Hassan Rouhani in first Europe visit by Iranian president in 16 years

Rouhani will meet the pope and the French and Italian leaders on a trip that aims to re-establish economic ties after sanctions

What’s it really like in Iran?

Hassan Rouhani was orginally due to visit Europe in November, but his trip was cancelled after the Paris attacks. Photograph: Xinhua/Barcroft Media

Saeed Kamali Dehghan-Monday 25 January 2016

Hassan Rouhani is to make the first state visit to Europe by an Iranian president in almost two decades this week, following the lifting of sanctions against his country.

The trip will aim at rebuilding economic ties and Iran is expected to sign a deal with Airbus for 114 new aircraft.

Europe was Iran’s largest trading partner before sanctions, and has sent an unprecedented number of business delegations to the country since the landmark nuclear agreement with the west was sealed in July. The end of sanctions, including the removal of EU’s embargo on Iranian oil imports, means that trade can begin again.

Rouhani is expected in Rome on Monday, where he will meet the Italian prime minister, Matteo Renzi. He will also meet Pope Francis at the Vatican. He will then travel to Paris on Wednesday and is scheduled to be welcomed by the French president, François Hollande, at the Elysée palace on Thursday.

Germany, Italy and France have been leading the pack as Europe aims to increase trade with Tehran from the current level of €7.6bn (£5.8bn) a year to the pre-sanctions figure of almost €28bn.

Iran’s minister for roads and urban development, Abbas Akhondi, has been quoted as saying that the country is in talks with Airbus for the purchase of 114 new aircraft.

Tehran has long said it will need to revamp an ageing fleet, hit by a shortage of parts because of trade bans imposed by Washington and other western powers. Mahdi Hashemi, the chairman of the Iranian parliament’s development commission, said this weekend that the country may need as many as 500 new planes over the next three years.

Rouhani was initially expected in Europe in November, but his visit was cancelled at the last minute after the Paris attacks. It will be Rouhani’s first official visit to Europe and the first by an Iranian head of government since 1999, when the reformist former president Mohammad Khatami made similar trips to Paris and Rome.

Iran is a huge market for French car manufacturers, which are eager to do business in the country again. Peugeot used to sell 400,000 vehicles a year in Iran before sanctions were put in place. An arrangement with the local manufacturerIran Khodro, which assembled the vehicles, meant its cars were ubiquitous across the country.                                    Read More