European Banks Remain Hesitant in Reviving Relations with Iran

According to AFP, despite the lifting of nuclear sanctions, the status of relations between European banks and Iran remains unclear, with banks cautious and awaiting clarification of the situation. Some European politicians have also asked U.S. officials to provide explanations regarding the risks, methods, and areas of financial transactions. Matthias Fekl, France's Minister of Foreign Trade, previously stated he had requested Washington to clarify the parameters and timelines regarding the lifting of sanctions on Iran. A banking source in France stated that there is no unified understanding of the current conditions between that country and the United States; 'In such circumstances, we should not take the initiative.' This report comes as billions of dollars in contracts were signed during Iranian President Hassan Rouhani's recent trip to Italy and France, with a significant portion of these contracts aimed at purchasing new aircraft. ISNA recently reported that the aircraft purchase contracts with Airbus and ATR were made on a leasing basis, and the Iranian side is expected to pay 15% of it in the near future. A spokesperson for Deutsche Bank, a major German bank, also told AFP that the bank has 'noticed the reduction of U.S. and European sanctions against Iran.' However, the same official added that 'for the time being, the group [Deutsche Bank] will not change its decision regarding financial transactions with Iran.' Yves-Thierry De Silguy, Deputy Chairman of the Medef group, also stated last week on Radio France Info that 'the situation is unclear.' The Medef group sent a large economic delegation to Iran last September. Major European banks, including those in France and Germany, have paid millions and sometimes billions of dollars in fines to the United States for their banking relations with Iran over the years; for instance, the French bank BNP Paribas paid nearly $9 billion to the U.S. last July for its dealings with Iran, Cuba, and Sudan. Some analysts say the current uncertain conditions are not likely to provoke U.S. displeasure. Taira Kawil, from the Institute for International and Strategic Studies (IRIS) in France, told the country's news agency that 'this may be part of U.S. policy to say: be careful, the situation is complicated! As a result, people do not understand what is going on and think that sanctions are still in place.' The AFP report comes as the official Iranian news agency, IRNA, states that a senior member of the board of the Austrian bank Raiffeisen has told a newspaper that this bank is looking to open a branch in Tehran. The French Minister of Foreign Trade stated that the country has assigned a team of experts on sanctions to answer questions related to financial relations with Iran and whether these relations might conflict with U.S. laws. The EU sanctions against Iran and the UN Security Council sanctions were lifted following the implementation of the Joint Comprehensive Plan of Action; U.S. sanctions against Tehran regarding its nuclear program were also lifted, but other U.S. sanctions, including those against missile programs, human rights issues, and what is termed 'support for terrorism,' remain in force.