France: The U.S. Must Guarantee That European Companies Will Not Be Punished for Trading with Iran

The French government, on the eve of Iranian President Hassan Rouhani's official visit to Paris, has called for a guarantee from the United States to European companies that they will not be penalized for trading with Tehran if sanctions against Iran are reinstated. Recently, the U.S. warned international companies that Iran's sanctions have not been lifted and advised them to refrain from rushing into signing trade and investment contracts with Iran. Rouhani is set to travel to Italy and then France on Saturday with a political-economic delegation. According to Reuters, French Foreign Minister Laurent Fabius stated in parliament on Tuesday, November 10, that 'the American spirit has been one of cooperation, but now we want this behavior to become a tangible issue so that problems that have arisen for companies do not happen again.' In 2014, the U.S. fined the French company BNP Paribas nearly $9 billion for violating Iran's sanctions. This week, Deutsche Bank had to pay $258 million to the U.S. for violating sanctions against countries like Iran and Syria. Other French, German, and British banks and companies have also been penalized by the U.S. for similar reasons. Following the nuclear agreement between Iran and six world powers in Vienna and the prospect of lifting Iran's sanctions, which is expected to begin with the implementation of this agreement in the early months of 2016, European companies, including French ones, are looking to return to the Iranian market, and delegations from them have traveled to Tehran in recent months. However, the U.S. has warned these companies not to rush into signing contracts with Iran, as sanctions will remain in place until Iran fulfills its commitments under the Vienna nuclear agreement. Fabius further mentioned in parliament that while negotiations with Iran were ongoing, two delegations consisting of officials from France, Britain, and Germany went to the U.S. to discuss how European companies would be treated in the event of sanctions being reinstated. The French Foreign Minister, who visited Tehran with a delegation of French business leaders shortly after the announcement of the nuclear agreement on July 14, stated that the purpose of that visit was to improve relations with Iran and to pave the way for signing potential agreements and contracts. However, French companies will need financing from French banks for investment and operations in Iran. Fabius's remarks come just days before Rouhani's official visit to Paris. Parviz Ismaili, the Deputy for Communications and Information at Rouhani's office, has informed Iranian news agencies that Rouhani will travel to Rome on Saturday, November 14, at the invitation of the Italian Prime Minister and President. He is expected to meet with the Pope and other Vatican officials and then speak at UNESCO headquarters in Paris at the invitation of the organization's Director-General during a summit of member states of the United Nations General Assembly. Rouhani will meet with his French counterpart Francois Hollande in Paris on Tuesday. According to Ismaili, Rouhani will also hold meetings with several major industrialists and investors from these countries during his four-day trip to Italy and France.