UK says it supports doing business with Iran

Britain says it supports expanding trade with Iran and has advised the country’s companies over how they can do business with the Islamic Republic before and after the removal of the sanctions against Tehran.

UK’s Foreign Office announced in a report on Wednesday that London considers Iran as an emerging market with many opportunities for the British companies, stressing that it will soon open an office in Tehran to help promote trade relations between the two countries.

The Office said it has already started to help the British business sector prepare to take advantage of the opportunities that are likely to arise once the sanctions against Iran are removed.

It said London is currently focusing on unblocking short-term obstacles to trade “so that business can begin quickly after sanctions lift”.

The report by the Foreign Office said the major sectors that will be affected by the first phase of Iran sanctions relief will include financial, banking and insurance, oil, gas and petrochemicals, shipping, shipbuilding and transport, gold and other precious metals as well as banknotes and coinage, IRNA reported.

The Office further said the British companies can go ahead and sign conditional contracts in Tehran and proceed with their implementation once the sanctions are lifted “If contracts cover activities which are allowed under the provisions of the JCPOA”.

The Joint Comprehensive Plan of Action – the JCPOA – was agreed on between Iran and the P5+1 – the five permanent members of the Security Council plus Germany – in July. Based on it, Iran will restrict certain aspects of its nuclear energy activities and the P5+1 will in return proceed with the removal of certain economic sanctions against the country.

A key yardstick in the JCPOA to move toward the first phase of sanctions removal was an announcement by the International Atomic Energy Agency (IAEA) that it has closed the so-called possible military dimensions (PMD) case over Iran’s nuclear energy activities.

No exact date has yet been set on when the first phase will be implemented but speculations are already around that it could come in January 2016.