The Trump administration has secured a major victory concerning Iran as the Deutsche Bundesbank− Germany’s central bank− imposed a rule stopping a $400 million cash delivery to Tehran. Iran’s cash-starved economy desperately needs hard currency ahead of crippling U.S. bank sanctions that will be introduced in November, Fox News reported.
“Germany allows the Iranian-owned European-Iranian trade bank (EIH) to operate in Hamburg. The EIH holds more than $400 million that Tehran wants to receive in cash ahead of a second wave of U.S. sanctions due in November that impact banks and Iran’s energy sector.
“The Deutsche Bundesbank has cooperated with the EIH in the past to circumvent U.S. sanctions on Iran. The U.S. and the European Union previously sanctioned the EIH for its role in advancing Iran’s nuclear and missile programs. The sanctions on the EIH were lifted after the world powers reached an agreement to curb Iran’s nuclear program in 2015.”
President Trump destroyed the “decaying and rotten” deal in May and vowed to impose stronger sanctions against Iran.
The U.S. embassy to Berlin tweeted about the plan.
Close partnership = results. Thank you to our German counterparts for acting to stop Iran’s activities.https://t.co/fTSBD2f8Dt
— US-Botschaft Berlin (@usbotschaft) August 4, 2018
Automobile manufacturer Mercedes-Benz announced on Tuesday that it had frozen all business with Iran due “to applicable sanctions.” The first wave of U.S. sanctions kicked in on Tuesday and will impact Iran’s automobile sector, as well as trade in precious metals.
Sportswear giant Adidas meanwhile followed the lead of its U.S. competitor Nike and ended its business with Iran.
Adidas said in a statement last week that it will not extend commercial agreements with Iran’s soccer association. Iran’s state-controlled media reported that Adidas withdrew from Iran’s market because it fears damage to its business in the U.S.