Status: 12/23/2022 6:47 p.m
The federal government stops aid to Iran. The reason is the regime’s violent crackdown on demonstrators. Among other things, export credit and investment guarantees as well as training and trade fair programs are affected.
German companies can no longer rely on export and investment guarantees from the federal government when doing business with Iran. In view of “the very serious situation in Iran”, the Federal Ministry of Economics has suspended foreign trade funding instruments and German-Iranian business formats.
As the ministry also announced, in addition to export credit and investment guarantees, this includes the German-Iranian energy dialogue, the manager training program and the foreign trade fair program. “Exceptions can only be made for reliable humanitarian reasons.”
Only short phase of opening
According to the information, the assumption of export and investment guarantees for Iran was suspended for decades anyway. Only since 2016, after the lifting of EU sanctions, among other things, has there been a brief phase in which these instruments were opened up. During this time, for example, guarantees were given or extended for a few projects with regard to investment guarantees.
Since the end of 2018, however, the federal government has not had any applications for new investment guarantees for a decision. The same applies to export credit guarantees: the federal government assumed guarantees in 2017 and 2018, but not since 2019. The Ministry of Economics, in consultation with the departments, has now decided to completely suspend the instruments mentioned.
Violence against rallies and executions
Iranian security forces have been taking action against the rallies across the country for weeks. According to human rights activists, hundreds of protesters were killed and thousands imprisoned. In several cases, demonstrators have been sentenced to death and executed. The protests were triggered by the death of 22-year-old Mahsa Amini. The Kurd died in police custody on September 16. The so-called moral police had arrested her because she is said to have worn her headscarf improperly.
According to the Ministry of Economic Affairs, the German-Iranian trade volume in 2021 was 1.76 billion euros. Between January and September of this year, it amounted to 1.49 billion euros. Years ago, German companies still had high hopes for doing business with Iran. In the course of US sanctions, however, the risk increased and companies withdrew on a large scale.