Ukraine-Iran relations: A fresh start

Kyiv recently witnessed the ceremony of opening Iran’s exclusive exhibit of export commodities. Its scope exceeded all the previous ones and was meant to demonstrate Iran’s production potential, output, and technologies. Among those present during the ceremony was Iran’s Minister of Industry, Mines and Trade Mehdi GHAZANFARI. Despite his tight schedule, Mr. Mehdi kindly agreed to the following exclusive interview (he has a fluent command of English and he lapsed into Farsi only when answering the final question).

EXHIBIT: PROOF OF FRIENDLY RELATIONS AND MUTUAL INTERESTS

Mr. Mehdi, Iran’s exhibit that has opened today (October 18) in Kyiv shows a far larger scope compared to the previous ones. Does this mean that Iran is taking an increasing interest in Ukraine?

“Above all, this means that Iran’s technologies have shown progress in various spheres, including high technologies, production of concrete, steel, gas, oil, as well as chemical and medical products. The same is true of the traditional businesses having to do with natural resources and farming output. We have diversified our industries using various methods. Second, the Intergovernmental Joint Business Commission hasn’t held a sitting over the past seven years. That’s why we wanted to stage a good exhibit to make up for the lack of cooperation between the two countries. This exhibit is proof of friendship, fresh initiatives and mutual interest of our countries.”

What makes Iran interested in Ukraine? Business, cooperation spheres?

“Iran imports steel, dock timber, and other materials as required by Iranian businesses. In fact, the cooperation between Iran and Ukraine is good in the technological domain. Ukraine helps Iran manufacture various products while some products are made in Ukraine. I mean that certain Iranian businesses prefer to import materials and products from Ukraine because of lower prices and high quality. Our countries have had historically good relations. This encourages Iranian businesses to uphold cooperation with their counterparts in Ukraine.”

UKRAINIAN AIRCRAFT COULD BE LEASED

How about the 1997 contract on the construction of AN-type aircraft (IrAn-140) in Iran?

“This is within the jurisdiction of other ministries. All I know is that Iran is considering the possibility of leasing AN-148 aircraft; that a public poll will be held to assess AN-158, and that its outcome will result in a joint AN-158 venture.”

As Minister of Industry, Mines and Trade, do you think that Iran could benefit from Ukraine’s extraction experience?

“I think this is a good idea. Iran is rich in natural resources and there is much to be done in terms of prospecting and development. Iran is interested in such investments. Ukrainian businesses are welcome to discuss cooperation plans. Iran has numerous iron, copper, zinc, and gold deposits.”

Would you care to comment on the main trends in Iran-Ukraine business cooperation?

“Iran’s gross foreign trade turnover amounts to 170 billion dollars, with 60 billion worth of imports and 110 billion worth of exports. In fact, oil and gas exports amount to 70-80 billion dollars and the remaining 30 billion dollars refers to products that have nothing to do with oil and gas. Ukraine’s share in Iran’s gross foreign trade turnover amounts to almost one billion dollars; a small sum compared to 170 billion dollars. Iranian companies and the Iranian market as a whole have great capacities to boost trade between our countries. I believe that our trade turnover could be easily raised to 2 billion dollars, maybe 3 billion dollars, in the next two or three years.

“I met with people in Kyiv, with some of the visitors to the exhibit. I realized there were fields of joint endeavor that could give a fresh impetus to our business collaboration — I mean health care and medical equipment on display at this exhibit, also timber and other products. I hope that the next meeting of the Intergovernmental Commission, scheduled for February, will allow Iran to demonstrate its considerable achievements resulting from the contracts made at this exhibit; that [this exhibit will] provide for fruitful exchanges between the [business] partners and trade delegations.

“One must keep in mind the seven years when no such delegations visited either of the countries, that there was no data exchange. Iran is opening its doors for both sides, for data exchange. I believe that raising our trade turnover to 2 billion dollars won’t be difficult, and that it won’t take long.”

UKRAINIAN BUSINESS PEOPLE LACK INFORMATION RE IRAN

What is there to prevent a larger trade turnover between Ukraine and Iran?

“Lack of information is the biggest obstacle. I heard some of the visitors to this exhibit. Their comments were interesting. Some of them never believed that such products could be made in Iran. I believe that Ukrainian business people lack information regarding Iran. Customs and taxation procedures are another big obstacle. From what I know, local businessmen are often confronted by the problem of setting prices on Iranian products; Iranian manufacturers and suppliers have to pay more in terms of income tax and customs duties. That’s why Iranian manufacturers aren’t willing to access the Ukrainian market. Logistics is another problem. Truckers are issued five-day entry visas, which doesn’t suffice considering the loading and unloading red tape. Iranian truckers don’t want to ride through Ukraine. Another formidable obstacle is your banking system. I hope the Iranian and Ukrainian banks will uphold cooperation.”

Are there any examples of Ukrainian businesses and investments in Iran?

“Our legislation guarantees protection of all foreign [inland] investments and dividends. Any investor can buy a plot of land and start producing oil and gas at comparatively low costs. A number of Ukrainian and Iranian businesses have long been fruitfully collaborating. They know each other like old friends. Iran would welcome an addition to their number.”

UKRAINE: QUALITY, ACCURACY, DECENCY

To the Ukrainian man in the street, Iran spells richly ornamented carpets, pistachios, oil and gas deposits. How does Iran see Ukraine?

“Ukraine is known for the quality of its steels, timber, music, and athletes. Iranian public opinion says Ukrainians are open-hearted, well-wishing and hospitable. Any product made in Ukraine is trusted in Iran. Most Iranians regard Ukrainians as people with clean hands and hearts. In fact, no goods supplied from Ukraine have been dumped, unlike other suppliers in some countries I won’t identify for the obvious reason. In Iran, Ukraine spells quality, accuracy, and decency. People in Iran know that Ukraine, as part of the Soviet Union, was the center of innovative effective technologies. Ukraine boasts numerous spectacular researchers in a variety of fields. There are a number of Ukrainian specialists in the employ of the Bushehr Nuclear Power Plant. Although our treaty was signed by Russia, we are being helped by the Ukrainian people. This is how we see and respect Ukraine.”