• Published 01:35 21.09.10
  • Latest update 01:35 21.09.10

How Israel helps Iran

Israel must make it clear that whoever does business with Iran cannot benefit from doing business with Israel.

By Yossi Melman

Haldor Topsoe is an international Danish corporation with extensive business ties in Iran. It is busy setting up two large methanol refineries for the enormous Fars gas field in Iran. Thus the company is watched by the U.S. administration as it compiles a list of American and international corporations developing the Iranian economy, and particularly its gas and oil industries, which is the main source of Tehran's revenue. Obviously, the Danish corporation is not alone in this. There are hundreds of other companies from dozens of countries that trade with Iran in a variety of areas. Nonetheless, this does not lessen the seriousness of the matter.

So it is disturbing that the Israel Electric Corporation is going to great lengths to grant Haldor Topsoe (described as a subcontractor for a German firm ) a NIS 500 million contract to build air purifiers for the power plants in Ashkelon and Hadera. Haldor Topsoe is a finalist in the IEC tender; the other is the Japanese firm Hitachi.

A Siemens building, AP

A Siemens building in Germany. Doing business with the Airports Authority and Iran at the same time.

Photo by: AP

While the bid from the Danish company is substantially lower than Hitachi's, is financial consideration the only criterion for Israel's decision? What about the political and ethical considerations?

For years, the government of Israel has preached to other countries about the need to tighten sanctions against Iran to urge it away from its nuclear program. The Foreign Ministry, indirectly and with the help of Jewish organizations, has conducted an extensive international campaign - demonstrations, petitions, rallying of parliament members and the media against governments and companies trading with Iran.

It appears, however, that Israel's government is not practicing what it demands of others; this is both hypocritical and cheeky. About a year ago, Haaretz uncovered the existence of a NIS 150 million deal between the Airports Authority and Siemens, the largest trading partner of Iran in Germany. The Airports Authority also justified its decision on the basis of the attractive price the company had offered to win the tender.

There is a law in Israel stating explicitly it is forbidden to invest more than $20 million in corporations trading with Iran, but the law is not being enforced. Even worse, there is no central authority dealing with this important issue. The issue was brought to the attention of the Prime Minister's Office and of National Security Adviser Uzi Arad, but both Netanyahu and Arad, who do not lose an opportunity to remind everyone of the existential threat posed by Iran, do nothing. If this does not interest them, then what does?

The IEC's tenders committee has decided to sign a contract with Haldor Topsoe, arguing this is a company with a subsidiary in the United States. This is true, but legislation being prepared in the U.S. will prevent American firms or foreign companies operating there from investing in Iran's energy sector.

Following a last-minute bid by the rival Japanese firm, the IEC brought the issue to Minister of National Infrastructure Uzi Landau for a decision. His spokesman said that "the minister is seriously considering the issue."

This is not enough. Israel must take a clear stand and not evade the issue. It must be at the front of the campaign and not lag. Companies and corporations (regardless of their cover ) assisting Iran's economy are bolstering the regime of Mahmoud Ahmadinejad, who is threatening to destroy Israel. Israel must make it clear that whoever does business with Iran cannot benefit from doing business with Israel.

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  • 14. 0 0
    Slouching towards disaster in the "Holy" Land
    • N-tropy
    • 21.09.10
    • 19:01

    The business and political elites elites in Israel don't gave much concern to the people. Their mindset is almost exclusively focussed on profit and staying in power. In this respect, the Jewish people in Israel are even in worse shape than most other nations. What is the most galling is how these same people castigate others for the same actions. To top off this mess, we have an institutionalized religious sector that is as power hungry as the rest. The so-called "National Religious" element and right of centre "patriots" should be massing in the streets in opposition, yet there is not a peep. Nor do we hear anything from the "left of centre". The dysfunction of the nation is clear to all.

  • 13. 0 0
    How is this different?
    • Charlie Tuna
    • 21.09.10
    • 18:37

    How does Israel's economic boycott of companies doing business with Iran differ in function from other countries refusing to do business with companies that trade with israel? Either you are against boycotts or you are not.

  • 12. 0 0
    Israel is corrupt/weak and selfish
    • SAM
    • 21.09.10
    • 17:14

    We the Israelis are corrupt and selfish to the core - we want the world to place an embargo on Iran and penalize the companies who do business with Iran. We do all the more business with the same companies who are dealing with Iran, We are fake, not honest and totally corrupt.- Shame on us.

  • 11. 0 0
    why am I not surprised.
    • Ron
    • 21.09.10
    • 16:35

  • 10. 0 0
    israel and iran are both wihtin the same tyrannical category...both are run by religious fanatics
    • palestinian
    • 21.09.10
    • 16:33

    israel and iran are both controlled by religious zealots with no common sense whatsoever.

