Iran Tracker

Nuclear:

As a part of the European Union, Italy has supported all sanctions against Iran and has stated that it would support further sanctions if Iran does not comply with the IAEA and its Nuclear Non-Proliferation Treaty obligations.[1] Italy’s Foreign Minister, Massimo D’Alema, said in 2007 that, “the prospect of Iran ... acquiring nuclear weapons is unacceptable for the international community. Italy has implemented the sanctions, the resolutions as well as restrictions decided by the European Union and we'll continue to do our part, convinced as we are that it's indispensable to preserve the cohesion of the international community.”[2] In March 2009, Italian Foreign Minister Franco Frattini stated that the international community should strengthen its stance regarding Iran’s nuclear program, however warned of significant negative consequences if military action were taken against Iran; Frattini also said that Italy, through its leadership of Group of Eight (G8), would increase attention to the issue of Iran’s nuclear program.[3] 

[Click here for more information on the European Union]

Economic Relationship:

Italy traded more with Iran than any other member of the EU in 2007; bilateral trade between the two totaled well over $7.5 billion.[4] Much of Italy’s trade with Iran comes from investments made by Italy’s energy company, Eni, in Iran’s oil and gas reserves. Beyond cooperation over hydrocarbon extraction, Italy and Iran have cooperated in the commercial industry. Italy’s Fiat has agreed to begin manufacturing its Siena four-door sedans in Iran after signing an agreement with the Iranian car manufacturing company PIDF in July 2008.[5] In addition, Iran has expressed interest in increasing its cooperation with Italy’s banking sector, though extensive UN Security Council and EU sanctions would hamper any potential banking cooperation between the two.[6] Despite extensive sanctions against Iran’s nuclear program, many of which Italy has voted in favor of both in the UN and the European Union, Italy continues to be a strong bilateral trade partner of the Islamic Republic.[7] As of 2009, bilateral trade exceeds $8 billion, making Italy Iran’s largest trading partner in the European Union. In March 2009, Italian Ambassador to Tehran Alberto Bradanini called on Iran and Italy to expand economic cooperation; Bradanini noted that the Persian Gulf Mining & Metal Industries Special Zone was a major possible center of future foreign investment.[8] In April 2009, Iranian Oil Minister Gholam Hossein Nozari announced the beginning of studies on the construction of a new gas pipeline between Iran and Europe, which would Link Iran to Italy and Greece.[9]

In July 2009, Iran’s Mehr News Agency reported that Iran’s oil ministry signed an agreement with an unnamed Italian firm to aid in Phase 12 of the development of the South Pars gas field. While the agency failed to name the Italian company, it did note that the contract was worth more than $1.5 billion.[10]

In November 2009, Iran’s government said that it would use Italy to launch a communications satellite some time after March 2011 after waiting years for Russia to do the job; however, Italy’s Carlo Gavazzi Space Company said that no launch is planned or even possible at the moment.[11] The Italian Economic Development Ministry confirmed that it never released an export license for the satellite.[12] Later that month, Iranian Managing Director of the Petropars Oil and Gas Company, Gholam Reza Manouchehri, announced that Iran signed a $4 billion contract with Italy and South Korea on the development of the second part of phase 12 of development of the South Pars gas field, adding that another contract has also been signed with Italian Company Tecnimont and Iranian companies Nargan, Dorriz, and Gamma for the development of the third part of the same phase which is worth around $2 billion.[13]

[Click here for more information on Italy’s business relationship with Iran.]

Diplomatic/Military Relationship:

Political relations between Iran and Italy outside economic relations are limited within the boundaries of the EU and UN sanctions. As a part of the EU, Italy has supported all the sanctions against Iran, and Italy’s Foreign Minister has spoken in favor of tightening sanctions again Iran if it does not comply with UN regulations.[14] During the March 2009 Hague conference on Afghanistan, Italian Foreign Minister Franco Frattini lauded what he viewed as signs that Iran desires “to make a serious commitment” to the stabilization of the Afghanistan and that any solution to Afghan security situation must be based on a “regional approach” including Tehran.[15] In June 2009, Italian Foreign Minister Franco Frattini invited Iran to attend the Group of Eight (G8) meeting in Trieste, Italy to discuss security in Pakistan and Afghanistan; Iran ultimately failed to respond to the invitation and Frattini suggested that Iran’s non-response indicated that "it has no interest in explaining to the world if it can be constructive at least in the Pakistani and Afghan region."[16] During the June 2009 meeting, the foreign ministers of the G8 nations demanded “that violence [in Iran]…cease immediately” and called upon Iran to find peaceful solutions to the political crisis.[17]  

In a July 2009 interview with the Italian daily Avanti, Frattini stated that Iran’s role in regional affairs was critical, especially in combating drug trafficking. Since Iran is a “major player in the region,” Tehran should “sit at the table when it comes to resolving the Afghan issue." Frattini also suggested that the success of the G8’s summer meetings in Trieste and L’Aquila proved the wisdom of an approach “based on the involvement of regional powers in areas of crisis,” adding that “Iran is no exception to this rule in Afghanistan."[18]