German firms cite troubles in Iran deals

German industries on Thursday refreshed complaints that obstacles are still hampering a smooth business with Iran even though the international sanctions that had kept them away from the Iranian market were effectively lifted in January. 

Anton Boerner, head of the Federation of German Wholesale, Foreign Trade and Services (BGA), has been quoted by Reuters as saying that German businesses at present need the reinstatement of export guarantees, especially while some US sanctions remain in place.

“Without any state export guarantees for deals with Iran, nothing will happen on our side,” said Boerner.

“Because of high penalties German banks had to pay in the past due to sanction violations, all participants are very reluctant,” he added.

Germany has currently suspended the export guarantees – a form of insurance against default or non payment – for trading with Iran due to the country’s outstanding debts.

This came only days before the German Economy Minister Sigmar Gabriel, who is also Angela Merkel’s vice chancellor, visited Tehran to discuss expansion of Iran-Germany trade ties.

Indications have been growing lately that international corporations are wary about doing business with Iran in what is seen as a result of a fear of Washington’s hefty penalties on companies that are found in violation of US primary sanctions against Iran.

US officials have emphasized that they are trying to soothe the concerns of global businesses in doing deals with the Islamic Republic.

Officials in Tehran however have in response emphasized that Washington’s assurances to businesses that they will face no troubles in their deals with Iran have little effect as investors are still too scared to venture into the Iranian market as a result of the remaining US sanctions.

By Press TV