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Title: Germany Playing Kissy-Face With IranÂ’s Mullahs Is Going To Cost German Companies Plenty
Source: RedState
URL Source: https://www.redstate.com/streiff/20 ... -cost-german-companies-plenty/
Published: May 25, 2018
Author: streiff
Post Date: 2018-05-26 01:30:35 by Tooconservative
Keywords: None
Views: 2230
Comments: 23

I’ve posted a few times on the efforts on the part of some European countries, Germany, in particular, to continue to trade with Iran despite US sanctions (see here | here). This, of course, is nonsense. German, and European, companies that are hit with sanctions are cut off from US markets and, more importantly, their bankers are subject to sanctions, too. Two important things happened today that, hopefully, will hammer home to Europe that their plan to resist US sanctions on Iran won’t work.

First, we have Ambassador Richard Grennell. Grennell, you’ll recall, is the guy who gave the Washington Post a brief bout of fecal incontinence when he tweeted, shortly after confirmation:
As @realDonaldTrump said, US sanctions will target critical sectors of Iran’s economy. German companies doing business in Iran should wind down operations immediately.

— Richard Grenell (@RichardGrenell) May 8, 2018

Tonight Grennell was on Fox and he reiterated that warning, only in much more stark terms:
The awesome Amb. Richard Grenell lays down the law: Companies can either "choose to do business with the United States, or they can choose to do business with Iran; but they're not going to be able to do both." pic.twitter.com/Cx0plpYJad

— Josh Caplan (@joshdcaplan) May 25, 2018

Also today, Saudi Arabia declared that German firms are ineligible for government contracts:
Saudi Crown Prince Mohammed bin Salman has ordered that no more government contracts be awarded to German companies, in a sign of continued irritation over Berlin’s foreign policy in the Middle East, German magazine Der Spiegel reported on Friday.

Citing no sources, it said the move was likely to hit major companies such as Siemens (SIEGn.DE), Bayer (BAYGn.DE) and Boehringer Ingelheim as well as carmaker Daimler (DAIGn.DE).

Relations between Germany and Saudi Arabia have been strained, and Saudi Arabia last year summoned its ambassador in Germany home for consultations over comments by then-Foreign Minister Sigmar Gabriel about the political crisis in Lebanon.

Saudi Arabia is a significant trade partner for Germany, generating 2017 exports worth 6.6 billion euros ($7.7 billion), according to Germany’s statistics office.

Siemens last year won an order worth around $400 million to deliver five gas turbines for a combined heat and power plant being built in Saudi Arabia. Daimler soon after secured an order for 600 Mercedes‑Benz Citaro buses from Saudi bus operator SAPTCO.

A senior German businessman in Saudi Arabia, who asked to remain anonymous, told Reuters on Friday that especially the healthcare sector was currently feeling added scrutiny when applying for Saudi tenders.

“They have even been asking: Where are the products coming from? Are they made in Germany? Do you have other manufacturing sites? And as soon as this is made in Germany, they have been rejecting any German applications for tender,” the person said.

This is a tightening of screws on the EU. Not only will companies be cut off from US markets but the Saudi market will be off limits as well. Unless they are willing to accept Iran as their only trading partner, they have to fall in line.


Poster Comment:

LF's contingent of America-haters and EUroweenies will be inconsolable.

If the Saudis are onboard for a German boycott, so are the rest of the Gulf oil states (other than Qatar).

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Begin Trace Mode for Comment # 17.

#1. To: Tooconservative (#0)

Interesting development.

The way this game will play out is fairly clear.

Vicomte13  posted on  2018-05-26   6:37:16 ET  Reply   Untrace   Trace   Private Reply  


#3. To: Vicomte13, Tooconservative, Pinguinite, sneakypete, Vicomte13, Deckard (#1) (Edited)

Interesting development.

Plot thickens.

Iran lists demands for staying in nuclear deal :

"Iran has said it will decide in the next few weeks whether to pull out of the nuclear deal signed in 2015 and start enriching uranium capable of making a nuclear bomb."

"Tehran officials said the EU would need to present a credible compensation package by the end of the month to make up for the loss of income to Iran caused by the US sanctions."

A Pole  posted on  2018-05-26   7:45:21 ET  Reply   Untrace   Trace   Private Reply  


#14. To: A Pole (#3)

There's a limit to how far countries can be pushed to do things they don't want to do, and Putin will do whatever he can to exploit that sentiment. Germany may find they have a better friend in Russia than they do in the USA.

Pinguinite  posted on  2018-05-26   11:22:01 ET  Reply   Untrace   Trace   Private Reply  


#15. To: Pinguinite (#14)

Germany may find they have a better friend in Russia than they do in the USA.

Yea Germany should do business with Russia instead of the U.S.A.. They will get rich doing that. I mean Russia's economy is so much more important.

A K A Stone  posted on  2018-05-26   12:50:09 ET  Reply   Untrace   Trace   Private Reply  


#16. To: A K A Stone (#15)

Yea Germany should do business with Russia instead of the U.S.A.

It's China that Frau Merkel has her eye on. 11 trips there in 12 years. She was just there this week, talking again about how they've drawn closer due to U.S. belligerence (Paris accords on climate, withdrawal from Iran agreement, etc.).

HotGas, today: Merkel: The US pushes us closer to China

Tooconservative  posted on  2018-05-26   16:31:03 ET  Reply   Untrace   Trace   Private Reply  


#17. To: Tooconservative (#16) (Edited)

Merkel: The US pushes us closer to China

The economical foundation of Germany is huge industry and value added exports (that allow high wages and quality).

Without cheap resources from Russia and Iran, this industry might become less competitive. And German economy is the engine of Europe.

Trade in Euro and yuan might open big financial opportunities for EU.

A Pole  posted on  2018-05-26   16:44:24 ET  Reply   Untrace   Trace   Private Reply  


Replies to Comment # 17.

#18. To: A Pole (#17)

Germany is as wary as we are about how China requires every company to partner with a Chinese firm and share trade secrets. Then they just steal the IP and make their own stuff.

German companies don't like that any better than American companies.

China is not like Western countries, however Merkel wants to pretend otherwise. Recall when she used to be considered the "Vlad whisperer", able to talk Putin into behaving as the EU wanted? Well, Merkel is just as mistaken about China.

Merkel's reached that stage in her career where's she's wondering "what is my legacy?". And the answer is, not much really. Other than the migrant problems she's imported.

Sometimes pols are at their most dangerous when they panic over their lack of accomplishments and go into "legacy mode". It happens more than you'd think.

Tooconservative  posted on  2018-05-26 16:50:49 ET  Reply   Untrace   Trace   Private Reply  


End Trace Mode for Comment # 17.

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