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Israeli envoy: Germany increasing exports to Iran, despite sanctions
By Assaf Uni, Haaretz Correspondent
Tags: Israel News, sanctions, Iran 

BERLIN - German exports to Iran are up 10 percent this year, prompting Israel's ambassador to Berlin to say the German authorities are "not doing enough" to keep Tehran isolated until it abandons its alleged efforts to develop nuclear arms.

"Germany is doing something [to isolate Iran], but apparently it is not doing enough," Ambassador Yoram Ben Ze'ev told Haaretz last week.

Germany's Federal Statistical Office released data showing the increase occured over the first three quarters of 2008. Germany's exports to Iran are expected to total 4 million euros this year, close to the record it set in 2004 and 2005.
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During the first seven months of 2008, the German government approved 1,926 transactions with Iran, a 63 percent increase over last year. This has further cemented Germany's position as Iran's largest trade partner.

"The Germans are providing less insurance for Iran-bound merchandise, and they claim they are making life very difficult for those who want to do business with Iran," Ben Ze'ev said. "This approach may work on businesses that have export targets other than Iran, or on small businesses that cannot afford to invest the effort and resources to overcome the difficulties. But it's doubtful whether these measures will work on large businesses that view trade with Iran as strategically significant."

When asked about the increase in exports, the German treasury replied that it is due to increased metal prices, and noted that steel is up 17 percent in Europe.

However, export data show that metals make up only a small part of the increase. Another explanation offered by the German government is that the sanctions on Iran prohibit it from launching large new projects, which means the Iranians are more dependent on spare parts to maintain existing infrastructure.

"As a result of the tightening sanctions on Iran, our office expects the volume of our exports to Iran to decrease in the future," a spokesman for the treasury said.

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      2.   Germany and the Iranian extermination program 14:53  |  Jonathan S 09/12/08
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