Recent news reports indicated a large Brazilian jet manufacturer, Embraer, has sought permission from the United States Department of the Treasury to sell aircraft to Iran. In a deal reportedly valued at more than $1 billion, Iran has sought to purchase high tech Embraer E-195 jets from the regional Brazilian aircraft manufacturer. Due to the sensitive technology used in the jet engine, this deal would require approval the U.S. Treasury Office of Foreign Assets Control, which licenses the engine.
Growing Business Ties Between Iran And Brazil
Reports of growing commercial ties between Brazilian transportation industry manufacturers and Iran first surfaced in February, 2016. At that time, an Iranian government spokesman confirmed news media reports indicating Iran had sought to purchase 50 aircraft from Embraer, a regional Brazilian aviation manufacturer. Embraer has become the third largest manufacturer of commercial aircraft in the world.
Brazilian Trade Minister Armando Monteiro recently journeyed to Iran to engage in high level discussions with officials of the Iranian Islamic Republic. Embraer manufactures a variety of commercial transportation products. Two Iranian carriers, ATA and Kish Air, reportedly seek to buy aircraft from Embraer. During his discussions with Iranian officials, Minister Monteiro reportedly discussed the sale of aircraft, trucks, buses and taxis from Brazil to Iran.
Iran’s Air Fleet
An Iranian spokesman indicated in May Iran’s efforts to purchase passenger aircraft from Mitsubishi Aircraft, a Japanese manufacturer, had failed to result in successfully completed negotiations. During July, 2016, Iran initiated talks with the company seeking to purchase some 24 commercial airplanes on behalf of carrier