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Persian persuasion

Konrad Kiedrzyński: How much potential is there, in your opinion, to increase Polish-Iranian economic cooperation?

Mohammad Nahavandian: I see a lot of interest in and even a greater potential for increasing Polish-Iranian ties and cooperation. The figures which reflect our current economic ties do not reflect the actual potential for such cooperation. Energy is one major area for cooperation - given Iran's deposits of gas and oil, cooperation with us in that area would be a good choice for any country.

Technology is another area, particularly in the machinery sector. Especially since Polish involvement in this branch [in the 1970s and 1980s] earned a very good reputation in Iran.

I would also like to emphasize shipping as a key sector in which our countries could cooperate. Given Poland's solid background in the industry, our countries would be natural partners.

We are also seeing a huge change in the area of privatization of [Iranian] industries, such as refineries, power, tourism and mining. Additionally, I want to stress that Iran has one of the best-educated labor forces in the [Middle Eastern] region.

What we need are joint ventures and a move towards proactive partnerships and long-term cooperation.

What branches might interest Iranian investors in Poland?

Iranian companies are interested in infrastructural projects in Poland, especially since Poland will see plenty of such investments in the near future. Other areas include the steel industry, transportation and shipping. Our banks and insurance institutions could also cooperate with each other.

But unless companies from both sides start talking, they will know very little about the opportunities offered by such cooperation.

Iran is in negotiations with Polish firm PGNiG on a $2 [zł.4] billion contract for gas deposit exploitation. Can we expect any tangible outcome?

Serious negotiations are under way, but Iran is holding negotiations with many companies. The way we proceed in that matter is "first-come, first-served."

Iran would not seem to be an obvious destination for Polish businesses which are active abroad. What sort of incentives does the Iranian government offer to draw foreign investments?

The best incentive is the high rate of return on investments that foreign companies have made in Iran. The problem is that some companies have limited their perspectives to EU markets only, yet there is much more potential for profits if [their scope] could be extended outside Europe.

Along with profit opportunities, Iran offers a fixed tax rate of 25 percent for all companies and several tax havens with tax-free zones for a period of 10 years. Foreign companies also have the same privileges as local ones. Finally, a number of [bureaucratic] formalities have been reduced in recent years.

What makes Poland an attractive country for Iranian investors?

We would like to have healthy relationships with as many countries as possible. The advantage Poles have in Iran is their very good [reputation]. We have a long history of social and cultural relations [dating back to the 16th century], which has never been tainted by aggression or hostility.

It is also worth noting Polish and Iranian education links and exchange. That alone can bring about cooperation and projects. For Iran, Poland is also a gateway to Europe. I believe that we can build a lot on our good relationship, but we have to see how the situation develops. In the future, the figures relating to our cooperation may change.

Attractive as it is, Iran is facing a difficult international situation and the whole region is tense. Does this not discourage investors?

Tense conditions in the region do not stop people from heating their houses, for example. We think that the solution is to talk. Let us define mutual goals in the region. Meanwhile, any [international] limitation is considered counter-productive. Mutual participation is the way for stabilization in the region.

Are there any initiatives in Poland to promote Iran as a tourist destination?

If any TV station in Poland showed a film depicting what Iran is really like, the next day tourists would queue up to come to our country. So far we have invited a delegation of Polish tourist agency representatives to come to Iran. We also take part in tourist fairs and exhibitions in Poland.

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