  • 9. 0 0
    ABSOLUTELY.
    • jpeters
    • 21.09.10
    • 16:16

    TURKEY WILL NEVER GET ANY BENEFIT FROM ISRAEL FOR TRADING WITH IRAN.. WHAT BENEFIT CAN ISRAELPOSSIBLY OFFER TO TURKEY, TURKEY HAS FOUND A MARKET WHICH HAS BEEN ISOLATED FROM THE REST OF THE WORLD. WHO WILL BENEFIT IN THE END, TURKEY OF COURSE. I HOPE ALL THE WORLD NEVER TRADES WITH IRAN SO THAT TURKEYS TRADE WILL INCREASE 50FOLD IN THE NEXT 5 YEARS BY COMPLETELY EXPLOITING THIS MARKET. SO ALL THOSE COUNTRIES, PLEASE CONTINUE NOT TO TRADE WITH IRAN...

  • 8. 0 0
    ABSOLUTELY.
    • jpeters
    • 21.09.10
    • 16:16

    TURKEY WILL NEVER GET ANY BENEFIT FROM ISRAEL FOR TRADING WITH IRAN.. WHAT BENEFIT CAN ISRAELPOSSIBLY OFFER TO TURKEY, TURKEY HAS FOUND A MARKET WHICH HAS BEEN ISOLATED FROM THE REST OF THE WORLD. WHO WILL BENEFIT IN THE END, TURKEY OF COURSE. I HOPE ALL THE WORLD NEVER TRADES WITH IRAN SO THAT TURKEYS TRADE WILL INCREASE 50FOLD IN THE NEXT 5 YEARS BY COMPLETELY EXPLOITING THIS MARKET. SO ALL THOSE COUNTRIES, PLEASE CONTINUE NOT TO TRADE WITH IRAN...

  • 7. 0 0
    ABSOLUTELY.
    • jpeters
    • 21.09.10
    • 16:16

    TURKEY WILL NEVER GET ANY BENEFIT FROM ISRAEL FOR TRADING WITH IRAN.. WHAT BENEFIT CAN ISRAELPOSSIBLY OFFER TO TURKEY, TURKEY HAS FOUND A MARKET WHICH HAS BEEN ISOLATED FROM THE REST OF THE WORLD. WHO WILL BENEFIT IN THE END, TURKEY OF COURSE. I HOPE ALL THE WORLD NEVER TRADES WITH IRAN SO THAT TURKEYS TRADE WILL INCREASE 50FOLD IN THE NEXT 5 YEARS BY COMPLETELY EXPLOITING THIS MARKET. SO ALL THOSE COUNTRIES, PLEASE CONTINUE NOT TO TRADE WITH IRAN...

  • 6. 0 0
    how Israel helps Iran
    • David
    • 21.09.10
    • 15:26

    It is a disgrace if Israel finally allots the tender to the Finish company, only because of savings; where is our pride? we get slapped and we give the other cheek

  • 5. 0 0
    please, spare us the existential threat propaganda
    • Yoshi
    • 21.09.10
    • 12:38

    Iran will not launch an attack against Israel. They cannot afford it and you know it, and the Israeli leaders know it. And they don't give a sh*t about who is doing business with Iran, as long as the kickbacks keep coming in.

  • 4. 0 0
    Unfortunately
    • Sam
    • 21.09.10
    • 12:19

    It's always the same old story.For many people, money has no smell. It talks and they walk.

  • 3. 0 0
    That won't be easy, I fear
    • christoph
    • 21.09.10
    • 11:29

    I don't know how much Israel gives to Russia every year for oil, but it will be something. The trouble is: Some goods are not purchased just for fun or life style improvement, but because there is need for them. Firms like Siemens may also have some power on prize politics, making it more difficult to avoid them. I don't know how the Israeli budget situation is, but there seemingly is considerable poverty among big parts of the population. It could actually be interesting to ask Israeli macroeconomists to give an assessment of the situation, about needs and wishes, compromises etc. A big problem that I perceive when I read Haaretz is actually the overwhelming discourse concerning foreign politics, culture and security, and lacking consideration for social concerns - at least as I see it on the international edition.

  • 2. 0 0
    Pure world wide dictatorship....
    • Montasser
    • 21.09.10
    • 09:43

    In the same way of thinking ".. whoever does business with Israel cannot benefit from doing business with all arab and moslem countries.

  • 1. 0 0
    Should anyone really be surprised? There's more than just a little hypocrisy that emanates out of Jerusalem...
    • Pssst!
    • 21.09.10
    • 03:41

    This certainly isn't the first case of it...nor probably even the worse...