Visit of Senior Executive of American Company General Electric to Iran

Following the visit of foreign managers and traders to Iran after the lifting of sanctions, a spokesperson for General Electric's oil and gas division announced that the CEO of this American company traveled to Iran to assess business opportunities. According to Reuters on Tuesday, February 16, the spokesperson stated that Lorenzo Simonelli, the CEO of General Electric's oil and gas division, visited Iran in light of the easing of sanctions. Meanwhile, the American newspaper Wall Street Journal reported that Mr. Simonelli also met with a senior Iranian oil official. General Electric emphasized that while seeking potential opportunities in Iran, the company will fully comply with U.S. government regulations. Reuters noted that cooperation with Iran could somewhat alleviate the detrimental effects of falling oil prices that have harmed General Electric. The company has predicted that revenues from its oil and gas sector will decline by another 10 to 15 percent in 2016. Iran, having been freed from the grip of oil sanctions, is trying to offer more attractive proposals to attract foreign companies in the oil and gas sector, an action that has faced opposition from some conservative factions against President Hassan Rouhani's government. Following the nuclear agreement, many international sanctions against Iran were lifted; however, the U.S. has not yet removed many of its sanctions against Iran. On the other hand, the U.S. government does not allow dollar transactions with Iran. Currently, American companies are permitted to conduct trade with Iran through their foreign branches. General Electric manufactures drilling equipment, including subsea oil pumps and oil pipeline equipment. This company is one of the most profitable in America, with a stock market value of approximately $260 billion. The Wall Street Journal cited an unnamed source stating that General Electric intends to sell compressors and turbines to Iran, with a subsidiary of the company in Florence, Italy, handling the transaction. According to this report, the CEO left Iran on Monday, February 15.