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Last update - 16:36 31/07/2008
Despite sanctions, German firm closes 100m euro deal with Iran
By Assaf Uni and Barak Ravid, Haaretz Correspondents
Tags: Israel, Gas, Iran, Germany

A German company has closed a 100 million euro deal with Iran to supply three gas plants with high-tech equipment after Germany ruled that the agreement does not violate sanctions against the Islamic Republic.

Steiner Gastec Prematechnik, the German firm, is to supply the factories with equipment to turn gas into sulphur-free liquid fuel. This would enable the factories to transport the gas more efficiently to customers across the world.

Germany's Federal Agency for Economics had scrutinized the deal for a year before giving its final approval on Tuesday.
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A number of Jewish groups have scathingly criticized the agreement, blasting Germany's fostering of economic relations with Iran despite the Islamic Republics nuclear program and its threats toward Israel.

Germany's decision came despite other European nations freezing plans to develop gas plants in Iran, a move that comes against the backdrop of international economic sanctions against Iran and increasing pressure from the United States to minimize business dealings with Tehran.

Analysts say that only European companies have the necessary knowledge to develop the gas plants.

Despite declarations from German politicians, including Chancellor Angela Merkel, that their country's trade with Tehran has decreased of late, Haaretz last month found that Germany's business with the Islamic republic increased by 17 percent in the first third of the year.

"It is scandalous that bureaucrats can approve such a deal, which goes against the German government's expressed policy," said Rabbi Abraham Cooper, Associate Dean of the Simon Wiesenthal Center in Vienna. Cooper called on Merkel to void the agreement.

Iran is due to respond to the international incentives package offered to it by western powers in the coming days. However, its spiritual leader, Ayatollah Ali Khamenei, said Iran plans to advance its nuclear program.

Israel's Foreign Ministry expressed disappointment in the German decision, saying it goes against the spirit of the sanctions being imposed on Iran. The Ministry added it will request clarification about the deal from senior German government officials.

Israel and western nations charge that Iran is covertly seeking to develop nuclear weapons, while Tehran maintains that its nuclear program is only for civilian purposes.

Iranian President Mahmoud Ahmadinejad has sparked international outcry by referring to the Holocaust as a "myth" and calling for Israel to be "wiped off the map," among his verbal attacks on Israel.

A German government spokesman announced on Tuesday that the deal was not a violation of the international sanctions over the nuclear program and that the equipment would be built in Germany and sent to Iran.



