The US on Jan. 11 was criticised for pressing German companies to cut business ties with Iran after Commerzbank decided to end dollar transactions with Tehran. Germany's second-largest bank confirmed it would cease to conduct dollar-denominated business with Iran at the end of this month. The bank,

The German government worked with the US and other countries on the limited set of sanctions against Iran adopted by the UNSC on Dec. 23. However, Berlin has traditionally been cautious about US efforts to press companies in Germany and other third countries to adopt Washington's more extensive sanctions against Iran. Financial ministry officials in Berlin said the government had played no role in influencing Commerzbank, according to the FT of Jan. 12 which quoted one official as saying: "That is not the way we do politics". A spokesman for Chancellor Angela Merkel said the international community should focus on implementing the narrow set of UN sanctions.

Eckart von Unger, Middle East director of the BDI, Germany's largest business lobby, said: "When the US government tries to press its interests on to German companies then this is certainly not seen in a positive way".

Iran has been an important investment location and trade partner for Germany, with German exports rising from 1.57 bn in 2000 to 4.43 bn in 2005. Exports reached only 3.4bn in the first 10 months of 2006 as the climate for business worsened.

Von Unger said: "German businesses are keen not to give up business areas with Iran that lie outside the UN sanctions as Iran is an important business partner". (The UN sanctions aim to deny Iran "dual-use" goods that could be utilised in its nuclear and missile programmes and bar member states from financing Iran's nuclear activities).

Commerzbank said its move "was our own voluntary decision to stop doing this legal business". It said it would continue to do business with Iranian clients in all other currencies. Von Unger said Commerzbank was the last of the big German banks to end dollar clearing with Iran. A Berlin official said: "It is usually German companies with major US interests...that are often under particular pressure to halt business with countries such as Iran". Such companies had become less willing to talk about Iran operations, fearing US attention.