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Billions of dollars in oil deals shield Iran from sanctions

Staff Writer |
Since most western sanctions on Iran were lifted early last year, Tehran has endeavored to restore its oil exports to a pre-sanction level and attract foreign investments in its energy sector.

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Companies are still cautious and not rushing into deals with Iran, but many European, Russian and Asian firms have signed preliminary agreements or letters of intent with Iran that would turn into billions of dollars of investments.

The pledged and potential investments could help Iran cushion the impact of any move by U.S. President Donald Trump to end the nuclear deal with Iran that the U.S. had agreed together with China, France, Germany, Russia, and the UK, Oil Price reported.

While the US has slapped new sanctions on Iranian companies in response to a ballistic missile program and Trump has signed into law an act imposing new sanctions on Iran, some of the biggest European and Chinese oil companies have walked into preliminary deals with Iran’s energy sector.

If the U.S. does step up sanctions or if it were to revisit the nuclear deal, Iran has a cushion of investments from companies from France, China, Russia, the UK and Germany.

These countries are crucial to the nuclear accord and their companies have signaled they want continued access to Iran’s market.

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