HELSINKI: Local residents shop in Tehran’s ancient Grand Bazaar on 16 January, 2016. The demand for a wide variety of goods and services has bottled up for ten years in Iran due to the nuclear-related sanctions, says Timo Karppinen of OP Financial Group.
Juha Palonen, the managing director of Suomen Lämpöpuu, has expressed his delight with the lifting of economic sanctions on Iran, estimating that the decision will enable the manufacturer of heat-treated wood products to step up its exports to the country.
Suomen Lämpöpuu has exported some 1.5 million euros worth of heat-treated wood products to Iran per annum.
“I think it’ll be possible to double our exports to Iran,” Palonen estimates in an interview with Uusi Suomi. “Iran has been undergoing a construction boom, but it has slowed down a bit as they’ve waited for the sanctions to be lifted. I think the recent decisions will give a boost the construction industry.”
Suomen Lämpöpuu is also exploring the possibility of hiring additional staff after hearing about the dissolution of the sanctions. It is presently set to hire three employees and an additional three or four later in the spring. “[We’ll hire] as the need arises,” says Palonen.
Palonen has good experiences of conducting business with Iranians. “Doing business with them is pleasant. They react to developments in a similar manner and have a similar negotiating culture. The level of education in Iran is also high,” he says.
He also admits to being surprised at how similar life in Iran is compared to that in Finland. Iranians, he estimates, are roughly as religious as Finns.
The banking sector is similarly poised to benefit from the de-regulation of trade with Iran, according to Timo Karppinen, a senior relationship manager at OP Financial Group. Banks, he explains, will benefit from the decision because they provide services to companies exporting to the country.
Karppinen is confident that closer export ties with Iran will also boost the revenues of OP Financial Group.
“Customer enquiries on our end will definitely increase as the market opens up and Finnish companies start exporting all kinds of goods and services. The demand there has bottled up for nearly ten years due to the sanctions,” he points out.
