Economy

Boeing-Iran agreement in jeopardy over sanctions violations

US media have been reporting that the United States might lean toward canceling the sale of Boeing and Airbus planes to Iran as it is involved in supporting terrorism and Assad regime in Syria and violating international sanctions. According to the Wall Street Journal, Iranian airline Mahan avoided the US sanctions and used Turkish companies to buy engines in transactions that could complicate Boeing’s Iran contract. “Sanctions show that trade with Iran, which defies US export laws and regulations, will not be tolerated,” US Commerce Department Undersecretary Mira Ricardel said on Feb. 5 in press release from the Industry and Security Bureau of the Commerce Department. Boeing signed a $16.6 bln deal with Iran in 2016 following the 2015 agreement, under which Tehran agreed to freeze its nuclear program in return for lifting international sanctions. However, cancelling the Boeing deal could affect the nuclear deal, as well as an estimated $40 bln in Airbus contracts in Europe, which depend on US licensing in its agreement with Iran, according to the Wall Street Journal. US had eased sanctions on Iran airlines but continues to impose a ban on the Mahan lines because of its cooperation with the Revolutionary Guards.

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