in a smaller way, but we should start to see some activities going forward," he added.