The United States has convinced Volkswagen AG to comply with sanctions on Iran and cease conducting most business in the regime, a U.S. official told Bloomberg news.

The Trump administration and the German automotive firm ironed out the final details on Tuesday after weeks of negotiations, according to U.S. Ambassador to Germany Richard Grenell, who noted that Volkswagen will still be allowed to do some business in Iran under a humanitarian exception.

“We are pleased with this decision because Iran diverts its economic resources away from its people to spread violence and instability across the globe,” said Grenell.

The Volkswagen move will likely undermine the European Union notion that Iran should be a place for businesses, as the E.U. has been trying to salvage the 2015 nuclear deal, from which the U.S. withdrew in May.

The second round of U.S. sanctions on Iran is scheduled for Nov. 5.