Monday 22nd Apr 2019 

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News: Iran Economy

More Companies Pull out of Iran Due to US Sanctions

Russian oil giant Lukoil-Iran

By Staff Writer

As US sanctions on Iran loom overhead, more and more companies are slowing down or pulling out of trade deals with the mullahs’ regime.

The latest companies to react to the planned reintroduction of sanctions are Russian oil giant Lukoil, which has put its Iranian projects on hold, and India's Reliance Industries, which owns the world's largest oil refining complex, is planning to stop buying oil from Iran, according to Reuters.

These pullouts, along with earlier ones from European companies, show that despite the promises made by the governments to maintain business dealings with Iran following the US withdrawal from the 2015 nuclear deal, businesses will not want to be cut off from the US market.

By November, the US intends to reinstate tough and far-reaching sanctions that were lifted during the deal, in exchange for curbs on Iran’s nuclear activities.

Lukoil

On May 30, a Lukoil official told investors: “It's too early to say what our plans [about Iran] will be. For the moment, basically, we have everything on hold."

This is a similar stance to that taken by French energy giant Total, who said earlier in May that they would abandon their major gas project in Iran unless the US grants them a sanctions waiver.

While both Russia and France have vowed to stay in the deal and to help their businesses evade sanctions, it seems that these companies are worried that this will still not allow them access to the much bigger US market.

Lukoil, one of the few Russian energy firms not controlled by the government, was previously forced to withdraw from an Iranian oil project in 2011 after increased sanctions by the US and EU.

Reliance Industries

While India was not a party to the nuclear deal, its government announced last week that they would not honour the US sanctions and would continue to engage in business with Iran.

Despite this, Reliance Industries told the National Iranian Oil Company that it would stop importing oil from the Gulf country in October or November.

This is likely the result of insurance companies voicing concern about the risks of continuing to do business with Iran and perhaps being unwilling to insure oil shipments from Iran, with some global shipping lines refusing to carry Iranian oil anymore.

These pullouts are likely to have a massive effect on the Iranian Regime’s economy, which will bring the mullahs to their knees and allow the Iranian people to take control. All Western companies should follow the lead of these firms and conduct trade with countries that are not using the money to spread terrorism around the globe.

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