VZCZCXRO4968
OO RUEHBC RUEHDE RUEHDIR RUEHKUK
DE RUEHVB #0485 1791236
ZNR UUUUU ZZH
O 271236Z JUN 08
FM AMEMBASSY ZAGREB
TO RUEHC/SECSTATE WASHDC IMMEDIATE 8442
INFO RUCNIRA/IRAN COLLECTIVE PRIORITY

UNCLAS ZAGREB 000485 
 
SIPDIS 
 
DEPARTMENT FOR EUR/SCE (BALIAN) AND EEB/ESC/TFS (COULTER) 
 
E.O. 12958: N/A 
TAGS: ENRG EPET ETTC IR PREL HR
SUBJECT: IRAN SANCTIONS ACT:  INA CEO COMMENTS ON 
INVESTMENT IN IRAN 
 
REF: ZAGREB 466 
 
¶1.  Following up his meeting with Croatian Foreign Minister 
Jandrokovic (reftel), Ambassador spoke with INA CEO 
Dragicevic on June 24 regarding INA's activities in Iran. 
Citing a June 23 Xinhua wire service report of the 
announcement of INA exploration in Iran, the Ambassador 
stressed that while INA might consider itself to be a small 
player, the Iranians would seek to exploit the agreement with 
INA to show their public and the international community that 
UN sanctions were not stopping companies from doing business 
in Iran. The Ambassador urged that INA reconsider its 
exploration agreement. 
 
¶2.  Dragicevic responded by recounting his conversations with 
previous U.S. Ambassadors about doing business in other 
sensitive countries.  INA was aware of Washington's interest 
and was careful to comply fully with UN sanctions and U.S. 
legislation,even when this had cost INA business.  He noted 
in particular the example of Libya, where he claimed INA's 
opportunities were eventually taken by American companies. 
The planned INA activities in Iran, he maintained, were 
consistent with both UN and U.S. measures. 
 
¶3.  Dragicevic noted that despite exaggerated Iranian press 
statements, INA initially would have only a very limited 
presence in Iran -- two to three technical people and an 
assistant.  It would be at least two to three years before 
seismic work could be completed and any decision made about 
development.  Dragicevic expressed the hope that in this 
period progress could be made between the international 
community and Iran on its nuclear program. 
 
¶4.  Comment. Even if INA is unlikely to cancel its agreement 
with Iran, both the company and the Croatian Government are 
aware that their relations with Iran are attracting attention 
in Washington. We would hope that this would make them more 
cautious about future involvement with Iran. 
 
 
 
Bradtke