The United States imposed new sanctions under its “Economic Fury” campaign against companies that supply Iran with weapons and components for Shahed drones. The restrictions target firms in the Middle East as well as in Asia and Eastern Europe.
Details
The U.S. Department of the Treasury announced the sanctions. The measures affect entities across ten countries. In particular, the restrictions target companies from China, Dubai, Hong Kong, and Belarus. The publication also mentions sanctions against individual citizens from several countries who supplied weapons to Iran. The U.S. imposed those sanctions on citizens of Iran, China, and Belarus.
According to the report, the Chinese company Hitex Insulation Ningbo Company Limited supplied Iran with carbon fiber, honeycomb fabric, and other aerospace-grade raw materials. The total value of those materials reached several million dollars. U.S. authorities imposed restrictions on both the company and its legal representative for “ having provided, or attempted to provide, financial, material, technological or other support for, or goods or services in support of, PESC.”
PESC is an Iranian company that procures components for Iranian strike UAVs. The United States has already placed the firm under sanctions.
Consequences of the Sanctions
The sanctions block the property of the listed individuals as well as organizations and operations connected to assets owned by sanctioned persons. In addition, if individuals violate the sanctions, the United States can prosecute them under civil or criminal law. The Office of Foreign Assets Control (OFAC) may also impose civil penalties for sanctions violations under strict liability rules.
Furthermore, authorities may introduce secondary sanctions for violations. OFAC can prohibit the opening or maintenance of bank accounts in the United States. At the same time, U.S. law also allows authorities to remove individuals from sanctions lists if they comply with the required conditions.
“The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior,” the publication states.
Economic Fury
The United States introduced the sanctions as part of its operation against Iran called “Economic Fury.” According to the statement, the U.S. Department of the Treasury is prepared to take further economic measures against Iran’s defense-industrial base. Washington aims to weaken the country’s production capacity so Iran can no longer “project its power beyond its borders.”
Moreover, the United States may impose sanctions on other foreign companies that support illegal Iranian trade. The restrictions could also target vessels involved in oil shipments or the trade of other goods. U.S. authorities also pledged to combat sanctions evasion schemes.
“Through the blockade, the Trump Administration is directly targeting the regime’s primary revenue stream, and any person or vessel facilitating the illicit flow of oil or other products risks exposure to U.S. sanctions,” the Treasury Department stated.
Earlier, The Ukrainian Review reported that global oil prices rose again on May 8 after another escalation between the United States and Iran. The increase followed mutual accusations over ceasefire violations and attacks near the Strait of Hormuz.
