Japan, Iran to discuss investment pact after sanctions end: Nikkei

TOKYO - Reuters

In this Saturday, Nov. 17, 2007 file photo, an Iranian oil worker makes repairs to a unit at Tehran's oil refinery, in Iran. AP Photo

Japan and Iran will start negotiations on an investment accord once sanctions are lifted following last month’s landmark international deal on Tehran’s nuclear program, the Nikkei reported on Aug. 19, citing Japanese government sources.

Initial talks are being held between the two countries to prepare for the lifting of sanctions and begin formal negotiations, the business daily said, without identifying the sources.

Japan is keen to boost ties with Iran and invest in resource projects in the country, as well as return imports of Iranian oil to about 10 percent of the total from 5 percent now after sanctions forced Japanese refiners to cut purchases, it said.

Earlier this month, Daishiro Yamagiwa, vice-minister of Japan’s Ministry of Economy, Trade and Industry (METI), visited Tehran and met top government officials, accompanied by executives from the oil, gas and other industries.

Yamagiwa did not discuss an investment agreement, Shigetoshi Ikeyama, a director in METI’s Middle East and Africa division, said when contacted by Reuters about the Nikkei report.

“Knowing that Japanese companies are interested in boosting economic ties in future, state minister Yamagiwa had general discussions on streamlining the environment for that, but did not discuss an investment pact in particular,” Ikeyama said, adding that the Ministry of Foreign Affairs would take the lead on any discussions on specific agreements.

“Another reason for Yamagiwa’s visit was to avoid being beaten by European and U.S. companies,” Ikeyama said.

Officials at the foreign ministry were not immediately available for comment.

Inpex Corp, Japan’s biggest energy explorer, JGC Corp, an engineering company, and trading houses Mitsubishi Corp, Mitsui & Co and Itochu Corp joined Yamagiwa on the visit, the Nikkei said.