Iran: Contract with Airbus Still Awaiting U.S. Approval

Asghar Fakhrieh Kashan, the Deputy Minister of Roads and Urban Development of Iran, stated that the contract between Iran and the aircraft manufacturer Airbus is still awaiting approval from the U.S. government to be executed. This Iranian official mentioned in an interview with Agence France-Presse on Friday, June 4, that negotiations are ongoing with various banks for the payment of the contract amount between Iran and Airbus, and that the delay in executing this contract is due to Airbus executives waiting for U.S. authorization. Iran signed a contract with Airbus to purchase 118 aircraft following the lifting of international nuclear sanctions, but since more than 10% of Airbus aircraft parts are produced in the U.S., the company requires U.S. approval to execute its contract with Iran. Meanwhile, the American newspaper Wall Street Journal recently reported, citing a senior Airbus executive, that the issue of transferring money from Iran is one of the problems in executing this contract, and the parties are seeking ways to transfer money out of Iran. However, the Deputy Minister of Roads and Urban Development of Iran claims there is no problem in this regard. He stated in an interview with Mizan News Agency: 'After claims of financial difficulties in the agreement with Airbus, I sent a protest to Airbus and pointed out that such claims are not true.' He further mentioned: 'The contract with Airbus has not yet reached the payment stage, and negotiations are still ongoing, and given that the payment will be made through financing, there will be no problem in this regard.' Iranian officials say that despite the lifting of international sanctions, European banks are still hesitant to deal with Iran due to concerns about U.S. reactions. However, the Obama administration has stated that it does not prevent foreign banks from engaging with Iran.