UK Export Finance (UKEF) and the Export Guarantee Fund of Iran (EGFI) have committed to enhancing trade and economic co-operation with a Memorandum of Understanding in a move designed to help British businesses export.

Under the agreement, UKEF, the UK’s export credit agency, and EGFI, the Iranian state-owned credit insurance company, will work together to identify opportunities for trade in capital goods, equipment and services between the two countries. It also allows the parties to co-finance and co-guarantee financing for projects or contracts in third countries involving British and Iranian exports.

The memorandum follows the extensive sanctions relief Iran received earlier this year, as a result of which UKEF immediately reintroduced cover to support UK companies seeking to compete for business in Iran.

Lord Maude, Minister for Trade and Investment, welcomed the agreement, saying:

“The UK government is working to build a strong and long-term partnership with Iran, and trade is fundamental to this. Agreements such as this one between UKEF and EGFI will help British businesses realise the opportunities that economic re-engagement will bring.”