According to Reuters, the surge signals willingness among Germany’s small to medium-sized firms, or Mittelstand, to continue doing business with Iran despite the risk of being blacklisted by the United States for defying its sanctions.
Official figures by the Federal Statistics Office reveal that German goods exported to Iran totalled almost 400 million euros ($455 million) in October, a year-on-year surge of 85 percent and the highest monthly volume since 2009.
Around 1,000 German Mittelstand companies have business ties to Iran and 130 have set up branches in the country. Multi-national companies, including German engineering giant Siemens, have pulled out of Iran, fearing U.S. sanctions.
Mittelstand companies provided most of the exports to Iran, Michael Tockuss of the German-Iranian Chambers of Commerce and Industry said. Chemicals made up about half the German goods; machines and plant equipment accounted for a third.
Tockuss said Mittelstand companies exporting to Iran were taking a calculated risk, believing U.S. sanctions are aimed at hindering big projects in key sectors like banking and shipping.
“Our American friends are keeping an eye on vital sectors like banking, insurance, shipping and telecommunications,” Tockuss said. “They are taking a tough approach toward big companies and key sectors.”
That is why the Chambers of Commerce expects exports to Iran to continue growing. They grew by 4 percent to 2.4 billion euros in the first 10 months of this year, and Tockuss said he expects monthly export volumes to average 200 million to 250 million euros a month next year.
