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Legal Matters

Total’s deal bares Europe-US split on Iran

One German automaker has finally made its mind to resume business in Iran after a 17-year gap, as more European companies seem to be dropping their qualms about trade with the Islamic Republic.

French energy giant Total's signing of a $5 billion contract on Monday to develop phase 11 of Iran's South Pars offshore gas field has sparked fresh interest in business opportunities in the Islamic Republic.

An Indian consortium said after the deal that it was willing to spend as much as $11 billion to develop Iran's giant Farzad-B field and build the infrastructure for exports of gas from the repository.

Italy's state railway company Ferrovie dello Stato (FS) will send its CEO Renato Mazzoncini to Tehran next Tuesday to sign a 1.2 billion euro contract for the construction of a high-speed railway in Iran.

And Volkswagen announced it would resume selling cars in Iran from August after signing a deal with local importer Mammut Khodro.

The German car giant is already selling trucks in Iran through its Scania division.

Volkswagen will now export VW brand models Tiguan compact SUVs and Passat family car via eight dealerships, focusing on the greater Tehran area, the company said on Tuesday.

A statement issued by the company said it sought to gain an insight into current market needs, establish the Volkswagen brand in Iran, and offer Iranians modern technologies 'made in Germany'."

Source: Press TV

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