Dresdner Bank is withdrawing from Iran, following the lead of other German banks. Both Commerzbank and Deutsche Bank have also restricted their involvement with Iran.

The bank issued this statement on its decision to cease operations: “Dresdner Bank will stop all business relationships with Iran, to Iran and in Iran. Reason for this is the increasing administration cost which is related to this business due to political requirements.”

This decision follows increasing pressure from the US on European banks to cease operations in Iran. This pressure has been exacerbated by the UN Security Council continuing to impose sanctions on Iran for its refusal to stop its nuclear programme.

Once Dresdner has withdrawn its physical presence from Iran, other existing business areas will be wound down. However, it is reported that export finance guarantees would be maintained until their expiry dates.