Thanks to Insights Into Today's Middle East:
Spain's Relations With Iran:
Spain and Iran have long-standing and deep diplomatic and economic ties. The Speaker of the Spanish Senate, Javier Rojo Garcia, recently said that Iran plays an important role in establishing balance in the Middle East. In a meeting with Iran's Ambassador to Madrid Davoud Salehi, he stated that Spain has been resolute in promoting friendly relations with Iran in various fields. [1]
However, recently there has been a subtle pullback in some business deals due primarily to US pressure regarding Iran’s alledged nuclear weapons programme. [2]
Economic relations
Spain remains among the main buyers of Iranian crude oil. According to the Iranian oil minister, Iran's daily oil exports stand at 2.5 million bpd, giving it an oil income per day of 300 million dollars. [3]
Trade between Iran and Spain reached three billion euros in the past year (up until March 20, 2008). Iran’s Ambassador to Madrid, Salehi, said that the trade exchanges between the two countries have always enjoyed an ascending trend. Referring to the 600-year-old bilateral relationship, Salehi Monfared noted that the two countries' relations are based on cordial ties . [4]
Iranian Ambassador Salehi has presented an outline of Iran’s package of proposals to Spanish Minister of Foreign Affairs and Cooperation Miguel Angel Moratinos. “Iran-Spain relations are at their best level ever”, and “we have no problems with this country,” the Spanish foreign minister said, adding that Madrid’s stances on Iran, and specifically on its nuclear program, have generally been acceptable. [5]
Spanish Foreign Minister Miguel Angel Moratinos in a letter to Iran's ambassador to Madrid, Salehi, said his party is committed to improving relations with Tehran. "I am quite sure that during the new era (of the ruling of the Socialist Party) relations and cooperation between the two countries will further improve," the Spanish foreign minister said. [6]
Spain has been chosen together with other 6 countries for the signaling project of Tehran-Mashhad railroad. The project's cost is estimated between $650.7 and $867.6 million dollars. [7]
Gas deals
Royal Dutch Shell and Spain's Repsol YPF SA. have pulled out of one of Iran's biggest gas projects (10 billion dollars natural gas project) amid geopolitical uncertainty and rising costs, the „Financial Times“ reported. [8]
Under the current conditions and given the considerable pressure from the US, it is not in the company’s interests to remain in the Islamic Republic,” an unnamed Repsol source was quoted as saying in the local media. “Pulling out of the contract will have a serious effect on Repsol’s finances,” the source reportedly added. [9]
European oil groups Royal Dutch Shell and Repsol YPF are under pressure from the United States to end talks with Iran about a multi-billion dollar natural gas deal. Spanish newspaper „Expansion“ said that Russia's Gazprom, Indian Oil Corporation and Chinese groups could be waiting to move in instead of Shell and Repsol. [10]
Shell and Repsol pulling out of the substantial South Pars natural gas project was a setback for Tehran. [11]
But instead of pulling out of the project altogether, Total, Respol and Shell can work out a deal with Tehran to participate in blocs that will not begin work for years. That way, the foreign firms can buy some time. [12]
Iran is negotiating with Spanish and British-Dutch energy giants to switch their gas exploration blocs with others due for later development; the oil minister was quoted on Thursday as saying. A Repsol source said earlier this month that two firms sought to exchange their participation in bloc 13 for a role in bloc 20 or 21 due to rising development costs. Blocs 20 and 21 will take at least a decade before they become operational while bloc 13 is expected to be developed much sooner, reports said. [13] Shell and Repsol had planned to export South Pars gas via ship in liquefied form as part of the "Persian LNG project". Now it is more likely the gas will supply the Iranian market or be exported by pipeline, Spanish newspaper „Expansion“ said. [14]
Repsol have signed a preliminary agreement with Iran's state oil company on developing gas fields in the Gulf. She said the agreement, signed with National Iranian Oil, followed a framework agreement the company signed in 2004. [15]
Spain on Iran's nuclear programme
Along with Britain, France, and Germany, Spain is committed to the use of diplomacy in soliciting Iran’s cooperation with the IAEA. However, when Britain and France joined the US in demanding immediate results and suggesting that the conflict be sent to the UN Security Council, the Spanish government instead supported continued diplomatic negotiations through the IAEA. [16]
Spanish Foreign Minister Miguel Angel Moratinos in a meeting with his Iranian counterpart Manouchehr Mottaki said that the European Union will certainly do its best to solve Iran's nuclear issue through talks. Assessing Iran-Spain current relations as positive, he said that talks are underway between the high-ranking officials of both sides to expand such ties. [17]
