On September 6, Iran faced new sanctions imposed by the United States as the top European court mandated the lifting of sanctions on key Iranian banks and business.
The European Court of Justice criticized the European Union for relying on alleged insufficient or inconclusive evidence linking seven banks and companies to Iran’s nuclear program. E.U. officials were given two months to appeal the ruling before trade and financial restrictions are lifted. The companies in question included the state-owned Iran Insurance Company and Post Bank. Private companies included the Iranian Offshore Engineering & Construction Company, the U.K-based Persian International Bank PLC and Dubai-based Good Luck Shipping Company.
The U.S. Treasury meanwhile targeted six Iranians and four businesses that allegedly helped Tehran evade oil sanctions. “Our sanctions on Iran's oil sales are a critically important component of maintaining pressure on the Iranian government, and we will not allow Iran to relieve that pressure through evasion and circumvention," said Treasury Under Secretary for Terrorism and Financial Intelligence David Cohen. The U.S. Treasury targeted representatives of the National Iranian Oil Company and the Naftiran Intertrade Company based in the United Kingdom and Switzerland. One of the individuals, Seyed Seyyedi, ran a network of front companies in the United Arab Emirates. One company helped to secretly purchase oil tankers for the National Iranian Tanker Company. The following are excerpts from the U.S. Treasury press release.
US Expands Sanctions, EU Court Voids Others
Seyed Seyyedi was identified pursuant to E.O. 13599 today for acting on behalf of various Government of Iran entities and front companies, including NIOC, NICO, as well as Sima General Trading. Treasury previously identified Sima General Trading as part of a network of Iranian government front companies in March 2013 for its role in the sanctions evasion scheme being carried out by the Greek businessman, Dimitris Cambis. Seyyedi's Sima General Trading helped finance a Cambis front company to purchase oil tankers while disguising the fact that the tankers were being purchased on behalf of the National Iranian Tanker Company (NITC). Cambis' front companies were used to deceive the international business community by obscuring the Iranian ownership of ships capable of carrying roughly 200 million U.S. dollars worth of oil per shipment. Treasury is also identifying the U.A.E. -based KASB International LLC, Petro Royal FZE, and AA Energy FZCO, each of which is controlled by Seyyedi and used by him to assist NICO and NICO front companies, such as Sima General Trading, in its sanctions evasion schemes.
In addition to Seyed Seyyedi, Treasury is also identifying several other persons and entities for their links to the Government of Iran's operations to evade oil sanctions.
Swiss Management Services Sarl is a Swiss company controlled by NICO Sarl and used by NICO to continue its operations on behalf of Iran following multiple U.S. sanctions actions targeting NICO and NICO Sarl. Mohmmad Moinie is Switzerland-based NICO Sarl's commercial director.
Reza Parsaei is a director for NIOC International Affairs (London) Ltd. which was identified as an entity of the Government of Iran in July 2010. Parsaei has involved himself in a scheme to deceptively import Iranian oil into the EU. Parsaei also coordinates closely with another director for NIOC International Affairs (London) Ltd., Seyyed Mohamad Ali Khatibi Tabatabaei.
Seyed Mohaddes and Mohammed Ziracchian Zadeh act as directors for the Iranian Oil Company (U.K.) Ltd., which was also identified as an entity of the Government of Iran in July 2010.
Each of the individuals and companies sanctioned today were identified under E.O. 13599, which blocks the property of the Government of Iran, including those of individuals and entities identified as acting for or on behalf of the Government of Iran. Transactions by U.S. persons or through the United States with any of these entities are generally prohibited, and any assets they may have under U.S. jurisdiction are blocked. Further, foreign persons and financial institutions that facilitate transactions for such persons or provide them with material support may also be exposed to sanctions.