British activist: Iran’s trade opportunities cannot be ignored

EghtesadOnline: ‘Charles Blackmore’ CEO of ‘Audere International’ claims Iran is an emerging market that its opportunities cannot be ignored.

News ID: ۷۷۱۷۰۱

27 November 2016

Blackmore made the remarks in an exclusive interview with IRNA.

The following is the full text of his interview with IRNA:

Q. What are the risks associated in doing business with Iran?

A. I am saying that an investor will look at all the markets such as Russia, Turkey, Iran and a same risk such as risk of local business regulation, the risk of not knowing who your local partner is, the risk of corruption, the risk of poor legal system is in every market.
These are all common to every emerging market in the world.
But what I am saying is that in Iran there are more specific risks, risks that people have to identify which are identifying if there are any sanctions or links to sanctions, identifying the regulation about ownership of public companies.
I know this is difficult for people to understand in Iran but for a foreign investor, they have to understand these risks and therefore they’ve got to do their due diligence to understand exactly who they are going to partner with and make sure that they do not lose their reputation and money.

Q. Many of the sanctions have been removed, what are other problems for foreign investors to interact with Iran?

A. The majority of the sanctions have been removed but there are some residual and primary sanctions. So an investor must check which company they are investing in and they must check the product that they are selling to Iran does not breach the sanctions by America.
So they have to be sure about that.

Q. What is your opinion about Donald Trump’s victory in the US election, how will this effect the situation?

A. It is too early to say, but I think that the president-elect is going to be a businessman and it is not going to effect. He knows this is going to be the biggest market opportunity and the American companies need to be there. I think this is going to be good news for Iran.
I am an investment optimist. I think that the potential of Iran is so big that people cannot ignore it.
I think Iran is the best market opportunity that there is but you have to go in and conduct your risk assessment. You have to be aware.
All I am saying is that people need to understand the risks. If they have the right information, if they do the right due diligence, if they have a good market entry model, if they have the right financing mechanism, then there is no risk.
If they make the assessment, there is less risk; but what businesses mustn’t do is just go in to the market.
People should go now and make business connections.

Q. What is your opinion about the future prospect of European companies investing in Iran?

A. Iran will want to attract European investors because they are more sophisticated, they are long term investors and good in the environment and train local people.
The problem with some of the investors is that they come, spend money but the money goes back to them or use their own people.
I think there is a great cultural relationship between Europe and Iran and I hope that more European companies will look at Iran as a longer term investment.

Q. Do you think that the removal of sanctions will affect the interest of European companies?

A. It has made them come back. Companies are asking about Iran every day. There is more interest now than ever before.
There is also more interest because of Brexit. Britain is saying I am leaving European Union. There is more interest in British companies now in Iran.

Q. Do you think that Brexit will benefit Iran?

A. Yes, I think Britain will have a stronger relationship with Iran because of trade. There more british companies will want to have bilateral trade agreements with Iran and I think our diplomacy will be stronger as well.

Q. But Brexit will bring uncertainty, what is your opinion on this?

A. That is a business risk, it is going to take place next year with your elections in May. So people are uncertain.
Next year is going to be a difficult year anyway.
By 2018 people will know about Brexit, we will know about the elections in Iran, we will know if the Americans are being strong on Iran or if they are going to make trades with Iran

Q. Do you think this uncertainty will make companies come to Iran?

A. I think the European companies are already moving in. Britain is moving slowly because Britain has to protect city of London and our banks from American sanctions; that’s why Britain is moving slowly in my opinion.
British banks do not want to get into trouble with the American OFAC.
The biggest asset in Britain is the city of London and that’s where all the money is and the Americans would like to take that back, so that’s why we have to be careful.

Q. Do you think Donald Trump will violate JCPOA?

A. I don’t know, I hope not. I don’t think so.

Q. Do you think if Trump violate JCPOA, Europeans will pursue the same policy?

A. They will have to. Because they will be worried about more sanctions
If you are asking whether if the Europeans put more sanctions on Iran, the answer to that is, it depends on the reaction from Iran.