Boeing, Airbus orders worth $US40bn caught up in Trump move
Treasury Secretary Steven Mnuchin says licenses Boeing has to sell billions of dollars in commercial jetliners to Iran will be revoked under the action President Donald Trump has taken to withdraw from the Iran nuclear deal.
Boeing chief executive Dennis Muilenburg also said during the company's last earnings call that company understood the risk and implications of the Iranian aircraft deal to its B777 production.
Companies and countries with commercial deals with Iran would have either 90 or 180 days to wind down those activities, depending on the type of products being sanctioned.
IranAir has ordered 200 passenger aircraft worth $38.3 billion at list prices, including 100 from Airbus, 80 from Boeing and 20 from Franco-Italian turboprop maker ATR.
"Following today's announcement, we will consult with the U.S. government on next steps", said Gordon Johndroe, a vice president of government operations communications.
Airbus said it is analyzing Trump's announcement and will be evaluating the next steps in full compliance with the government's decision.
Boeing said at the time the Iran Air deal alone would support "tens of thousands of U.S.jobs directly associated with production and delivery of the 777-300ERs and almost 100,000 U.S.jobs in the USA aerospace value stream for the full course of deliveries". Boeing separately struck another 30-airplane deal with Iran's Aseman Airlines for $3 billion at list prices.
The Iranian orders represent a small percentage of the massive aircraft backlogs of both manufacturers.
The aircraft sales were among the most-sought-after contracts for Iran.
"U.S. Iran sanctions are hardly hitting any U.S. companies, but aim primarily at European ones", Carl Bildt, the former leader of Sweden who is now co-chair of the European Council on Foreign Relations, said in a tweet.
The sanctions on oil purchases will be the same as under the Obama administration.
One company hoping for a reprieve is the French oil giant Total, which a year ago signed a $2 billion contract to develop the South Pars natural gas field.
"My expectation is not that oil prices go higher", he said. "Sanctions on Iran's automotive sector", the release stated.
Mnuchin said the U.S.'s goal is to impose tough sanctions that will prompt Iran to re-negotiate the Iran nuclear deal. "These are very very strong sanctions; they worked last time".
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