New Chapter in Iran-Greece Relations

The official visit made by Alexis Tsipras, Greece’s 42 year-old Prime Minister, and his high-ranking political and economic delegation to Iran and their meeting with top-ranking Iranian officials will, undoubtedly, open a new chapter in the bilateral relations between these two historic countries. Since last year, when the new administration came to power, these relations have entered a new phase. The visit made by the Greek Foreign Minister to Iran last December which was in response to the Iranian Foreign Minister’s visit to Greece opened a new chapter in their relations. He believes that the foreign policy of Iran and Greece could determine a framework to help better relations.

Greece is a European country and pursues multinational energy policy. The important point in this policy is the advancement of relations with Iran in cultural, educational and economic areas. Its foreign minister has stated that the economy of Greece and Iran are complementary, thus cooperation is much easier. The development of economic relations between Iran and Greece will help the security of the region as well and it is important that investors and businessmen help in stabilizing this cooperation. Among EU countries, Greece has always had more positive positions towards Iran. Following the nuclear agreement, the government released an official statement congratulating all those who were involved in nuclear negotiations which led to the lifting of sanctions against Iran. The statement further pointed out that reaching the agreement and implementation of the JCPOA is an important step in the establishment of peace and security and the lifting of sanctions is to the benefit of all countries and prepares the ground for further economic and trade development.

Since last year, the Greek Prime Minister has expressed his support for the expansion of economic cooperation with the Islamic Republic of Iran and his country’s readiness to increase its trade exchanges. He believes that Iran’s cooperation, particularly in economic and energy fields, is very significant for Greece. He had also called the sanctions against Iran unfair and considered the terroristic measures of ISIS as a common threat and concern of the two countries. Prior to the lifting of sanctions, Greece held several economic conferences with participation of hundreds of its businessmen to introduce Iran’s economic capacities.

Greece believes that it has a special strategic status in the region which covers the Balkan belt, the Black Sea and countries north of the Aegean Sea. It is also a member of the European Union. Technological and packaged products from Greece have high quality. Iran could be helpful in the areas of transportation, trade, shipping and energy. Greece is a very good touristic destination for Iranians and the government of Greece believes that tourism would be very important in the new road of cooperation between the two countries.

It is expected that in the visit made by the Greek Prime Minister to Iran, the case of this country’s oil debt to Iran could be closed. Prior to the imposing of sanctions against Iran in 2011, Greece provided 20% of its needed crude oil from Iran. Hellenic Petroleum, which is Greece’s biggest petroleum company and was one of the main buyers of Iran’s crude oil, owes 800 million dollars to Iran for the purchasing of oil before the sanctions. Both sides have reached an agreement in clearing these debts. Iran and Greece believe that this measure would pave the way for further cooperation.

It is expected that Greece would be among the first European customers of Iran’s oil when the sanctions are lifted. The above-mentioned company has stated that based on this contract, this company will immediately start buying oil from Iran and pay its debts. But these days, Europe’s youngest prime minister is faced with numerous domestic problems. Although Greece’s first leftist government came to power in opposition to economic austerity, it was forced to ignore some of its campaign slogans and even lose its revolutionary allies. In order to prevent Greece’s exit from the European Union, the new government is bound to remain committed to the Troika (the International Monetary Fund, Europe’s Central Bank, and the European Union) and this measure has led to the protest of some social classes during recent weeks. Tsipras and his party hope that the adoption of the new bill presented to the parliament regarding pension schemes would be another step to improve the economic situation of the people but this bill is opposed by all parliamentary parties and is difficult to be approved.