US sanctions: Rail and telecom withdraw from Iran

Because of the US sanctions, two other German companies end their activities in Iran. The EU had previously asked to do just that.

US sanctions: Rail and telecom withdraw from Iran

Deutsche Bahn and Deutsche Telekom are leaving ir activities in Iran for sanctions of US government. "In view of sensitivity in relations with Iran worldwide," telecom consulting firm Detecon ended business in Iran in mid-May, telephone company said. The railway also declared itself "se days" to withdraw from Iran. The companies thus confirm a report of economic week.

As a telecom spokesman shared, Detecons activities in Iran were "quite low". Until decision was taken, sales in Iran amounted to around 300,000 euros this year. According to economic week, Telekom wants to escape risk of providing US authorities with a pretext to stop laboriously negotiated merger between US subsidiary T-Mobile and competitor Sprint.

A spokeswoman for Deutsche Bahn has shared that in-house consulting company will no longer undertake plans to improve services of Iranian Railway company Bonyad Eastern Railways. The cooperation so far will expire this month. A consulting project on restructuring of Iranian state railway Rai will also end railway in September, said spokeswoman.

The federal government holds a high proportion of shares in both companies. At Telekom it is about a third, railway in turn belongs to state one hundred percent.

Companies ignore EU call

The EU commission recently called on companies in European countries to continue trade with Iran, irrespective of US sanctions. A revised defense law came into force in early August. The aim is to protect European companies from possible consequences of sanctions. A corresponding communication was also signed by Germany. With ir withdrawal from Iran, Deutsche Bahn and Deutsche Telekom are refore ignoring Commission's call.

Due to entry into force of economic sanctions at beginning of August, several European companies have already terminated or suspended ir projects in Iran. For example, car manufacturer Daimler withdrew "for time being", while French competitor PSA also prepared his exit.

The government of Donald Trump announced at beginning of May that US would withdraw from nuclear agreement with Iran. It was still signed under his predecessor, Barack Obama. The aim of agreement is to dispel concerns of an Iranian nuclear bomb. In return, United States, Russia, France, Germany and United Kingdom pledged to progressively lift sanctions against Iran. The fact that United States has now unilaterally imposed sanctions on Iran is criticized by European states.

The EU is against sanctions of United States and wants to save nuclear agreement from which United States has escaped.

Date Of Update: 17 August 2018, 12:00

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