Volvo Stops Operations In Iran Due to U.S. Sanctions
Swedish truck-maker AB Volvo has stopped assembling trucks in Iran because U.S. sanctions are preventing it from being paid, a spokesman for the company told Reuters.
The United States reinstated sanctions on Tehran in August after U.S. President Donald Trump pulled out of the 2015 nuclear deal with Iran in May. Further U.S. sanctions will be imposed in November.
The reimposition of U.S. sanctions has forced companies across Europe to reconsider their investments there, with French oil-and-natural-gas company Total, German carmaker Daimler, and Deutsche Telekom pulling out of Iran.
Volvo spokesman Fredrik Ivarsson told Reuters that the company could no longer get paid for any parts it shipped and decided to stop operating in Iran.
"With all these sanctions and everything that the United States put [in place]...the bank system doesn't work in Iran. We can't get paid...So for now we don't have any business [in Iran]," Ivarsson told Reuters.
U.S. sanctions promise penalties against European companies that choose to continue to do business in Iran.
Aside from the promise of stiff penalties, foreign companies seeking to do business with Iran will not be allowed to use U.S. banks; deal in the global reserve currency, the U.S. dollar; or access powerful U.S. stock exchanges.
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