France eyes deals for Airbus, Peugeot, farming as Iran visits

The Iranian president is meeting with his French counterpart at the Elysee palace.

Rouhani travelled to Paris from Rome, where Iran reportedly signed deals worth about $18.5 billion, and the main focus of the France visit was to improve economic and diplomatic ties.

Some French companies, like Total and vehicle manufacturer PSA Peugeot Citroën, traded with Iran before global sanctions forced them to stop.

“France is available for Iran”, said French Prime Minister Manuel Valls, who added that additional deals in other fields were also expected.

Under the deal announced on Thursday but whose final signature will not be made until the middle of this year, Peugeot and Tehran-based Iran Khodro plan to modernize a factory near Tehran and be producing cars by mid 2017. “200,000 have swarmed (our borders), what do we do now?'”

An Iranian couple passing by a French Peugeot 307, produced by Iranian “Iran Khodro” compa …

The outreach trip follows the agreement curbing Iran’s nuclear program that prompted the lifting of earlier sanctions. Iran needs annual foreign investment of $30-$50 billion to reach an eight percent growth target and cash in on sanctions relief, the president said last week.

The countries signed a memorandum of understanding because the aircraft deal can not be finalised until sanctions are fully lifted.

In Tehran, Civil Aviation Organisation deputy director Mohammad Khodakarami said that British Airways, Air France and KLM had all expressed interest in resuming direct flights after five years.

Shipping, agriculture, and water management agreements were also reached. According to BBC, the lunch meeting between the two presidents was postponed to after the meal when Iranian officials requested that no wine be served during lunch.

Iranian President Hassan Rouhani continues his Europe tour following the lifting of global sanctions on his country.

“I do not want our relations to be kept simply in terms of economic agreements”, said Hollande in a joint press conference with Rouhani after signing the deals, evoking the fight against terrorism and resolving the conflicts in the Middle East.

“Iran and France can have decisive roles in crises around the region and it is necessary that they stand by each other to establish stability and security in the region” continued French president.

“Let’s forget past differences and start anew”, Rouhani said in a speech to business leaders, Reuters reported.

French Jews protested the arrival of Iran’s president in Paris, saying it was particularly unacceptable because the visit fell on International Holocaust Remembrance Day.

France’s oil giant Total signed a letter of intent with Iran’s NIOC on upstream oil, gas, petrochemicals, crude trading and crude purchasing contract.