U.S. treasury sanctions a network of companies procuring aluminum products for Iranian nuclear program

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) put sanctions against a network of front companies and agents on July 18, 2019, who are involved in the procurement of aluminium materials for sanctioned elements of Iran’s nuclear program. 

The sanctioned individuals and entities are based in Iran, China, and Belgium and have acted as a procurement network for Iran’s Centrifuge Technology Company (TESA), which plays a crucial role in Iran’s nuclear program developed by Atomic Energy Organization of Iran (AEOI).  TESA was already sanctioned by Treasury s on November 21, 2011. This global network is comprised of seven entities and five individuals.

“Treasury is taking action to shut down an Iranian nuclear procurement network that leverages Chinese- and Belgium-based front companies to acquire critical nuclear materials and benefit the regime’s malign ambitions,” said Treasury Secretary Steven T. Mnuchin.

One of the sanctioned Iranian firm Bakhtar Raad Sepahan, in coordination with its Belgium-based office, TAWU Mechanical Engineering and Trading Company, facilitated deals for the purchase of Chinese-origin aluminium products and their shipment from China to Iran on behalf of TESA.  The aluminium goods are required for use in Iranian centrifuges manufactured by TESA.

Another sanctioned company is China-based Henan Jiayuan Aluminum Industry Company, which sold aluminium goods worth more than half a million dollars for use by TESA, and coordinated the shipment of the aluminium goods from China to Iran with the above companies.

According to Treasury statement, China-based Sanming Sino-Euro Import and Export Co. Ltd. arranged shipments of aluminium goods to Iran. Other companies which are sanctioned in this connection are Iran-based Sabz Co., China-based Suzhou Zhongsheng Magnetic Company Limited and Suzhou A-One Special Alloy CO.

The treasury also sanctioned five individuals who are connected to these entities. They as well as these companies are blacked and barred from having any transaction in the U.S.