Germany Suspends Iran Trade Programs as EU Cites Worsening Ties

Petra Sorge, Bloomberg News

An empty shipping container carrier moves through a dockside storage area at Bandar Imam Khomeini (BIK) port in Bandar Imam Khomeini, Iran, on Thursday, May 23, 2019. Iranian officials have said that the raft of U.S. sanctions against their country, which was tightened last month, is aimed at fueling popular dissent in an effort to topple the leadership. , Bloomberg

(Bloomberg) -- Germany said it’s suspending trade-promotion programs for Iran, citing the “very serious situation” in the country.

The suspension — days after the EU’s top diplomatic representative said relations with Iran were deteriorating — affects loan and investment guarantees that opened up in 2016 after Iran’s nuclear agreement, but have been dormant since at least 2019, the Economy Ministry in Berlin said in a statement Friday.

Investment guarantees have been suspended and loan guarantees will halt in January, with humanitarian exemptions. Germany’s trade promotion agency, known as Germany Trade and Invest, and Germany’s business promotion office in Iran have “reduced their activities to a minimum,” according to the statement.

German-Iranian trade totaled €1.76 billion ($1.9 billion) last year.

Josep Borrell, high representative of the EU for foreign affairs and security, urged Iran on Tuesday to immediately stop military support to Russia and “internal repression.” He met Iranian Foreign Minister Hossein Amirabdollahian in Jordan, telling him that the nuclear deal can only be restored under terms negotiated by world powers in August.

EU governments backed additional sanctions targeting Iran on Dec. 12.