On December 21, the U.S. Treasury froze the assets of four Iranian companies and one executive for links to Tehran’s missile and nuclear programs. SAD Import Export Company was also sanctioned for supplying weapons to Syria’s government, which is cracking down on its civilian population. The United States will “hold Iran accountable for its failure to meet its international non-proliferation obligations and to expose its support of the Assad regime’s violence,” said Treasury Under Secretary for Terrorism and Financial Intelligence David S. Cohen. U.S. companies were also barred from doing business with these Iranian entities. The following are excerpts from the U.S. Treasury’s announcement.
The U.S. Department of the Treasury today designated four companies and one individual pursuant to Executive Order (E.O.) 13382, which targets proliferators of weapons of mass destruction (WMD) and their supporters. The SAD Import Export Company, Chemical Industries and Development of Materials Group, and Marine Industries Organization were designated for their ties to Iran’s Defense Industries Organization (DIO) or Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL). Mustafa Esbati, the director of Marine Industries Organization, was also designated today. In addition, Doostan International Company was designated for its support to Iran’s Aerospace Industries Organization (AIO) which was identified as a WMD proliferator by the President in the Annex to E.O. 13382. The United Nations Sanctions Committee also designated the SAD Import Export Company yesterday under the U.N. asset freeze authority of Security Council Resolution 1737 dealing with Iran.
DIO has been linked by the IAEA (International Atomic Energy Agency) to Iran’s centrifuge production and was previously designated in March 2007 pursuant to E.O. 13382 for its involvement in the Iranian nuclear program. DIO is also identified in the Annex to U.N. Security Council Resolution 1737. In addition to its involvement in Iran’s WMD program, DIO has been used by the Iranian government to assist the Asad regime’s violent crackdown in Syria. SAD Import Export Company shipped weapons to the Syrian Armed Forces, on behalf of DIO. These shipments were designed to assist the Syrian government’s production of mortars and missiles, which have been used against the civilian population of Syria…
These designations generally prohibit transactions between the named entities and any U.S. person, and freeze any assets the designees may have under U.S. jurisdiction. The designations of these entities and individual under E.O. 13382 also carry consequences under the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (CISADA). As of today’s actions, foreign financial institutions that facilitate significant transactions or provide significant financial services for the sanctioned entities and individual can face the loss of their access to the U.S. financial system.
SAD Import Export Company
SAD Import Export Company was designated pursuant E.O. 13382 for acting on behalf of DIO.
In addition to shipping arms to the Syrian armed forces in 2011, SAD Import Export sent aluminum and other goods, on behalf of DIO, to Syria’s Mechanical Construction Factory, a front company for the Scientific Studies and Research Center (SSRC). The goods were part of a larger contract between DIO and other Syria’s Industrial Establishment for Defense to provide fuel, fuses, charges, aluminum, and other goods necessary for the production of full mortar projectiles to Syria. In 2010, SAD Import Export Company shipped materials and equipment to Syria’s Mechanical Construction Factory for the ultimate benefit of the SSRC, on behalf of DIO. These goods were likely used in the manufacture of solid propellant for rockets and missiles.
The SSRC was listed in the Annex to E.O. 13382 in June 2005 for its ties to Syria’s WMD proliferation activities. The SSRC is the Syrian government agency responsible for developing and producing non-conventional weapons and the missiles to deliver them. The SSRC also has a public civilian research function; however, its activities focus on the development of biological weapons, chemical weapons, and missiles.
Marine Industries Organization
Marine Industries Organization was designated pursuant to E.O. 13882 because it is owned or controlled by Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL).
MODAFL was designated under E.O. 13382 on October 25, 2007 for its WMD proliferation-related activities. Marine Industries Organization is responsible for marine military acquisitions for Iran’s Navy, as well as MODAFL and Iran Revolutionary Guard Corps (IRGC).
Mustafa Esbati was designated pursuant to E.O. 13882 because he acts on behalf of Marine Industries Organization, by virtue of his position as the Director of Marine Industries Organization.
Chemical Industries and Development of Materials Group
Iran’s Chemical Industries and Development of Materials Group (CIDMG) was designated pursuant to E.O. 13382 because it is owned or controlled by DIO. CIDMG is one of the major industries overseen by DIO. CIDMG produces military and civil chemical products and materials for the production of powders, propellant charges, and mine explosive materials.
Doostan International Company
Doostan International Company was designated pursuant to E.O. 13882 for providing services to Iran’s Aerospace Industries Organization (AIO). AIO is the Iranian organization that oversees all of Iran’s missile industries, including those involved in Iran’s ballistic missile program, and was listed in the Annex to E.O. 13382.