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End Flow of European Energy Technology to Iran

[Ha'aretz] Emanuele Ottolenghi - In July it was reported that the German company SPG (Steiner-Prematechnik-Gastec) had signed a 100-million euro deal with Iran to build three plants for compressed natural gas production. There are three lessons to be learned from this: First, European technology remains indispensable for Iran, if it is to be able to exploit its energy reserves and become a regional superpower. Second, if economic sanctions against Iran were to include exports, investments and joint ventures in the energy field, it could have severe repercussions for Tehran. Finally, tougher sanctions against Iran are the only non-military way to pressure Tehran to renounce its nuclear ambitions. UN-backed sanctions have crucially failed to target Iran's energy sector, and with Europe keen to reduce its dependence on Russian oil and gas, big energy interests may ignore the political side effects of involvement in Iran. In the field of gas extraction, and export in particular, Iran would forever sit on an inaccessible treasure, were it not for European know-how - an expertise that Russia and China cannot currently match or replace. Hence, it is in the energy field, particularly natural gas, where European sanctions can make a difference and squeeze Iran's regime where it hurts most. What are we waiting for? The writer is executive director of the Transatlantic Institute in Brussels.
2008-09-05 01:00:00
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