US Ambassador to Germany Richard Grenell has announce that the German carmaker Volkswagen has agreed to end almost all of its operations in Iran following weeks of discussions with the US, as Bloomberg reported.
Ambassador @richardgrenell: “Volkswagen has told us they will comply with U.S. sanctions on Iran. We are pleased with this decision because Iran diverts its economic resources away from its people to spread violence and instability across the globe.”— US-Botschaft Berlin (@usbotschaft) 20 сентября 2018 г.
According to the US outlet, citing the ambassador, who reportedly led the discussions the Wolfsburg-based company, exceptions would be made only for humanitarian reasons.
Volkswagen hasn’t yet confirmed the ambassador’s announcement.
“In this context, we also consider possible implications in connection with the re-imposition of U.S. sanctions. Volkswagen complies with all applicable national and international laws and export regulations,” their statement to Bloomberg reads.
Volkswagen announced it would sell cars, especially the Passat and Tiguan models, in Iran after an almost 20-year break in July 2017, which was prompted by the signing of the multilateral Joint Comprehensive Plan of Action and lifting of sanctions against the Islamic Republic in exchange for Tehran downsizing its nuclear program.
In May 2018, US President Trump, who repeatedly denounced the accord for months, announced that Washington was leaving the deal and would re-impose punitive measures against the country and any entity working with it, even if it meant subjecting European companies to sanctions.
The unilateral decision faced opposition from the other signatories of the deal — Russia, China, France, Germany, the UK, and the European Union, which confirmed their commitment to the act.
Germany has reassured its businesses that the country will continue providing them with export and investment guarantees when working in Iran, despite Washington's sanctions, while discussing the possibility of sanctions exemptions with the US.