Renault likely to pull out of Iran due to US sanctions

TEHRAN, Jul. 28 (MNA) – Renault SA is shaping up to be the latest European company to fall victim to Donald Trump’s renewed sanctions on Iran, even if it doesn’t sell cars in the US.

Iran operations are likely to be put on hold to comply with US sanctions, Renault Chief Operating Officer Thierry Bollore told analysts during a conference call about earnings Friday, UK-based Bloomberg reported.

“We are looking to new business opportunities, particularly in Africa, with strong growth to offset the missed opportunities in Iran,” he said.

Since debilitating sanctions were eased in 2016, Iran emerged as a hot spot for growth, and trade with Europe surged to more than $10 billion. Now that the US has canceled a 2015 nuclear accord with the Islamic republic and re-imposed trade curbs, companies are rushing back out.

Renault’s French rival, PSA Group, which makes Peugeot and Citroen cars, also suspended its push in Iran. French energy companies Total SA and Engie SA are also heading to a pullout, along with other European industrial giants including Germany’s Siemens AG, which agreed to supply turbines to the country, or plane maker Airbus SE, which had won an order for 100 planes. Payments processor Ingenico Group SA said this week it’s phasing out its activities in Iran.

Even as European government vowed to stand by the nuclear accord, which ended Iran’s program to develop nuclear weapons in exchange for access to global markets, the reality is far more complex.

MA/PR

News Code 136113

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