Foreign oil firms, banks, traders stopping trade with Iran

ERBIL, Kurdistan Region — Lukoil, the second largest Russian oil company, and the Swedish lender bank, BCP, are joining other multinationals, halting trade with Iran.

Lukoil, the Russian oil company, and BCP, the Swedish lender bank, announced that they will stop any new business deal with Iran, due to the return of the US sanctions.

"We have suspended any new transaction related to Iran after May 8, 2018 and started the 'wind down period' within the framework of OFAC announcement,” BCP told Reuters.

President Donald Trump announced the United States would pull out from the 2015 Iran nuclear deal on May 9. Mike Pompeo, the US Secretary of State, followed up by announcing the imposition of unprecedented US sanctions on May 22, citing Iran’s nuclear program and regional activities.

Iran’s top diplomat called the move a “sham.”

“US diplomacy sham is merely a regression to old habits: imprisoned by delusions and failed policies—dictated by corrupt Special Interest—it repeats the same wrong choices and will thus reap the same ill rewards. Iran, meanwhile, is working with partners for post-US JCPOA solutions,” tweeted Iranian FM Javad Zarif on May 21, referring to the Joint Comprehensive Plan of Action and US lobbying groups.

Since the US decision for withdrawal from the Iran nuclear deal, several multinational companies have started to pull out from the Iranian market, forcing Zarif to embark on a tour to foreign capitals. 

Total, a French oil company, announced that it will end its project in Iran unless it is exempted from the US sanctions on May 16.

The world's largest container shipping company, Maersk, announced on May 17 that it had no choice but to adhere to the US sanctions.

"With the sanctions the Americans are to impose, you can't do business in Iran if you also have business in the US, and we have that on a large scale,” Soren Skou, the CEO of Maersk, reasoned. 

Although the European Union leaders have disagreed with the US withdrawal and announced they will protect EU companies to trade with Iran, companies are halting their trade without waiting for the EU leaders.

For its part, Iran maintains that its nuclear program is for energy production, in-line with international standards, and their ballistic program only is for defense purposes.