After Siemens Departure, German Firms Remain Heavily Involved in Iran
But leaving Americans and Israelis aside, one does not need anonymous sources in order to know about Germany’s hidden trade with Iran via the UAE. Thus in November 2007, Iran’s Press TV cited the German ambassador to Tehran at the time, Herbert Honsowitz, to the effect that
There has not been any decrease in German exports to Iran in the wake of the recent trade restrictions and Security Council-mandated sanctions, but a significant part of the German exports is being routed via the United Arab Emirates.
The Press TV report puts the volume of German trade via the UAE at $4 billion “in the last year.” If accurate, this would mean that Germany’s real volume of exports to Iran in 2007 was nearly double the official figure. As Küntzel points out, a November 2009 note published on the website of the German-Iranian Chamber of Commerce and Industry openly states: “The greater part of shipments [to Iran] from the UAE are re-exports from third countries: among others, from Germany and China.”
The anonymous source cited in the Times report suggests that German businesses are resorting to the indirect Dubai route as a consequence of increasing “pressure from Berlin,” i.e., presumably to cease their business activities in Iran. Küntzel, however, has obtained evidence that semi-official German agencies are in fact actively encouraging the practice. Thus he cites the minutes of a November 17, 2009, meeting held by a working group of the German-Emirati Joint Council for Industry & Commerce. Küntzel reports that the document sets out the following as one of the major aims of the group: “How to do business in Iran through Dubai. … Practical steps to do business in Iran.”
Perhaps it is no coincidence, then, that in the very year that German exports to Iran apparently began to contract in response to international pressure, German exports to the UAE experienced a massive spike. A December 18, 2006, report published by the German public agency, Germany Trade and Invest, commented upon the “booming” German-Emirati trade as follows:
Only recently, the UAE replaced other heavyweights like Saudi Arabia or Iran as Germany’s most important trading partner in the Middle East. In 2005, Iran still received more German exports than the UAE. In the first nine months of 2006, the relationship got inverted. German shipments to the UAE increased by 21.5% to some €3.84 billion. A large part of these exports, however, are re-exported to other countries in the region, such that the UAE trade proper is thus somewhat over-estimated.
“Up to 2004, Iran was the most important re-export market for the UAE,” the Germany Trade and Invest report discreetly adds, “In the meanwhile, India has taken over this position.” It would be interesting for a trade specialist to try to put this latter claim to the test. The Germany Trade and Invest report appears no longer to be available on the agency’s website. A Google-cached version is available here.
Matthias Küntzel ends his analysis on a hopeful note. “A single sparrow does not yet make for spring,” he repeats, “but it is a sign of changes to come.” Well, maybe. The fact is that none of the other German firms doing business in Iran have been subject to the sort of opprobrium that Siemens has. Perhaps now they will be as a result of Küntzel’s revelations.
It remains to be seen whether the simple fact of doing business in Iran will bear the same stigma as allegedly aiding the Iranian regime to spy on and repress its own population. More to the point, if the Iranian business activities of any of the firms on the list are of relevance to Iran’s nuclear program, then the real question is not one of stigma and voluntary withdrawal from the Iranian market. Such firms — and Germany itself, to the degree that it has facilitated or turned a blind eye to their activities — will be violating existing UN Security Council resolutions.
In any event, and more prosaically, one thing at least is sure, and ought perhaps to be kept in mind by the editors of the New York Times. A single case does not make a trend.
Let us call an ace an ace, and a spade a spade.
While there are various factions within Germany who are keen to separate from their murderous Nazi ancestors, thus eschewing any business with the Iranian Hitlerite regime, there are MANY German businesses and others who are fine with assisting Iran in its goal.The point being, purging the world of the Jewish State is a goal they share in common, therefore, being exposed to scrutiny or sanctions for doing business with Iran is a very small price to pay.
At the end of the day Israel’s leaders know the score. It will be up to them to take matters into their own hands, regardless of who approves or not. After all, more of them want Israel to disappear, so listening to them is NOT an option!
This is a surprise? To who? American firms also do business with Iran, as do Chinese, French and Russian. I would not be surprised to find out that ALL European nations do business with Iran.
After all, it’s NOT illegal. UN Sanctions apply only to certain items. That won’t change without the USA getting tough with China. If the USA gets tough with China, China will stop buying US Bonds.
Sanctions are a joke. Even if the USA got China to go along, they would still be a joke.
Any attempt to enforce sanctions would cause a war, which is what the sanctions are supposed to prevent. Sanctions are a theory, one that has been proven bogus. If sanctions worked, why is Cuba ( under sanction since 1960) and N. Korea ( under sanction since 1951) still going?
http://en.wikipedia.org/wiki/United_States_embargo_against_Cuba
http://www.fcnl.org/pdfs/NKsanctions.pdf
Sanctions only work against Democracies. Since Democratic states have a passion for negotiation, there is never any need for sanctions.
