US imposes sanctions on four Iranian metals companies

Pittsburgh — The US has issued sanctions targeting four steel, aluminum, and iron companies operating within Iran's metals sector, including one subsidiary of Mobarakeh Steel Company, Iran's largest steel manufacturer, the US Department of the Treasury's Office of Foreign Assets Control said June 25.

The Treasury Department also designated one Germany-based and three UAE-based sales agents for being owned or controlled by Mobarakeh Steel.

Mobarakeh Steel, the largest flat steel producer in the Middle East and North Africa region, accounts for approximately 1% of Iran's gross domestic product, according the the Treasury Department.

"Mobarakeh Steel Company has provided millions of dollars annually to Mehr Eqtesad Iranian Investment Company, an entity with close ties to Iran's paramilitary Basij force, which is controlled by the IRGC, and its Bonyad Taavon Basij," the department said. "Collectively, the subsidiaries designated today help generate the equivalent of tens of millions of dollars annually from the sale of Mobarakeh Steel Company products."

Germany-based Tara Steel Trading, a wholly owned subsidiary of Mobarakeh Steel, was designated for engaging in the wholesale of metals and metal ores in Europe. In 2018, Tara Steel Trading generated the equivalent of nearly $60 million in sales and held assets valued at the equivalent of more than $100 million, according to the Treasury Department.

UAE-based Pacific Steel, Better Future General Trading Co, and Tuka Metal Trading were also designated as agents and trading companies that are majority-owned by Mobarakeh Steel Company and have engaged in the import and export of Iranian metal products in the region. Metil Steel, and Iran-based steel producer and exporter, was also designated for being majority-owned by Mobarakeh Steel.

The actions announced June 25 also target three large aluminum, steel, and iron producers in Iran, including South Aluminum Co., Sirjan Jahan Steel Complex and the Iran Central Iron Ore Co.

The US State Department is also imposing sanctions on Global Industrial and Engineering Supply, an an entity with addresses in mainland China and Hong Kong, which it claims knowingly transferred 300 mt of graphite to an Iranian entity.

All property and interests in property of these entities that are in the US or in the possession or control of US persons must be blocked and reported to the Office of Foreign Assets Control, the Treasury Department said.

"The Iranian regime continues to use profits from metals manufacturers and foreign sales agents to fund destabilizing behavior around the world," Treasury Secretary Steven Mnuchin said in a statement. "The United States remains committed to isolating key sectors of the Iranian economy until the revenues from such sectors are refocused toward the welfare of the Iranian people."