News / Economy

Germans salivate over big Iran business

Monday, 18 May 2015 5:42 AM [ Last Update: Saturday, 23 May 2015 2:54 AM ]

Der Spiegel says the federal government expects a strong increase in German exports to Iran if sanctions are lifted.

The federal government expects a strong increase in German exports to Iran if sanctions against Tehran are removed after an anticipated completion of nuclear negotiations at the end of June, Der Spiegel says.

The German Federal Ministry of Economics estimates that Iran needs $100 billion of investment each year, the weekly news magazine said.

“Iran must not only renew its infrastructure, it also needs modern cars, machinery and pharmaceuticals,” it said.

Before the tightening of sanctions four years ago, German exports to Iran amounted to four billion euros a year. The Federal Ministry of Economics estimates trade volume to grow significantly higher if sanctions are lifted, Spiegel said.

The paper touched on a visit by Iran’s Minister of Petroleum Bijan Zangeneh to Berlin on May 7 to promote investment attractions in his country.

“He had breakfast with representatives of VW Group and Linde, held talks with small and medium-sized enterprises and energy experts and reckoned with German Economy Minister Sigmar Gabriel what huge opportunities lie ahead in the construction of Iran's energy sector,” it said.

German Economy Minister Sigmar Gabriel, left, receives Iran’s Minister of Petroleum Bijan Zangeneh in Berlin on May 7.

He reportedly told Spiegel that his country could open up markets in the region, including in Iraq, Turkmenistan, the Central Asia and Azerbaijan to foreign companies.

Several German delegations, including industry owners and investors, have visited Iran in recent weeks.

Germany has long been Iran’s key trade partner in Europe but relations have nosedived in recent years. In 2013, bilateral transactions plunged below 2 billion euros.

Iran and the P5+1 group of countries, of which Germany is a member, are working on a nuclear agreement under which sanctions on the Islamic Republic would be lifted.

According to the German Deutsche Welle radio website, citing members of the German chamber of commerce, trade volume between Iran and Germany could rise to 12 billion euros if sanctions are removed.

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