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Wary of US President Donald Trump's tough talk on Iran, the European Union is courting Tehran to signal to its commitment to a nuclear deal and holding out the promise of its economic payoff ahead of May 19 presidential polls, EU diplomats say.
Europe's energy commissioner is leading more than 50 European firms in a business forum in Tehran over the weekend - the latest sally to help knit new trade ties in the 16 months since Iran curbed its nuclear programme in exchange for relief from sanctions.
Of the six major powers who engineered the deal - the United States, Britain, France, Germany, China and Russia - EU nations bore the brunt of the oil embargo on Iran and stand to gain the most from a thaw they view as a victory for European diplomacy.
Meeting with Iran's atomic chief Ali Akbar Salehi, Commissioner Miguel Arias-Canete echoed the EU's mantra that it is "fully committed" to the 2015 deal and expects the same from all other parties.
But the bloc's leverage remains limited - particularly if it is not able to shield European firms from the risk of remaining US sanctions and encourage big banks to reverse over a decade of Iran's exclusion from the international financial system.
Some Western companies have returned but many more have hung back, fearing Trump will tighten the screws on an already complex set of rules for engaging with Iran.
The pace and scale of Western investment is at the heart of a challenge by hardline rivals of President Hasan Rohani, who is seeking a re-election in May.
Iran's Supreme Leader Ayatollah Ali Khamenei and his hardline loyalists have criticised Rohani's policy of rapprochement with the West, arguing the 2015 nuclear accord had not yielded the benefits he promised. EU diplomats voiced concern that a more confrontational stance by the Trump administration could empower Iran's hardliners ahead of the elections.
EU diplomats say they share US concerns over Iran's human rights record, its missiles tests, its funding of blacklisted militant groups and its support for Syrian President Bashar Al Assad.
EU wants to strengthen moderates in polls
> The EU is trying to strengthen moderate elements ahead of Iran polls.
> The EU stand to gain the most from a thaw in ties with Iran.
> Europe's energy commissioner leads 50 European firms in a business forum in Tehran.
> Commissioner Miguel Arias-Canete says EU is fully committed to the nuclear deal.
> Some Western firms have returned to Iran but others are reluctant fearing US sanctions.
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