Germany uneasy about Iran sanctions

December 27, 2007

German officials are feeling uneasy about imposing further sanctions on Tehran after a decline in trade between the two countries.

Germany exports nearly 5.7 billion dollars of goods to Iran annually (compared to less than 1 billion dollars for Britain); it is also exposed to more than 5 billion dollars of export credit guarantees.
Figures by the Federal Statistical Office indicate that Germany's overall exports to Iran have decreased by 18 percent in the last year compared to 2006.
Specialized machinery has reportedly suffered a sharp decline of 40 percent.
Top German diplomats have said that punitive measures against Iran will increase the tension in the already volatile Middle East.