Quietly, Austria is becoming Iran's biggest partner
Austria's trade with Iran is growing. Many of the deals are being done with firms owned by the Revolutionary Guard.
By Yossi Melman Tags: Iran Israel news AustriaVery quietly, without arousing too much attention, Austria is turning into one of Iran's most important partners in the European Union. Germany, which is Iran's largest EU trade partner, has until now been the main target of criticism by the Israeli government and international organizations seeking to convince the world to stiffen sanctions on Iran. And this criticism is working: Several German companies, such as the giant Siemens corporation, have said they will reduce their trade with Iran.
But while most EU countries reduced their commercial ties with the ayatollahs' regime in Iran over the past year, Austria expanded them.
Austrian exports to Iran grew by 6 percent in 2009, to 350 million euros. This statistic takes on special significance given that due to the global financial crisis, Austria's total worldwide exports shrank last year by 20 percent. Only with Iran is trade increasing, Simone Dinah Hartmann wrote recently in The Wall Street Journal.
The problem is not just the existence of commercial ties, but their nature. Some Austrian companies involved in this commerce are suspected of trading with straw companies that actually belong to the Iranian Revolutionary Guard.
In his book "Under a Mushroom Cloud: Europe, Iran and the Bomb," scholar Emanuele Ottolenghi names several of them. For instance, Tech Hydropower, a subsidiary of Austria's Andritz group, is building a dam in Iran as a subcontractor of Sepazad Engineering, which is actually the Revolutionary Guard's engineering arm.
The Revolutionary Guard is not only the regime's premier military force; it is effectively the regime itself. In addition to its military activities, the Guard controls an economic empire that includes significant parts of the Iranian economy, including energy, communications, engineering machinery, banking and construction firms.
The Guard is also in charge of the clandestine development of Iran's military nuclear program and missiles. For that purpose, it has established commercial bodies that operate undercover all over the world in an effort to obtain equipment, materials and knowledge for these programs, thus circumventing the sanctions regime imposed by the United Nations, the United States and the EU. These firms and purchasing networks specialize in obtaining "dual-purpose" equipment and technology - products intended for civilian purposes such as medicine or industry, but which can also be used as essential components for the missile and nuclear programs.
A substantial percentage of the business done by Austrian firms with Iran, even if they don't know it, or prefer not to know, is done with companies belonging to the Revolutionary Guard. Thus in the end, this business helps to advance both programs.
Under the draft resolution that the U.S. and EU are trying to pass in the UN Security Council, the next sanctions to be imposed on Iran would be directed specifically against the Revolutionary Guard. Yet even as this effort proceeds, a proposal is still pending for a giant transaction worth billions of euros between OMV - Austria's largest energy corporation, which is partly state-owned - and Iranian firms. For now, the deal has been frozen due to public pressure, mainly from the Stop the Bomb group, for which Hartmann is the spokeswoman, and American Jewish groups.
Six years ago, the president of the Iranian Chamber of Commerce, was already declaring that "For us, Austria is the gateway to the European Union." A clear expression of the increasingly close ties between the two countries was Iranian Foreign Minister Manouchehr Mottaki's visit to Vienna a few days ago, where he met with his Austrian counterpart, Michael Spindelegger.
Just two months ago, Spindelegger visited Israel and promised that Austria would align itself with the EU when it came to imposing sanctions against Iran. But apparently, declarations are one thing and deeds are another. Moreover, by allowing Mottaki's visit to take place, the Austrian government ignored both implicit and explicit requests from its American, French and British counterparts that it refrain from doing so.
Austria, whether ruled by socialists or conservatives, has a long tradition of close ties with the Iranian mullahs' regime. In the summer of 2009, when hundreds of thousands of Iranians took to the streets to demonstrate against the government, calling for "azadi" ("freedom"), the Austrian Chamber of Commerce organized a seminar for businessmen about opportunities for trade and investment in Iran.
As far back as 1984, Austria's Erwin Lanc became the first Western foreign minister to visit Iran after the Islamic Revolution. And the late Austrian president Kurt Waldheim, whose presidency was clouded by revelations about his Nazi past, visited Tehran in 1991 and placed a wreath on the sarcophagus of Ayatollah Khomeini, founder of the Islamic Republic.
Moreover, there is still no solution to the mystery of whether the young Revolutionary Guard colonel Mahmoud Ahmadinejad, who is now the Iranian president, was in Vienna in 1989 participating in the hit squads that killed three Kurdish Democratic Party activists. From that day to this, the police, the Justice Ministry and the Austrian intelligence services have made no effort to get to the bottom of the story.
