WASHINGTON, D.C. /eNewsChannels/ — Today, Secretary of State Hillary Rodham Clinton imposed sanctions on three companies under the Iran Sanctions Act, as amended by the Comprehensive Iran Sanctions, Accountability, and Divestment Act (CISADA), for conducting business with Iran’s energy sector. These three firms are Zhuhai Zhenrong Company (Zhenrong), Kuo Oil (S) Pte. Ltd. (Kuo), and FAL Oil Company Limited (FAL).
The United States is working with international partners to maintain pressure on the Government of Iran to comply with its international nuclear obligations. UN Security Council Resolution 1929 recognized the potential connection between Iran’s revenues derived from its energy sector and the funding of its proliferation sensitive nuclear activities. In recognition of that connection, the United States adopted CISADA, which makes sanctionable certain activities in Iran’s energy sector, including the provision of refined petroleum products to Iran.
The European Union, Japan, the Republic of Korea, Canada, and Australia have also adopted their own sanctions that target Iran’s energy sector. The result of these actions has been an unprecedented international sanctions effort aimed at convincing Iran to change its behavior. The sanctions announced today are an important step toward that goal, as they target the individual companies that help Iran evade these efforts.
Zhenrong is based in China, and is the largest supplier of refined petroleum product to Iran. The United States has determined that Zhenrong brokered the delivery of over $500 million in gasoline to Iran between July 2010 and January 2011, with individual deals entered into worth significantly more than the $1 million threshold under U.S. law and the total value of the transactions well above the $5 million threshold for sanctionable activities within a 12-month period.
Kuo is an energy trading firm based in Singapore. The United States has determined that Kuo provided over $25 million in refined petroleum to Iran between late 2010 and early 2011, worth significantly more than the $1 million threshold under U.S. law and the total value of the transactions well above the $5 million threshold for sanctionable activities within a 12-month period.
FAL is a large independent energy trader based in the UAE. The United States has determined that FAL provided over $70 million in refined petroleum to Iran over multiple shipments in late 2010, with individual deliveries worth significantly more than the $1 million threshold under U.S. law and the total value of the transactions well above the $5 million threshold for sanctionable activities within a 12-month period.
Under the sanctions imposed today, all three companies are barred from receiving U.S. export licenses, U.S. Export Import Bank financing, and loans over $10 million from U.S. financial institutions. These sanctions apply only to the sanctioned companies, and not to their governments or countries.
