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From aviation to shipping, company deals at risk from US sanctions on Iran

AP Moller-Maersk said it planned to shut down operations in Iran

Reuters 

Buyouts and exits: India seen 1,068 buyout deals worth $41 bn since 2018

AP Moller-Maersk, the world’s biggest container shipper, said on Thursday it planned to shut down operations in Iran.

Following are a few that could be affected by Donald Trump’s decision to withdraw from an nuclear deal with Iran and impose sanctions on Tehran:

OIL AND GAS

Total said on Wednesday it would pull out of the South Pars project and unwind all related operations by November 4 “unless Total is granted a specific project waiver by U. S. authorities with the support of the French and European authorities.”

The company had signed the South Pars deal in November 2016, becoming the first oil major to agree a big transaction with Tehran in the wake of the 2015 nuclear agreement.

India’s Oil and Natural Gas Corp Ltd in February signed an initial non-binding agreement with an Iranian company to develop the Susangerd oilfield in the south of Iran, a company source said.

ALSO READ: Iran nuclear deal: Trump announces US withdrawal, reinstates sanctions

SHIPPING

Maersk said on May 17 it planned to wind down its business in Iran following US plans to impose sanctions on Tehran. “I don’t know the timing details exactly, but I am certain that we’re also going to shut down (in Iran),” CEO Soren Skou said.

AVIATION

US planemaker Boeing agreed in December 2016 to sell 80 aircraft, including 15 Boeing 777-300ER long-range jets, to IranAir. Last month, Boeing said it had found new homes for jets it hoped to deliver to Iran this year.

European planemaker Airbus said in December 2016 it had sealed a deal to sell 100 jets to IranAir.

Only three have so far been delivered.

AUTOMOTIVE

French carmaker PSA had signed Iranian production deals worth 700 million euros ($768 million) by May 2017.

Germany’s Volkswagen said in July 2017 it would start exporting cars to Iran, returning to the market after more than 17 years. But the company said in October 2017 its Spanish arm Seat was no longer looking at the possibility of entering the Iranian car market.

France’s Renault said in August 2017 it had signed a joint venture deal in Iran following an initial partnership agreement a year earlier. The new venture included an engineering and purchasing centre to support the development of local suppliers as well as a plant with an initial production capacity of 150,000 vehicles a year, supplementing Renault’s existing capacity of 200,000 vehicles a year in the country.

Germany’s Mercedes-Benz Trucks signed a contract with Iran Khodro in September 2017, laying the foundation for resuming distribution of its trucks in Iran.

First Published: Thu, May 17 2018. 23:09 IST
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