Envoy: Iran-Germany Economic Ties Growing Well Despite Sanctions

Berlin, July 13, IRNA -- Iran's Envoy to Berlin Ali-Reza Sheikh-Attar said here Thursday that despite the unjustly imposed western sanctions, Iran-Germany economic ties have grown well on a continuous process. Sheikh-Attar made the comment during a one-day International Seminar on Energy Security in Frankfurt, sponsored by German merchants and oil and energy industries’ managers and industrialists. Sheikh-Attar added, ˈThe German exports to Iran decreased to some two billion and 800 million Euros from the previous four billion Euros, due to the most severe sanctions in world history and the accompanying political pressure, but the two countriesˈ economic ties never totally ceased.ˈ Sheikh-Attar considered the Germans love for Iran as an important factor for the continuation of both countriesˈ commercial and economic ties despite the entire emerged obstacles, adding that ˈcontinuation of economic activities of the small- and medium-seized firms in Iran has been another factor leading to preservation economic ties with the Islamic Republic.ˈ Iran's Oil Minister Rostam Qasemi, the second speaker at the seminar, too, advised European countriesˈ merchants and oil industry activists Thursday to take advantage of provided conditions and not to lose opportunities of making investments in profitable Iranian oil and gas industries. Qasemi made the proposal in Germany during his one-day visit to participate at the International Seminar on Energy Security in Frankfurt, sponsored by German merchants and oil and energy industriesˈ managers and industrialists. Qasemi presented comprehensive explanations on the Islamic Republicˈs capabilities and high potentials for cooperation in oil and gas industries during the six-hour meeting with the heads and economic activists of more than 20 German and European oil companies, held at Frankfurtˈs Kempinsky Hotel. Qasemi added, “Although the sanctions have created problems and obstacles for us, and somehow slowed the progress of activities, but the development in the Iranian oil and gas industries never halted.ˈ ˈThe Iranian oil industries have developed well despite the unjustly imposed sanctions and taking advantage of the opportunities that the western imposed embargoes have provided for us, today we are on the verge of achieving full self-sufficiency in various upstream, midstream and downstream industries,ˈ the oil minister reiterated. Qasemi furthermore encouraged the foreign industrialists to take advantage of the provided opportunities for making investments in various sectors of the Iranian oil, gas and petrochemical industries. At the seminar the managers of the German and European companies active in oil and gas industries, too, posed their technical and expertise questions regarding the conditions for participation at the Iranian oil and gas industries and making investments in those sectors, expressing hope that the ground would be paved for such cooperation in the future. Around 50 German firms have their own branch offices in Iran and more than 12,000 firms have their own trade representatives in Iran. Several renowned German companies are involved in major Iranian infrastructure projects, especially in the petrochemical sector, like Linde, BASF, Lurgi, Krupp, Siemens, ZF Friedrichshafen, Mercedes, Volkswagen and MAN (2008). In 2005, Germany had the largest share of Iranˈs export market with $5.67 billion (14.4%). In 2008, German exports to Iran increased 8.9 percent and comprised 84.7 percent of the total German-Iranian trade volume. The overall bilateral trade volume until the end of September 2008 stood at 3.23 billion Euros, compared to 2.98 billion Euros the previous year. The value of trade between Tehran and Berlin has increased from around 4.3 billion euro in 2009 to nearly 4.7 billion euro in 2010. The German Chambers of Industry and Commerce (DIHK) has estimated that economic sanctions against Iran may cost more than 10,000 German jobs and have a negative impact on the economic growth of Germany. Sanctions would especially hurt medium-seized German companies, which depend heavily on trade with Iran. There has been a shift in German business ties with Iran from long-term business to short-term and from large- to mid-seized companies which have less business interests in the US and thus are less prone to American political pressure./end