French Companies Trading With Iran Unable to Confront US Sanctions

Forex News

Bpifrance, a French state-owned bank, intends to abandon its plan to set up a mechanism to aid French companies trading with Iran, facing Donald Trump’s sanctions against Tehran. Earlier this year, the bank had said it was working on a project to finance French companies that wished to export goods to Iran despite US sanctions. Bpifrance was working on establishing euro-denominated export guarantees to Iranian buyers of French goods and services.

The United States is renewing sanctions on Iran after withdrawing from a nuclear deal forged in 2015 between Tehran and world powers. Washington reimposed some of the financial sanctions from August 6, while those affecting Iran's petroleum sector will come into force from November 4.

Meanwhile, several European countries have said they are seeking to protect their companies from the sanctions and several major companies (oil company Total, Air France-KLM and British Airways) have announced they would suspend activities in Iran.