French automobile company Citroen is to continue selling its cars in Iran despite the U.S. withdrawal from the nuclear deal, which could see Washington impose sanctions on European companies that continue to do business in the Islamic Republic.
Group PSA, Citreon's parent group, said Thursday that its strategy in Iran remained unchanged in the aftermath of the U.S. decision to withdraw from the deal. PSA brand chief Linda Jackson said that the company told 2,000 Citreon C3 models in one hour when it launched the model in Iran last week.
But PSA remains "cautious" about the future of its Iran business, Jackson said, while waiting for the European Union to take a clear position on U.S. sanctions and trade prospects.
On Thursday, the European Commission said it would launch on Friday the process of activating a law that bans European companies from complying with U.S. sanctions against Iran and does not recognize any court rulings that enforce American penalties.
- Iran presents seven conditions to European powers to keep nuclear deal
- Poland breaks with EU on Iran deal, plans to defend U.S. stance
- European commission working to block U.S. sanctions on Iran
The EU's so-called blocking statute has never been used and is seen by European governments more as a political weapon than a regulation because its rules are vague and difficult to enforce, serving mainly as a warning to the United States.