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Germany and Iran, a long-running hypocrisy reprised by the blocking of India’s oil payments to Tehran

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The German government has stopped the government from India from paying for oil, bought from Iran, through a German bank. This action has been explained by the German government as halting its dealings with Iran, which America, Germany’s Nato ally, has placed under an economic blockade for allegedly pursuing a nuclear weapons programme.

The extreme but characteristic hypocrisy of Germany with regard to countries of the Middle East has once again come to the fore with this action. Ever since the outbreak, in 1991, of the American invasion of Iraq, Germany’s private sector role in providing engineering and technical know-how to countries of the Middle East – specifically Iran, Iraq (under Saddam Hussein) and Libya – has been exposed. (America’s own complicity in arming, supporting and dealing with all manner of governments is too well-known.) More on the German hypocrisy follows after a brief description of the immediate action.

New media have today reported that India has agreed to stop paying for its Iranian oil imports via Germany. Payments to a Hamburg-based bank handling international trade with Iran had been halted. The Handelsblatt business daily has reported that German chancellor Angela Merkel had intervened by instructing Germany’s central bank, the Bundesbank, to stop clearing payments from India headed to the bank, known as EIH, which is under USA but not EU sanctions.

Reuters has reported that this action will end “a trade conduit that had drawn strong disapproval from the United States and Israel” and that “the decision was a result of consultations between Berlin and New Delhi, and not pressure from Chancellor Angela Merkel at home or abroad to disrupt the payment scheme”. The news bulletin has been picked up by a number of small and regional newspapers in the USA, going under the headline ‘Germany won’t funnel oil money from India to Iran’.

The initial response from India, according to a few early reports, is that India’s finance ministry is now considering routing its payment for Iranian oil through a European bank which is ‘more neutral’ than the European Iranian Trade bank (EIH). The Indian Express has said that so far, India has paid 1.5 billion euros through EIH to the Iranian central bank. The Indian Express quoted a finance ministry official as having said: “EIH can’t be a long-term solution. We are looking at banks in Europe where Iranian central bank has an account. We will also open an account with (that) bank. We will have to look for a neutral bank, which EIH is not.”

India depends on Iran for about 15% of its crude oil imports. Iran is India’s second-biggest oil supplier after Saudi Arabia. India had imported 400,000 barrels per day (bpd) of oil from Iran in 2009-10 and about 178,000 bpd during April-September. India, Asia’s third-largest oil consumer, imports over two-thirds of its oil needs and depends heavily on volumes from the West Asia to power its economy. India and Iran have been negotiating for months on ways to resolve the payment deadlock on a long-term basis and salvage the trade, which is worth around US$12 billion annually.

So much for India’s oil dealings with Iran. What moral standing has Germany in such a matter? Let’s revisit the recent past to see what Germany’s current imperialist ally in Libya – the USA – has itself had to say on German interest in Middle Eastern and North African business opportunities.

Foreign energy in Libya. Map: Stratfor

Remember Rabta? This was reported to be the largest chemical weapons factory in the developing world, and in the 1990s it was estimated that the Rabta factory’s potential output was between 8.5 and 33 tons of mustard gas and nerve agent daily. The Rabta plant, about 65 km south of Tripoli, was seen as having been buit and operated with the assistance of western (i.e. from western Europe) companies. At the time, it was the USA which concluded that a West German company played a central role in the design and construction of the rabta plant. Ronald Reagan was US president then and Helmut Kohl the German chancellor. The company was Imhausen-Chemie, and both the company and the feckless German government of the day claimed that all it was doing at Rabta was making plastic bags.

Let’s turn to Germany and Iran. Germany has been intensely involved in the international effort to thwart Iran’s nuclear weapons development program. Yet, while Chancellor Merkel has vocally stated her opposition to Iran’s acquisition of a nuclear weapon, Germany has continued to be Iran’s largest trading partner in the EU and – whatever shape the coalition government in Berlin has taken – it has been pro-business, favouring commercial ties over the West’s security interests – this is typical, after all, for the country that until last year was the world’s biggest expoert economy, business comes first, never mind who it’s done with and what it’s used for. Germany’s exports to Iran reached about US$426 million in September 2009, while its imports were about US$140 million. This has been reported by The Jerusalem Post (September 29, 2009) and by Tehran Times (December 17, 2009). Which are the major companies that have, with the full knowledge and encouragement of the German government, done business in and with Iran? Some of the best-known are Siemens, ThyssenKrupp, BASF, Bayer, Herrenknecht and MAN Ferrostahl.

It is tiresome to hear sanctimonoius claptrap about Germany’s replacement of the primitive nationalisms of the past with multilateral principles of an integrated Europe, as its lying and double-dealing officials assure the European Parliament and international fora every so often. The “forgetting of power” in the West German peace movements and in the political language of détente used by its over-intellectualised political commentators is plain rubbish, for what Germany does abroad is quite different from what it says at home in Europa.

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