French Transport Minister: Major Iran-Airbus Deal is in Final Stages

On Monday, April 30, the French Transport Minister stated in Tehran that the contract for the purchase of 118 passenger aircraft from Airbus by Iran has entered its final stages and may be finalized next week. According to AFP, Alain Vidalies told reporters that this contract, valued at approximately $25 billion, must be approved by the U.S. Office of Foreign Assets Control, and further negotiations regarding this contract are scheduled for next week. Since the nuclear agreement between Iran and world powers and the lifting of most international sanctions against Tehran's nuclear program, this is the largest commercial contract Iran has signed with foreign countries this January. Alain Vidalies, who arrived in Tehran on the first Air France flight after an eight-year suspension of the airline's flights to Iran, said, 'We are in the final stages of negotiations, and meetings will take place next week to make a final decision.' In a joint press conference with his Iranian counterpart Abbas Akhoundi, the French Transport Minister noted that since more than 10% of Airbus aircraft parts are produced in the U.S., the contract must be approved by the U.S. Office of Foreign Assets Control. The initial agreement for the purchase of Airbus passenger aircraft was made during Iranian President Hassan Rouhani's visit to France in January this year, just days after the lifting of international sanctions. For over two decades, Western companies were prohibited from selling passenger aircraft, spare parts, and equipment to Iran. These sanctions are considered one of the main reasons for the backwardness of Iran's aviation industry. Currently, Iran has approximately 140 passenger aircraft, with an average age of about 20 years, many of which are severely worn out and need to be replaced quickly. Despite the lifting of sanctions related to Iran's nuclear programs in January, other U.S. sanctions imposed due to human rights violations and Iran's support for terrorism remain in place. Under the influence of these sanctions, U.S. companies and institutions cannot trade with Iran without special licenses from the U.S. Treasury Department.