Economic review

Daimler freezes operations in Iran due to U.S. sanctions

2018-08-07 22:58:56 (Beijing Time)         English.news.cn

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BERLIN, Aug. 7 (Xinhua) -- Daimler will halt all of its commercial operations in Iran "until further notice" in response to the re-imposition of U.S. sanctions against Teheran, the German carmaker announced on Tuesday.

The Stuttgart-based company noted that it previously only had "limited activities" in the Islamic Republic as well but would now refrain from plans to expand its presence there first announced in the wake of the Iran nuclear accord in early 2016.

At the time, Daimler said it would team up with a local partner to manufacture and sell trucks for the Iranian market.

"The Iranian economy and automotive market have developed much weaker than anticipated. We continue to monitor the political developments, in particular with view to the future of the nuclear accord very closely," a Daimler statement read.

Speaking to Xinhua on Tuesday, a spokesperson for another German automaker Volkswagen Group similarly said that the company would "monitor the political and economic environment in Iran and the surrounding region very closely".

The spokesperson emphasized that Volkswagen "abided by all national and international laws and export regulations", while adding that the Wolfsburg-based carmaker would assess the implications of re-imposed U.S. sanctions in this context.

As of Tuesday, a first round of U.S. economic sanctions against Iran which were announced by U.S. President Donald Trump back in May have now taken effect.

In typically-abrasive style, Trump wrote on Twitter that he had signed-off the "most biting sanctions ever imposed" and warned companies across the world that they would have to choose between maintaining commercial links with the United States or with Iran.

"Anyone doing business with Iran will NOT be doing business with the United States," Trump said.

The European Union reiterated its objection to the re-imposition of U.S. sanctions on Tuesday and announced that it would seek to enable Iran to continue exporting petroleum beyond October.

Berlin and Brussels both view the Iran nuclear accord signed by the United States, China, Russia, Germany, France and the United Kingdom in 2015 as a landmark diplomatic deal worth preserving.