Despots and Tyrants are not bothered by sanctions.
Regime change is the only sure fire method of dealing with them. Either by targeted assassination or invasion and war. Nothing else works.
So the politicians have to bite the bullet and order the kill or send in the troops. Most pols don’t have the sand for that, so they put sanctions on in an effort to look like they are doing something.
Don’t be fooled.
Huh.
It’s like déjà vu.
All over again.
“The greater part of shipments [to Iran] from the UAE are re-exports from third countries: among others, from Germany and China.”
I thought it ironic that Germany & other western countries were doing business with Saddam’s Iraq right up to the 2003 invasion.
More ironic that China is currently so completely enmeshed in Iran, oilwise and tradewise, that some continuing notion of getting Chinese co-operation on “sanctions” at the UN seems absurd. Russia, the same. Russia has actually built some of the nuclear facilities in Iran that it is now asked to turn around and condemn.
Arms traders/manufacturers of all kinds sell to the highest bidder and route, probably routinely, through other willing countries. Some arms shipment that originated in North Korea was interdicted coming up through Africa, eventual likely destination, Gaza.
The whole international situation is so muddled up and riddled with self-interest that achieving a consensus as to clear cut enemies in the world anymore is impossible.
I’ve often wondered how the idiots of the planet, terrorists/brain dead mullahs etc., continue to be supplied and the complicated network of international trade that enables that. Despite letting its country go to hell in a handbasket internally, Iran has been awash in oil money. It would seem the only rule of thumb in international relations any more is follow the money.
In thumbing his nose at the “international community”, Ahmadinejhad seems smug that he has some very reliable and enduring trading partners
When the Anglo-Saxons conquered the world, the Germans traded with the rest left. That is why we enjoyed good relations with Iran but also with Afghanistan. Who destroyed those countries? Not Germany! The US does not shy away from dictators as long those ‘rulers’ support the US. The next problems will be Egypt and Saudi-Arabia. I admit that Iran has a nasty government at present. However, the people of Iran do not hate Americans or Israelis – they all fear the military power of these countries(they all could see what happened to Iraq). Mathias Küntzel publishes more often in the US than in Germany. After all, his articles are very, very anti-German and therefore balsam for the American soul(do you have something like that)? I know you will not publish these lines – they are not anti-German and pro-American.
The problem is that after 40 years of very high prices of oil, we don’t know whose money controls which companies.
The West has been compelled to transfer to muslim countries superzillions of dollars, and that money comes back to buy Western corporations, politicians, universities, media, political parties, presidents.
so, who is seriously surprised?
the USA is of little concern to the outside world. We have brought this on ourselves.
Canada gets most of our oil money, then Mexico, then the middle east starts in.
we could be drilling and providing thousands of jobs and keeping the money home….but, we can’t we might hurt a freakin fish, although I don’t believe this is the root of the problem either.
The things in ME,EU,AS are no surprise, frightening though..
Iran is going to have nukes. While a problem, it isn’t the real serious problem.
The serious problem will be when KSA, Egypt, Turkey, SYRIA, and every other piss-ant nation gets nukes to keep up with Iran.
That will start a trend. Don’t be surprised if within a decade of Iran building nukes at least 150 other nations have them also. That will make using them inevitable.
MAD only works if you know who did the dirty deed. With dozens of nuclear armed nations, there will be no way to tell who sent the fishing boat with a nuke under all those Cod into harbor.
Then the survivors will regret not stopping Iran.
Like Pandora found out, it’s bitch getting things back in the box.
German companies also trade with Israel to the tune of 6 billion USD a year. It’s probably some of the same companies. The reality is that they are in the business of making money and not politics.
It would be desirable if companies all over the world didn’t do business with repressive regimes but that’s not really how it goes, is it? Western companies are all over Red China, a Chinese guard can torture a dissident and after his shift pop into KFC for a bucket. Does that prove KFC endorses China’s policy towards dissidents? Hardly.
I think it’s wrong to trade with Iran myself but it’s hardly fair to say that German companies or Germany itself want to assist Iran in its political objectives just because they see it as a source of trade revenue.
Goy, and of course the fairness was to blame only France for the whole 95% lot that concerned other countries
@10. Marie Claude: – …and of course the fairness was to blame only France…
Really? Whose “fairness” (?) was that, exactly?
French political structure corrupted by the Oil-For-Food scam and other considerations prevented France from doing the right thing when it counted at the U.N. in 2002.
So no, France didn’t get 95% of the ‘blame’. France got 100% of the scorn – richly deserved.
American companies are heavily involved in Iran as well. You can buy Coca-Cola and Pepsi products everywhere.