Thursday, August 05, 2010

US Increases Pressure on Iran by Targeting Firms


Elad Benari
A7 News

On Tuesday, the United States approved the latest round of sanctions against Iran and its expanding nuclear program. The latest round of sanctions were slapped on 21 specific Iranian government firms that are also believed to be providing support for radical groups such as the Taliban. The US Treasury Department also named a slew of companies as being backed by the Iranian government. The companies that were named are spread throughout Europe and Japan, and it is believed that they are used by Iran as a means of avoiding sanctions. Treasury undersecretary Stuart Levey described these companies as "government-owned entities around the world that are not easily identifiable as Iranian" and explained that Iran uses these companies "to facilitate transactions in support of their illicit activities."

Another reason cited by the Treasury for the new sanctions is to target "the government of Iran's support for terrorism and terrorist organizations," including organizations such as Hizbullah, Hamas, and Islamic Jihad.

The 21 firms named included two Belarus-based banks, two Germany-based investment firms, and mining and engineering companies in Japan, Germany, Luxembourg, Italy and Iran. US citizens and businesses will now be barred from doing business with these companies.

Also named were senior members of Iran's elite Revolutionary Guard, including Mohammad Reza Zahedi and Hossein Musavi, who according to the Treasury "provided financial and material support to the Taliban." It is believed that the Revolutionary Guards are running operations in Iraq, Afghanistan and Lebanon as cover for intelligence operations.

"As its isolation from the international financial and commercial systems increases, the government of Iran will continue efforts to evade sanctions," said Levey.

Tuesday's naming of specific companies and individuals follows a previous round of sanctions approved by the US Senate at the end of June, which penalize companies that sell gasoline to Iran or that do business with the Revolutionary Guard Corp.



Meanwhile FoxNews reported last week that research by United Against Nuclear Iran, a non-profit organization dedicated to monitoring Iran, has found that Danish shipping giant Maersk and Japanese construction equipment manufacturer Komatsu, are continuing to do business in Iran and thus breaking the new sanctions law.

United Against Nuclear Iran sent has a letter detailing its allegations to the CEOs of both companies. The letter to Maersk alleges that the company operates two Iran offices, that Maersk Iran operates several container terminals in Iran, that Maersk ships that use Iranian ports carry shipments that appear to relate "directly to Iran's petroleum and gas industries", and that Maersk does business with Tidewater, a port operator with ties to the Islamic Revolutionary Guard Corps.

The letter to Komatsu alleges that its subsidiary Komatsu Middle East FZE has an office in Tehran, that Komatsu Middle East "has enabled the sale, assembly and manufacture of construction equipment that has been used in Iran's energy sector", and that Komatsu conducts business with distributors that contribute to Iran's energy sector.

Komatsu denied the charges, while Maersk said the company was reviewing the new sanctions law.

US Defense Secretary Robert Gates was also sent a copy of the letters, and the Pentagon was notified because the bulk of the firms' US government contracts were with the Defense Department. The letters to Gates urged him to cut ties with both Maersk and Kmaotsu if they refuse to abandon "sanctionable business activities in Iran."

Maersk has earned $4 billion in U.S. government contracts over the past decade, more than 90 percent of which were with the Defense Department. Komatsu has earned nearly $40 million in the same period, almost 90 percent of which was from Defense Department work.

A US State Department official told FoxNews that any such charges could entail an investigation but would not say whether the Obama administration is scrutinizing either of the firms in light of the new sanctions law. He added that the administration would certainly consider investigating the claims but cautioned that sometimes there simply is no existing evidence.

"We're going to work very carefully through this," said the official.

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