French automaker Renault says sanctions on Iran have triggered a steep loss for the company.

Renault announced an operating loss of $327 million for the first half of 2013, compared to a $687-million operating profit in the same period last year.

According to the report, it has cost the company 512 million euros to be shut out of the Iranian market since July of 2012, when the European Union imposed widespread sanctions on Iran.

The largest French automaker, Peugeot, has also severed its ties to the Iranian market and reduced its workforce by 8,000 employees due to declines in auto production and sales.

ISNA reported in June that the automotive market in Iran is in crisis, and the production of cars, vans and trucks has declined by nearly 50 percent.