US senators urge Germany to stop EIH from supporting Iran

Nine influential US Senators have urged Germany to stop Hamburg-based bank Europäisch-Iranische Handelsbank from routing funds that could be used to support Iran's nuclear programme, warning that all entities doing so will be debarred from the US financial system.

EIH was sanctioned by the United States in September, 2010, for its facilitation of Iran's proliferation activities.

Incidentally, the letter from the nine Senators was written to German Foreign Minister Guido Westerwelle on February 1, before India's Finance Ministry announced its decision to pay Iran for Iranian crude oil through EIH in euros.

"Payments in euros will be made through Hamburg-based Europäisch-Iranische Handelsbank AG (EIH Bank)," a senior Finance Ministry official said on Thursday after a high-level meeting on the issue, which was attended by National Security Advisor Shiv Shankar Menon, Department of Economic Affairs Secretary R Gopalan, Foreign Secretary Nirupama Rao and Oil Secretary S Sundareshan, among others.

In their letter dated February 1, which was released to the press on February 2, the US senators expressed their concern to the German Foreign Minister that EIH continues to conduct transactions on behalf of entities under US and EU sanctions.

"EIH is one of Iran's few remaining access points to the European financial system," said the letter signed by Senators Frank R Lautenberg, Mike Johanns, Barbara Boxer, Bob Casey, Scott Brown, Al Franken, Kirsten Gillibrand, Mark Kirk, Jon Kyl, Joe Lieberman and Jerry Moran.

"The threat of a nuclear-armed Iran is undeniable and we must make sanctions as strong as possible to deny Iran the economic means to develop those weapons. Europäisch-Iranische Handelsbank must halt these practices or be closed immediately," they said.

Expressing their grave concern with the continued financial support of Iran's nuclear proliferation activity by Europäisch-Iranische Handelsbank (EIH) in Hamburg, the senators urged the German government to take immediate action to end these practices.

"In September, the United States sanctioned EIH, citing its role as a key financial lifeline for Iran and its facilitation of Iran's proliferation activities. EIH is one of Iran's few remaining access points to the European financial system," the letter said.

"The bank has and continues to conduct transactions on behalf of entities under US and EU sanctions, including Bank Mellat, a designated supporter of the Atomic Energy Organisation of Iran (AEOI). The AEOI reports directly to the Iranian president and is the main Iranian organisation for research and development of nuclear technology," it said.