WASHINGTON — Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) is designating five entities and one individual based in Iran for their support to key entities that manage and oversee Iran’s nuclear program, including the Atomic Energy Organization of Iran (AEOI) and the AEOI-subordinate Iran Centrifuge Technology Company (TESA). Today’s action, which targets entities procuring, or manufacturing, critical technologies for TESA and AEOI, is taken in furtherance of U.S. policy that Iran be denied a nuclear weapon, as stated in National Security Presidential Memorandum 2.
“The Iranian regime’s reckless pursuit of nuclear weapons remains a grave threat to the United States and a menace to regional stability and global security,” said Secretary of the Treasury Scott Bessent. “Treasury will continue to leverage our tools and authorities to disrupt any attempt by Iran to advance its nuclear program and its broader destabilizing agenda.”
Today’s action was taken pursuant to Executive Order (E.O.) 13382, which targets proliferators of weapons of mass destruction (WMD) and their means of delivery. The President included AEOI in the Annex of E.O. 13382 and the U.S. Department of State re-designated AEOI on January 30, 2020. Treasury designated TESA on November 21, 2011. TESA routinely collaborates on projects in support of AEOI.
TARGETING IRANIAN CENTRIFUGE PRODUCTION
TESA plays a crucial role in Iran’s uranium enrichment efforts through the production of centrifuges used in facilities belonging to the AEOI.
Iran-based Atbin Ista Technical and Engineering Company (AIT) supports TESA by facilitating TESA’s acquisition of components from foreign suppliers. Iranian national Majid Mosallat (Mosallat) serves as the Chairman of the Board of Directors and Managing Director of AIT. Mosallat has overseen the purchase and shipment of items to TESA on behalf of AIT.
Iran-based Pegah Aluminum Arak Company (Pegah) manufactures aluminum products for TESA.
Pegah and AIT are being designated pursuant to E.O. 13382 for having provided, or attempted to provide, financial, material, technological or other support for, or goods or services in support of, TESA. Mosallat is being designated pursuant to E.O. 13382 for acting or purporting to act for or on behalf of, directly or indirectly, AIT.
COMPANIES SUPPORTING AEOI
AEOI is the main Iranian organization responsible for research and development activities in the field of nuclear technology, including Iran’s centrifuge enrichment and experimental laser enrichment of uranium programs. AEOI oversees multiple Iranian companies undertaking nuclear-related work in Iran.
In July 2023, AEOI formed Iran-based Thorium Power Company (TPC) and tasked TPC to develop thorium-fueled reactor technologies. Thorium fuels can be used to breed fissile uranium-233 for use in various nuclear-related applications.
Iran-based Pars Reactors Construction and Development Company (Satra Pars) is an AEOI-subordinate company responsible for a number of nuclear reactor projects.
Iran-based Azarab Industries Co. (Azarab) is a general contractor responsible for the construction of power plant, refinery, petrochemical, and cement projects. Azarab is controlled by AEOI and has contracts to produce equipment for nuclear power plants.
TPC, Satra Pars, and Azarab are being designated pursuant to E.O. 13382 for being owned or controlled by, or acting or purporting to act for or on behalf of, directly, or indirectly, AEOI.
SANCTIONS IMPLICATIONS
As a result of today’s action, all property and interests in property of the designated person(s) described above that are in the United States or in the possession or control of U.S. persons is/are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC or exempt, U.S. sanctions generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons. Violations of U.S. sanctions may result in the imposition of civil or criminal penalties on U.S. and foreign persons. OFAC may impose civil penalties for sanctions violations on a strict liability basis. OFAC’s Economic Sanctions Enforcement Guidelines provide more information regarding OFAC’s enforcement of U.S. economic sanctions. In addition, financial institutions and other persons may risk exposure to sanctions for engaging in certain transactions or activities with designated or otherwise blocked persons.
Exports, reexports, or transfers of items subject to U.S. export controls involving persons included on the SDN List pursuant to E.O. 13382 may be subject to additional restrictions administered by the Department of Commerce, Bureau of Industry and Security. See 15 C.F.R. section 744.8 for additional information.
The power and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add persons to the SDN List, but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC’s Frequently Asked Question 897 here and to submit a request for removal, click here.
Click here for more information on the individuals and entities designated today.
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