Proliferation Press

A webpage devoted to tracking and analyzing current events related to the proliferation of WMD/CBRN.

US Treasury Department Designates Iran’s National Shipping Line ‘Proliferator’

Posted by proliferationpresswm on September 16, 2008

The Wall Street Journal reports on the recent US Treasury decision to label Iran’s national shipping industry a ‘proliferator’. The move further tightens the screws on Iran, which while a large supplier of crude oil is dependent on other nation’s refiners to turn that oil into usable products—like gasoline. 

It’s an interesting episode of how international trading laws governing maritime commerce intersect with nuclear proliferation and raw realpolitik. 

The move isn’t all that unprecedented for the Bush administration: in 2005, several firms from China, India and Austria faced US Treasury sanctions for providing Iran with missile and chemical-arms related products. But this is the first time a nation’s shipping industry has faced such action: illustrating the Treasury Department’s evolving role in non-proliferation issues.

Read Iran’s response to the news here.

From WSJ

The U.S. Treasury Department accused Iran’s national maritime carrier of helping the country’s nuclear and missile programs, a formal move designed to pressure Iran amid stalled talks over its nuclear work.

The Treasury, in designating the carrier as a “proliferator,” said the Islamic Republic of Iran Shipping Lines and 18 of its affiliated entities were secretly “providing logistical services” to Iran’s military, falsifying shipping documents and using deceptive terms to describe shipments in order to hide their activities from foreign maritime officials.

The designation, which typically is designed to stop companies on the list from doing business in the U.S., further blocks the carrier’s ability to move money through U.S. banks as well as blocking it from carrying food and medical supplies not included in Washington’s longstanding trade sanctions against Iran.

… 

This is the first time Treasury has designated a shipping company as a proliferator, the department said.

The company says it has a fleet of 91 ships, most of them bulk carriers designed to transport dry cargo such as grain, coal and iron ore. Oil shipments from Iran, one of the world’s biggest exporters, aren’t likely to be affected. The company says it has just two tankers, and they are used to transport vegetable oil and similar products.

The move could complicate Islamic Republic of Iran Shipping Lines’s dealings with other countries. Its ships call frequently at nearby Dubai, part of the United Arab Emirates, according to the Iranian carrier’s Web site. The company also says it makes regular trips to big ports in Hong Kong, Singapore, the U.K., Germany and France.

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