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Merkel blocks India-Iran oil payments

The Local · 5 Apr 2011, 11:06

Published: 05 Apr 2011 11:06 GMT+02:00

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According to the Handelsblatt business daily, India, under US pressure to break direct commercial links with the Islamic republic, intended to place money for its Iranian oil imports in an account with the Bundesbank.

The Bundesbank would then transfer the money - around €9 billion annually - to the European-Iranian Trade Bank (EIH), based in the northern German city of Hamburg, the paper has reported.

The German government had said it was powerless to stop the deal because EIH, also known as EIHB, was not subject to sanctions. This was because the bank was not involved in financing Iran's controversial nuclear activities.

The New York Times last week quoted an unnamed US Treasury official as saying the United States was "concerned" and that Washington wanted "to work with all our allies to isolate EIH."

Israel and Jewish groups were also reported to be annoyed.

But now, Berlin has stepped in, the Handelsblatt cited high-ranking German government officials as saying on Tuesday. Payments for oil already delivered can go ahead, but no new transactions will take place, the paper said.

Contacted by AFP, neither the Bundesbank nor the German economy ministry were immediately available for comment.

Germany has long been under fire for its close business ties with Iran, with the country's exports there totalling €3.8 billion in 2010, according to official figures.

Story continues below…

Sales generated by German industrial giant Siemens in its last business year, which ended September 30, rose more than 20 percent to €680 million, the Wall Street Journal reported Tuesday.


The Local (news@thelocal.de)

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Your comments about this article

12:40 April 5, 2011 by adipk
Super games... Dear its all about politics.

Who will suffer? normal user.....
13:20 April 5, 2011 by 1berlinbob
Its about time the German government did something besides sit on there ass

ans watch the USA do most of the dirty work
13:34 April 5, 2011 by melbournite
Hang on, the only reason that Iran wants to process oil transactions through the Bundesbank is so the transaction is in euros rather than dollars. The reason that its bad for the world to be at behest of the US economy, especially when its financial crisis has affected the worlds economy. The effect of Iran moving from the US dollar to the euro for its oil transactions would be to strengthen the euro and help the european economy, yet Merkel acts in such a way to shore up the US dollar. Talk about lickspittle subservience
14:40 April 5, 2011 by elboertjie
Yip, the days of the petrodollar is over.

Some years ago Iran wanted to open an oil exchange to sell their oil in other currencies besides US dollar, that was when all those thick (5 of them if I remember correctly) were cut on the ocean floor around their country and near India. This way, with very limited international data access, their new oil exchange suffered severely and thus did not impress the international community for a stable system to trade with.

Sadam Husein also started to sell oil in non-dollar terms and they invaded him. Hugo Shavez is also doing it and this is why the US is now circling them.

CIA, the biggest terrorist group in the world.
15:27 April 5, 2011 by appocalypto
America should realize they ain't a super power anymore and should stop fukin interfering with others business..... otherwise they are gonna get their ass kicked pretty soon .
15:38 April 5, 2011 by fatherknowsbest
Isn't it wonderful that America and the CIA are pressuring the Iranians as without the US the west would be much more insecure than it is. Its a win/win decision for Merkel, she placates an

important ally and shores up the dollar thereby making german goods affordable internationally.

I'm not worried about America. They have a lot of experience kicking ass too.
16:50 April 5, 2011 by Expat IV
Father does know best. Remember, the US is solely responsible for everything negative that has happened on the planet Earth since Adam and Eve--the first CIA agents for The Great Satan.
17:27 April 5, 2011 by fatherknowsbest
What is it about the internet that folks like some of the posters above write down the first silly thing that enters their heads? The first rule about making sense in a forum is to think * before * you write. Unless you just want to blow off worthless steam.
17:28 April 5, 2011 by 1berlinbob
The only thing Iran is doing with there money is supporting Terrorist groups.

Which kill more incessant people then troops and with unrest the cost of oil is higher and Iran makes more money from other peoples miseries

If Iran gets the Bomb what do you think will happen to the world then.

Can you imagine the unrest in the world.
18:39 April 5, 2011 by mehta_p
Germany just do not want to add any value to Iran that might directly/indirectly help their Nuclear project. Good sale of oil increases Iran's economy. So Germany doesn't want to support related business. But Germany is not interrupting their oil business.
21:06 April 5, 2011 by Expat IV

I apologize that my flippancy offended you--I intended it as sarcasm. Read the comments previous to yours. Go to other articles in TL and read comments on them. It appears that bashing the US and blaming it for every problem the world faces is in fashion. When all else fails, blame the US.
00:19 April 6, 2011 by fatherknowsbest
I wasn't commenting on your post Expat IV, but rather speaking about some other obviously off the wall comments in this thread.
07:26 April 6, 2011 by Universalismus
9/11.. Right back at those who invested in creating it.

Terrorists Terorrists,

CIA and Capitalists
16:25 April 7, 2011 by warriorwithin
Iranians are ready to allow India to buy in Indian rupees. Once this happens, it will mark the beginning of new economic power of INDIA.
14:50 April 8, 2011 by liorabs
A cheap dollar is good for their exports and a high Euro is bad for the Euro export, I think.
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