When President Trump announced the return of U.S. sanctions on Iran almost one month ago on May 8, there was a great deal of skepticism about how many global businesses would cease operations in Iran or with Iranian agents.
Immediately after Trump’s announcement, European leaders came out against America’s unilateral actions and encouraged European businesses to continue to do business with Iran as long as Iran continues to apparently adhere to the terms of the JCPOA (nuclear deal). India, a major importer of Iranian oil, declared that it “follows only U.N. sanctions, and not unilateral sanctions by any country.”
Despite the statements from European and Asian leaders in support of Iran, it seems that America’s economic weight is too great to ignore. Businesses of all types, ranging from insurance companies to car manufacturers to shipping companies are now announcing that they will cease business with Iran or in Iran because of U.S. sanctions.
Here’s a list of some of the larger companies that have announced exits or plans to exit Iran:
* Total – The French oil company, Total SA, announced it would pull out of the billion-dollar deal it made with both Iran and the Chinese company CNCP if it could not obtain a waiver from the United States. The partnership was to develop the South Pars 11 natural gas field in Iran. Total was the only major international oil company to sign with Iran since the old sanctions ended in January of 2016. It had a 30% stake in the gas field, which Iran now intends to give to CNPC.
* Maersk – The shipping company A.P. Moller-Maersk announced it would not longer ship Iranian oil due to the U.S. sanctions. In a statement by the CEO, the company was clear that it prioritized its business with the U.S. over business in Iran. He was not clear on exactly when Maersk would cease all operations involving Iranian oil.
* Peugeot – This car manufacturer, owned by PSA Group, signaled it plans to pull out of Iran unless a sanctions waiver is obtained. It is putting plans into place to wind down activities in Iran by August 6, 2018. PSA sold 445,000 cars in Iran last year and does not currently market in the U.S. In addition to selling cars in Iran, the company had signed agreements with Iran Khodro Industrial Group to manufacture Peugeot cars in Iran and with SAIPA to build Citroën vehicles in Iran.
* GE – General Electric GE +1.09% and its subsidiary, Baker Hughes BHI +0%, had made combined revenue of almost $25 million from contracts with Iran since 2016. These included deals with MAPNA, an Iranian electricity conglomerate, and contracts to provide pipelines, valves and other oil and gas infrastructure products to Iranian companies. GE and Baker Hughes will cease operations in Iran in accordance with U.S. law. The trade licenses that the company had been operating under are expected to be revoked in November.
* Honeywell – Honeywell International HON -0.15% Inc., a technology company, had, according to the Wall Street Journal, over $110 million in revenue from Iran since 2016. It recently declared it would be pulling out of the country. Recently, a Honeywell subsidiary had obtained a contract to upgrade the monitoring and control technology at Iran’s Tabriz Petrochemical Company.
* Boeing BA +0.26% – Boeing, which had a high profile $20 billion contract for airplanes with Iran Air and Iran Aseman Airlines, recently announced it will not be delivering the planes to Iran in light of the new sanctions. The company could have applied for a waiver from the U.S. government, but it announced on June 6 that it would cancel the contract instead.
* Lukoil – The second largest Russian oil company was dubbed one of “the favorites” to develop oil fields in Iran. But the company decided at the end of May that it would no longer pursue any joint ventures with Iranian oil companies due to the impending U.S. sanctions.
* Reliance – Reliance Industries Ltd., an Indian company that owns the world’s largest oil-refining complex, announced on May 30 that it would no longer accept crude oil imports from Iran. Because crude oil imports are contracted months in advance, Reliance will cease importing Iranian oil in October or November.
* Dover DOV -0.01% – Dover Corp., which manufactures pumps and other products used in the oil industry, first signed contracts with Iran in 2017. It now plans to end all business with Iran in accordance with sanctions.
* Siemens – Siemens Corporation, which manufactures a variety of healthcare, industry, energy and automobile products, announced it would no longer take new orders from Iran. It will wind down its business interests there.
This article was originally published by Forbes.