Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced it is sanctioning a network of six entities and six individuals based in Iran and the People’s Republic of China (PRC). This action targets those involved in procuring ballistic missile propellant ingredients for Iran’s Islamic Revolutionary Guard Corps (IRGC).
The network facilitated the procurement of sodium perchlorate and dioctyl sebacate from the PRC to Iran. Sodium perchlorate is used to produce ammonium perchlorate, a controlled substance under the Missile Technology Control Regime (MTCR). Both chemicals are used in solid propellant rocket motors for ballistic missiles.
Secretary of the Treasury, Scott Bessent, highlighted the challenges posed by Iran’s missile development. “Iran’s aggressive development of missiles and other weapons capabilities imperils the safety of the United States and our partners,” he stated. He further emphasized that Iran’s actions destabilize the Middle East and violate global non-proliferation agreements.
The designations are made under Executive Order (E.O.) 13382, targeting proliferators of weapons of mass destruction (WMD) and their delivery means. The action aligns with National Security Presidential Memorandum 2, aiming to restrict Iran’s ballistic missile program and disrupt the IRGC.
Iran-based Saman Tejarat Barman Trading Company (STB) and its associate Mohammad Asgari have been identified as key actors, procuring sodium perchlorate from Shenzhen Amor Logistics Co Ltd in the PRC. Shenzhen Amor has worked alongside U.S.-designated, PRC-based E-Sail Shipping Company Limited (E-Sail Shipping).
Within STB’s leadership, Abed Zargar Bab Aldashti, Hamed Zargar Bab Aldashti, and Zahra Zargar Bab Aldashti hold key roles. Abed Zargar serves as Managing Director, Hamed Zargar as Chairman of the Board, and Zahra Zargar as Vice Chairman. They are designated under E.O. 13382 for their association with STB.
Additionally, Forough Modarres Fathi, STB’s Vice Chairman, and Abbas Pour Kazemi, Chief Inspector, are designated for their support of the company. Dongying Weiaien Chemical Co Ltd, a PRC-based firm, has provided dioctyl sebacate to STB.
Shenzhen Amor’s network involves PRC-based Yanling Chuanxing Chemical Plant General Partnership, designated for supplying sodium chlorate, which converts to sodium and ammonium perchlorate. PRC-based China Chlorate Tech Co Limited (CCT) and Yanling Lingfeng Chlorate Co Ltd are also implicated for their financial and logistical connections.
Consequent to these designations, all properties and interests in the United States belonging to the sanctioned individuals or entities are blocked. These measures extend to any entities owned 50 percent or more by blocked persons. U.S. sanctions usually prohibit all related transactions unless authorized by OFAC.
Violations of these sanctions can lead to civil or criminal penalties for U.S. and foreign individuals. Furthermore, engaging with designated individuals or entities risks exposure to additional sanctions. Exports involving persons on the SDN List under E.O. 13382 may face further U.S. export controls.
OFAC emphasizes that sanctions aim to alter behavior positively, not punish. Process guidance for those seeking removal from the SDN List is available on OFAC’s website.
For further details on the designated individuals and entities, interested parties are encouraged to visit OFAC’s resource links.
