Iran holds shares in company selling submarines to Israel
Despite seeking for years to prevent other countries from doing business with Iranian-held companies, Israel is buying submarines designed by ThyssenKrupp, of which Iran holds 4.5% of the shares; Ministry of Defense says it has no knowledge of Iranian involvement in the company providing submarines, one of the IDF's most classified projects.
The government-owned Iran Foreign Investment Company (IFIC) holds nearly five percent of the shares of ThyssenKrupp, a German-based conglomerate contracted to build submarines for the Israeli Navy.
ThyssenKrupp Marine Systems (TKMS) designs submarines for the Israeli Navy, along with the Sa'ar 6-class corvette warship. This raises questions about the level of access the Iranian shareholders would have to one of the IDF's most classified projects.
IFIC, the Iranian government's main avenue for investing abroad, purchased the shares principally via two subsidiaries.
According to data released by IFIC in 2011, it holds 4.5 percent of ThyssenKrupp. In a 2016 interview with The Business Year, Dr. Farhad Zargari, Managing Director and Chairman of IFIC, confirmed that the company still holds share in the German conglomerate, though he did not specify the amount. According to IFIC's website, 57 percent of its investments are in Europe.
Iran's historical involvement in ThyssenKrupp was more significant from 1974 to 2003. Then, when US President George W. Bush declared Iran to be part of the "Axis of Evil," Washington threatened to refrain from signing new deals with ThyssenKrupp if Iran's then 7.8 percent holding in the company were not reduced. To do so, Thyssenkrupp purchased 17 million of its own shares at the cost of €400 million, reducing Iran's percentage to 4.5.
The Israeli Ministry of Defense said in response that they do not know of any Iranian involvement in the company.
