Volkswagen Does Not Confirm Suspension of Activities in Iran

The major German automotive company Volkswagen on Thursday, September 19, refrained from confirming the statements made by the U.S. ambassador to Germany regarding the suspension of Volkswagen's activities in Iran. A day earlier, Richard Grenell, the U.S. ambassador in Germany, told Bloomberg News that after weeks of discussions between Volkswagen and the U.S. government, the company is set to cut most of its business ties with Iran. Volkswagen announced in July 2017 that for the first time in 17 years, it intended to sell vehicles under its brand in Iran. A Volkswagen spokesperson said on Thursday to AFP that the company's position remains the same: "compliance with all national and international laws as well as export regulations." He added that "we are also considering the potential impacts of the return of U.S. sanctions." Bloomberg reports that Richard Grenell has led negotiations with Volkswagen regarding Iran. Meanwhile, a source familiar with the company's negotiations with the U.S. told AFP that Volkswagen and the U.S. government have not yet reached a final agreement on this matter. Bloomberg also reported that even if Volkswagen fully complies with U.S. sanctions, the company will still be able to continue part of its business in Iran under the guise of "humanitarian exemptions." Richard Grenell tweeted this month expressing happiness that major petrochemical company BASF and major insurance company Munich Re stated they are complying with sanctions against Iran. A BASF spokesperson said on Thursday to AFP that the company "continues to do business in Iran and complies with all laws and regulations." He added that half of the approximately 80 million euros (93.5 million dollars) in revenue BASF earned in Iran last year came from activities in the energy, automotive, and petrochemical sectors, which are now affected by U.S. sanctions. Meanwhile, according to AFP, Munich Re has stated that due to sanctions, it will cease its activities in Iran to avoid jeopardizing its operations in the United States. U.S. pressures have also led Iran to recently withdraw its request to withdraw 300 million euros (347 million dollars) in cash from its account at a bank based in Hamburg, Germany. The American newspaper Wall Street Journal reported on August 3 that Richard Grenell's pressures in Berlin have been effective, and the German central bank is set to add an anti-money laundering amendment to German financial laws that could complicate or prevent money transfers to Iran. U.S. sanctions have led various European companies and entities, including the German state railway company and the German automotive company Daimler, to announce their exit from the Iranian business market in recent weeks.