(Archived Content)
HP-267
The U.S. Department of the Treasury today designated three Iranian companies supporting Iran's proliferation of weapons of mass destruction, Kalaye Electric Company, Kavoshyar Company, and Pioneer Energy Industries Company. This action was taken pursuant to Executive Order 13382, which is aimed at exposing and financially isolating proliferators of WMD and their supporters.
Treasury is taking this action to deny Iran access to the materials and services that support its nuclear ambitions, said Stuart Levey, Under Secretary for Terrorism and Financial Intelligence (TFI). This designation is consistent with our international obligations under UN Security Council Resolution 1737.
Designations under E.O. 13382 prohibit all transactions between the designees and any U.S. person and freeze any assets the designees may have under U.S. jurisdiction.
The entities designated today are either owned or controlled by the Atomic Energy Organization of Iran (AEOI) or acting for or on its behalf. President George W. Bush designated the AEOI in the Annex to Executive Order 13382, effective June 29, 2005. The AEOI manages Iran's overall nuclear program and reports directly to the Iranian President. The AEOI is the main Iranian institute for research and development activities in the field of nuclear technology, including Iran's centrifuge enrichment program and experimental laser enrichment of uranium program.
Kalaye Electric Company has been linked to Iran's centrifuge research and development efforts. Kalaye is also listed in the Annex to UN Security Council Resolution 1737 because of its involvement in Iran's nuclear program. Kavoshyar Company's sole shareholder is AEOI. Pioneer Energy Industries Company provides services to AEOI, including technological support.
Background on E.O. 13382
Today's action builds on President Bush's issuance of E.O. 13382, effective June 29, 2005. Recognizing the need for additional tools to combat the proliferation of WMD, the President signed the E.O. authorizing the imposition of strong financial sanctions against not only WMD proliferators, but also entities and individuals providing support or services to them.
In the Annex to E.O. 13382, the President identified eight entities operating in North Korea, Iran, and Syria for their support of WMD proliferation. E.O. 13382 authorizes the Secretary of the Treasury, in consultation with the Secretary of State, the Attorney General, and other relevant agencies, to designate additional entities and individuals providing support or services to the entities identified in the Annex to the Order.
In addition to the entities identified in the Annex to E.O. 13382, the Treasury Department has designated twenty three entities and two individuals as proliferators of WMD, specifically:
- Eight North Korean entities on October 21, 2005;
- Two Iranian entities on January 4, 2006;
- One Swiss individual and one Swiss entity tied to North Korean proliferation activity on March 30, 2006;
- Four Chinese entities and one U.S. entity tied to Iranian proliferation activity on June 8, 2006;
- Two Iranian entities on July 18, 2006;
- Three Syrian entities on January 4, 2007;
- One Iranian entity, one British entity, and one individual tied to Iranian missile proliferation on January 9, 2007; and
- Three Iranian entities on February 16, 2007.