Webinar how to do business with Iran

The Bulgarian Chamber of Commerce and Industry, the Embassy of the Republic of Bulgaria in Tehran and the EU’s Due Diligence Helpdesk on EU Sanctions for EU SMEs dealing with Iran organized a webinar focusing on legitimate business in Iran in light of the EU sanctions.

20 representatives of Bulgarian companies, interested in the Iranian market took part in the event. Although market opportunities for EU companies in Iran are abundant, EU economic operators have to make sure that their proposed business activities and their potential Iranian business partners are compliant with EU sanctions.

The President of the Bulgarian Chamber of Commerce and Industry Tsvetan Simeonov encouraged the Bulgarian companies to be active since Bulgaria has long trading traditions with Iran.  Together with the respective Diplomatic missions in the two countries the Bulgarian Chamber of Commerce and Industry is ready to consult companies how to find partners.

Stoil Zlatarski, counsellor at the Embassy of Bulgaria in Tehran also addressed the audience. He emphasized that this year Bulgaria and Iran mark 125 years of diplomatic relations. Mr. Zlatarski made an overview of the economic cooperation stating that the bilateral turnover used to have a positive trend by 2017. After the imposing of the sanctions, it declined. One of the main problems in trade relations appears to be bank payments. In transportation of goods there are well established cooperation and contacts. Currently the two countries are working in direction setting up transport corridor Persian Gulf – Black Sea. According to the counsellor the Bulgarian companies need to be more prepared how to do business in Iran since there is some uncertainty in the rules and procedures.

The webinar addressed business opportunities in Iran and how Bulgarian companies can ensure that their proposed business plans in Iran can be realized under EU law. Mr. Simon Cheetham, Team Leader, Due Diligence Helpdesk on EU Sanctions for EU SMEs dealing with Iran presented the free-of-charge services the European Commission provides to EU SMEs to support them in verifying the legality of their business plans.

European businesses interested in doing business with Iran must consider whether their activities would fall under any existing sanctions as applicable and ensure that appropriate due diligence is carried out before engaging in any business activity. Many businesses, in particular SMEs, are not always able to allocate resources to carry out due diligence checks. To avoid uncertainty about the legality of conducting any potential business with Iran, they may therefore be inclined to abstain from pursuing legitimate business opportunities.

The goals of the Help desk include:

• To provide concrete support to EU businesses by carrying out due diligence regarding EU sanctions compliance for specific business projects;
• To help reduce transaction costs for EU SMEs dealing with Iran;
• To encourage EU businesses to engage in Iran by applying a due diligence concept based, inter alia, on principles elaborated within the framework of the Commission’s preceding action financed under the Partnership Instrument (“Due diligence for EU operators related to Iran”);
• To reassure European banks, which may be currently reluctant to handle transactions involving Iran by providing EU SMEs with well-researched due diligence documentation on their Iranian business partners;
• Demonstrate the EU’s continued commitment to the Joint Comprehensive Plan of Action (JCPoA) entered and executed in 2015 between Iran and allocating significant funds to improving EU-Iran trade.

More information here https://sanctions-helpdesk.eu/