European expats working in Iran hard hit by Trump sanctions

European expats living and working in Iran are furious at the new USA sanctions.

The hundreds of European, US and Asian companies which flocked to Iran after the 2015 landmark nuclear agreement are now bitterly angry that the assurance of investment safety lasting for at least a decade is now under a massive threat. Just a month after Donald Trump pulled the plug on the USA’s part in the 2015 agreement, the companies have 180 days to leave Iran or be barred from American markets, hit by massive fines and see their CEOs arrested for disobeying the Trump-ordered US sanctions.

It’s too soon to predict how many overseas businesses will be forced to pull out of Iran, and the European Union has pledged to protect its companies, but foreign investors are now facing huge complications especially if they’re involved in global operations. Executive level expats working in the country, as well as those looking to continue their careers via a move to Iran have been hit with uncertainty as to their futures should US sanctions threaten the country’s economy.

The signs of post-2105 investment are obvious, especially in Tehran, but companies with operations in or extensive ties to the USA are at most risk. Major oil companies Eni and Total are abandoning development projects and Danish shipping giants Maersk and TORM will no longer visit Iranian ports. Italian steel company Danieli’s huge factory outside Tehran will need to pull out after selling its shares. As a result, every expat professional working for these and other major firms will either be out of a job or forced to relocate. According to employees, US consumer goods giant Proctor and Gamble is already pulling out and laying off all local workers.

The nightmare also applies to European and Asian companies selling products exempted from the sanctions, although the decision to leave may not be as clear cut, nor is it for consultants and investors who’ve formed businesses with Iranian partners. According to one US diplomat, Trump wants to destabilise Iran, but the US won’t have to live with the consequences. He believes the sanctions will have little actual effect on Iranians, but if destabilisation looks likely it’s Europe which will feel the effect. EU embassies are recommending holding back on rash decisions such as closing down but, according to one diplomat, they’ll be making their own decisions.