France Prepares 1.5 Billion Euro 'Non-Sanctioned' Credit for Iranian Buyers

The head of the French state investment bank 'Bpifrance' announced that France will provide commercial loans in euros for Iranian buyers of French goods this year. According to him, this will help these buyers operate outside the influence of U.S. sanctions. Reuters reported that Nicolas Dufourcq, the CEO of Bpifrance, stated on Wednesday, January 31, that these export credits may be ready by May or June of this year. He informed French lawmakers that around 1.5 billion euros in potential contracts have been prepared by interested French exporters for Iran. Since the signing of the JCPOA, France has sought to expand its trade volume with Iranian parties. According to the JCPOA, Paris, Washington, and other global powers agreed in 2015 to lift various sanctions against Iran in exchange for controlling the Islamic Republic's nuclear program. However, Donald Trump, the U.S. President, who has repeatedly criticized the JCPOA and called it the 'worst' agreement in U.S. history, threatened to withdraw the U.S. from this agreement. Meanwhile, Washington has maintained some financial restrictions against Iran, causing concerns among private banks and even financial institutions outside the United States regarding dealings with Iran. According to Reuters, Dufourcq added on Wednesday regarding his country's new credits for Iranians that 'we prepared a lot in this regard in 2017 and are still working daily to prepare the conditions for entering Iran.' He emphasized that 'this is a completely separate financial flow, and in this scheme, the U.S. dollar is not involved with any holder of an American passport in any way.' French banks, especially since the fine imposed by the U.S. against BNP Paribas, have refrained from financial cooperation with Iran. In 2014, the U.S. fined the French company BNP Paribas nearly 9 billion dollars for violating Iran sanctions. After that, the bank even closed the accounts of ordinary Iranian customers residing in France without any explanation. Although this fine was imposed before the nuclear agreement with Iran, its effects are still felt in the financial relations of French banks with Iran. The total export credits of Bpifrance in 2017 amounted to 186 million euros (231 million dollars), while the figure in the previous year was 30 million euros. This bank intends to increase its export credit volume to 400 million euros in 2018. Bpifrance loans are currently the driving force behind the current boom of startups in France, and the investment statistics of this company have significantly increased in recent years.