Reports that Siemens, the German engineering group, is refusing to supply and maintain new turbocompressors for Iran's South Pars gas field are the latest examples of how international sanctions are hitting the country's industry - but business ties between Germany and Iran remain strong.
The news about Siemens should come as no surprise after the company said two years ago it would not enter into any new deals with Iran.
Other German firms, though, continue to engage in brisk trade with the country and are finding ways of exporting goods despite mounting restrictions.
German companies have adapted to the sanctions and even the European Union's decision in January to freeze the assets of Iran's central bank and this month's move to disconnect Iranian banks from the Swift financial transfer network won't shut down legal exports of machinery, chemical products, agricultural produce, vehicles and vehicle components to Iran.
Alternative ways are being found for settling trade debts, including suitcases filled with cash, barter deals, and especially money transfers via banks in third-party countries such as Turkey, Armenia, Belarus and Azerbaijan.
German exports to Iran fell 18 per cent last year but still amounted to a hefty €3.1 billion (Dh15.05bn). They are expected to fall at a similar rate this year, with the German engineering industry association, VDMA, complaining this month that the financial sanctions will have "massive effects" on German firms. But given the West's determination to tighten the economic stranglehold on Iran, an export drop of less than a fifth this year, seems relatively minor.
Germany is the EU's biggest exporter of goods to Iran, well ahead of Italy and France. In 2010, China was the biggest source of Iranian imports, followed by the UAE and Germany, according to the CIA's World Factbook.
It may seem strange that Germany maintains such strong business ties with a nation whose leader, president Mahmoud Ahmadinejad, denies the Holocaust and wants to wipe Israel off the map. After all, denying the Nazi genocide of six million Jews is a crime in Germany, and supporting Israel is a firm part of Germany's foreign policy doctrine.
Yet German firms have gone on supplying industrial equipment that Iran not only cherishes due to its quality, but relies on to keep its industries functioning.
Some two-thirds of Iranian industrial firms use machinery and equipment made in Germany and rely on imports of German spare parts. The main reason for this is that Germany helped Iran to industrialise in the 1920s. Sectors such as the cement, paper and textile industries were built up using machinery made in Germany.
Recent trade and business exchanges, though legal and not in breach of the various sanctions already imposed on Iran, reflects Germany's long-running ambivalence towards the West's tough stance on Iran, despite its claim to be 100 per cent behind efforts to stop the nuclear programme.
For years, Germany maintained a balance between backing sanctions vigorously enough to avoid negative international headlines, and preventing the restrictions from becoming so severe that they hurt German business.
But the escalation of tensions this year, with growing expectations of an Israeli air strike against Iranian nuclear installations and an EU embargo on importing Iranian oil due to come into force on July 1, has forced Germany to position itself more clearly.
Guido Westerwelle, the foreign minister, said last month that sanctions should have been tightened much sooner and more rigorously.
Even though annual exports to Iran are worth billions, the country is virtually irrelevant to Germany as a trading partner, ranking 43rd in a list of German export destinations in 2010 and making up just 0.5 per cent of total exports.
business@thenational.ae
ENGLAND SQUAD
Goalkeepers: Jack Butland, Jordan Pickford, Nick Pope
Defenders: John Stones, Harry Maguire, Phil Jones, Kyle Walker, Kieran Trippier, Gary Cahill, Ashley Young, Danny Rose, Trent Alexander-Arnold
Midfielders: Eric Dier, Jordan Henderson, Dele Alli, Jesse Lingard, Raheem Sterling, Ruben Loftus-Cheek, Fabian Delph
Forwards: Harry Kane, Jamie Vardy, Marcus Rashford, Danny Welbeck
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
Mohammed bin Zayed Majlis
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
Director: Laxman Utekar
Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna
Rating: 1/5
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%3A%3C%2Fstrong%3E%20Sideup%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202019%3Cbr%3E%3Cstrong%3EFounder%3A%3C%2Fstrong%3E%20Waleed%20Rashed%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Cairo%2C%20Egypt%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20technology%2C%20e-commerce%3Cbr%3E%3Cstrong%3EFunds%20raised%20so%20far%3A%3C%2Fstrong%3E%20%241.2%20million%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Launch%20Africa%20VC%2C%20500%20Global%2C%20Riyadh%20Angels%2C%20Alex%20Angels%2C%20Al%20Tuwaijri%20Fund%20and%20Saudi%20angel%20investor%20Faisal%20Al%20Abdulsalam%3C%2Fp%3E%0A
Vidaamuyarchi
Director: Magizh Thirumeni
Stars: Ajith Kumar, Arjun Sarja, Trisha Krishnan, Regina Cassandra
Rating: 4/5
Empire of Enchantment: The Story of Indian Magic
John Zubrzycki, Hurst Publishers
What can you do?
Document everything immediately; including dates, times, locations and witnesses
Seek professional advice from a legal expert
You can report an incident to HR or an immediate supervisor
You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline
In criminal cases, you can contact the police for additional support
Racecard
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Thanksgiving meals to try
World Cut Steakhouse, Habtoor Palace Hotel, Dubai. On Thursday evening, head chef Diego Solis will be serving a high-end sounding four-course meal that features chestnut veloute with smoked duck breast, turkey roulade accompanied by winter vegetables and foie gras and pecan pie, cranberry compote and popcorn ice cream.
Jones the Grocer, various locations across the UAE. Jones’s take-home holiday menu delivers on the favourites: whole roast turkeys, an array of accompaniments (duck fat roast potatoes, sausages wrapped in beef bacon, honey-glazed parsnips and carrots) and more, as well as festive food platters, canapes and both apple and pumpkin pies.
Ruth’s Chris Steakhouse, The Address Hotel, Dubai. This New Orleans-style restaurant is keen to take the stress out of entertaining, so until December 25 you can order a full seasonal meal from its Takeaway Turkey Feast menu, which features turkey, homemade gravy and a selection of sides – think green beans with almond flakes, roasted Brussels sprouts, sweet potato casserole and bread stuffing – to pick up and eat at home.
The Mattar Farm Kitchen, Dubai. From now until Christmas, Hattem Mattar and his team will be producing game- changing smoked turkeys that you can enjoy at home over the festive period.
Nolu’s, The Galleria Mall, Maryah Island Abu Dhabi. With much of the menu focused on a California inspired “farm to table” approach (with Afghani influence), it only seems right that Nolu’s will be serving their take on the Thanksgiving spread, with a brunch at the Downtown location from 12pm to 4pm on Friday.