The US is imposing sanctions on several companies in connection with Iran’s steel industry, alleging that revenue from the sector is used by the Iranian regime to fund “nefarious” activities, the US Treasury Department said Jan. 5.
“The Iranian metals sector is an important revenue source for the Iranian regime, generating wealth for its corrupt leaders and financing a range of nefarious activities, including the proliferation of weapons of mass destruction and their means of delivery, support for foreign terrorist groups, and a variety of human rights abuses, at home and abroad,” the Treasury Department said in a statement.
Under Executive Order 13871, the US is targeting a China-based supplier of graphite electrodes, 12 Iranian metal producers and three foreign-based sales agents of a major Iranian metals and mining holding company.
Kaifeng Pingmei New Carbon Materials Technology (KFCC), the graphite electrode supplier, has completed multiple transactions with various Iranian steel companies since December 2019, the department said, adding that sales included a 300 mt electrode shipment to Iran’s Pasargad Steel Complex.
The Treasury Department said the 12 Iranian steel manufacturers now designated under EO 13871 have a combined annual output capacity that “reaches millions of metric tons of steel product.”
Middle East Mines and Mineral Industries Development Holding Co. (MIDHCO), the metals and mining holding company, has been designated for owning, controlling, or operating Sirjan Iranian Steel and Zarand Iranian Steel Co. Both companies are included among the 12 designated companies associated with Iran’s steel sector.
