Europe’s Ayatollah Gold Rush

The U.S. Congress still hasn’t voted on the nuclear deal with Iran, but European companies are already rushing to invest in the Islamic Republic. Italian Foreign Minister Paolo Gentiloni last week led a business delegation to Tehran, where he told his hosts that “our two countries can work together in the fields of trade, commerce and economy,” according to Iranian media.

The same week, Italian investment bank Mediobanca signed a memorandum of understanding with Iran’s Economy Ministry to facilitate future trade between Iran and Italy. Italy’s Development Ministry and Servizi Assicurativi del Commercio Estero, or SACE, the Italian export-credit agency, also signed up. Italian exports to a postsanctions Iran could see a €3 billion ($3.3 billion) boost over the next three years, according to SACE.

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As Foundation for Defense of Democracies sanctions expert Emanuele Ottolenghi says, “The plant deal, inked well before the [nuclear] deal even begins to be implemented, shows that U.S. sanctions can no longer deter global business from signing huge deals in Iran, even with the Supreme Leader’s business empire.” It’s a helpfully timed warning as Congress continues to debate the deal.

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