Iran Autos Report Q1 2015

Business Monitor International
December 31, 2014
59 Pages - SKU: BMI5432513
Countries covered: Iran

Iran Autos Report Q1 2015

The main political news affecting the Iranian auto industry over the past quarter was the announcement onNovember 24 2014 that there has been an extension to the deadline for a 'permanent' agreement to bereached on the Islamic Republic's nuclear programme- which aims to ensure that Iran cannot use itsenrichment activities to produce a nuclear weapon before the West can intervene - until June 30 2015.

During this extension period to the ongoing talks between Iran and the P5+1 countries (the US, Russia,China, France, Britain and Germany), Iran will continue to receive approximately USD700mn per monthfrom its frozen accounts, although key international sanctions on its energy and banking sector will remainin place.

BMI's Country Risk team believes that the talks will be protracted, with risks tilted slightly to the downside.Overall, we believe that a solution to the nuclear issue will not be found by June 30, as political constraintswill prevent both Iranian and US negotiators from making the significant concessions necessary to bridgeexisting technical obstacles to a deal. That said, a complete breakdown in talks is also unlikely in June, asthe costs would be immense.



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