Iran is seeing less economic benefit than it was promised from an interim nuclear accord, in part because foreign companies and banks are unwilling to risk re-engaging the Islamic Republic on a short-term basis.
Al-Monitor has learned from an Iranian official, who spoke on condition that he not be named, that a major multinational company has refused an Iranian request for aircraft maintenance services — authorized by the Nov. 24 deal — on grounds that the company could not complete the work by the end of July. That’s when implementation of the interim nuclear accord is due to expire unless it is renewed by Iran and the five permanent members of the UN Security Council plus Germany (P5+1), or it is superseded by a longer-term deal. (The company is not Boeing, which recently received a license to provide spare parts and maintenance for planes sold to Iran before the 1979 revolution.)
Iran’s economy has stabilized somewhat since the interim accord was reached, but most of the benefits appear to have been psychological or have come from better management by President Hassan Rouhani’s team compared to that of former President Mahmoud Ahmadinejad. Iran’s economy contracted 3.1% from last March to last September, according to the official Islamic Republic of Iran News Agency. And while foreign trade delegations have been flocking to Tehran, they have not signed any agreements that could violate US-led sanctions.
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