TEHRAN: The Japanese government is taking measures to accelerate the return of Japanese companies to the massive Iranian market.
Tokyo-based media reported on October 9 that Iran and Japan are set to strike a basic agreement on an investment pact when Japanese Foreign Minister Fumio Kishidavisits Tehran on October 12.
The Nikkei daily said Japan aims to facilitate the return of its companies to Iran lest they fall behind European rivals, which have intensifiedvisits to the Islamic Republic, eyeing cooperation after sanctions removal.
Kishida will meet with his Iranian counterpart Mohammad Javad Zarif in Tehran to confirm the terms, the daily added.
Japan is the latest major U.S. ally aiming to resurrect trade relations with Iran in the post-sanctions era.
Representatives of 15 Japanese firms are already in Tehran to participate in Iran’s biggest trade fair. They are among more than 300 countries from around the world vying for new business opportunities in the country.
Chairman of the Japan External Trade Organization Hiroyuki Ishige headed a delegation of representatives from 30 companies and other organizations on a visit to Tehran on October 6.
Their visit came after Japan’s State Minister of Economy, Trade and Industry DaishiroYamagiwa traveled to the Iranian capital in August with an aim to rekindle business ties.
Iran had granted preferential rights to Japan’s state-owned Inpex Corp. to develop the country’s South Azadegan oilfield, but the company withdrew from the project in 2010 due to U.S. pressure.
Tehran accounted for 10 percent of Japan’s oil imports before sanctions cut it to five percent.
In the early 1970s, up to 30 percent of all Japanese oil imports came from Iran. After the victory of the Islamic revolution in Iran, this figure has gradually decreased, reaching 10 percent by 2010.
Japan was one of 11 nations exempted from sanctions on countries that buy oil from Iran. However, Japan’s oil imports from Iran were slashed in line with the country’s support for the international community over Iran’s nuclear energy program.
Japan joined the sanctions regime against Iran in 2011. The country imports on average about 100 million barrels of “black gold” in a month. Tokyo currently sources five percent of its crude oil from Iran under an interim deal reached between Iran and the West in November 2013.
Japan hopes to raise oil imports from Iran to the pre-sanctions level.
Iran is also interested in Japanese technology for establishing high-speed rail in order to expand its intercity transportation, according to the country’s officials.
