Japan and Iran have signed a bilateral agreement for $10b debt guarantee investments in various sectors in the country, after Tokyo lifted trade sanctions against Tehran.
Petroleum and other energy sectors are viewed as a key target of the Japanese investment, with the debt guarantee allowing its companies to invest without significant risk.
According to Mehr News Agency, the Iranian Deputy Minister of Petroleum for Commerce and International Affairs, Ammir Hossein Zamaninia said that there is the possibility of boosting Iran’s crude exports to Japan as “Tokyo is currently faced with certain restrictions in exploiting crude oil and is after increasing gas condensate purchase.”
The official is further quoted as saying that it is anticipated that the Japanese strategies is to make investments in different sectors of the Islamic Republic’s oil industry involving petrochemicals, refinery, and LNG.
Zamaninia also stated that “Japan has always been a good trade partner with Iran.” Japan was one of the major customers of Iranian oil with 338,000 b/d of imports before international sanctions were imposed against Iran in 2012.
Iran is expected to use export credits by Nippon Export and Investment Insurance or special loans organized by the Japanese Bank for International Cooperation, PressTV reported. Iran will also offer financing in Japanese yen as international transactions in US dollar has not yet been legalized under the remaining segments of the American sanctions.