Nestle to Remain in Iran despite Renewed US Sanctions

TEHRAN (Tasnim) – Nestle (NESN.S) sees no direct fallout from renewed US sanctions on Iran, the world’s biggest food company said on Tuesday.

Nestle to Remain in Iran despite Renewed US Sanctions

“We continue to closely follow political developments regarding sanctions against Iran. There are no direct implications for our business at this stage,” it said in response to a query, Reuters reported.

Nestle Iran has its headquarters in Tehran and two factories: one in Qazvin that produces infant cereals and infant formula, and a bottled water factory in Polour. The company has 818 employees and imports a limited range of Nestle products from abroad, it said.

“By providing basic food products to Iranian consumers, we will continue to fulfill the needs of the population,” it added.

The United States reimposed stiff economic sanctions on Iran on Monday, ratcheting up pressure on the Islamic Republic despite statements of deep dismay from European allies, three months after President Donald Trump pulled the US out of the 2015 nuclear deal between Tehran and world powers.

A first set of reimposed US sanctions affect financial transactions that involve US dollars, Iran's automotive sector, the purchase of commercial planes and metals including gold.

A second batch of US sanctions targeting Iran's oil sector and central bank are to be reimposed in early November.

Trump warned that those who don't wind down their economic ties to Iran "risk severe consequences."

British, French and German foreign ministers, along with the EU’s top diplomat, Federica Mogherini, issued a joint statement earlier on Monday, denouncing Washington’s decision to re-impose sanctions against Tehran.

“We deeply regret the re-imposition of sanctions by the US, due to the latter's withdrawal from the Joint Comprehensive Plan of Action (JCPOA),” the statement read.

On Tuesday, Mogherini said the EU is encouraging enterprises to increase their business with Iran, as that country has been compliant with their nuclear-related commitments.

“We are doing our best to keep Iran in the deal, to keep Iran benefiting from the economic benefits that the agreement brings to the people of Iran because we believe this is in the security interests of not only our region, but also of the world. If there is one piece of international agreements on nuclear non-proliferation that is delivering, it has to be maintained,” she said.     

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