French companies have made a reason. After having denounced on May 8 last the Iranian nuclear agreement the Trump administration had set a first deadline of August 6, the date of entry into force of the first sanctions. As of Monday evening, companies in certain sectors, including automotive and aeronautics, will have to withdraw from the country to comply with US legislation. Otherwise, they will be restricted access to the US market.
A second wave of sanctions will come into effect on November 4, this time around energy or finance. Total and Engie, who have already announced that they will cease their activities in the country of the mullahs, will therefore benefit from a few extra weeks.
Hopefuls
While some of the companies involved may once have thought they could qualify for an exemption, Secretary of State Steven Mnuchin showered their (meager) hopes. In mid-July, the Minister of the Economy, Bruno Le Maire, indicated to have received the answer – negative. Only the manufacturer of regional ATR propeller aircraft, co-managed parity by Airbus and the Italian Leonardo, finally obtained in extremis the authorization to deliver Sunday five aircraft to Iran Air, corresponding to an old order.
But Airbus has renounced its contracts with companies Iran Air and Zagros Airlines, which involved 106 Airbus, of which barely three have been delivered. PSA also announced its withdrawal in early June, while the deputy general manager of Renault, Thierry Bolloré, acknowledged late July, in presenting the half-year results of the group, that the operations in the country would probably be frozen. And even if the CEO Carlos Ghosn declared in mid-June, to his shareholders, that “even if we have to reduce the wing very strongly, we will stay,” while admitting that the group could not afford to suffer retaliatory measures.
Impairment provision
This withdrawal is expensive for PSA: he forced him to spend a provision for depreciation of 168 million euros in its accounts for the first half of 2018 . The lion manufacturer, long-standing in the country with its 206 and 405, had started investing since 2016 to produce Peugeot 2008 and Citroen C3. Associated for this purpose with the local groups Iran Khodro and Saipa, he relied heavily on the Islamic Republic for its growth abroad, while he is still very dependent on Europe.
Renault, too, had great ambitions in Iran. He had announced just a year ago its industrial device to produce on-site Renault Symbol (derived from the Clio) and Dacia Duster, with its partners Idro and Parto Negin Naseh. But the agreement has not been finalized and nothing has yet been disbursed, said Clotilde Delbos, the financial director. Renault will not have to spend provisions, but it will also make a cross on this vast market of 80 million inhabitants.