Commercial risks entering the Iranian market

"The Trump Administration's withdrawal on May 8, 2018, from the uncertainty accompanying the fate of the Joint Comprehensive Plan of Action (JCPOA) will cost the Iranian economy a heavy price. It has created wariness on the part of foreign investors, especially European investors, and prevented the Iranian market from significantly reaping the fruits of the deal. Prior to the withdrawal from the JCPOA, there were numerous preparations by foreign businesses and investors to enter the Iranian market, but only a marginal number of deals and investments materialized. Following the American withdrawal, major European companies began to move their business away from Iran and cut their trade with it. Even though the European Union is determined to stick to the deal, it will be very difficult for the EU to convince companies to prefer the Iranian market over the American market, once secondary sanctions are resumed. Russian and Chinese companies may try to fill the gap but may encounter difficulties. Although India has declared that it will abide only by UN sanctions, it appears that Indian companies will hesitate to ignore the American threat [...] This paper offers unique insights and surveys the risks and opportunities for foreign investors considering whether to enter the Iranian market"--Executive Summary.