Airbus granted 2nd license for sale of 100 civilian aircrafts to Iran

While Republican President-elect Donald Trump equation with Iran is well known, the move to disallow and cancel such sale would draw heat from U.S. partners who were party to the nuclear agreement. Furthermore, if the move to cancel the agreement is taken up by legislature, Trump could suddenly find cancelling the deal to be much tougher than expected.

In a move that could irk the ire of President-elect Donald Trump, the Obama administration has issued a second license to Airbus to sell commercial planes to Iran Air, thus bringing its national carrier closer to receiving Western jets under last year’s unshackling of U.S. led sanctions.

Having come in the waning months of Obama’s administration, the move has prompted complaints from Republicans in the Congress and is likely to further raise temperatures once Donald Trump takes office.

In the run up to the elections, Trump had said he would dismantle the 2015 international nuclear deal with Iran, which allows the sale of civilian aircrafts by U.S. and European companies.

According to sanctions experts, If the Trump Administration were to act on its election rhetoric, it could easily withdraw such sales. Although doing so may attract fierce opposition from U.S. allies and world powers who were its partners during the negotiations of the lifting of sanctions.

As per an anonymous source familiar with the matter at hand, the Office of Foreign Assets Control, which is part of the U.S. Treasury, has issued a license for the sale of 106 planes to Iran Air.

Confirming the order, a spokesman for Airbus said the company has received the OFAC license, but declined to get into the specifics on the number of planes approved.

Although Airbus is based in France, it must still get U.S. approval for the sale of its aircrafts to Iran since more than 10% of the aircraft’s components are manufactured in the U.S.

Earlier this year, Tehran had provisionally ordered more than 100 jets each from Airbus and Boeing.

Members of Trump’s transition team did not respond to a request for comment on the license.

Confirming the issuance of a second license, the U.S. State Department made it amply clear that the Obama administration was not trying to push through Iran-related measures, in its waning days.

“This particular license that we’re talking about today isn’t new. It is something that has been in train for quite some time, as other licenses have been as well,” said John Kirby, the State Department’s spokesman in a press briefing.

“There’s no Machiavellian intent here to push in any way outside the bounds of our normal commitments and obligations here in the final months of the administration.”



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