US has extended its sanctions on Iranian metal industry associates that circumvented these rules established in 2018 after the US’s withdrawal from the 2015 Iran nuclear deal.
Mobarakeh Steel was among the associates previously listed for sanctions by the US. The steelmaker’s revenue accounts for 1pc of Iran’s GDP.
The sanctions freeze any US assets associated with the designated entities, prohibit American companies in dealing with them, and can extend to companies elsewhere with substantial business in the US, from dealings with these associates.
The order includes prohibitions on Tara Steel Trading in Germany, Pacific Steel FZE in UAE, Better Future General Trading, Tuka Metal Trading, and Metil Steel, all majority owned by Mobarakeh Steel.
Other companies blacklisted include South Aluminum, Sirijan Jahan Steel Complex, Iran Central Iron Ore, and China-based Global Industrial and Engineering Supply.
The US Treasury Department stated that the sales agents generated millions of dollars annually from the sale of Mobaraken Steel Company products, which in turn supported Iran’s revenue generation from aluminum, copper, iron, and steel. Treasury Secretary Steven Mnuchin said that the Iranian regime uses the profits from metals manufacturers and foreign sales to fund destabilizing behavior worldwide.
Iran shipped an estimated $27bn of goods to the global export market, with China taking in 15pc of these shipments followed by Iraq at 14pc and UAE at 10pc. The middle eastern country exported $1.3bn or 5pc of ores, slag and ash, $726mn or 3pc of iron and steel and $541mn or 2pc of copper.