German Trade with Iran Stalls on Cautious Banks

Even though many Western sanctions have been lifted and Iran urgently needs imports, German trade with the country is being hampered by the reluctance of e looked bright for German engineering companies after Iran reached a deal with the West in July 2015, which saw the lifting of sanctions in exchange for Iran curbing its nuclear program.

With their historic business ties to Iran and diplomatic know-how, German firms were poised to help modernize the country’s aging infrastructure and industrial plants. With a population of 80 million, Iran was badly in need of assistance after a decade cut off from Western markets.

But today trade remains sluggish, with large German banks still reluctant to provide the necessary finance and worried about paying the price for breaching U.S. sanctions still in place.