GIEK opens up for new export contracts with Iran

- We have received great interest from Norwegian since the sanctions [against Iran] were removed. It is then our job to see how we can contribute, Wenche Nistad, CEO of GIEK, told Norwegian newspaper Dagens Næringsliv (DN) in an article 13 June about increased interest in Iran among Norwegian companies.


After the sanctions were lifted 16 January, GIEK soon received the first enquiries from Norwegian companies. According to DN, oil service company IKM group is one of the Norwegian companies now heading back to Iran.

One of the steps in facilitating Norwegian exports to Iran is to sign a memorandum of understanding (MoU) with Iran’s Ministry of Finance and a MoU with the Export Guarantee Fund of Iran (EGFI). The signing is expected to take place within a few months. The significance of such an agreement for the Norwegian exporters is equal ground for competition and safety through state-backed guarantees. The agreement has a ceiling of EUR 1bn, but GIEK will consider applications on a case to case basis.

-This is at the core of why GIEK exists. We will make sure that we will act according to regulations concerning health, environment and corruption. We must consider how tidy the transactions are, Nistad told DN.

Larger contracts will be more likely than small in the short term due to documentation cost tied to exports to Iran. GIEK has a strict policy for documentation and will ensure that guarantee issuance from GIEK will be in accordance with applying sanction regulation.

-The contracts must be of some size, around NOK 100m for it to be worthwhile. It is complicated to do business in Iran, so the contracts must be large for it to be profitable, Nistad told DN.