Bloomberg Reports from an American Official: Volkswagen is Leaving Iran

Bloomberg news network, citing an American official responsible for negotiations with the automotive group Volkswagen, reports that the company is ending almost all of its activities in Iran. According to Bloomberg, the Trump administration has pressured Volkswagen to comply with U.S. sanctions against Iran. Neither Volkswagen nor officials from the White House have yet responded to this report. The Trump administration exited the nuclear agreement made during Barack Obama's presidency with five other powers and Tehran last spring. The first round of U.S. sanctions against Iran also resumed on August 6. The first round of sanctions includes the automotive industry, trade in gold and precious metals, foreign financial facilities, transactions involving commercial aircraft and their parts and services, the import of Iranian carpets and food products (pistachios) to the U.S., as well as sanctions regarding the rial. The second and more severe round of sanctions is set to take effect on November 4. During this period, several major Western companies have suspended or ended their activities in Iran; for example, automotive companies Daimler, Renault, Mazda, Hyundai, and PSA, the French oil company Total, and airlines British Airways, KLM, and Air France are among those that have exited the Iranian market. Mike Pompeo, the U.S. Secretary of State, tweeted on September 17 that 'with the arrival of November 4 (the second round of sanctions), different rules will apply to anyone who wants to trade with the Iranian regime.' Mr. Pompeo stated at that time that 'many countries are already taking steps to leave Iran.' On Wednesday, Brian Hook, head of the 'Iran Action Group' at the U.S. State Department, emphasized that his country is seeking a deal with Iran that encompasses both nuclear activities and missile programs. The Supreme Leader of the Islamic Republic of Iran has opposed negotiations with the U.S. Iranian government officials have questioned what guarantees exist that negotiations with the Trump administration would endure. Bloomberg reports that Richard Grenell, the U.S. ambassador in Berlin, has led negotiations with Volkswagen. The report also adds that Volkswagen will be allowed to continue some of its activities in Iran that have humanitarian grounds.