U.S. Imposes New Sanctions

May 17, 2017

Treasury seal

On May 17, the United States imposed new sanctions on Iran even as it waived sanctions as part of the 2015 nuclear deal, also known as the Joint Comprehensive Plan of Action (JCPOA). The United States committed to waive nuclear-related sanctions if Iran remains in compliance with the JCPOA’s terms.

The Arms Control Association welcomed the decision in a statement:

The Trump administration's decision to issue sanctions waivers today, as required by the nuclear deal with Iran, is a welcome and necessary step to ensure that the United States meets its commitments under the agreement. Given that Secretary of State Rex Tillerson certified to Congress in April that Iran is complying with its commitments under the deal, it is only logical for Washington to continue to waive sanctions. ...

Without question, Iran is continuing activities, such as ballistic missile development and arms transfers, that are unhelpful and contrary to the spirit of UN Security Council restrictions. ...

The Treasury Department meanwhile blacklisted three individuals and four entities, including a China-based network, for supporting Iran’s ballistic missile program. The Treasury Department worked in conjunction with the State Department, which released a semi-annual report to Congress on Iran’s human rights abuses. On the same day, President Trump clarified that the United States would not pursue efforts to reduce Iran’s sale of crude oil, consistent with U.S. commitments as part of the nuclear deal. The moves came just two days before Iranians head to the polls to elect a new president on May 19. The following is the full text of text of the Treasury Department’s press release and Trump's memorandum.  

 

Treasury Sanctions Iranian Defense Officials and a China-Based Network for Supporting Iran’s Ballistic Missile Program


5/17/2017

Action reflects concern with Iran's continued development of ballistic missiles

Washington – Today, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) designated seven targets in connection with Iran's ballistic missile program.  OFAC designated two senior Iranian defense officials, including a defense official who facilitated the sale of explosives and provided other support to Syria and the director of the organization responsible for Iran's solid-fueled ballistic missile program.  In addition, OFAC designated a China-based network that is supporting Iran's military by supplying millions of dollars' worth of missile-applicable items and an Iran-based entity that is assisting Iran's ballistic missile program.  Today's actions were taken pursuant to Executive Order (E.O.) 13382, which targets proliferators of weapons of mass destruction and their means of delivery and supporters of such activity.  These sanctions underscore the United States' concern with Iran's continued development and testing of ballistic missiles. 

"This Administration is committed to countering Iran's destabilizing behavior, such as Iran's development of ballistic missiles and support to the Assad regime.  It is alarming that individuals involved with Iran's missile program are assisting the brutal Assad regime, and we are taking action to curtail this behavior," said Treasury Secretary Steven T. Mnuchin. "These sanctions target Iranian officials as well as a China-based network that are providing support to Syria and supplying items to further Iran's ballistic weapons program.  The United States will remain vigilant when it comes to Iran."

OFAC took today's action in conjunction with the State Department's release of its semi-annual report to Congress detailing sanctions imposed on persons responsible for or complicit in human rights abuses committed against citizens of Iran or their family members. View Report

Morteza Farasatpour and Rahim Ahmadi

OFAC sanctioned Morteza Farasatpour, a senior Iranian defense official, for his activities on behalf of a designated Iranian defense entity.  Farasatpour was designated pursuant to E.O. 13382 for acting or purporting to act for or on behalf of, directly or indirectly, Iran's Defense Industries Organization (DIO).  DIO was designated pursuant to E.O. 13382 on March 30, 2007, for engaging in activities that have materially contributed to the development of Iran's nuclear and missile programs. 

Farasatpour coordinated the sale and delivery of explosives and other materiel for Syria's Scientific Studies and Research Center (SSRC) on behalf of DIO.  As DIO's Deputy Director for Commerce, Farasatpour oversaw DIO's credit line with the SSRC, which was valued at tens of millions of dollars.  The SSRC was listed in the Annex to E.O.  13382 on June 28, 2005, and is the Syrian entity responsible for developing and producing non-conventional weapons and the missiles to deliver them.

