Italy’s Current Economic Relations with Iran

Abstract

The article examines economic relations between the Republic of Italy and the Islamic Republic of Iran, assessing the factors influencing the development of these relations and their significance for each country. As the author shows, bilateral relations are particularly influenced by Italy’s membership in the European Union, as well as the sanctions regime initiated against Iran by the United States and supported by Brussels. However, even despite the difficult international situation, for the past two decades Italy has consistently ranked among Iran’s top three European partners. The article examines in detail the structure of Italy’s exports and imports to Iran and vice versa, and provides an outline of major recent Italian investment projects in Iran. The author concludes that, despite all unfavourable factors, both countries seek dialogue and try to maintain economic relations wherever possible. Bilateral cooperation may be very promising in the future – but only given that the sanctions against Iran are significantly eased.