Germany’s trade with Iran will suffer from sanctions

31 August 2010 11:31  [Source: ICIS news]

GermanyLONDON (ICIS)--Sanctions against Iran are expected to have a significant impact on Germany’s trade with the country, a spokeswoman from the German Federal Ministry of Economics and Technology said on Tuesday.

Anna Robert said this seemed to be true in particular with regard to the EU autonomous sanctions, which contain additional financial sanctions and export restrictions - in particular in the energy sector - and intensive controls of financial transactions to and from Iran. 

The EU strengthened its sanctions against Iran earlier this month.

It said it would be targeting the country’s oil and gas interests to add pressure on Tehran to drop its nuclear enrichment programme.

EU sanctions focus on preventing sensitive equipment transfers and investment in the energy sector, unlike US sanctions which ban all oil products trade with Iran.

“The German-Iranian trade is subject to the restrictions imposed by the UN and EU. German companies are aware of these restrictions and respect them,” Robert said.

Several major German companies such as Siemens, Allianz and Munchner Ruck have withdrawn from entering into new contracts with Iranian customers, Robert added.

A number of German chemicals companies, including BASF, have strong business interests in Iran.

Germany is the EU’s most important trading partner. In 2009, its exports to the Islamic Republic amounted to €3.7bn ($4.7bn), according to statistics office Destatis.

($1 = €0.79)

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By: Hilde Ovrebekk
+44 20 8652 3214

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