U.S. Ambassador Says Volkswagen Agrees To Pull Out Of Iran

U.S. Ambassador Says Volkswagen Agrees To Pull Out Of Iran

U.S. Ambassador Says Volkswagen Agrees To Pull Out Of Iran
The FINANCIAL -- The U.S. ambassador to Germany has told Bloomberg News that automaker Volkswagen has agreed to comply with U.S. sanctions and suspend most of its operations in Iran. Bloomberg said Volkswagen officials did not respond to requests for comment. Reuters said the White House also did not comment, according to RFE/RL. U.S. officials and Volkswagen finalized the details of the pullout on September 18 following weeks of talks, Grenell said. The German automaker will still be allowed to conduct some business in Iran under a humanitarian exception, the ambassador added. In May, U.S. President Donald Trump withdrew from a 2015 nuclear deal that Iran signed with six world powers and began reimposing some of the sanctions that had been eased in return for curbs on Tehran's nuclear programs. Trump complained that the deal did not do enough to prevent Iran from eventually developing the capacity to produce a nuclear weapon. He also alleged that Iran was violating the spirit of the accord by financing militant activity in the region, an allegation Tehran has denied. The reimposition of sanctions has weakened the Iranian economy, with the country’s currency, the rial, falling sharply against hard currencies in recent months. Britain and France, along with other European nations, have said they want to protect European companies that continue doing business in Iran. However, international companies including French oil firm Total, German carmaker Daimler, and Deutsche Telekom have pulled out of the country since the U.S. decision to withdraw from the nuclear deal, fearing they will be targeted by secondary sanctions.