Iran trade and sanctions
May 25, 2018 -- The economic impact of U.S. President Trump’s move to quit the Iran nuclear deal and reimpose sanctions on Tehran will hit EU companies that have done business with Iran since the 2015 accord was signed.
Iran’s crude oil exports more than doubled since the nuclear deal with the P5+1, the five permanent members of the UN’s Security Council: China, France, Russia, the UK and the U.S., plus Germany. Under the pact — the Joint Plan of Action (JPOA) under which Iran agreed to curb its nuclear work in return for limited sanctions relief — Tehran saw oil exports surge from 1.1 million barrels per day (bpd) to 2.3 million bpd.
In a meeting in Vienna on Friday (May 25) to try and salvage the nuclear deal, Iran told European powers to present it with measures to compensate it by the end of May. Tehran would then decide within weeks whether to quit the accord.
The EU has been trying to find a way to ensure that economic benefits continue to persuade Tehran to stay in the deal. But that has proven difficult, with European companies worried over U.S. secondary sanctions.
French oil and gas giant Total has decided to cancel a five-billion-dollar project to develop South Pars natural gas field unless U.S. authorities grant it a waiver. Norway’s Saga Energy has dropped a $3 billion agreement to build solar power plants while Denmark’s shipping group A.P. Moller-Maersk has called a halt to doing business with Iran. Airbus is loosing a $25 billion deal to sell commercial aircraft to IranAir and Iran’s Aseman Airlines.