Renault and Industrial Development and Renovation Organization of Iran (IDRO) on Monday inked a 660-million-euro contract to increase manufaturing vehicles.
'It was a victory for President Hassan Rouhani, who was sworn in office on Saturday after being re-elected this year promising to revitalize an economy hurt by sanctions,' the New York Times wrote after the announcement of the deal on Monday.
'Iran, an Islamic republic, is increasingly attracting foreign investors, despite restrictions imposed by the United States over its missile program and its military activities in the region,' the American paper said, pointing to some difficulties Iran is facing due to the US measure, including the sanctions bill that President Donald Trump signed into law.
'The agreement to establish a joint venture with a government-run conglomerate is welcome news for Iran,' New York Times added.
'One partner, the Industrial Development and Renovation Organization, a government conglomerate known as IDRO which controls 117 companies, was long under sanctions by the United States and Europe which accused it of supporting Iran’s missile program. Those sanctions were lifted under Iran’s nuclear agreement with world powers last year, which allowed Renault and other foreign companies, including the American plane manufacturer Boeing, to do business with the country.'