The United States’ sanctions against Iran and Iran’s weakening economy continue to affect the automotive sector.

Volvo representatives stated that the company has not been paid in return for the truck parts sent to Iran, and therefore decided not to continue operations in Iran.

The banking system is not working in Iran because of these sanctions and the restrictions imposed by the US, said Fredrik Ivarsson, a spokesman of the giant automobile company Volvo. We can’t take our money. Therefore, we do not work in Iran for now.

Saipa Diesel officials have confirmed that Volvo Trucks has terminated its partnership agreement because of sanctions. European companies suspending their commercial ties with Iran including the French energy giant Total, French automakers Peugeot and Renault, as well as German Siemens and Daimler.

On the other hand, the European Union is in an effort to develop a payment system to alleviate the impact of US sanctions on business transactions with Iran. Federica Mogherini, High Representative of the European Union for Foreign and Security Policies, and Javad Zarif, Iranian Foreign Minister, said they were working on technical details. Even though the European Union is legally required to protect its own companies, US sanctions are preventing banks from doing business with Iranian companies, as the US can exclude banks from its own financial system if sanctions are perforated.