US sanctions remain a problem for Iranian businesses

Global Business

US sanctions remain a problem for Iranian businesses

It’s been six months since international sanctions were lifted against Iran under the historic nuclear agreement.

But the deal has come under pressure from American lawmakers questioning whether it violates U.S. sanctions that haven’t yet been lifted.

CCTV America’s Jessica Stone reports.

US sanctions remain a problem for Iranian businesses

US sanctions remain a problem for Iranian businesses

It’s been six months since international sanctions were lifted against Iran under the historic nuclear agreement. But the deal has come under pressure from American lawmakers questioning whether it violates U.S. sanctions that haven’t yet been lifted.

Since January, when international sanctions against Iran were lifted, Tehran has hosted world leader after world leader all intent to do business.

Just last month, Indian Prime Minister Narendra Modi pledged as much as $500 million to develop the Iranian port of Chabahar-a gateway for India to markets in Iran, Afghanistan, and central Asia.

But the question from American lawmakers’ is causing jitters among big banks, like the Airbus sale of 118 planes to Iran which is worth an estimated $27 billion.

“There are more than 10 percent of components in the Airbus which are American, so we need permission to finalize the contract from an agency called OFAC,” Alain Vidalies, French transport minister said.

Even though the transaction isn’t American, OFAC – the U.S. Treasury’s Office of Foreign Assets Control – still gets a say in whether deals like the Airbus sale can go through.

On Wednesday, Airbus’ sales director told The Wall Street Journal that the lack of U.S. approval is the main obstacle.

Many global corporations are still trying to determine how they can do business with Iran without running afoul of the U.S. banking system.

In recent months, the U.S. Treasury Department has made an effort to educate U.S. businesses on how and when to invest in Iran, but the U.S. sanctions against Iran remain a hurdle.


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