General Electric Co. intends to end sales of oil and natural-gas equipment in Iran before the end of the year and abandon its investment plans as Washington prepares to renew sanctions against the country, the Wall Street Journal reported May 31, citing people familiar with the matter.
GE's electricity-generation unit has already shut its office in Tehran, while Baker Hughes, a company GE bought in 2017, has stopped accepting deals with Iranian merchants, the Journal said, in a sign of compliance with U.S. demands.
"We are adapting our activities in Iran as necessary to conform with recent changes in U.S. law," a GE spokeswoman was quoted as saying. "GE's activities in Iran to date have been limited and in compliance with U.S. government rules, licenses and policies."
On May 8, the U.S. pulled out of the 2015 Iran nuclear pact, leaving businesses that entered into contracts based on the suspension of sanctions under deal with either 90 or 180 days to cease those operations.
Before the U.S. withdrawal, GE foreign subsidiaries were preparing up to $150 million in bids for pipelines, compressors and subsea equipment in Iran, the Journal said.
