French Oil Firm Total Terminates Operation in Iran due To US Sanctions

French Oil Firm

Reports for the ministry of Oil in Iran indicate that French oil company Total has officially terminated their multibillion-dollar project due to the US sanctions. According to the ICANA news agency, the company left the $ 5 billion project to develop the South Pars Offshore gas fields.

The termination of the contract comes in the wake of Iran urge to Europe to salvage the 2015 nuclear deal, the Joint Comprehensive Plan of Action (JCPOA). The agreement was signed in Vienna between Iran, European Union, and members of the UN Security Council.

An effort by some of the signatories such as Britain, Germany, China, and Russia to rescue the deal was also not successful. This is after President Trump's administration warned firms that continue dealing with Iran would be barred from doing business in the US.

According to Iran’s foreign ministry spokesperson, Bahram Qasem, some European countries have put efforts to save the agreement. However, due to unavoidable circumstances, the process has been slow. He added that Iran would rely on its strength to conquer the American sanctions that are affecting the country's economy.

In the recent past, European countries have been putting a spirited attempt to have Iran get the best out of the deal. However, President Trump has termed the agreement as flawed. The new sanctions on Iran started in August and aimed at targeting the precious metals and the car industry.

Despite the sanctions, China, Russia, and some European countries have vowed to continue engaging with Iran in terms of business and other economic matters. Nevertheless, they are concerned that more major companies will pull out of Iran because of the US sanctions. Other companies that are projected to suspend their operations in Iran include Renault, Daimler, Deutsche Telcom and others.

The European Union has taken measures to counter the sanctions. For instance, the Union is working to facilitate oil exports and provide necessary financial assistance. Additionally, the EU is urging its citizens to ignore the sanction other warnings.

Washington has maintained that only solution to the sanctions is to accept a new nuclear deal. However, the Iranian government has rejected the offer. The US has promised to impose more sanctions in November that will target on oil and banking sector. Since April this year, the Iranian currency has dropped value due to reasons such as the weak economy, struggling banking sector and the effects of the sanction.

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