18:44 GMT +323 September 2018
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    In this Thursday, July 16, 2015 photo, Iranians look at a Renault sedan at a dealership in northern Tehran, Iran

    French Car Lobby Group Cancels Trip to Iran Amid US Sanctions Threat

    © AP Photo / Ebrahim Noroozi
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    After US President Donald Trump announced that Washington would withdraw from the Iranian nuclear deal and reinstate sanctions against Tehran, many companies began to suspend their collaboration with Iran. However, European countries refused to pull out of the agreement and promised to protect their businesses from US sanctions.

    The French Vehicle Equipment Industries Association (FIEV), the country's top car manufacturing lobby group, called off a long-planned trip to Iran in order to analyze the situation regarding US sanctions.

    "The trip has been canceled and replaced instead by a meeting in France of our Iran club so that we can reflect upon how to proceed in light of current events," FIEV President Jacques Mauge told the press.

    Earlier in the day, the European Commission stated that it had updated the Blocking Statute and the European Investment Bank's (EIB) External Lending Mandate in order to save the nuclear deal and to protect EU companies investing in Iran.

    On Tuesday US Undersecretary of the Treasury Sigal Mandelker warned European governments and the private sector about the risks of doing business with Tehran.

    "You must harden your financial networks, require your companies to do extra due diligence to keep them from being caught in Iran's deceptive web, and make clear the very significant risks of doing business with companies and persons there," she said.

    The decision of FIEV also followed a statement by Peugeot and Citroen producer PSA, which claimed on Monday that it had begun "the process of suspending the activities of its JVs [joint ventures], in order to comply with US law by August 6, 2018," to stop collaboration before the US sanctions take effect.

    Related:

    France, Germany, UK Demand US to Refuse From Sanctioning Their Companies in Iran
    European Businesses in Iran: Expert Explains How to Get Around US Sanctions
    US Anti-Iran Sanctions Put EU Companies at Risk: What Do They Say?
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    sanctions, Joint Comprehensive Plan of Action (JCPOA), France
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