Iran's tech and engineering companies affected by sanctions
TEHRAN, Iran, Nov.8
Iranian technical and engineering company are facing problem in their foreign projects due to the US sanctions, said Member of Iran's International Consultants and Contractors Association Farzin Mahdian.
"Iranian technical and engineering companies require Letter of Credit (LC) to participate in tenders in other countries, but due to the sanctions, no foreign company or government approves Iranian LC," said Farzin Mahdian, Trend reports citing ILNA.
"We are not completely aware of the new sanctions details, but the previous sanctions have shut down exports of the private sector's technical and engineering services. In current economic situation, the export is the best way to attract funds for construction plans, but due to the sanctions, there are problems in money transfer and banking," the member of the association added.
"Recently, some foreign banks issued Letter of Credit in return for complete deposit of LC value in bank by Iranian companies in form of savings; however, it will not provide financial advances," Mahdian indicated.
"The other issue is that it's not possible to open account in foreign banks, unless the companies establish an intermediary company in third country, and this process takes years," he said.
"At the moment, a $2-billion project has been suspended in Iraq, while Iranian companies have to pay monthly costs to maintain the equipment and machinery, as the Iraqi government is delaying payment," Mahdian added.
"In Syria, Iranian private sector is working via Khatam Al Anbya Construction headquarter which is an active Iranian company in Syrian market," he noted.