Sanctions removal leads to signing important contracts between Iran and China: Analyst

Homayon Falakshahi said in an exclusive interview with ILNA that Iran is the country that holds second place in terms of energy reserves in the world and can be one of the main suppliers to China in the long term.

But now we are facing two challenges, he said, explaining that the first one is that the amount of production is not much higher than consumption in the domestic market, and this causes the current exports to Turkey and Iraq to be interrupted at times, which damages the reputation of Iran as a serious exporter of gas. Secondly, Iran does not have access to LNG technology, and with US sanctions against the country, access to this technology is almost impossible.

The analyst of Copler institute referred to the Iran-China 25-year plan and the aims Iran is seeking and said that no more details are revealed of this plan but we can anticipate that in exchange for continuing to buy Iranian oil, Chinese companies will do wide investment in Iran.

Asked about using Chinese investment in the Iranian oil projects, Falakshahi said that as long as the U.S. sanctions are applied, the possibility of a great investment from China in Iran is very low.

He continued that “but when the sanctions are lifted, Iran will probably decide to sign important contracts with Chinese and Russian companies.”