Iran Ambassador to Baghdad Promises Closer Trade Ties
August 10, 2010
BAGHDAD—Iran’s new ambassador to Iraq promised to double trade volume and bolster economic ties between the two countries, the latest economic outreach by Tehran as its influence here grows.
The move also comes amid fresh sanctions against Iran by the United Nations, the U.S. and the European Union, aimed at curbing Tehran’s nuclear ambitions. Analysts said Tehran could be redoubling efforts at building economic ties with Baghdad to help limit the impact of those measures.
During a news conference at the Iranian embassy in central Baghdad, Hassan Danaie-Far, a former naval commander in Iran’s Revolutionary Guard Corps, said the Islamic Republic was ready to help rebuild war-torn Iraq as America winds down its military presence.
“They promise a lot but do little on the ground,” said Mr. Danaie-Far, in a swipe at Washington’s reconstruction effort. “In contrast, we fulfill what we promise the people of Iraq.”
Iran has exerted increasing influence in Baghdad since the 2003 U.S.-led invasion ousted Saddam Hussein, paving the way for a coalition of Shiites groups—some aligned closely with Tehran—to take power. That has long worried Washington, especially as U.S. forces draw down.
Iraqi politicians have failed to form a new government since March elections.U.S. officials have accused Tehran of taking advantage of the political vacuum to boost its influence.
Mr. Danaie-Far urged Iraqi leaders to put an end to the current political gridlock and form a new government “as quick as possible” so that they could focus on rebuilding their economy.
Since Mr. Hussein’s ouster, economic ties have grown between the two one-time foes. Iran and Iraq fought an eight-year war in the 1980s that left almost one million dead. While Baghdad has largely embraced stronger economic ties with Iran, some politicians have grown wary of seeming too beholden to Tehran.
Mr. Danaie-Far said Iran was currently supplying 750 megawatts of power each day to electricity-starved Iraq, in addition to fuel to a number of power stations across the country. Two Iranian banks—Parsian and Karafarin—recently received preliminary approval to open branches in Iraq, according to Walid Eidi, a senior official at Iraq’s Central Bank. Inexpensive Iranian goods, including construction material and fresh fruits and vegetables, flood the Iraqi market.
The Iranian diplomat vowed to double bilateral trade volumes in the short-term, but wasn’t specific.
Mustafa al-Ani, director of security and terrorism studies at the Gulf Research Center in Dubai, said boosting trade with Iraq could have another benefit: softening the blow of fresh international sanctions.
The two countries share a porous border stretching more than 900 miles. With Iraq’s central government still weak, Tehran could funnel circumscribed imports and exports with the rest of the world through its neighbor, evading some sanctions.
“Iraq is the window” to the outside world for Iran, Mr. al-Ani said.
August 10, 2010
BAGHDAD—Iran’s new ambassador to Iraq promised to double trade volume and bolster economic ties between the two countries, the latest economic outreach by Tehran as its influence here grows.
The move also comes amid fresh sanctions against Iran by the United Nations, the U.S. and the European Union, aimed at curbing Tehran’s nuclear ambitions. Analysts said Tehran could be redoubling efforts at building economic ties with Baghdad to help limit the impact of those measures.
During a news conference at the Iranian embassy in central Baghdad, Hassan Danaie-Far, a former naval commander in Iran’s Revolutionary Guard Corps, said the Islamic Republic was ready to help rebuild war-torn Iraq as America winds down its military presence.
“They promise a lot but do little on the ground,” said Mr. Danaie-Far, in a swipe at Washington’s reconstruction effort. “In contrast, we fulfill what we promise the people of Iraq.”
Iran has exerted increasing influence in Baghdad since the 2003 U.S.-led invasion ousted Saddam Hussein, paving the way for a coalition of Shiites groups—some aligned closely with Tehran—to take power. That has long worried Washington, especially as U.S. forces draw down.
Iraqi politicians have failed to form a new government since March elections.U.S. officials have accused Tehran of taking advantage of the political vacuum to boost its influence.
Mr. Danaie-Far urged Iraqi leaders to put an end to the current political gridlock and form a new government “as quick as possible” so that they could focus on rebuilding their economy.
Since Mr. Hussein’s ouster, economic ties have grown between the two one-time foes. Iran and Iraq fought an eight-year war in the 1980s that left almost one million dead. While Baghdad has largely embraced stronger economic ties with Iran, some politicians have grown wary of seeming too beholden to Tehran.
Mr. Danaie-Far said Iran was currently supplying 750 megawatts of power each day to electricity-starved Iraq, in addition to fuel to a number of power stations across the country. Two Iranian banks—Parsian and Karafarin—recently received preliminary approval to open branches in Iraq, according to Walid Eidi, a senior official at Iraq’s Central Bank. Inexpensive Iranian goods, including construction material and fresh fruits and vegetables, flood the Iraqi market.
The Iranian diplomat vowed to double bilateral trade volumes in the short-term, but wasn’t specific.
Mustafa al-Ani, director of security and terrorism studies at the Gulf Research Center in Dubai, said boosting trade with Iraq could have another benefit: softening the blow of fresh international sanctions.
The two countries share a porous border stretching more than 900 miles. With Iraq’s central government still weak, Tehran could funnel circumscribed imports and exports with the rest of the world through its neighbor, evading some sanctions.
“Iraq is the window” to the outside world for Iran, Mr. al-Ani said.