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      1.   I blame Jonathan S for this. 14:35  |  N. Udnik 31/07/08
      2.   Where is Jonathan S.? Please explain! 15:02  |  Karol 31/07/08
      3.   HUA..BABY. WELLDONE IRAN 15:11  |  indrajaya 31/07/08
      4.   Germany, Gas and Holocaust denial 15:18  |  Jonathan S 31/07/08
      5.   at least germany only sends gas plants, israel sends ... 15:48  |  sarah 31/07/08
      6.   What Haaretz is not reporting 16:12  |  Jonathan S 31/07/08
      7.   Taking Care Of #1 16:22  |  Cool B 31/07/08
      8.   Neo Nazis in action with the other hitler 16:33  |  JP 31/07/08
      9.   Sanctions on Germany / 2 faced Hypocrites 16:38  |  Elly 31/07/08
      10.   Germany/ fake friend 16:44  |  Daniel 31/07/08
      11.   Germany,Gas,anti semites 16:49  |  Jacob 31/07/08
      12.   I am german 16:52  |  Helmuth 31/07/08
      13.   I will never buy another Mercedes 17:03  |  The Equalizer 31/07/08
      14.   Hypocrites 17:03  |  Patriot 31/07/08
      15.   And what is so sensational??? 17:29  |  Axel 31/07/08
      16.   THESE LIARS IN THE DIVIDED NATIONS HAVE ALWAYS AND WILL CONTINE 17:41  |  glenna 31/07/08
      17.   sanctions were always a joke. bomb them today. 17:49  |  frenz 31/07/08
      18.   State sponsored terror from Iran will bite them on their 17:51  |  The Equalizer 31/07/08
      19.   Jonathan, I feel you pain. 17:55  |  ManintheMiddle 31/07/08
      20.   How about putting sanctions on ISrael? 17:56  |  Ramin 31/07/08
      21.   #15 Sensational? 17:58  |  Visionary 31/07/08
      22.   Sarah and the German gas plants #5 18:13  |  Jonathan S 31/07/08
      23.   #13 Equalizer, Toyota is Lexus! 18:19  |  ballistic 31/07/08
      24.   Helmuth from Germany 18:50  |  David Israel 31/07/08
      25.   Not so smart from the german companies 19:00  |  AGerman 31/07/08
      26.   What "Despite sanctions"??? 19:12  |  Axel 31/07/08
      27.   # 13 equalizer 19:20  |  Axel 31/07/08
      28.   German admiration for Iran #12 19:26  |  Jonathan S 31/07/08
      29.   23, Bullistic, and Cadillac is GM, so what is your point 19:28  |  The Equalizer 31/07/08
      30.   # 19 maninthemiddle re jonathan s 19:28  |  Axel 31/07/08
      31.   # 24 david israel 19:34  |  Axel 31/07/08
      32.   # 25 agerman 19:36  |  Axel 31/07/08
      33.   #28 19:47  |  AGerman 31/07/08
      34.   Germany and national interests #19 19:49  |  Jonathan S 31/07/08
      35.   axel,defending the undefendable,after all,it was germany that 20:14  |  terrornator 31/07/08
      36.   German Interests 20:16  |  Marcos 31/07/08
      37.   Axel - yes maybe in Iran ! 20:20  |  David Isarel 31/07/08
      38.   #30 Axel 20:22  |  christoph 31/07/08
      39.   15 Axel of evil... 20:22  |  bat yam 31/07/08
      40.   #32 to be or not to be 20:22  |  AGerman 31/07/08
      41.   lo siento 20:28  |  Di 31/07/08
      42.   Great Show Germany...Proud at last! 20:40  |  Edithann, USA 31/07/08
      43.   # 39 bat yam 21:00  |  Axel 31/07/08
      44.   # 37 david 21:19  |  Axel 31/07/08
      45.   #39 bat yam: then quit talking about it and do it 21:24  |  taxpayer 31/07/08
      46.   # 38 cristoph 21:26  |  Axel 31/07/08
      47.   Axel, Israel does not neglet anyone 21:39  |  David Israel 31/07/08
      48.   Axel - Israel respects all 21:46  |  David Israel 31/07/08
      49.   Olmert and Livni are responsible as well 21:46  |  Jonathan S 31/07/08
      50.   #37 David Israel, oh, there goes the Zionist MO 21:52  |  ballisti 31/07/08
      51.   #29 No Equalizer, no pink cars. 21:56  |  ballistic 31/07/08
      52.   ballistic - Don`t distort what I say 22:29  |  David Israel 31/07/08
      53.   And Israel thinks Iran is a World Problem... 22:33  |  Henry 31/07/08
      54.   THE MULLAHS ARE DANCING TODAY 22:56  |  BigBadJohn 31/07/08
      55.   Germany and Iranian Holocaust denial 23:01  |  Jonathan S 31/07/08
      56.   Has Europe Changed? 23:01  |  Tom 31/07/08
      57.   Since we all already know that sanctions don`t work 23:03  |  Natallie Durson 31/07/08
      58.   numb.. 12 23:24  |  Hate sour kraut 31/07/08
      59.   Absolute violation of the spirit of the sanctions 00:00  |  tal 01/08/08
      60.   Dear Sour Kraut # 58 00:11  |  Helmuth 01/08/08
      61.   No Biggie - Jews, Keep Buying BMWs and Mercedes 00:19  |  Tod Zuckerman 01/08/08
      62.   Love Sour Kraut 00:19  |  Hate Latkes 01/08/08
      63.   To Axel (#15) 00:27  |  Morris Valentine 01/08/08