German business lobby says obstacles remain to Iran deals
BERLIN (Reuters) - German firms will struggle to rebuild ties in Iran without the reinstatement of export guarantees, especially while some sanctions remain in place, the head of lobby group BGA said on Thursday, days before the economy minister visits Tehran.
World powers lifted many trade sanctions on Iran after it agreed in July to curb its nuclear programme, raising hopes of an end to years of economic isolation for the Islamic republic.
German Economy Minister Sigmar Gabriel, Angela Merkel's vice chancellor, is due to visit Tehran with a business delegation next week.
But Anton Boerner, head of the Federation of German Wholesale, Foreign Trade and Services (BGA), said firms needed the return of export guarantees - a form of insurance against default or non payment - that Germany had suspended due to outstanding debts.
"Without any state export guarantees for deals with Iran, nothing will happen on our side," said Boerner.
"Because of high penalties German banks had to pay in the past due to sanction violations, all participants are very reluctant," he added.
Some U.S. sanctions on Iran remain because Washington still accuses Tehran of supporting terrorism and human rights abuses. In the past, U.S. penalties have affected foreign firms, particularly when Iran-related transactions pass through U.S. subsidiaries.
Gabriel also visited Iran with a business delegation in July last year, the first senior figure from a large Western government to do so since the accord.
(Reporting by Gernot Heller; Writing by Balazs Koranyi; Editing by Andrew Heavens)
