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, in October alone, exports from German companies to Iran were 85 percent higher than in the same month last year.
Reuters reported on Tuesday, December 11, citing data from the German Federal Statistical Office, that exports by German companies to Iran reached 398 million euros in October 2018. This is 85 percent more than German exports to Iran in October 2017. The highest volume of German exports to Iran in a single month was recorded in 2009.
US sanctions on Iran came into effect on November 5, 2018. Six months earlier, US President Donald Trump had withdrawn from the nuclear deal between world powers and Iran, known as the Joint Comprehensive Plan of Action (JCPOA). The reimposition of US sanctions on Iran has put German companies doing business with Iran at risk of penalties if they fail to comply with US sanctions. However, the sanctions have so far had little impact on German trade with Iran.
“These figures show that trade with Iran is not dead,” Michael Tockuss, a member of the board of directors of the German-Iranian Chamber, told Reuters on Tuesday.
"We expect a similar increase for November and December as well. This is a wave that is increasing and will continue until the end of the year," added Michael Tokus.
According to Reuters, in the first ten months of 2018, German exports to Iran increased by four percent to about $2.4 billion. However, German imports from Iran decreased sharply during this period, reaching less than $400 million in the past 10 months.
Israel's concern
Israel is concerned about Germany’s growing trade with Iran. “In general, we are watching Germany’s trade with Iran with concern,” a spokesman for the Israeli embassy in Berlin told Reuters. “Because we know that part of the revenue from this trade is not going to Iranians. Rather, the Tehran regime is using this money to support aggression and terrorism in the region, either through official or proxy groups.”
According to a spokesman for the Israeli embassy in Berlin, this (German trade with Iran) will not stop Lebanon's Hezbollah, which has aimed hundreds of thousands of rockets at Israeli citizens.
The spokesman added: “We hope that all German companies are aware of the risk of misuse of goods exported to Iran and the profits made from it. This is dangerous not only for the Middle East, but also for Europe itself.” Iran has repeatedly threatened to destroy Israel.
According to Michael Tokus, the German-Iranian Chamber of Commerce expects trade with Iran to increase throughout 2018. The main party to this volume of trade with Iran is German medium-sized companies. At least a third of German exports to Iran are agricultural machinery and equipment, and 50 percent are chemical and semi-finished products.
The German-Iranian Chamber of Commerce is also somewhat optimistic about trade with Iran next year. "Despite all the tensions, trade with Iran has been stable for decades," says Tokus. "For 2019, we are also counting on stable trade with Iran of between 200 and 250 million euros per month."
Source: DW