To conclude, a reminder: The Israeli government constantly complains about Austria and other countries that trade with Iran and demands that they reduce these ties, so that sanctions will be effective and the regime in Tehran will understand that it is paying a high price for its nuclear program. But aside from preaching to the entire world, the Israeli government is not making even the smallest contribution to the international struggle.
This column has already noted several times that the Israeli government, or groups financed by it, grant contracts to international companies, or to their Israeli branches, without making even the minimal demand that they reduce their ties with Iran. Requests to the Prime Minister's Office on this important issue have fallen on deaf ears; it continues to fall victim to bureaucracy and neglect.
National Security Council chairman Uzi Arad, who is thought to have a great deal of influence over Prime Minister Benjamin Netanyahu, once admitted to Haaretz that "There really is a problem here. But it's not on my watch." Both Arad and the Prime Minister's Office claim that the issue falls under the purview of the Finance Ministry and the Justice Ministry's Money Laundering Prohibition Authority. In other words, nothing has been done.
Why Facebook Connect?
Comment on Haaretz.com articles with your Facebook login, and share your thoughts on your own wall.
- Latest
- Most Viewed
- Most Rated
- Open all
it's displeasure with Austrian trade policies by placing heavy tariffs on imported Austrian goods/services and preventing Israeli exports to Austria. Discourage tourism between both countries. That will certainly isolate the Austrians.
Hey I think Israel did sell some harpy UAVs to China. But due to US pressure Israel didn't manage to upgrade them. Oy, why do they sell military stuff to China?? What were they thinking at that time??
You seem uncomfortable with business ethics when you deride making decisions without considering human rights, ethics, law and order and all other good values. Did you feel the same way when Israel was trading with and supporting apartheid South Africa? Or don't your rule apply to Israel?
In 1982-1983 I wrote an entire accounting system for a textile importer in NY on an IBM System 34 in RPG II language all by myself. However making nuclear arms require more then the knowledge of one discipline such as nuclear physics. It requires expert knowledge in so many disciplines that you need many engineers and scientists to cooperate. Sanctions may not totally prevent Iran from obtaining that know how but it will definitely make much harder as some Iranian leaders already acknowledged. In the process the well educated enlightened and oppressed Iranians might oust the Mullahs in favor of a secular democracy. Since you claim to be a strong secularist wouldn't this the best for Iran? Also: Aren't sanctions a better substitute for armed conflict? Or are you there to beat the vineyard owner rather than eat the grape? (maksatin uzum yemek mi bagciyi dovemekmi?)
My wife is Chinese and I have good relations at the Chinese consulate and UN mission in NY. I know for a fact that a few years ago USA prevented Israel to sell sensitive military technology to China and since then the Israel China relations have been cold. China mostly votes against Israeli positions in the UN. Furthermore China is unhappy about Israel's military relations with India. You are either misinformed in that matter - which I doubt - or deliberately writing baseless anti Israel posts just to attack Israel - which is more likely. Iyi geceler Mehmet.
You wrote; In the current (unstable) economical environ- ment, most countries have no other choice but to make good business with whomever available. From this I gather that you mean human rights, ethics, law and order and all other good values are not important when it comes to countries making business decisions. If Iran is giving you cheap gas and oil it is OK for you if they wipe out the only tiny Jewish country in the world with their soon to be obtained nuclear arms. Guten nacht herr Fuhrer.
This pitiful expectation for the rest of the world to scramble to preserve Israel's nuclear monopoly by boycotting Iran is laughable. Thankfully with U.S. economic dominance on the wane and a greater international understanding of Israel's expansionism and maltreatment of its neighbours - Iran will be largely unimpeded. That leaves it up to Israel alone to stop the development and despite its military bluster, Israel is not up to the task.
you are right. But then he went to Germany. Had he stayed, he might have been less "successful".
You wrote; In the current (unstable) economical environ- ment, most countries have no other choice but to make good business with whomever available. From this I gather that you mean human rights, ethics, law and order and all other good values are not important when it comes to countries making business decisions. If Iran is giving you cheap gas and oil it is OK for you if they wipe out the only tiny Jewish country in the world with their soon to be obtained nuclear arms. Guten nacht herr Fuhrer.
Xenophobia... anti ALL FOREIGNERS. I too had considered living there in Vienna but when they knew that I was not Austrian they became cold. With its beauty and peacefulness no doubt they do not want any outsiders to disturb them. They dislike Germans also...
So for example blocking Russian engineers and physicists not to work for Iran is possible ? Of course not. The guys think of their own well-being, their children, not Israel, why should they ? If you pay the money, you will get all equipment and experts, no problem. There are a lot of intermediaries and third parties who can transmit material and knowledge, also for money. Blocking this flow is impossible like it is impossible to put an end to software piracy, the same thing.
