Print

Mail

wiki links

Washington tells EU firms to leave Iran

Multinational companies are coming under increasing pressure from the US to stop doing business with Iran because of its nuclear program. European operators are facing threats from Washington that they could jeopardize their US interests by continuing to deal with Tehran, with increasing evidence that European governments, mainly France, Germany and Britain, are supporting the US campaign.

It emerged on Thursday night that Germany-based Siemens has pulled out of all new business dealings with Iran after pressure from the US and German governments.

This follows the decision by Germany's three largest banks -- Deutsche, Commerzbank, and Dresdner -- to quit Iran after a warning from US Vice President Dick Cheney that if firms remain in Tehran, they are going to have problems doing business in the US.

The UK's Foreign Office, while sympathizing with City of London firms, has privately backed the US warnings in recent weeks, telling companies such as Shell and BP of the risks of continuing business with Iran.

French President Nicolas Sarkozy has urged French energy firms not to pursue new business in Iran, and German Chancellor Angela Merkel is joining him in pressing for new sanctions, probably at EU level.

The US is tightening its economic squeeze on Iran and last month imposed a new round of sanctions.

It regularly complains in private to the British and other European governments that US efforts are being undermined by European companies continuing to do business with Tehran.

If economic sanctions fail to have an impact by next year, pressure will mount from Cheney to launch air strikes against Iran.

The under-secretary for political affairs at the US state department, Nicholas Burns, and the under-secretary at the treasury, Stuart Levey, have made frequent trips to Europe to warn companies they face the loss of US business if they continue to deal with Iran.

BP said in 2005 that "politically Iran is not a flyer" because of the company's huge presence in the US. Rival Shell has been tentatively moving forward with engineering studies on a large gas project in Iran but has insisted in the past that it would only take a final decision once it knew it was commercially viable.

The two British banks most frequently mentioned in Washington in relation to Iran are HSBC and Standard Chartered.

Both banks have scaled down their operations in Iran but maintain a modest presence in Tehran.

Siemens insiders said the group would carry out existing contracts in Iran which have attracted government export credit guarantees, but would seek no new contracts.

The engineering group won a contract four years ago to supply 24 power stations to the Iranians and last year secured a provisional 450 million euro (US$661 million) deal to supply 150 locomotives for Iran's railways.
This story has been viewed 1039 times.