Significant Increase in German Exports to Iran
German exports to Iran have increased in recent months. According to data from the German Federal Statistical Office, German companies’ exports to Iran in October alone were 85 percent higher compared to the same month last year.
Reuters reported on Tuesday, December 20 (December 11), citing data from the German Federal Statistical Office, that German companies’ exports to Iran in October 2018 reached 398 million euros. This represents an 85 percent increase compared to Germany’s October 2017 exports to Iran. The highest volume of German exports to Iran in a single month was recorded in 2009.
U.S. sanctions against Iran went into effect on November 5, 2018. Six months before this date, U.S. President Donald Trump had withdrawn from the nuclear agreement between world powers and Iran, known as the “JCPOA.” The resumption of U.S. sanctions against Iran exposed German companies engaged in trade with Iran to the risk of penalties if they failed to comply with American sanctions. However, to date, these sanctions have not had a significant impact on German-Iran trade.
“Michael Tockuss,” member of the Board of Directors of the German-Iranian Chamber of Commerce, told Reuters on Tuesday, “These statistics show that trade with Iran is not dead.”
Michael Tockuss added: “We anticipate such increases for November and December as well. This is a wave that is growing and will continue until the end of the year.”
According to Reuters’ report, German exports to Iran in the first ten months of 2018 reached approximately 2.4 billion dollars with a 4 percent increase. However, German imports from Iran during this period declined sharply and fell below 400 million dollars over the past 10 months.
Israel’s Concerns
Israel is watching with concern the increase in the volume of German trade with Iran. A spokesperson for the Israeli Embassy in Berlin told Reuters: “In general, we are monitoring German-Iran trade with concern. Because we know that not all the revenue from this trade is spent on Iranians. Rather, the Tehran regime uses this money to support official or proxy groups’ aggression and terrorism in the region.”
According to the Israeli Embassy spokesperson in Berlin, this action (German trade with Iran) does not stop Hezbollah in Lebanon, which has aimed hundreds of thousands of its rockets at Israeli citizens.
The spokesperson added: “We hope that all German companies are aware of the risk of misusing goods exported to Iran and the profits derived from it. This is dangerous not only for the Middle East but for Europe itself.” Iran has repeatedly threatened the destruction of Israel.
According to Michael Tockuss, the German-Iranian Chamber of Commerce expects trade with Iran to increase for the entire year of 2018. The main party to this volume of trade with Iran consists of medium-sized German companies. At least one-third of German exports to Iran comprise machinery and agricultural equipment, and 50 percent of it consists of chemical products and semi-finished goods.
The German-Iranian Chamber of Commerce is also somewhat optimistic about trade with Iran in the coming year. Tockuss says, “Despite all the tensions, trade with Iran has been stable for decades. For 2019, we are counting on stable trade with Iran of between 200 to 250 million euros per month.”
Source: DW
