The Commercial Aircraft Corporation of China (COMAC) has ruled out the possibility of selling passenger planes to Iran due to the risk of US retaliation, as reported by Reuters on November 7. After the US reimposed sanctions on the Middle-Eastern country, Iran is currently looking for ways to re-establish its fleet by importing planes. Iran is actively searching for suppliers on the sidelines of Airshow China in Guangdong this week, where China is promoting its growing aviation industry. Due to the sensitive nature of the issue, executives and officials involved have all declined when asked to comment.
In May this year, the US withdrew from a 2015 nuclear agreement between Tehran and world powers and reimposed sanctions on firms including IranAir. Consequently, Iran's deals to buy about 200 aircraft from Airbus [AIR:FP] and Boeing [BA:US] were terminated. Around the same time, the US Treasury’s Office of Foreign Assets Control (OFAC) revoked all licenses to sell passenger jets that contain over 10% US parts to Iran. At its current stage, IranAir states that it is looking to purchase planes from any company that does not require having US permits. In October, both Sinopec [0386:HK] and CNPC skipped bookings of Iranian crude oil cargoes due to increasing pressure from the US.