The Obama administration has green-lighted the sale of more than 100 Airbus planes to Iran, officials said today. It is the latest US license for commercial activity with the Islamic republic following last year's nuclear deal.
Airbus in September received a license to sell 17 planes to Tehran. Two US officials with knowledge of the matter said the European manufacturer got permission yesterday to export 106 more. The officials weren't authorised to speak publicly on the matter and demanded anonymity.
Airbus needs Treasury Department approval because at least 10 per cent of the plane's components are American-made. Hoping to replace its ageing fleet of the 1970s US aircraft, Iran has agreed to purchase tens of billions of dollars' worth of planes from Airbus and its American competitor, the Boeing Co.
But, both deals rest on precarious ground. President-elect Donald Trump has threatened to re-negotiate President Barack Obama's signature foreign policy achievement, the seven-nation deal that imposed strict limits on Iran's nuclear activity in exchange for the end of wide-ranging oil, trade and financial sanctions.
And last week, the Republican-led House moved decisively to bar the sale of commercial aircraft to Iran. The bill must now clear the Senate, where the measure will likely face stiff opposition from Democrats. Obama would veto the bill if it reaches his desk, according to the White House, but Trump could view things differently once he is inaugurated on Jan 20.
In a letter to Obama today, House Speaker Paul Ryan and two other top Republican lawmakers urged the President "not to take any action that would weaken United States or multilateral sanctions or other restrictions against Iran in this post-election period".
"We respectfully request that your administration take no further actions designed to bolster international investment in Iran," said the letter, also signed by Rep. Kevin McCarthy, the House majority leader, and Rep. Ed Royce, the House Foreign Affairs Committee chairman. A smooth transition, they said, means providing Trump the "opportunity to assess United States policy toward Iran" without new complications.
In response, White House Press Secretary Josh Earnest said any decision related to Iran would reflect "actions that have been in the pipeline for quite some time".
The Treasury Department echoed that sentiment, saying the United States already had committed to licensing the export of commercial passenger aircraft to Iran and the US would fulfil that commitment. The licenses include strict requirements that planes be used exclusively for commercial passenger use and not resold or transferred.
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