On January 15, the United States expanded sanctions on Iran’s defense and shipping industries during President Donald Trump’s last full week in office. The administration sanctioned three weapons manufacturers, seven international shipping companies and two Iranian business executives.
The defense industry sanctions punished Iran for transferring conventional arms to its proxies in Syria, Lebanon, Iraq and Yemen. “This military equipment, which includes attack boats, missiles, and combat drones, provides a means for the Iranian regime to perpetrate its global terror campaign,” Secretary of State Mike Pompeo said in a statement. The sanctions targeted three branches of Iran’s defense ministry: the Marine Industries Organization (MIO), Aerospace Industries Organization (AIO), and the Iran Aviation Industries Organization (IAIO).
The shipping sanctions targeted Iranian, Chinese and Emirati businesses that did business with Iran’s national maritime shipping company, the Islamic Republic of Iran Shipping Lines (IRISL). The companies shipped raw or partially finished steel products to Iran in violation of U.S. sanctions, the State Department alleged. The administration also sanctioned Mohammad Reza Modarres Khiabani, the CEO of IRISL, and Hamidreza Azimian, the CEO of Mobarakeh Steel Company. The following are statements by Secretary Pompeo.
Statement by Pompeo on January 15: Iranian conventional arms proliferation poses a persistent threat to regional and international security, as evidenced by Iran’s continued military support and confirmed arms transfers that fuel ongoing conflict in Syria, Lebanon, Iraq, Yemen, and elsewhere.
On September 21, we announced the implementation of Executive Order 13949 that provides the United States additional tools to hold accountable those actors who seek to abet Iran in supporting armed groups in the region with weapons and arms materiel. The first designations under this authority included Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL), Iran’s Defense Industries Organization (DIO) and Nicolas Maduro, the illegitimate ruler of Venezuela.
Today, we are announcing the designation of Iran’s Marine Industries Organization (MIO), Aerospace Industries Organization (AIO), and the Iran Aviation Industries Organization (IAIO) for engaging in activities that materially contribute to the supply, sale, or transfer, directly or indirectly, to or from Iran, or for the use in or benefit of Iran, of arms or related materiel, including spare parts. Each of these entities manufactures lethal military equipment for Iran’s military, including the Islamic Revolutionary Guards Corps (IRGC), a designated foreign terrorist organization that is also designated under our authority targeting Weapons of Mass Destruction (WMD) proliferators and their supporters. This military equipment, which includes attack boats, missiles, and combat drones, provides a means for the Iranian regime to perpetrate its global terror campaign. MIO, AIO, and IAIO were all previously sanctioned pursuant to the same WMD counterproliferation authority.
We call upon all states to prohibit the sale, supply, or transfer of arms or related material to or from Iran. The United States will continue working with its partners in the international community to pressure the Iranian regime to fundamentally change its behavior. Peace loving countries need to work together to constrain Iran’s malign activities. We welcome allies and partners on board our campaign focused on maintaining international peace and security.
Statement by Pompeo on January 15: In June 2020, the State Department sanctioned the Islamic Republic of Iran Shipping Lines (IRISL) pursuant to Executive Order 13382 (WMD Proliferators and Their Supporters). At that time, we underscored the fact that IRISL is the preferred shipping line for Iranian proliferators and procurement agents. We have warned industry that those who do business with IRISL, its subsidiaries, and other Iranian shipping entities, risk sanctions. Today, we are sanctioning seven entities and two individuals for such conduct.
As a part of this action, the State Department is imposing sanctions on IRISL pursuant to Section 1245(a)(1)(C)(i)(II) of the Iran Freedom and Counter-Proliferation Act (IFCA). IRISL knowingly transferred, directly or indirectly, to Iran grain-oriented electrical steel to at least one Iranian person on the List of Specially Designated Nationals and Blocked Persons maintained by the Office of Foreign Assets Control of the Department of the Treasury (SDN List), namely Hoopad Darya Shipping Agency Company (and thus this grain-oriented electrical steel was transferred to Hoopad Darya Shipping Agency Company). The State Department is also imposing sanctions on Mohammad Reza Modarres Khiabani, the Chief Executive Officer of IRISL, who has been determined to be a principal executive officer, or person performing similar functions and with similar authorities, of IRISL.
The State Department is also designating the PRC-based Jiangyin Mascot Special Steel Co., LTD pursuant to Section 1245(a)(1)(C)(i)(II) of IFCA. Jiangyin Mascot Special Steel Co., LTD knowingly transferred grain-oriented electrical steel to Iran via the Islamic Republic of Iran Shipping Lines (IRISL) (and thus this grain-oriented electrical steel was transferred to IRISL); IRISL is an Iranian person on the SDN list.
The State Department is also designating Iran Transfo Company and Zangan Distribution Transformer Company pursuant to IFCA Section 1245(a)(1)(C)(i)(II). Both of these entities knowingly transferred (imported), directly or indirectly, to Iran grain-oriented electrical steel to at least one Iranian person on the SDN List, namely Hoopad Darya Shipping Agency Company (and thus this grain-oriented electrical steel was transferred to Hoopad Darya Shipping Agency Company).
Separately, the State Department is also designating the UAE-based Accenture Building Materials, Iran’s Mobarakeh Steel Company, and the IRISL subsidiary Sapid Shipping pursuant to IFCA Section 1245(a)(1)(C)(i)(II). Accenture Building Materials knowingly sold, supplied, or transferred, directly or indirectly, to or from Iran raw or semi-finished steel and the steel was sold, supplied, or transferred to or from an Iranian person (Sapid Shipping) included on the SDN List. Accenture Building Materials also knowingly sold, supplied, or transferred, directly or indirectly, to or from Iran raw or semi-finished steel and the steel was sold, supplied, or transferred to or from an Iranian person (Mobarakeh Steel Company) included on the SDN List.
Mobarakeh Steel Company knowingly sold, supplied, or transferred, directly or indirectly, to or from Iran, raw or semi-finished steel and the steel was sold, supplied, or transferred to or from an Iranian person (Sapid Shipping and IRISL) included on the SDN List. The State Department is also imposing sanctions on Hamidreza Azimian, the Chief Executive Officer of Mobarakeh Steel Company, who has been determined to be a principal executive officer, or person performing similar functions and with similar authorities, of Mobarakeh Steel Company.
Sapid Shipping knowingly sold, supplied, or transferred, directly or indirectly, to or from Iran raw or semi-finished steel and the steel was sold, supplied, or transferred to or from an Iranian person (Mobarakeh Steel Company) included on the SDN List.