My wife is Chinese and I have social contacts at the Chinese consulate and UN mission in NY. I know for a fact that Israel has declined selling military equipment to China due to USA pressure. Since then there is no such trade between Israel and China. The Chinese are angry at Israel for that and the Sino Israeli relations are cool since then. The fact that China is the main opposition to the Iran sanctions is additional proof of that. Additionally China is also not so happy with Israel's military relations with India. Mehmet; you are either uninformed - which I doubt - or deliberately attacking Israel - which I believe is the case. Iyi geceler
Suprise, surprise ...
Unlike Germany, in Austria Nazism is still very popular They are one of the most anti-semitic country in the world, even worse than some Arab countries
WAsnt Austra HITLERS FIRST FRIEND.MOTHING CHANGES EXCEPT THE YEAR
Austra rings a bell. WAsnt it Hitlers first friend.
there. Austria should not be trading with Iran. shame on this country where bigotry is rampant. selfishness and lack of responsibility is rampant in governments run by low low souls who deal with Iran
they will "neither confirm or deny it."
Hey you sure? Tons of Elbit engineers in China? I want to meet them. Always a fan of Elbit system and IAI. But as far as I'm concerned, most Israelis are here to teach Chinese most cutting-edge agricultural knowledge like drop systems :)
You know..........the housepainter adolf
What's in the water "downunda" that makes OZ folk automatically STOOPID and interfere where they are totally IRRELEVANT and have no influence whatsoever.... to whit the likes of your good self, johnboy, Moron-ann, viper,etc
why not, let's try to do it again, has not worked in the past (iraq or gaza) but hey who cares about a few million miserable iranian civillians! we all know that sanctions do not affect those we wish to target (in iraqs case, sanctions didn't bring down hussein. in gaza, hamas is still in power - in both cases it was the civillian population which suffered immensly) we r still gonna go for it bc we need to show our partners and friends that we belong to the good side!and iran (of course!) is on the bad side.and because we are on the good side, alllll our friends get to get nuklear weapons (israel for ex is the only one possessing them in the ME) and the ones we chose to denounce as "terrorist" states are not allowed to possess any. funny how people are surprised when they hear the hostility people in the arab world feel towards us. can you blame them? can you blame the iraqis, afghanis and probably soon iranians? ever thought of the possibility that we appear as "terrorist" to them?
*Some* of the Austrian companies are *suspected* of trading with straw companies of the Revolutionary Guard. You write this as if all of Austria is funnelling money or goods to the RG. You even claim that a substantive percentage of the business is done with the RG, I cant help wonder how you know this for certain. I imagine those organizations and countries that merely suspect some companies are doing that would be very interested in your evidence. Further more you claim that this trade is assisting the Iranian military nuclear program. I think the Israeli government would be most grateful if you forwarded your evidence of the existence of this program to it. It could be useful for getting these sanctions started. Finally I just have to ask why the only example of trade between an Austrian company and the RG is a dam? It is hardly "dual purpose" equipment is it? I don't see anyone making weapons out of a dam...
It is a tremendous problem for Israel: Apart from the United States (U.S Congress), and Germany, there are hardly anymore countries on this planet, that are willing to easily concede to pressure from Israel or the WJC. In the current (unstable) economical environ- ment, most countries have no other choice but to make good business with whomever available. Those are simply not the times to expect "special favours" from other nations, as justified as they might be from the very own (Israeli/Diaspora) perspective....
It is not the weapons manufacturers who are to blame for war rhetoric from presidents. Get real. If we don't sell the toys, somebody else will. This is called trade. And by the way, nobody complaints about Germany presenting Israel with a free sub.
How come that Israwel is so obsessed with Iran? If nit attacked Iran will nevers trike Israel, so?
...I got the whiff of their anti-Semitism ... which I never experienced before. Herr Schmutzer,... I'll never forget him (that WAS his name). Interestingly, the anti-Semitism showed only in men! Not the women who were quite friendly. But what a beautiful country!!! Ach, Wien! Das Wiener Kaffeehaus...
It's deceptive when 'journalists' write of a suspicion or an allegation, as hard fact, automatically discrediting their article .. What is it in the water that makes some folk automatically LIE?
Israel sells china a lot of hi-tech stuff, to the dismay of the Americans. It still does. At any given time how many Elbit engineers are in China only the heavens know. But that is the way the things are in a capitalist world. So do you want an Austrian company to decide not to make money in order to secure a safer future for Israel ? Why ? Don't be funny. If I am an Austrian trying to get rich, why should I first consider Israel ? I would not care at all. I think about the money, period.