File photo: Workers of Deutsche Bahn (German Railways)
German state-owned rail operator Deutsche Bahn is phasing out projects in Iran after Washington imposed new sanctions against Tehran and said firms doing business with Iran would be barred from doing business with the United States.
New U.S. sanctions against Iran took effect last week and several European companies have suspended plans to invest in Iran in light of the U.S. sanctions, including oil major Total as well as carmakers PSA, Renault and Daimler.
Deutsche Bahn is involved in two projects in Iran via its subsidiary DB Engineering&Consulting, a spokeswoman said on Thursday.
"Both projects will be ended in August and September 2018 respectively," she said. "Due to the altered banking practice we have sought to bring the contract to an amicable and timely conclusion."
Deutsche Bahn signed a memorandum of understanding with the Iranian rail operator Bonyad Eastern Railways (BonRail) in May 2017 for the first project, which aimed to identify and address potential in rolling stock and organisation, she said.
The second project, which started around 1-1/2 years ago, was a consulting contract for Iranian state railway RAI that included restructuring the company, the spokeswoman added.
The United States is trying to make Iran surrender through the imposition of sanctions, Iranian vice president Eshaq Jahangiri said on Wednesday.New U.S. sanctions against Iran took effect last week, and President Donald Trump said companies doing business with the country will be barred from the United States.“The first priority for all of us under a sanctions situation is to work toward managing the country in a way that brings the least amount of damage to people’s lives,” Fars News quoted Jahangiri as saying. “America is trying by applying various pressures on our society to force us to retreat and surrender.”The new sanctions targeted Iranian purchases of U.S. dollars, metals trading, coal, industrial software and its auto sector, though the toughest measures targeting oil exports do not take effect for four more months.Trump’s global policy a string of abandoned commitmentsFew U.S. companies do much business in Iran so the impact of sanctions mainly stems from Washington’s ability to block European and Asian firms from trading there.President Hassan Rouhani made similar comments to Jahangiri, although he did not specifically refer to the United States."We will not let the enemy bring us to our knees," Rouhani said, according to state TV. "If the enemy thinks they will defeat us they will take this hope to the grave with them."Khamenei rules out any military confrontation with USWashington had said Iran’s only chance of avoiding the sanctions would be to accept an offer by Trump to negotiate a tougher nuclear deal than the international accord struck in 2015.Iranian officials already rejected the offer and on Monday Supreme Leader Ayatollah Ali Khamenei, the highest authority in the country, also ruled out the possibility of talks.The Iranian economy is beset by high unemployment and a rial currency which has lost half its value since April. The reimposition of sanctions could also make the economic situation worse.Iran will not change regional policies under US threats: FMRouhani said on Wednesday that the economy is the biggest problem facing the country.Khamenei accused the Iranian government of economic mismanagement on Monday in the face of reimposed sanctions.Thousands of Iranians have protested in recent weeks against sharp price rises of some food items, a lack of jobs and state corruption. The protests over the cost of living have often turned into anti-government rallies. 
US is trying to make Iran 'surrender' through sanctions
Iran will not rein in its influence in the Middle East despite mounting U.S. pressure on Tehran to curb its regional activities, Foreign Minister Mohammad Javad Zarif told Qatar's al Jazeera TV. "Iran will not change its policies in the region because of U.S. sanctions and threats," al Jazeera on Monday quoted Zarif as saying.In May, President Donald Trump exited Iran's 2015 nuclear deal with major powers, saying it failed to address Iran's ballistic missile program, its nuclear activities beyond 2025 or its role in conflicts in Yemen and Syria. Iran's Khamenei says mismanagement hurts economy more than US sanctions
Iran will not change regional policies under US threats: FM
Iran's Supreme Leader Ayatollah Ali Khamenei accused the government on Monday of economic mismanagement and said it needed to improve its performance to help the country better weather newly reimposed U.S. sanctions.Washington reimposed strict sanctions against Iran last Tuesday and President Donald Trump has threatened to penalise firms from other countries that continue to operate in the Islamic Republic. Iran has denounced the sanctions as "U.S. unilateralism"."More than the sanctions, economic mismanagement (by the government) is putting pressure on ordinary Iranians ... I do not call it betrayal but a huge mistake in management," Iranian state TV quoted Khamenei as saying, in his first reaction to the reimposition of U.S. sanctions.Russia, Iran, others sign deal on Caspian Sea's legal status"With better management and planning we can resist the sanctions and overcome them," Khamenei said.Iran's rial currency has lost about half of its value since April in anticipation of the renewed U.S. sanctions, driven mainly by heavy demand for dollars among ordinary Iranians trying to protect their savings.Fearing further economic hardship, thousands of Iranians in recent weeks have protested against the slump in the rial, sharp rises in the prices of some food items and state corruption.The protests in cities and towns across Iran have often begun with slogans against the high cost of living, high prices and a lack of jobs, but have then quickly turned into anti-government rallies. Iran slams Trump's tariffs decision targeting TurkeyIran Supreme Leader calls for action to face 'economic war'
Iran's Khamenei says mismanagement hurts economy more than US sanctions