Manufacturers

GE, Eaton, Siemens Pull Out of Iran Activities

The Wall Street Journal, and other publications, are reporting that 17 American companies, including General Electric and Eaton, have agreed to suspend all business in Iran as a result of President Trump’s decision to pull out of the nuclear agreement.

When the president ended the deal on May 8, the sanctions included giving some American companies 180 days to cancel contracts or conclude work in Iran.

GE was working with a French oil company on a multi-billion dollar project in Iran. The French company “Total” said it was probably going to pull the entire project since receiving a special waiver to complete it seems unlikely. According to regulatory filings, GE had revenue of about $24.8 million on sales of valves and spare parts for Iran’s energy industry from 2016 through the first quarter of 2018.

Last week, Eaton and Siemens also announced they are pulling out of their projects in Iran to comply with the new U.S. sanctions. The Siemens deal was for the delivery of locomotives in Iran. Eaton has previously stated that it had contracts to do business in Iran, but does not have any assets or employees in Iran.

 

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