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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: 2807
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 # 3.

#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  


Replies to Comment # 3.

#6. To: A Pole, Vicomte13 (#3)

"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."

That's pretty funny.

Iran's diplomats are in a total panic.

Iran is overextended across the Mideast, trying to establish their Persian Crescent to reach from Af/Pak to the Mediterranean.

The EUroweenies are rushing about, badmouthing that oaf Trump and fuming along with Kerry but they know already that they have no real alternatives.

FreeBeacon:

. . .

Since President Donald Trump withdrew the United States this month, calling the agreement deeply flawed, European states have been scrambling to ensure Iran gets enough economic benefits to persuade it to stay in the deal.

But this has proven difficult with many European firms alarmed at the specter of far-reaching U.S. financial penalties.

Nations that remain in the deal—Britain, China, France, Germany, and Russia—held a formal meeting on Friday without the United States for the first time since Trump's announcement, but diplomats saw limited scope for salvaging the agreement.

"To be honest with you, we are not confident," a senior Iranian official told reporters shortly before the talks between senior officials aimed at fleshing out the package of measures to keep oil and investments flowing.

Those measures include banning EU-based firms from complying with the reimposed U.S. sanctions, and urging governments to make transfers to Iran‘s central bank to avoid fines.

"We expect the (economic) package to be given to us by the end of May," the Iranian official said. "I'm sorry to say that we haven't (seen) the Plan B yet. The Plan B has just started to be figured out."

He said European measures would need to ensure that oil exports did not halt, and that Iran would still have access to the SWIFT international bank payments messaging system.

After Friday's meeting, Iranian Deputy Foreign Minister Abbas Araqchi told reporters discussions would continue.

COLD SHOWER

Washington has not only reimposed sanctions but started to make them even tighter. U.S. Secretary of State Mike Pompeo threatened Iran on Monday with "the strongest sanctions in history" if it did not change its behavior in the Middle East.

"Pompeo was like taking a cold shower," said a European diplomat. "We'll try to cling to the deal, but … we're under no illusions."

Iranian Supreme Leader Ayatollah Ali Khamenei set out conditions on Wednesday for Iran to stay in the deal: unless Europe guarantees Iran‘s oil sales will not suffer, Tehran would resume enrichment activities that are currently prohibited. The deal lets Iran enrich but under tight restrictions.

Khamenei also rejected any new negotiations over Iran‘s missile program, which was not covered by the nuclear deal .

Iran has so far benefited less from the accord than it had initially hoped, partly because of remaining U.S. sanctions that have deterred major Western investors from doing business with Tehran. Some Western companies have already quit Iran or said they may have to leave because of the new U.S. sanctions.

Trump denounced the accord, completed under his predecessor Barack Obama, partly because it did not cover Iran‘s ballistic missile development program, its role in Middle East conflicts, or what happens after the deal begins to expire in 2025.

French President Emmanuel Macron wants to complement the nuclear deal with negotiations involving all sides over other issues, an idea cautiously received by Russian President Vladimir Putin during talks in St. Petersburg on Thursday.

Tooconservative  posted on  2018-05-26 08:38:21 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  


End Trace Mode for Comment # 3.

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