Page 9 - MEOG Week 33
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Germany-Iran trade data demonstrate damage wrought by sanctions
Iran
GERMAN exports to Iran fell by 48% to $759mn in the rst half of this year and Iran’s sales to Germany for the same period dropped 43% to $123mn, according to the BGA (Federation of German Wholesale and Foreign Trade) trade association.
e gures provide a stark example of the destructive toll taken by the uS sanctions regime aimed at the Islamic Republic and any compa- nies that attempt to keep trading with it. And they underline why the Iranians are so disap- pointed in Europe when it comes to e orts to protect their country from Washington’s “eco- nomic attack”.
e feeling is that major European powers Germany, France and the uK have done next to nothing to help and that the British, badly in need of keeping the Trump administration sweet in the runup to the planned late autumn Brexit, will become more and more closely aligned with American policy on Iran.
Since the sanctions were gradually intro- duced across the second half of last year,
European companies have generally withdrawn from Iran and ceased doing business with the country out of fear that they could be hit by uS sanctions that, for instance, could shut them out of the global nancial system or put the uS mar- ket beyond their reach.
“German companies are forced to choose between their market activities in Iran and the united States, so it’s clear which market is pre- ferred,” the BGA trade association told Reuters.
Iran, already plunged back into recession by the impact of the uS sanctions, will see its econ- omy shrink by 6% this year, the International Monetary Fund projects.
e most damaging set of sanctions imposed on Iran by the uS target reducing the country’s oil exports to nil.
Tehran has warned that the Islamic Republic could move to block all energy exports attempt- ing to pass through the Strait of Hormuz – the world’s busiest energy shipments chokepoint through which a h of global oil passes – if the sanctions mean it proves unable to sell oil.
Bahrain joins US-led anti-Iran naval armada
bahraIn
BAHRAIN became the third member of a uS-led naval armada o cially pledging to par- ticipate in Pentagon’s e orts to escort merchant vessels including oil tankers through the Strait of Hormuz.
Bahrain’s King Hamad bin Isa Al Khalifa con- rmed his country’s support in a meeting with General Kenneth McKenzie, Commander of the uS Central Command.
Bahrain hosts a uS navy base and is home to uS Naval Forces Central Command and united States Fi h Fleet.
The base provides support to uS military operations in the region including logistics, sup- ply and protection. Britain’s Royal Navy was the second member of the naval armada providing support to uK’s merchant ships sailing through the strategically important waterway that carries a h of the world’s seaborne ow of oil.
e Pentagon initiated the idea of forming
a naval armada in the early summer following several explosions on vessels carrying Western and Japanese ags in the vicinity of the Strait of Hormuz.
e uS has allegedly pinned the attacks on Iran. over the past year, the uS has expanded the range of extraterritorial economic sanctions imposed on Iran well beyond oil exports severely sti ing its trade with the outside world.
Week 33 20•August•2019 w w w . N E W S B A S E . c o m P9
