U.S. imposes sweeping sanctions on Iran

Iran: Nuke program peaceful
Iran has ignored previous, smaller attempts to apply international and financial sanctions, and says the conditions Washington has set for talks are unacceptable. Iran is continuing work on its nuclear program, which it says is peaceful.

The sanctions target 25 Iranian entities, including individuals and companies owned or controlled by the Revolutionary Guard that play a major role in Iran’s domestic economy and international trade. They are the first of their type taken by the United States specifically against the armed forces of another government.

In addition to freezing any assets they may have in U.S. jurisdictions, something officials acknowledged would be of minimal effect, the sanctions also bar Americans from doing business with them.

But of far greater impact, officials said, they will subject foreign firms to U.S. sanctions if they engage with the designated entities.

The Revolutionary Guard Corps and its Ministry of Defense and Armed Forces Logistics — also known as IRCG — is the largest component of Iran’s military. It was designated as a proliferator of ballistic missile technology. The defense ministry entity is the parent organization for Iran’s aerospace and ballistic missile operations.

Paulson called on “responsible banks and companies around the world” to end relationships with the three banks and companies and affiliates of the IRGC and noted that because of the IRGC’s reach into business and other spheres, “it is increasingly likely that if you are doing business with Iran you are doing business with the IRGC.”

State-owned banks Bank Melli, Bank Mellat and Bank Saderat were named supporters of global terrorist groups for their activities in Afghanistan, Iraq and the Middle East. Along with Bank Sepah, which was already under U.S. and U.N. sanctions, the institutions account for more than 50 percent of Iran’s banking sector, Treasury officials said.

“As awareness of Iran’s deceptive behavior has grown, many banks around the world have decided as a matter of prudence and integrity that Iran’s business is simply not worth the risk,” Paulson said. “It is plain and simple: Reputable institutions do not want to be the bankers for this dangerous regime.”

U.S. says military helps Iraq militants
The Quds Force, a part of the Guard Corps that Washington accuses of providing weapons, including powerful bombs blamed for the deaths of U.S. soldiers in Iraq, was named a supporter of designated terrorist organizations.

The Revolutionary Guards organization, formed to safeguard Iran’s 1979 Islamic revolution, has pushed well beyond its military roots, and now owns car factories and construction firms and operates newspaper groups and oil fields.

Current and former members now hold a growing role across the country’s government and economy, sometimes openly and other times in shadows.

The guards have gained a particularly big role in the country’s oil and gas industry in recent years, as the national oil company has signed several contracts with a guards-operated construction company. Some have been announced publicly, including a $2 billion deal in 2006 to develop part of the important Pars gas field.

Now numbering about 125,000 members, they report directly to the supreme leader — Ali Khamenei — and officially handle internal security. The small Quds Force wing is thought to operate overseas, having helped to create the militant Hezbollah group in 1982 in Lebanon and to arm Bosnian Muslims during the Balkan wars.

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