German companies will no longer be able to rely on the government's export and investment guarantees when doing business with Iran.
The German federal government stops economic cooperation with Iran. The reason is brutal crackdowns on protesters by the regime. Among other things, this applies to export credit and investment guarantees, as well as training programs. German companies can no longer rely on export and investment guarantees from the federal government when doing business with Iran. This is reported by the Tagesschau.
In view of the “very serious situation in Iran”, the Federal Ministry of Economy and Technology has suspended the instruments for promoting foreign trade, as well as German-Iranian business cooperation. According to the ministry, this concerns export credits and investment guarantees, as well as the German-Iranian energy dialogue, the program for training managers and the program for foreign trade exhibitions. Exceptions can only be granted for compelling humanitarian reasons.
A short phase of export and investment guarantees against Iran was still suspended for a decade. Only since 2016 has there been a short phase of the opening of these instruments, in particular, after the lifting of EU sanctions.
During this time, guarantees were granted or extended for several investment projects. However, since the end of 2018, the German government has not received any more applications for new investment guarantees.
The same applies to export credit guarantees: the German government provided guarantees in 2017 and 2018, but this has stopped since 2019. The German Ministry of Economy, after consultations with other ministries, decided to completely suspend these instruments.
According to the German Ministry of Economy, the volume of German-Iranian trade in 2021 amounted to 1.76 billion euros. In January-September of the current year, it amounted to 1.49 billion euros. Years ago, German companies still had high hopes for doing business with Iran. However, amid US sanctions, the risk became more and more, and companies exited the market en masse.
Also read: US imposes new sanctions on Iranian officials for suppressing protests
Protests in Iran began on September 16 after the death of Mahsa Amini, a 22-year-old Iranian girl of Kurdish origin, arrested by the morality police for allegedly flouting Sharia law.
Related video
The first stage of the Iranian revolution has ended. Repressions by the authorities led to the radicalization of demands, the emergence of a practical consensus regarding the future — the abolition of institutions that serve as a framework for the Islamist regime. What awaits Iran in the near future? Read about it in the article by Igor Semivolos “Revolution in Iran: friendship with Russia will not lead to good”.
