Identifier
Created
Classification
Origin
06ROME2156
2006-08-01 13:07:00
UNCLASSIFIED
Embassy Rome
Cable title:
ITALY'S COMMERCIAL AND BUSINESS PRESENCE IN IRAN
how-toVZCZCXRO7036 PP RUEHBC RUEHDE RUEHKUK DE RUEHRO #2156/01 2131307 ZNR UUUUU ZZH P 011307Z AUG 06 FM AMEMBASSY ROME TO RUEHC/SECSTATE WASHDC PRIORITY 5508 INFO RUEATRS/DEPT OF TREASURY WASHDC PRIORITY RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY RUCNIRA/IRAN COLLECTIVE RUEHFL/AMCONSUL FLORENCE 1609 RUEHMIL/AMCONSUL MILAN 7441 RUEHNP/AMCONSUL NAPLES 1703
UNCLAS SECTION 01 OF 03 ROME 002156
SIPDIS
SIPDIS
E.O. 12958: N/A
TAGS: ECON ETRD EFIN IR IT
SUBJECT: ITALY'S COMMERCIAL AND BUSINESS PRESENCE IN IRAN
REF: A. ROME 2034
B. ROME 1876
C. JUNE 22 2006 SIPRNET REPORT
D. ROME 452
ROME 00002156 001.2 OF 003
Introduction
------------
UNCLAS SECTION 01 OF 03 ROME 002156
SIPDIS
SIPDIS
E.O. 12958: N/A
TAGS: ECON ETRD EFIN IR IT
SUBJECT: ITALY'S COMMERCIAL AND BUSINESS PRESENCE IN IRAN
REF: A. ROME 2034
¶B. ROME 1876
¶C. JUNE 22 2006 SIPRNET REPORT
¶D. ROME 452
ROME 00002156 001.2 OF 003
Introduction
--------------
¶1. (U) Total two-way trade between Italy and Iran reached
5.17 billion euros in 2005, making Italy Iran's second
biggest trade partner in the EU in eurodollar terms. Italian
companies also have an active presence in many sectors of the
Iranian economy. Paragraph 3 lists companies with
investments, specific on-going projects, or representative
offices in Iran. This list is derived from the Ministry of
Trade, which requires all Italian companies "doing business"
with Iran to register with the Ministry. We have also drawn
from company information found on the internet to provide a
description of a company's business activities. The
paragraph 3 list also includes Italian banks. For further
information on Italy's financial and banking relationship
with Iran, please see ref B.
¶2. (U) Italy has at least 433.2 million euros in foreign
direct investment in Iran as of December 31, 2004. However,
that figure, in our view, is vastly understated. The figure
does not take into account foreign direct investment through
a service contract mechanism, whereby a firm can invest in,
for example, the oil sector, but only by relinquishing the
title to the infrastructure the firm builds, and only for the
promise of a return through downstream oil flow proceeds.
For example, ENI, Italy's oil and gas parastatal, reports it
has invested 2.5 billion euros over a period of several
decades. As you can see, this figure of 2.5 billion euros is
not included in Italy's official foreign direct investment
figure (433.2 million euros).
¶3. (U) Italian Commercial Presence in Iran 2005.
Associazione Operatori Italiani in Iran: Association of
Italian workers in Iran; not a company
Alcatel Italia S.p.A.: Providers of telecommunication
equipment (broadband DSL)
Alitalia S.p.A.: Airline operators
Alstom Power Italia S.p.A.: Design and construction in
electrical engineering
Ansaldo Energia: Supply and start-up of gas turbines
ASI-Robicon: Installation and start-up of electrical pumps
Banca Intesa S.p.A.: Bank/financial activities; loan exposure
is 25 mm. euros (loan funded in euros)
Banca Naziona