Cheap labor and an advanced technology sector have made Iran an interesting investment destination for German business. But sealing deals is no longer as easy as it once was because of US sanctions.
The EU's vow to keep trading with Tehran despite new US sanctions is causing further friction with Washington. The creation of a special purpose vehicle (SPV) will help facilitate payments between Iran and Europe.
The EU has drafted business safeguards to salvage the Iran nuclear deal, including prohibiting firms from complying with US sanctions and sending money to Iran's central bank. Experts doubt such efforts will be enough.
Recent protests in Iran appear to have been motivated by economic frustrations. German businesses are investing in the country, but so far it's nowhere near enough to overcome Iran's economic stagnation, analysts say.
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