US president Donald Trump announced on Friday that he will not certify the Iran nuclear deal, otherwise known as the Joint Comprehensive Plan of Action (JCPOA), creating further uncertainty for the future of investment in Iran.
A number of foreign companies have entered Iran since the easing of international sanctions in 2016 after it agreed to limit its disputed nuclear programme.
The JCPOA deal was negotiated by Iran and the five permanent members of the United Nations Security Council (United States, Russia, United Kingdom, France and China), as well as Germany and the European Union (EU).
Under the terms of the JCPOA, agreed by former US President Barack Obama, Iran accepted strict limits on its nuclear programme in exchange for a relaxing of sanctions imposed by the Security Council to curtail its nuclear ambitions.
Deal still stands – for now
As Federica Mogherini, the EU foreign policy chief, has said, no one country can terminate the deal. However, President Trump’s speech has opened a 60-day window in which the US Congress could re-impose sanctions, which could in turn undo the agreement, heightening concerns among many Western and Asian companies planning to invest in the Iranian economy.
Iran needs foreign investment for repairs and upgrades of oil and gas fields, as well as for extensive infrastructure development for its growing middle class. In the past year several major deals have been signed, which may now be under threat. See an extensive list here.
