The German government said on Friday it is formally suspending export credit and investment guarantees for business in Iran in the wake of authorities’ crackdown on protests, The Associated Press reported.
The Economy Ministry said it also has suspended other “economic formats,” including a dialogue on energy issues, in view of “the very serious situation in Iran”, according to the report.
Export credit guarantees protect German companies from losses when exports aren’t paid for. Investment guarantees are granted to protect direct investments by German companies from political risk in the countries where they are made.
The ministry said that use of those instruments for projects in Iran was suspended for decades until there was a “short phase of opening” from 2016 as a result of Iran’s agreement with world powers, including Germany, on its nuclear program. It said that guarantees were granted or extended for a few projects in that period, but there have been no new ones since 2019.
The German government has now decided to “suspend completely” the guarantees, it added, and exemptions can only be granted if there are solid humanitarian reasons.
Protests have gripped Iran following the September 16 death of 22-year-old Amini after she was arrested by the morality police.
Hundreds of protesters have been killed in more than two months of nationwide unrest, including dozens of minors. In addition, at least six people have so far been handed death sentences over the demonstrations.
Germany has been one of the fiercest critics of the crackdown on protesters in Iran. Last month, Chancellor Olaf Scholz said that the European Union is considering further sanctions against Iran over its "excessive" crackdown on demonstrators.
In October, German Foreign Minister Annalena Baerbock called for European Union entry bans and asset freezes against those responsible for what she described as “brutal repression” against anti-government protesters in Iran.
Two weeks ago, Germany summoned the Iranian ambassador after the Islamic Republic's first known execution over ongoing protests there. Baerbock slammed the execution and said the "Iranian regime's contempt for human life is boundless".
(Israel National News' North American desk is keeping you updated until the start of Shabbat in New York. The time posted automatically on all Israel National News articles, however, is Israeli time.)