Foreigners anxious for sanctions’ U-turn to continue business with Iran

IRNA – Despite the US sanctions, which have resulted in banking transfer restrictions, foreign companies in auto business with Iran are looking for a U-turn to continue dealings with the Iranian partners.

‘We are here at Tehran Auto Parts Fair to hold talks with Iranian companies on ways of sanctions’ U-turn. We wish to find new ways of financial transactions with Iranians; we hope for better conditions,’ said Yukuai Wang, director of a Chinese company manufacturing air pumps and auto air pressure sensors, in an interview with IRNA.

He said the sanctions had disrupted foreign exchanges through Chinese Kelon Bank, which is not now functioning due to the US sanctions.

Yukuai Wang’s company is an example of a large groups of foreign auto companies that are highly willing to bypass the US sanctions as it has adversely affected their once-upon-a-time lucrative business with Iran.

In this year’s Tehran Auto Parts Fair, which was held on November 12-15, a total of 190 companies from 11 countries took part, testifying their will not to leave the Iranian market of 80 million so easily. The companies represented France, Greece, Turkey, China, Taiwan, Japan, South Korea, India, Italy, Poland, Malaysia and Romania.

Harman Zheng, a clutch producer from China, says, ‘Our money transfer channels with the Iranian partners has stopped due to a halt in Kelon’s cooperation with Iranian side. However, we are looking for ways to revive monetary and financial exchanges with Iranians. We wish to continue cooperation with Iran through a third country consented by Iran and China. It will take time. We trust Iranians and consider the country as a big market for our products.’

Gwang Jun, whose company is a producer of different kinds of wire and conveyor motor, says, ‘We are here to exchange views with Iran partners to find new mechanisms to offlay the restrictions and find new customers.’

A Japanese exporter of auto spare parts told IRNA on condition of anonymity that he had found a way to overcome the financial restrictions but prefers to keep silent. He said he had spent about 50 billion rials to attend the Tehran fair which indicates his strong willingness for cooperation.

The Middle East Sales Director of South Korean Sang Sin Brake Company which produces brake pads and discus page, told IRNA that his company attended the fair to announce support for Iranian partners.

‘We are unhappy with the issue (the Iran sanctioning) because it has made exports to Iran very difficult; prior to sanctions we had financial transfer mechanisms through a Korean bank,’ he said.

Tehran Auto Parts Fair served as an important opportunity for evaluation of the prospects in automotive sectors, the increase of sector-specific export, the protection of market share, and the establishment of long- term business connections. The international event aimed to demonstrate auto parts, spare parts and decoration equipment as well as after sales, technical and engineering services. Well-known foreign companies from Germany, France, Italy, Spain, UK, China, Taiwan, South Korea, India, Turkey and Sweden took part in the international event in Tehran.