PSA Peugeot Citroen Affected by Iran Sanctions image

PSA Peugeot Citroen had to suspend operations at one of its northeastern France factories, because of a halt to shipments of spare parts from Iran.

“There is a tentative plan to resume activity and shipments in September,” AFP quoted Franck Don, a CFTC union official.

The company had to lay off 220 workers from its Vesoul factory in northeastern France, for the rest of April due to a slowdown caused by the lack of spare parts from Iran. It is worth mentioning that on February 20th, PSA Peugeot Citroen stopped its trade with Iran after the enforcement of US-led financial sanctions against the Islamic Republic for its nuclear energy program. The company also ceased exporting vehicles to Iran, which accounted for around 13% of the firm’s global deliveries in 2011.

Not a long time ago US advocacy group, United Against Nuclear Iran (UANI), told the U.S. Congress to launch a probe into the French automaker’s transactions with Iran. On January 23rd, EU foreign ministers approved sanctions against the Islamic Republic, including a freeze on the assets of the Central Bank of Iran within the bloc’s states, an embargo on Iranian oil imports and a ban on selling diamonds, gold, and other precious metals to Tehran.