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In Response to Iran's Nuclear Program, German Firms Are Slowly Pulling Out

(New York Times) Judy Dempsey - German companies, long Iran's biggest trading partners in Europe, are finding it increasingly difficult to do business there as the U.S., Israel and others campaign for tougher UN sanctions in response to the country's nuclear program. Yet even those companies that said they were pulling out will probably take years to wind down operations and wrap up outstanding contracts. Others are simply lowering their profile or finding third countries to do business through, fearing they will lose a lucrative market forever if they abandon it now. Interviews with several German companies, trade associations, and export guarantee agencies suggest a significant reduction of direct trade between Germany and Iran. Iranian companies seeking to import from German companies can no longer receive credit guarantees for seven to 10 years, which used to be normal for big infrastructure projects. The change was made over the last two years as a result of political pressure from the U.S. As a result, credit guarantees for Iran in 2008 amounted to 133 million euros, compared with 1.4 billion euros in 2005.
2010-02-04 08:31:28
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