Foreign trade: German exports suffer from Iran-sanctions

The hard pace of the USA against Iran leaves traces in the German export business: the export of goods is declining, trade could even come to a complete drop.

Foreign trade: German exports suffer from Iran-sanctions

DieSanktionen of USA against Iran are increasingly also burdening German Wirtschaft.In first five months of this year, German exports to Iran have fallen by about four percent, and this trend is halting, said foreign business chief DerIndustrie and Chamber of Commerce (DIHK), Volker Tan, newspapers of Funk Media Group.

2017seien, however, exports still rose by 16 percent. "Around 120deutsche companies have even opened ir own representative office in Iran in recent years", SagteTreier, "Now many are entering retreat."

The financing possibilities for country and also for German companies narrowed, tan fears, given fact that credit institutions had announced that y would only deal with Iran until end of July. Wieaus figures from Federal Ministry of Economics, federal government's export guarantees – Hermes guarantees – currently 57Geschäfte in Iran with a total volume of 911 million euros.

Complete withdrawal is not excluded

After unilateral dismissal of nuclear agreement with Iran, DieUSA had again imposed sanctions on IranischenFinanz and energy sectors. The first penalties will be effective on 6 August. The US is also threatening to impose sanctions on banks that directly or indirectly support transactions with Iranian institutions. Already now Derinternationale payment transactions for IranischeBanken are severely restricted.

"Selbstdie companies that are not directly affected by US sanctions, for example from MedizinischenVersorgungswesen or without US business, currently do not find a bank that handles ir Iran business," said DerDIHK expert tan. "If a solution is not investment in a timely manner, it is to be feared that trade will come to a standstill and diedeutsche economy will have to withdraw completely from Iran."

Second round targets Iran's oil business

With first round of sanctions, US wants to achieve that Iran cannot acquire US dollars andnot more with gold and precious metals. Trade in certain metals, raw materials and industrial software should also be prevented.

Einezweite Round of penalties Sollim November follow. It aims to harm wichtigenÖlgeschäft of Iran. If US succeeded in massively restricting Iranian oil exports, country would plunge into a serious crisis, because 70 to 80 percent of Iran's export revenues come from petroleum sector.

The sanctions against Iran were suspended in course of nuclear agreement. The 2015 ErzielteVereinbarung should prevent Islamic Republic from building nuclear bombs. In exchange for economic loosening and more Investitionenausländischer companies, Iranhatte has agreed to abandon its nuclear program. However, U.S. President Donald Trump announced in May 2018 DenAusstieg of United States from agreement. The recent proposal by trumps to re-negotiate a nuclear agreement called Iran's foreign minister a "PR stunt."

Updated Date: 05 August 2018, 12:00

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