US imposes sanctions on Iran, China over Tehran's missile

The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned a network of seven individuals and six entities in Iran, the People’s Republic of China (PRC), and Hong Kong in connection with Iran’s ballistic missile program on June 6.

“This network has conducted financial transactions and facilitated procurement of sensitive and critical parts and technology for key actors in Iran’s ballistic missile development, including Iran’s Ministry of Defence and Armed Forces Logistics [MODAFL] and its affiliated organisations, Parchin Chemicals Industries [PCI], Aerospace Industries Organisation [AIO], Iran Electronics Industries [IEI], and P.B. Sadr, which is PCI’s key intermediary for the procurement of parts to develop missile propellant,” the department said in a statement posted on June 6, Caliber.Az reports.

The statement also reported that PCI, the main beneficiary of this network, is a subsidiary of MODAFL’s Defence Industries Organisation (DIO) and produces ammunition, explosives, and solid propellants for rockets and missiles.

“Today’s action reinforces our commitment to respond to activities which undermine regional stability and threaten the security of our key partners and allies,” Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson said.

He noted that the United States will continue to target “illicit transnational procurement networks that covertly support Iran’s ballistic missile production and other military programs”.

As a result of the sanctions, all property and interests in property of the individuals and entities that are in the United States or in the possession or control of US persons must be blocked and reported to OFAC.

Additionally, any entities that are owned, directly or indirectly, 50 per cent or more by one or more blocked persons are also blocked. All transactions by US persons or within the United States (including transactions transiting the United States) that involve any property or interests in property of blocked or designated persons are prohibited.

In addition, persons that engage in certain transactions with the individuals or entities designated in the statement may themselves be exposed to sanctions. Furthermore, any foreign financial institution that knowingly facilitates a significant transaction or provides significant financial services for any of the mentioned individuals or entities could be subject to US sanctions.

The Islamic Revolutionary Guard Corps (IRGC) Aerospace Force has unveiled Iran's Fattah indigenously-developed hypersonic missile on June 6.

The Fattah hypersonic missile has a range of 1,400 kilometres and hits speeds of Mach 13-15. The missile which has been produced by IRGC Aerospace Force specialists, is able to bypass and destroy air defense systems.