The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Eastern approaches

As tensions mount between Iran and the west over the Islamic state's nuclear ambitions, Tehran seems to be adopting an Ostpolitik, looking to China and India for political and energy ties. Opec's second-largest oil producer, which also has the world's second-biggest gas reserves, is wooing Asia's fast-growing and energy-hungry economies.

The courtship started with two big deals for long-term exports of liquefied natural gas to China and India. And there are bigger plans afoot with New Delhi, involving an export pipeline via Pakistan. The problem is that Washington does not want the deal to go ahead while Tehran is on the brink of joining the world's nuclear club.

Only days after hardliner Mahmoud Ahmadinejad took office as Iran's new president, the country restarted its uranium conversion activities in the central city of Isfahan in defiance of European requests to keep the operation suspended.

But analysts believe growing economic ties between Iran and the two Asian superpowers could thwart a unanimous decision against Iran in the UN.

At the same time, analysts expect Iran's new conservative government to strike more deals with Asian powers. Bijan Khadjehpour, chairman of consultancy Atieh Group, says: "western companies would realize that there are a number of Asian competitors such as the Chinese and Indians that are happy to take their places in Iranian business."

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree