Trump administration sanctions firms supporting Iran’s military capabilities

The Trump administration on Wednesday announced new sanctions on foreign firms, including those in China and India, supporting Iran‘s military capabilities through the production of ballistic missiles and drones.

The Treasury Department revealed that the sanctions target 32 entities and individuals in Iran, the United Arab Emirates, Turkey, China, Hong Kong, India, Germany, and Ukraine that operate weapons procurement networks on behalf of the Islamic Revolutionary Guard Corps and its overseas Quds Force. Both groups are designated terrorist organizations.

Among the sanctions’ targets is a three-person venture that the Treasury described as the “MVM partnership,” which is accused of sourcing ballistic missile propellant ingredients from China on behalf of Iran’s Defense Industries Organization. Additionally, four Iranian employees were sanctioned for participating in or overseeing the production of unmanned aerial vehicle components.

“Across the globe, Iran exploits financial systems to launder funds, procure components for its nuclear and conventional weapons programs, and support its terrorist proxies,” John Hurley, undersecretary of the Treasury’s Office of Terrorism and Financial Intelligence, said in a statement.

“At the direction of President Trump, we are putting maximum pressure on Iran to end its nuclear threat,” he added. “The United States also expects the international community to fully implement UN snapback sanctions on Iran to cut off its access to the global financial system.”

Wednesday’s action marked the second round of U.S. nonproliferation sanctions against Iran since the snapback measures returned.

In September, the United Nations reimposed its sanctions on Iran after the snapback mechanism in the 2015 Iranian nuclear deal was triggered by France, Germany, and the United Kingdom. The three European nations accused Iran of “significant nonperformance” of its nuclear commitments under the deal, known as the Joint Comprehensive Plan of Action.

The snapback mechanism is a veto-proof tool invoked whenever a member of the 2015 international agreement finds that Iran has violated the terms of the nuclear agreement.

The reimposed U.N. sanctions include an arms embargo, restrictions on Iran’s nuclear and ballistic missile programs, a ban on exporting items that could contribute to these programs, and asset freezes and travel bans on Iranian individuals and entities involved in prohibited activities.

In a press statement, the State Department called on all U.N. member states to implement their legally obligated pre-2016 sanctions.

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Russia and China are among the U.N. members that do not recognize the return of sanctions on Iran.

“The United States will continue to use all available means, including sanctions on entities based in third countries, to expose, disrupt, and counter Iran’s procurement of equipment and items for its ballistic missile and UAV programs,” State Department spokesman Thomas Pigott said, adding that the weapons programs “jeopardize regional security and international stability.”

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