German Industry Warns of Renewed Sanctions on Iran

The renewal of sanctions would be a major threat to the country's reintegration into the global community. Even companies that have established business relations with Iran and are equally active in the US would be hit greatly by the reintroduction of sanctions.

BDI warns against threats from US President Donald Trump to re-isolate Iran economically. “The return of sanctions would be a major threat to the country's reintegration into the global community. The nuclear deal should serve as a model agreement because it allows the military’s use of nuclear technology to be stopped with diplomacy,” said BDI President Dieter Kempf in Berlin.

Following the lifting of nuclear-related sanctions against Iran in January last year and the rebuilding of business relations, German exports to Iran increased by 26 percent in 2016 and by as much as 40 percent in the first quarter of 2017. Due to restrictive US financial sanctions, which also apply directly to German companies and banks, it is still difficult to execute projects in Iran. Companies that have since re-established business relations with Iran and are equally active in the US should be very worried about the renewal of sanctions.

“The German economy is convinced that Iran’s economic isolation is not stabilizing the security situation in the region,” Kempf said. “The global community should support the reform-oriented process in Iran and help to modernize the country by lifting sanctions”, he emphasized. “The benefits of renouncing their country’s nuclear program must be visible to the Iranians and worthwhile in everyday life. This is only possible through the reintegration of Iran into the global community – and above all, through economic freedom and prosperity.”

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