Swedish automaker AB Volvo has stopped making trucks in Iran because of U.S. sanctions.
Volvo ceased production of trucks in Iran because of U.S. sanctions
This was announced by the representative of the company, Fredrik Ivarsson, Biznestsentr reports with reference to Reuters.
A Volvo representative said that the company because of sanctions may not receive payment for the spare parts delivered to Iran, therefore, decided to cease operations in the country.
"With all these sanctions and everything that has made the United States... banking system in Iran works. We can't get paid," said Ivarsson.
Prior to the sanctions, Volvo hinted that it intends to make Iran their main export centre for the Gulf region and North Africa.
See also: France's Total left the Iranian market due to US sanctions
Sanctions against Iran, re-introduced by the President of the United States Donald trump on 6 August after the us leader decided to withdraw from nuclear deal with Tehran, has forced European companies to reconsider investment in Iran.
The European Union passed a law designed to protect the company's unit, but the banks because of sanctions can not cooperate with Iranian firms, as Washington may deny access to the U.S. financial system to those creditors that provide for such transactions.
According to the Agency, Volvo the decision was another blow to the automotive industry of Iran, which, in contrast to energy and banking sectors managed to conclude contracts with leading European companies.
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