Iran warns France risks being left in cold

An Iranian minister has warned France of being shut out of the resource-rich country’s market, including about $80 billion worth of business in the transport sector.

Transport Minister Abbas Akhoundi, in Paris on the invitation of the French government to attend an international air show, characterized ties between the two countries as a “love-hate” relationship.

"In a word, I would say that love and hate dominate all aspects of our relationship," Akhoundi said at a conference at the International Diplomatic Academy.

He met Airbus Chief Executive Fabrice Bregier and French government officials, including Minister of Territorial Equality and Housing Sylvia Pinel.

In his address to the conference, Akhoundi said Iran planned to spend $25 billion on improving its rail infrastructure and $30 billion on roads and motorways.

Iran also needs 300-400 more aircraft worth a minimum of $20 billion to refurbish its ageing aviation fleet, he said.

Head of the Iran Civil Aviation Organization Ali Reza Jahangirian has said Iran needed to buy up to 500 passenger planes in the next 10 years.

However, an issue of contention for now is Iran’s recent acquisition of nine used Airbus jets which the US government has pledged to block if they are used on international routes.

Mahan Air acquired eight used A340s and one A321 last month, using a sanctions relief on Iran’s aviation under a preliminary agreement with Iran, to which both the US and France are party.

The US government however has said it was actively working to have them impounded.

Meanwhile, France is said to be following a tougher line than other members of the West’s team in nuclear negotiations with Iran as they try to clinch a final deal.

Akhoundi said, "Sooner or later the nuclear conflict will be resolved and France needs to decide on its position now."  

"There will be international competition, but we will never allow ourselves to be dominated economically by the West again," he added.

French companies, most importantly its leading carmakers Peugeot and Renault, slammed the door on Iran’s face after the US and the Europeans intensified sanctions on Tehran in 2011.

Local economists say Iran must raise the bar and not give the French companies an easy pass when they try to return to the Iranian market.

They say there are no guarantees that the French firms would not return to their old ways and leave Iran again under pressure.