Economic Sanctions on Iran Lifted: Spain Pushes Plan for Joint Refinery
Jan 19, 2016 08:02 AM EST
According to the Spanish foreign minister, Spain and Iran are currently in dialogue for the construction of an oil refinery at the Gibraltar strait that will be owned by Iran.
Several reports state that Spain and Iran are coming into terms with regards to boosting their economies by building an oil refinery. Jose Manuel Garcia-Margallo, Spanish foreign minister, stated on Monday that he hopes that the refinery could be the start of many deals between Spain and Iran. Margallo made the announcement a day after the sanctions on Iran were lifted.
The refinery will be built in the Algeciras, a southern port city, which also has a low employment rate. Margallo hopes that the refinery would provide better jobs for the region.
On Saturday, the United States and the European Union revoked the sanctions against Iran. The sanctions had cut down its oil exports dramatically since the peak of the sanctions in 2011. As a returned favor, Tehran will have to hold back its nuclear projects and agree on a deal regarding the matter.
Abbas Kazemi, Iran's Deputy Oil Minister, has mentioned in November that investing in refineries to be built overseas would be Iran's top priority after the sanctions have been lifted. This is to boost oil output after the sanctions were lifted and true enough, the country immediately ordered a rise in oil output to 500,000 barrels a day.
"What we see here is a new chance for the region to stabilize and for our companies to secure good business opportunities," said Margallo in a report by The New York Times.
"Our political friendship with Iran is very good because we moved faster than other countries and are now very well placed for future business," added Margallo, in a separate post by Reuters.
Margallo had traveled to Iran in 2014 to seek possibilities for business and a partnership when the sanctions have been lifted. Margallo has been known to be keen to build a closer relationship with Iran and Spain. The foreign minister also believes that the refinery will do Iran good favors as it re-enters the international economy.