Iran, Germany to hold major economic conference after nuclear deal

Iran and Germany were historically close trade partners but business dropped off as a result of the sanctions, declining to €2.4bn previous year from around €8bn in 2003-2004, according to German figures. Gabriel is heading a delegation of representatives from German companies.

After mentioning Israel, Gabriel said there was a need to “discuss hard issues openly, in a spirit of partnership and respectfully” and “nothing needs to change in that friendship even if we hold different views”.

However, Gabriel told a gathering of German and Iranian business people that Tehran ” questioning [Israel’s] right to existence is something that we, Germans, cannot accept.”He said that it is relevant to their economic ambitions because “you can’t have a good economic relationship with Germany in the long term if we don’t discuss such issues and try to overcome them”.

The comprehensive nuclear deal and subsequent termination of anti-Iran sanctions would also result in a hike in Iran’s trade with the world and increase foreign investment in the country.

Conscious of that diplomatic difficulty, Gabriel kicked off his trip with a plea for Iran to improve relations with arch-enemy Israel and said Germany would like to act as a mediator. More than 200,000 Iranians live there.

The nuclear agreement between Iran and the powers will have positive impact on Germany-Iran bilateral ties, he said. The last such event was held in 2002 before the imposition of worldwide economic sanctions over Iran’s nuclear program.

“Iran will cooperate with German companies for funding projects in the petrochemical, refining, storage, energy optimization and renewable energies sectors”, he said.

German firms shall not limit their focus on the Iranian market only, they can take advantage of Iran’s status in the region to access larger markets, he added.

German business leaders have pointed to pent-up demand in modernising Iran’s industrial infrastructure, particularly in the oil sector, as presenting lucrative opportunities.

Ministers left the details of their endorsement until after a UN Security Council vote scheduled for 9am EDT (1300 GMT), but have formally committed to a gradual lifting of sanctions along with the United States and the United Nations.

A senior Western official involved in the accord said a combination of limitations and verification was enough to ensure Iran would not obtain a nuclear bomb. Tehran has always denied seeking nuclear arms.

“Our ambition is to embed the Iranian civilian nuclear programme into global cooperation”, the official said.

The head of the German chapter of Reporters Without Borders, Christian Mihr, told the Bild newspaper it would be “disastrous” if on Gabriel’s visit “economic interests were put ahead of human rights and press freedom”.

Gabriel is due to hold talks with Iranian President Hassan Rouhani, three ministers, the head of the central bank and the chamber of commerce following Tuesday’s landmark nuclear agreement, German news agency DPA reported.