Germany's Mittelstand seek ways to keep doing business with Iran

BERLIN – Germany's small-to-medium-sized firms, or Mittelstand, are scrambling to work out how to maintain business in Iran after a meeting between Germany's foreign minister and his US counterpart dashed any hopes of a breakthrough on the nuclear accord.

US Secretary of State Mike Pompeo has threatened to impose the "strongest sanctions in history" against Iran after President Donald Trump pulled out of the Iran nuclear deal this month.

Faced with the prospect of being blacklisted by the United States if they defy sanctions, many German companies are awaiting guidance from Berlin about how they can honor contracts and continue financing operations in the Islamic Republic.

Around 1,000 German Mittelstand firms have business ties to Iran and 130 firms have set up branches in the country. They are now faced with "draconian penalties" if they breach sanctions, said Mario Ohoven, president of the German Association for Small and Medium-Sized firms.