Iran said it needed the cash ‘to pass on to Iranian citizens that require cash while traveling abroad, given their inability to access recognized credit cards.’ (AFP)

July 9, 2018

German authorities are considering a request by Iran to withdraw €300 million from bank accounts held in Germany and transfer the cash to Iran, Bild newspaper reported Monday, citing unnamed government officials.

Tehran is seeking withdraw the funds from the Europaeisch-Iranische Handelsbank (eihbank) because it is worried that it could run out of cash when fresh US sanctions against its financial sector take effect, Bild said.

Washington has announced new sanctions on Iran and ordered all countries to stop buying Iranian oil by November and foreign firms to stop doing business there or face US blacklists.

One of the world’s biggest cargo shipping lines, France’s CMA CGM, announced on Saturday it was pulling out of Iran for fear of becoming entangled in US sanctions after US President Donald Trump abandoned the 2015 nuclear agreement in May.

Iran told the German Financial Supervisory Authority (BaFin) it needed the cash from the accounts “to pass on to Iranian citizens that require cash while traveling abroad, given their inability to access recognized credit cards,” Bild said.

BaFin was now reviewing the request, which had been briefed to senior officials in the chancellery, foreign ministry and finance ministry, the newspaper reported.

No comment was immediately available from BaFin, the foreign ministry or the finance ministry. The Bundesbank declined to comment. A spokeswoman for eihbank declined to comment, citing bank secrecy laws.

US and Israeli intelligence agencies fear the money could be used to fund armed groups in the Middle East, but German government officials said they had no indications of such plans, Bild reported.

Foreign ministers from the five remaining signatory countries to the nuclear deal — Britain, France, Germany, China and Russia — offered a package of economic measures to Iran on Friday but Tehran said they did not go far enough.

Reuters

About Track Persia

Track PersiaTrack Persia is a Platform run by dedicated analysts who spend much of their time researching the Middle East, in due process we fall upon many indications of growing expansionary ambitions on the part of Iran in the MENA region and the wider Islamic world. These ambitions commonly increase tensions and undermine stability.