OFAC also sanctioned Rahim Ahmadi, a senior Iranian official serving as the Director of Iran's Shahid Bakeri Industries Group (SBIG) for his involvement in Iran's ballistic missile program.  SBIG was listed in the Annex to E.O. 13382 on June 28, 2005, and is responsible for Iran's solid-fueled ballistic missile program.  Ahmadi was designated pursuant to E.O. 13382 for acting or purporting to act for or on behalf of, directly or indirectly, SBIG.    

Ahmadi coordinates SBIG's ballistic missile flight tests with Iran's Aerospace Industries Organization (AIO).  The AIO was listed in the annex to E.O. 13382 on June 28, 2005, and is the Iranian organization responsible for ballistic missile research, development, and production activities and organization.  SBIG is subordinate to the AIO.

Ruan Runling Network

OFAC designated Chinese national Ruan Runling and three associated Chinese companies for proliferation activities in support of a key designated Iranian defense entity.  Ruan was sanctioned pursuant to E.O. 13382 because he has provided, or attempted to provide, financial, material, technological, or other support for, or goods or services in support of Iran's Shiraz Electronics Industries (SEI).  OFAC designated SEI on September 17, 2008, for being owned or controlled by Iran's Ministry of Defense and Armed Forces Logistics, which was designated on October 25, 2007.  SEI has engaged in the production of various electronics equipment for the Iranian military, including missile guidance technology.

Ruan is a Chinese proliferation agent and has supplied SEI with missile-applicable items and technology, to include U.S.-origin goods.  Since at least 2015, Ruan has provided SEI with a wide range of missile-related technology and goods that include gyroscopes and other missile-applicable navigation technology.  Gyroscopes can be used in missile systems for navigational, guidance, or stabilization purposes.

As part of today's action, OFAC designated three China-based companies associated with Ruan.  Shanghai North Begins International, Shangai Gang Quan Trade Co., and Shanghai North Transway International Trading Co. are being designated pursuant to E.O. 13382 for having provided, or attempted to provide, financial, material, technological, or other support for, or goods or services in support of, SEI.  Ruan used Shanghai North Begins International to sell $17 million worth of navigation-applicable technology and guidance systems, as well as other dual-use technology to SEI.  Ruan, via Shangai Gang Quan Trade, sold goods to SEI.  Ruan also used Shanghai North Transway to sell more than $1 million worth of items to SEI.

Matin Sanat Nik Andishan

OFAC sanctioned Iran-based company Matin Sanat Nik Andishan for proliferation activities in support of Iran's ballistic missile program.  Matin Sanat was designated pursuant to E.O. 13382 for having provided, or attempted to provide, financial, material, technological, or other support for, or goods or services in support of, Iran's Shahid Hemmat Industries Group (SHIG).  SHIG was listed in the Annex of E.O. 13382 on June 28, 2005 and is responsible for Iran's liquid-fueled ballistic missile program.

Since at least 2011, Matin Sanat has worked to procure a range of ballistic missile-applicable technology and metals for SHIG.  Matin Sanat has also conducted transactions with SHIG's parent company, AIO.

For identifying information on the individuals and entities designated today, click here.

 

MEMORANDUM FOR THE SECRETARY OF STATE

                 THE SECRETARY OF THE TREASURY

                 THE SECRETARY OF ENERGY

 

SUBJECT: Presidential Determination Pursuant to Section 1245(d)(4)(B) and (C) of the National Defense Authorization Act for Fiscal Year 2012

By the authority vested in me as President by the Constitution and the laws of the United States, after carefully considering the reports submitted to the Congress by the Energy Information Administration, including the report submitted April 11, 2017, and other relevant factors such as global economic conditions, increased oil production by certain countries, the level of spare petroleum production capacity, and the availability of strategic reserves, I determine, pursuant to section 1245(d)(4)(B) and (C) of the National Defense Authorization Act for Fiscal Year 2012, Public Law 112-81, and consistent with prior determinations, that there is a sufficient supply of petroleum and petroleum products from countries other than Iran to permit a significant reduction in the volume of petroleum and petroleum products purchased from Iran by or through foreign financial institutions.  As my Administration conducts a review of its Iran policy, and consistent with United States commitments specified in the Joint Comprehensive Plan of Action, however, the United States is not pursuing efforts to reduce Iran's sales of crude oil at this time.

I will continue to monitor this situation closely.

The Secretary of State is authorized and directed to publish this determination in the Federal Register.

DONALD J. TRUMP