Iran Sanctions - Foreign Press Centers

so the damage to the merchant community from international sanctions has been
considerable. Further effects are likely in light of the EU’s freeze on the assets of
Tidewater Middle East Company in January 2012; the firm operates many of
Iran’s ports and ports in neighboring countries that service ships headed to Iran.
Foreign Companies Exiting the Iran Market
Iran Sanctions
The sanctions have caused Iran to be viewed by international firms as “radioactive,” causing
many international firms to exit the Iranian market even if doing so is not required by any
sanction. Neither the U.S. ban on trade and investment with Iran, nor U.N. sanctions, nor
European Union sanctions on Iran, ban trade with Iran in all civilian goods. Many experts believe
that, over time, the efficiency and output of Iran’s economy will decline as foreign expertise
departs and Iran attracts alternative investment from or imports goods from less capable foreign
companies. Examples of major non-U.S. companies discontinuing business with Iran include the
following:
• ABB of Switzerland said in January 2010 it would cease doing business with
Iran.
• Siemens of Germany was active in the Iran telecommunications infrastructure
market, but announced in February 2010 that it would cease pursuing business in
Iran. Finemeccanica, a defense and transportation conglomerate of Italy, followed
suit, as did Thyssen-Krupp, a German steelmaker.
• Germany’s Daimler (Mercedes-Benz maker) said in April 2010 it would freeze
planned exports to Iran of cars and trucks.
• In August-September 2010, Japan and South Korea announced that their
automakers Toyota, Hyundai, and Kia Motors would cease selling automobiles to
Iran.
• Attorneys for BNP Paribas of France told the author in July 2011 that, as of 2007,
the firm was pursuing no new business in Iran, although it was fulfilling existing
obligations in that market.
• On June 30, 2011, according to press reports, the Danish shipping giant Maersk
told Iran that it would no longer operate out of Iran’s three largest ports. The
firm’s decision reportedly was based on the U.S. announcement on June 23,
2011, that it was sanctioning the operator of those ports, Tidewater Middle East
Co., as a proliferation entity under Executive Order 13382. The pullout of
Maersk will likely further raise shipping costs.
• The State Department reported on September 30, 2010, that Hong Kong company
NYK Line Ltd. had ended shipping business with Iran (on any goods).
• Persuading oil services firms to exit Iran was the intent of Executive Order 13590
of November 21, 2011, which makes such activity sanctionable. Well before the
order was issued, one large oil services firm Schlumberger, which in incorporated
in the Netherlands Antilles, said it will wind down its business with Iran.
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