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Iran Economy Update
Issue 50/2017 MONDAY APRIL24
Iran and China sign deal on Arak reactor redesign
Local Iranian media including Mehr news, ISNA, Tehran Times and Press TV wrote that a commercial contract was signed on Sunday in Iran’s representative office in Vienna between the Atomic Energy Organization of Iran (AEOI) and a Chinese company on redesigning the Arak heavy water reactor. The contract, according to Tehran Times, was as part of the 2015 international deal over Iran’s nuclear program.
“Under the redesign deal, the Chinese side will make sure if the conceptual redesigning carried out by Iranian technicians meets international safety measures, and participate in the construction of the reactor with the technical support of the US,” wrote Tehran Times on Monday. Similarly, Mehr news agency wrote that under the contract, China will review and validate the compliance of the redesign operation done by Iranian technicians with international safety standards. ISNA wrote that according to this contract, China will also play the role of a coordinator between Iran and the P5+1 Group. “This contract will be an introduction for more comprehensive deals that will be concluded in future for completion and launch of this reactor,” wrote Eghtesad Online website.
The name of the Chinese company as well as the contract value has not been mentioned. Last week, AEOI’s Head Ali- Akbar Salehi said the contract is 200-page long. “Iran is responsible for designing the reactor and relevant equipment, which should ultimately be verified by the US and China from a technical and scientific standpoint,” said Salehi. “The JCPOA has recommended the involvement of the other parties in financial terms and Iran is making
arrangements in this regard,” he added.
“Redesigning the Arak reactor will establish a special place for the Islamic Republic in the nuclear industry. After redesigning the reactor and the approval of the technologically-advanced countries in this industry, this reactor would be considered as an advanced and modern structure and if we decide to sell the equipment, they are compliant with international standards,”
added Salehi. He did not explain if the role of China will be confined to verifying compliance with the international standards, or as mentioned by Tehran Times, they will also be involved in the redesigning procedure and technology provision.
Four days earlier on April 20, CSMONITOR wrote that in the redesign, the heavy water reactor will be reconfigured so it cannot yield fissile plutonium usable in a nuclear bomb. The spokesman of China’s ministry of Foreign Affairs has described the deal signed on Sunday as an important part of the Iran nuclear deal.
Of note, on 18 January 2016, Fars news agency had quoted Behrouz Kamalvandi, the AEOI’s spokesman as saying that the contract for redesigning the Arak reactor was scheduled to be signed on 21 Jan 2016 during the visit of Chinese president to Tehran. He estimated that the operation for redesigning the reactor will be complete in three years.
Petroleum official ensures concerned IOCs that sanctions won’t be retroactive The deputy Petroleum Minister for International & Commercial Affairs asked foreign companies not to be worried about possible sanctions snapbacks and ensured that they are not retroactive, ILNA reported on Sunday. “Sanctions are not retroactive and won’t be applied on the businesses that
2 were established formerly,” Amir-Hossein Zamani-Nia said during his speech at the 13th International Petrochemical Forum.
“The uncertainties perceived by investors in Iran’s oil and gas industry are transitory.
Iran’s talks with the international companies continue and its pace will accelerate in the upcoming days,” he was quoted as saying on Saturday. In regards to the suppliers of goods and services, Zamani-Nia also ensured that if sanctions are snapped back, there would be no reason to worry because the loans and goods will be refunded based on the terms in the contract.
The deputy Petroleum minister also briefed the audiences about the opportunities that are available in Iran for foreign investment.
“Iran has one of the most advanced energy infrastructure facilities among the regional countries. Along with road, port and railways, Iran possess valuable intellectual capital including young and educated human resources,” added Zamani-Nia.
