Germany Works to Secure Iranian and Middle East Oil

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Germany Works to Secure Iranian and Middle East Oil

Why has Germany built a long-standing relationship with Iran?

Europe faces a geopolitical conundrum. A German-led Europe stands with one hand pointing the finger at Russia, condemning its actions in Ukraine and calling for the enforcement of new sanctions. All the while, the self-same Europe, with the other hand, beckons for a steady supply of Russian gas.

This dependence on Russia leaves Europe in a dilemma. How can Russia be meaningfully challenged while Putin has a hand resting on the spigot of natural gas that flows through the European continent?

One trend suggests that Germany has the answer to this quandary.

Berlin is working hard to break its reliance on Russian natural gas. It is looking to bring this about by looking for resources from another large oil and gas producer—Iran. There are two ways Germany could go about this: 1) by coercing the Iranians to sell more to Europe; or 2) by forcefully taking resources. Today we see Germany trying one tactic, while preparing for the other.

Wooing Iran

Germany has been reluctant to increase economic ties with Iran in recent years because of the crippling sanctions that have isolated Iran and made it impossible to deal with. Now, however, Iran’s economic situation is improving.

German investment reached $5.9 billion in 2004, but then plummeted as new sanctions were placed on Iran. Last year, trade volume reached $2.48 billion.
In exchange for a few small concessions, Iran has experienced major economic relief, including the ability to sell far larger quantities of its oil than in recent years. While some sanctions still remain that make trade with Iran difficult, such as the lack of international banking, Germany still sees Iran as a “way out” of its Russian gas conundrum.

The Wall Street Journal published an article on August 3 discussing the expansion of German industry into Iran. German investment reached $5.9 billion in 2004, but then plummeted as new sanctions were placed on Iran. Last year, trade volume reached $2.48 billion. According to estimates from the German Chamber of Commerce and Industry (dihk), there is plenty of room for growth. The dihk estimates that German trade could quickly reach $13.4 billion per year if sanctions against Iran were further relaxed. But if Germany is looking for a viable alternative to the near-$100 billion per year worth of trade that it does with Russia, Berlin will need to significantly ramp up its efforts in the Middle East.

The same article discussed Germany’s desire to tap into the 77 million possible consumers in Iran, but it failed to highlight one pivotal point. Germany is not nearly as interested in selling to Iran as it is in buying from Iran.

Iran holds the fourth-largest proven crude oil reserves in the world—nearly 10 percent. It also holds 17 percent of the world’s proven natural gas—the second largest stockpile in the world. And, Iran is the world’s third largest producer of dry-natural gas. If you were Germany, and you were looking to buy your resources from a nation other than Russia, these figures would undoubtedly grab your attention.

Iran’s vast oil and natural gas deposits have remained relatively untapped over the past decade as sanctions kept potential buyers at bay. Now, with the easing restrictions, resource-hungry nations are beginning to circle.

The ever-methodical Germany has been waiting for this eventuality. While Germany has only dealt modestly with Iran over the past decade, it certainly hasn’t let the relationship die. Today Germany has over 100 company branches in Iran, plus 1,000 companies that work there through sales agents. Berlin’s continued presence has helped it build a rapport with Tehran. Nations such as the United States must work to overcome old animosity that has dampened trade relations since the Iranian coup in the late ’70s. Germany, on the other hand, already has a healthy relationship that stems back to 1868, when German engineering company Siemens AG entered Iran when Britain constructed its telegraph lines from London to India.

German trade with Iran may be small, but its value is starting to show. While many nations struggle to regain footing in Iran, Germany is already there.

German trade with Iran may be small, but its value is now starting to show. While many nations struggle to regain footing in Iran, Germany is already there.
Now all Germany needs is for sanctions against Iran to be relieved, allowing oil sales to Europe to increase. In the meantime, Europe needs to keep Tehran onside.

This latter goal is easier said than done. Other nations are interested in Iranian oil and in keeping it away from Europe—chiefly Europe’s nemesis, Russia.

Competing for Iran’s Attention

The Kremlin is far from ignorant when it comes to Europe’s dilemma. Russia has already used the vital pipelines into Europe for its own gain. Having Europe over a barrel is a position President Vladimir Putin will be reluctant to release.

To that end, Russia will undoubtedly try to guide Iranian oil north and east rather than see an increase to Europe. Russia and China have both shown interest in acquiring the lion’s share of Iranian oil exports.

Russia has been working to strengthen its already-deep ties with Iran. Aside from arms and aid, Russia has a long history of trade with Iran, and has often been accused of undermining international sanctions. Russia has recently taken steps to finalize a massive oil-for-goods deal with Iran. It plans to buy 500,000 barrels of Iranian oil every day, which obliterates the export limit currently in effect. The deal seems strange considering Russia is the world’s largest producer of natural gas. Why would it need Iranian oil? The deal benefits Russia in multiple ways, one of which is giving Moscow more influence over where Iran’s oil goes.

A German-led Europe cannot afford to allow Russia any more sway over Europe’s gas imports than it already has. But in this situation, Germany undoubtedly sees the close ties that have developed between Iran and Russia in recent years. There could be severe consequences if Europe calls on Iran for oil and gas—particularly if Russian gas wasn’t an option—and the call went unanswered. To avoid this situation, Germany is furtively preparing a second plan to secure Middle East resources.

Whirlwind Tactics

The Islamist threat becomes such a pest that a militarized Europe reacts to deal with the challenge that the U.S. and Britain simply will not address.
Ron Fraser
Germany must plan to secure the Middle East for itself. While it may be focusing on a more passive trade relationship with Iran today, Bible prophecy says in the near future it will turn to more aggressive measures.

Former Trumpet columnist Ron Fraser wrote:

The global disorder that has followed 9/11, which has included a great weakening in the pride of U.S. power, will soon be replaced by a newly assertive order. This will first require a temporary balance of power between the European Union and Russia. …. Meanwhile, competition for the resources of Africa, Latin America and the Caribbean will continue between the leading nations of these power blocs: Germany, Russia and China. The oil-rich Middle East nations will be wooed by all, until the Islamist threat becomes such a pest that a militarized Europe reacts to deal with the challenge that the U.S. and Britain simply will not address.

Today, radical Islam is on the rise from Afghanistan to Libya. Could Germany be preparing to step in and kill two birds with one stone? Your Bible says yes.

If you are unsure of how Germany could move to solve its economic problems and deal with the threats in the Middle East in one swoop, go back and read Trumpet editor in chief Gerald Flurry’s article “The Whirlwind Prophecy.” This article explains in detail how Germany will move to secure the Middle East for itself. All one needs to do is look at German military buildup in the Middle East and North Africa to see that Germany is gradually encircling the nations of radical Islam. Combine these facts and figures with the sure word of God in Daniel 11:40, and you have a clear picture of Germany’s plan for the Middle East!

The Trumpet has long warned of the consequences of a German-led Europe trying to woo the oil-rich nations of the Middle East. German trade with Iran is one such example of Europe cozying up to the oil-rich region. In the near term, Germany continues to focus on building trade and soft power with the Middle East, but it won’t be long before Berlin does away with the soft approach and the relationship takes on a far more hostile nature.