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Trade Between Iran & Denmark Grows

By Orkhan Jalilov April 3, 2018

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Iranian Ambassador to Denmark Morteza Moradian was awarded with a medal of peace and friendship in a ceremony to commemorate the Iranian New Year at the embassy in Copenhagen on April 1. / Copenhagen.mfa.ir

Trade volume between Iran and Denmark rose to $398 million dollars in 2017, considered a sizeable increase in bilateral trade, according to Iran’s ambassador to Denmark.

Ambassador Morteza Moradian made the remarks on April 1 in a ceremony held to commemorate the Iranian New Year at the embassy in Copenhagen, an event attended by Iranians living in Denmark and Iranian officials.

Moradian also referred to a €500 million contract for investment in Iran that was signed in September 2017 between Denmark's Danske Bank and 10 Iranian banks.

“We will see more increase in economic relations between the two countries,” Moradian said, according to reports by Islamic Republic News Agency.

According to official statistics, trade volume between the two countries amounted to $175 million and $270 million in 2015 and 2016 respectively.

Over 26,000 Iranian nationals are residing in Denmark, where private Iranian companies have had a measurable impact on the development of positive bilateral relations.

Since January 2016, when international, nuclear-related sanctions began to be lifted under the Joint Comprehensive Plan of Action (JCPOA), better known as the ‘nuclear deal’, between six world powers and Iran, the country has been opening up its doors to European countries for investments and joint projects.

The volume of mutual transactions between Iran and Denmark has substantially increased after the nuclear deal, and Danish trade and economic delegations have poured into Iran for investment.

In December, the managing director of Pars Oil and Gas Company, Mohammad Meshkinfam, announced that the company is planning to sign a deal with Denmark’s Maersk for development of the oil layer of South Pars gas field – a natural-gas condensate field shared between Iran and Qatar and located in the Persian Gulf.

One month earlier, Iranian and Danish companies signed three agreements on water management, including the construction of sewage cleaners and sewage treatment plants and the construction of smart water meters.

Danish companies also have voiced their willingness to invest $1 billion in developing renewable energy projects and to build a wind-turbine production plant in Iran.

"Denmark's giant energy companies, including Siemens and Vestas, will contribute to implementing wind energy projects in Iran," the president of the Iran Renewable and Wind Energy Association Hashem said in October 2017.

Denmark is just one country of many throughout Europe where a post-sanctions, post-nuclear deal situation is benefiting Iran.

On March 11, Finland’s envoy to Tehran, Ambassador Keijo Norvanto, tweeted, “Finland, Denmark and Sweden signed an MoU with IDRO [investment company] of Iran to promote collaboration in the fields of oil & gas, high-tech, transportation, renewable energies, manager training, industrial renovation, steel, water, investment and finance.”