Few Swedish companies affected by US sanctions on Iran

4:12 min

Some Swedish companies face difficulties following the renewed US sanctions against Iran and firms that do business with Iran. Radio Sweden spoke to a Swedish export specialist to assess the impact.

In a tweet on Tuesday, the US president Donald Trump wrote that: "Anyone doing business with Iran will NOT be doing business with the United States". With this, the first round of renewed economic sanctions against Iran - that was announced in the spring - came into effect. They will be followed by more sanctions in November.

"Trade with Iran will be quite difficult going forward, especially if you are a company with ties to the US and you have to follow the US sanctions," said Victor Carstenius, senior country analyst at the Swedish Export Credit Agency.

"The US has selected certain sectors that will not allowed to do business with in Iran, but in fact, all companies will be affected as the payment channels will now disappear, when banks leave Iran" said Carstenius.

But overall, there are not that many Swedish companies that are trading with Iran, so according to Carstenius, the Swedish economy will only be marginally affected.