Iranian president Rouhani begins 4-day European visit

Warming relations Mr Rouhani’s visit to Europe will be the first for an Iranian president in more than a decade, and reflects the Islamic regime’s warming relations with the west after years of hostility.

The country’s transport minister said it planned to buy more than 100 aircraft from Airbus by March and was also open to the possibility of acquiring more planes from United States rival manufacturer Boeing.

At a news conference with Xi broadcast live on state television, Rohani said that “Iran and China have agreed to increase trade to $600 billion in the next 10 years”.

That is why the agreement on long-term strategic relations is “very wise and prompt”, and must be “seriously followed up” until it becomes operational, he said.

Following the Iran nuclear deal, which led to the reduction of sanctions, experts have predicted that Western trade with Tehran could rise from current annual levels of around US$8.2 billion to pre-sanction levels of US$30 billion, which would see a range of worldwide products and services enter the country.

Iran Khodro Co., one of the country’s largest carmakers, reached a preliminary agreement for a 500 million euro joint venture with Peugeot Citroen, Tasnim reported Sunday, citing an industry official it didn’t identify.

Trade between the two countries stood at some $52 billion in 2014, but that figure dropped past year due to plunging oil prices.

Xi is the second major world leader to visit Iran since Tehran signed the nuclear deal with world powers in July. Russian President Vladimir Putin visited Tehran in November.

On his first trip overseas since the accord took effect, he will lead a 120-strong delegation that includes Iranian entrepreneurs as well as the oil and gas minister and other government officials for five days to Paris and Rome.

Ali Larijani, the speaker of Iran’s parliament, also met with Xi.

The top leadership in Saudi Arabia, Egypt and Iran assented to joining China’s ambitious Silk Road and Belt project during Xi’s trip.

As his country emerges from global isolation, Iranian President Hassan Rouhani arrives in Italy on Monday, the first stop in a European tour where he is expected to sign contracts with companies including Airbus Group SE.

The Iranian president stressed the importance of Xi’s visit, which comes shortly after the lifting of economic sanctions imposed on Iran by the US and EU.