Iran, Italy sign deals worth billions as Rouhani embarks on Europe trip

In his first foreign trip since the European Union(EU) and the United States lifted sanctions against his country, Iranian President Hassan Rouhani on Monday began a two-day visit to Italy during which the two countries signed billions of dollars in business agreements.

The trip is Rouhani's first visit to Europe and comes as Iran -- with its most open stance toward the west in decades -- seeks to increase commercial and political ties as a way to gain support for his internationalist politics.

Rouhani was elected in 2013, promising to reduce the country's isolation. So far, the crowning achievement of his administration has been a deal that resulted in sanctions being lifted on January 16. That was part of a broader deal that included Iran agreeing to curb nuclear activities.

Italian analysts expect Rouhani to finalize 18 billion U.S. dollars in new trade agreements with Italy during his visit in the country, which will include face-to-face meetings with Italian President Sergio Mattarella, Prime Minister Matteo Renzi, and Foreign Minister Paolo Gentiloni.

Among the deals from Rouhani's first day: a series of four commercial agreements between Iranian companies and Italian steel firm Danieli worth at least 4 billion U.S. dollars and a 4-billion-U.S.-dollar contract with infrastructure development firm Condotte.

"This is just the beginning of a journey," Renzi said Monday. "There are economic sectors where we must work together much closer."

High-ranking officials from Italian carmaker Fiat, oil exploration firm Eni, and energy utility Enel were at the formal state dinner held for Iranian President Monday evening.

Iran is looking to reinsert itself into the world economy, stepping up oil production and reconnecting its banks to the worldwide banking system. Increasing trade with Italy is part of that plan: Until 2012, when the EU agreed to stop buying Iranian oil, Italy had been Iran's most important trading partner within the EU, but the value of that connection has atrophied since then, totaling just 1.3 billion U.S. dollars in 2015, down from 7.6 billion U.S. dollars three years earlier.

"Italy was Iran's leading European economic and trade partner before the sanctions," Italian Minister of Economic Development Federica Guidi said in a press briefing before Rouhani's visit, adding that Italy was eager to rebuild the relationship.

Greeting Rouhani and his 120-person delegation on their arrival, Mattarella echoed those remarks, pointing to the history of strong ties between the two nations.

Relations between Italy and Iran have withstood difficult times due to the deep friendship between the two peoples, Mattarella said, adding Italian companies have been looking forward to this moment, and they stand ready to resume their cooperation with Iran.

If that happens, it will be good news for Italy. Though trade between the countries is very limited, any growth will help Italian economy as it looks to climb out of a period of economic malaise that has gripped the country for more than a decade. Economists have said repeatedly that increased exports are a key part of Italy's hopes for an economic recovery.

Rouhani will leave Italy for France on Wednesday morning. Endit