LONDON — European firms, fearing a loss of their U.S. market, have
shied away from signing major contracts with Iran.
European industry sources said British, French and German majors have
refused the appeals by their governments to negotiate major contracts with
Iran as part of an effort to woo Teheran away from the construction of
nuclear weapons. The sources said these companies fear loss of their U.S.
market upon signing any agreement with Teheran.
"The EU has been too late," an industry source said. "The Americans have
already warned European majors to keep out of Iran, or else."
U.S. officials have confirmed that the Bush administration warned leading
European companies of sanctions if they sign major deals with Iran. The
officials said the administration wants to ensure a permanent halt in
Iranian uranium enrichment and full International Atomic Energy Agency
access to suspected nuclear facilities before easing a ban on trade with
Teheran.
"We want any proliferators, from multinational conglomerates to small
exporters of dual-use machine tools, to understand that the U.S. will impose
economic burdens on them, and brand them as proliferators," U.S. envoy to
the IAEA Jackie Sanders said in November 2004.
The industry sources said the United States has stressed that it would
not tolerate any European help to Iran's nuclear program. Britain, France
and Germany have pledged to facilitate the construction of a light-water
nuclear reactor if Teheran ends its uranium enrichment program.
So far, leading firms in France and Germany have told their governments
they would not participate in such an Iranian program. The sources said the
firms included Siemens, the original contractor of Iran's nuclear reactor at
Bushehr. Siemens was replaced by Russia in the 1990s.