Iranian president signs billion-dollar deals with Italy after sanctions are lifted

Italy and Iran signed billions of dollars of business deals on Monday at the start of a visit to Europe by Iranian President Hassan Rouhani aimed at rebuilding his nation’s ties with the West after years of economic sanctions.

Italy also sees Iran as a potential peacemaker for Syria’s civil war, as the Italian government fears the warfare will further destabilize Libya, just across the Mediterranean from southern Italy, fuel terrorism and jeopardize energy security.

Abbas Akhoundi, quoted by Iranian media, said the deal “will be signed between Iran Air and Airbus” when Rouhani is in Paris on Wednesday on the final day of his first official European visit.

Many Western nations have accused Iran of funding various militant groups, and despite the nuclear deal between world powers and Tehran a year ago, the United States is keeping some of its financial sanctions in place because of its links to organisations such as Hezbollah in Lebanon. The trip was originally planned for November but postponed by the attacks in Paris.

Italy was Iran’s second-largest trading partner, after Germany, with 7 billion euros ($7.6 billion) in trade dropping to 1.5 billion after the sanctions.

The president is making the first state visit by an Iranian president to Europe in almost two decades.

Rouhani is due at the Vatican on Tuesday where Pope Francis is expected to reiterate concerns over human rights and the death penalty in Iran, as well as asking Rouhani to help protect Christians in the Middle East.

Anxious officials in both capitals had the same goal: to ensure the incident did not torpedo a historic nuclear accord between two countries with a long history of hostility.

Rouhani said Monday he had come to Europe with an “open for business” message in his first trip overseas since Tehran’s nuclear deal with the West came into force this month. “Unemployment creates soldiers for terrorists”, the Iranian leader said.