Italian government curbs Iran investments

03 February 2010

During a  visit to Israel, Italy’s Prime Minister Silvio Berlusconi has said that the state-controlled Italian company Eni had canceled a contract for the development of an oil field in Iran. Eni is Italy’s largest industrial company, and is active in 70 countries. Italy has been Iran's leading European trading partner, but political pressure has recently led to a reduction in Italian investments there. "Eni has a contract to respect unless it wants to pay a penalty but it has already renounced the possibility it had to develop the third phase of an important field," Berlusconi told reporters at a press conference in Israel.

Italian Foreign Minister Franco Frattini told Italian television from Israel that the government had also suspended export credit guarantees for Italian firms investing in Iran. "We are absolutely firm about blocking new investments in the oil and gas sector," he said.

The Iranian threat also dominated talks between ministers of Italy and Israel in Jerusalem. Berlusconi said he was concerned with Iran's stance on the nuclear program and pledged he would “do anything” to stop it. Referring to Hezbollah’s activities in Lebanon he said that during his upcoming visit to Beirut he would try to secure "some sort of commitment" from Lebanese Prime Minister Saad Hariri for action on weapons smuggling.

At the beginning of his visit to Israel, Berlusconi said his “greatest desire” in politics was to bring Israel into the European Union. Israel has asked Italy for help in getting the European Union to list the Iranian Revolutionary Guards as a terrorist group. "During my meeting with Prime Minister Silvio Berlusconi, I asked him that Italy pass a law placing the Revolutionary Guards on the list of terror organizations, with a view that the European Union follows suit," Vice Prime Minister Silvan Shalom told Israeli radio.

Foreign Minister Avigdor Lieberman called on Berlusconi to use his contacts with Russia in order to impose economic sanctions on Iran. During a meeting in Jerusalem, Lieberman asked the premier to prevent the sale of weapons to Iran from Russia. He further called on Italy to take a leading role in getting international legislation which would provide democratic countries with tools to fight terrorism.

 

 

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