US put stringent treasury sanctions on five Iranian entities involved in development of ballistic missiles

Washington, January 6: The United States sanctioned five Iran-based firms which are involved in the development and production of country's solid-propellant ballistic missiles. Notably, the latest move from the United States comes against Tehran despite the UN-aligned International Atomic Energy Agency (IAEA) consistently confirming Iran's full compliance with the Joint Comprehensive Plan of Action (JCPOA).

 

The US Department of the Treasury's Office of Foreign Assets Control (OFAC) sanctioned five Iran-based entities subordinate to a key element of Iran's ballistic missile program. The five Iranian firms are Shahid Kharrazi Industries, Shahid Sanikhani Industries, Shahid Moghaddam Industries, Shahid Eslami Research Center, and Shahid Shustari Industries. These firms were designated under Executive Order (E.O.) 13382 for being owned or controlled by Iran's Shahid Bakeri Industrial Group (SBIG).

The Treasury Secretary Steven Mnuchin said, "These sanctions target key entities involved in Iran's ballistic missile program, which the Iranian regime prioritizes over the economic well-being of the Iranian people. As the Iranian people suffer, their government and the IRGC fund foreign militants, terrorist groups, and human rights abuses."

"The United States will continue to decisively counter the Iranian regime's malign activity, including additional sanctions targeting human rights abuses. We will not hesitate to call out the regime's economic mismanagement, and diversion of significant resources to fund threatening missile systems at the expense of its citizenry," he added.

Importantly, SBIG, which is responsible for the development and production of Iran's solid-propellant ballistic missiles, is listed in the Annex to E.O. 13382 and is currently sanctioned by the US, UN, and EU. However, as a result of this action, all property and interests in property of those designated today subject to US jurisdiction are blocked, and US persons are generally prohibited from engaging in transactions with them.

In addition, foreign financial institutions that knowingly facilitate significant transactions for, or persons that provide material or certain other support to, the entities designated today risk exposure to sanctions that could sever their access to the US financial system or block their property and interests in property under US jurisdiction.

BACKGROUND:

• Shahid Kharrazi Industries is subordinate to SBIG and is responsible for the development and production of guidance and control systems for solid-propellant ballistic missiles.
• Shahid Sanikhani Industries is subordinate to SBIG and is responsible for casting and curing solid-propellant for Iran's solid-propellant ballistic missiles.
• Shahid Moghaddam Industries is subordinate to SBIG and is responsible for the development and production of solid-propellant missile motor cases, ballistic missile launchers, and ground support equipment.
• Shahid Eslami Research Center is subordinate to, and serves as the research and development organization within, SBIG.
• Shahid Shustari Industries is subordinate to, and likely was created for the development of fiber materials for, SBIG.