Diplomatic and cultural ties
• Iran and Spain have close cultural ties despite the fact that the two countries are geographically far, Spain's Minister of Culture says. There is great potential for further cultural cooperation between Tehran and Madrid particularly in the field of language training, music, cinema and cultural exhibitions, his Iranian counterpart, Mohammad-Hossein Saffar Harandi, added. The existing cultural capacities can help boost interactions and political ties between the two countries, Saffar Harandi said. He also invited his Spanish counterpart to visit Iran in a bid to develop cultural cooperation between the two nations. [18]
Complutense University of Madrid and the University of Extremadura in western Spain propose to increase academic cooperation with Iranian universities, the Iranian cultural attaché in Madrid, Seyyed Ahmad Khezri, said on June 21, 2007. [19]
Spain organized the "Iran Culture Week" to expand its cultural ties with Iran and introduce Iranian traditions to Spanish people. [20]
Davoud Seyed M. Salehi, The Iranian ambassador in Spain defended the death penalty and the amputation of hands of thieves. Iran was the second country with more executions in 2007, after China. Two days before his declarations, was sentenced to death a boy aged 22 by repeated consumption of alcohol. "Our laws state to amputate the hands of those who steal. This is not accepted by the West, but in the field of Human Rights one must take into account the customs, traditions, religion and the country's economic development. It is necessary to accept some laws to preserve the health of the society, if not, this would be in danger."[21]
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References
[1] „Spain hails Iran´s
Mideast role,“ PressTV, May 28, 2008, http://www.presstv.ir/detail.aspx?id=57628§ionid=351020101
[2] „Repsol, Shell renegotiating Iran gas deal,“ Agence France Presse,
May 13, 2008, http://afp.google.com/article/ALeqM5heogyLelqlwsOBAWCdhSBdZOldQw
[3] "Iran oil exports at 2.5 million bpd," PressTV, Jul 28, 2008, http://www.presstv.ir/detail.aspx?id=64974§ionid=351020102
[4] „Iran-Spain Trade Reaches 3 Billion Euros,“ Payvand News, April 19,
2008, http://www.payvand.com/news/08/apr/1188.html
[5] „Iran presents outline of proposals package to Spain,“ Tehran Times,
May 12, 2008, http://www.tehrantimes.com/index_View.asp?code=170056
[6] „Spain hints at closer Iran relations,“ PressTV, April 3, 2008, http://www.presstv.com/detail.aspx?id=50145§ionid=351020101
[7] "7 countries compete over signaling Tehran-Mashhad railroad,"
Teheran Times, July 28, 200, http://www.tehrantimes.com/index_View.asp?code=174124
[8] „Shell, Repsol quit Iran gas project – report,“ Thomson Financial,
May 12, 2008, http://www.forbes.com/markets/feeds/afx/2008/05/12/afx4995133.html
[9] „Repsol eyes exit from Iranian energy sector,“ New Europe, May 12,
2008, http://www.neurope.eu/articles/86403.php
[10] „Shell, Repsol seek way out of Iran gas deal: report,“ Agence
France Presse, May 3, 2008, http://afp.google.com/article/ALeqM5ia7EMAtwpKVxHt9KhJHXJl9C_X9Q
[11] Kiernan, Peter: „Pipeline Politics: Iran Looks to Send Natural Gas
East,“ World Politics Review, May 28, 2008, http://www.worldpoliticsreview.com/Article.aspx?id=2193
[12] „Iran: Politics Affecting South Pars Energy Projects,“ Stratfor,
May 29, 2008, http://www.stratfor.com/analysis/iran_politics_affecting_south_pars_energy_projects
[13] „Iran 'negotiating swap of Repsol, Shell gas projects',“ Agence
France Presse, May 29, 2008, http://news.yahoo.com/s/afp/20080529/wl_mideast_afp/irangasbritainspainfrance
[14] Webb, Jason: „ Shell, Repsol aim to leave Iran gas project: paper,“
Reuters, May 3, 2008, http://www.reuters.com/article/businessNews/idUSL0316140320080503
[15] „Shell and Repsol sign gas deal with Iran,“ Associated Press,
January 30, 2007, http://www.iht.com/articles/2007/01/30/business/shell.php
[16] Halloran, Becky: „Zapatero´s 'Alliance of Civilizations' includes
Iran: Spain will Continue to Support Diplomacy,“ Transatlantic Perspectives, http://www.unc.edu/depts/tam/journal/06/fall06halloran.htm
[17] „Spanish FM: EU attemps to solve Iran´s nuclear issue peacefully,“
IRNA, March 1, 2007, http://www2.irna.ir/en/news/view/menu-234/0703019217175809.htm
[18] „Iran, Spain set to boost cultural ties,“ PressTV, September 22,
2007, http://www.presstv.ir/detail.aspx?id=24082§ionid=351020105
[19] „Iran and Spain to expand academic ties,“ The Journal of Turkish
Weekly, June 22, 2007, http://www.turkishweekly.net/news.php?id=4631
[20] "Spain to host Iran Culture Week," Press TV, Aug 10, 2008, http://www.presstv.ir/detail.aspx?id=66160§ionid=351020105
[21] "El embajador iraní en España defiende la amputación de las manos a
quien roba," ElMundo.es , Aug, 02, 2008, http://www.elmundo.es/elmundo/2008/02/08/internacional/1202449072.html
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