The United States and the European Union relaxed certain sanctions against Iran relating to its nuclear program after the U.S., the EU, Iran and other countries reached agreement on the Joint Comprehensive Plan of Action (JCPOA) in July 2015. Yet many of the large multinational companies with operations in the U.S. and EU face big challenges navigating this new environment and determining whether and how to enter the Iranian market. If sanctions have been relaxed, why has there not been a rush of companies into Iran?

The EU and U.S.: Dueling Approaches

The EU largely relaxed nearly all of its sanctions against Iran, abolishing essentially all of its service and product restrictions in relation to energy, transportation, gold and precious metals, financial services and banking, among others. This allows European businesses to engage relatively freely in Iran opportunities, with sanctions specifically related to nuclear proliferation and human rights abuses and an arms embargo remaining in place.