Sanctions from the US and the United Nations were previously focused on entities that worked directly on Iran's nuclear and missile programme or were under the command of the country's Revolutionary Guard.

But over the past 18 months, Washington and European countries have taken steps against Iran's financial sector, notably banning business with Bank MelliBank Melli, the country's biggest bank. Western officials say the move has increased the cost of financing in Iran.

Wednesday's announcement of measures against the Islamic Republic of Iran Shipping LinesIslamic Republic of Iran Shipping Lines and 18 other affiliated entities shifts the US's efforts into the economic sphere. The company is Iran's national maritime carrier and the subsidiaries listed by the US involve groups in China, continental Europe and the UK.

The US Treasury said it was imposing the measures because of the shipping company's links to Iranian groups and institutions already proscribed by the UN or the US.

"Not only does IRISLIRISL facilitate the transport of cargo for UN designated proliferators, it al­so falsified documents and uses deceptive schemes to shroud its involvement in il­licit commerce," said Stuart Levey, Treasury undersecretary.

On their own, the US measures, which freeze any assets the targeted companies might have in the US and ban transactions between them and US entities, are unlikely to have much effect.

But the US hopes other jurisdictions will follow suit - as the European Union did with Bank MelliBank Melli - and private companies will steer clear of the shipping lines. A UN Security Council resolution agreed this year has already called for inspection of cargoes transported by IRISLIRISL.

In a related move, the US has been warning insurance companies to think twice before providing maritime insurance or reinsurance for Iranian vessels.

"The relevant results are the naming and shaming and the consequences that will have for risk rating, insurance premiums and companies that think twice before doing business [with the shipping groups]," said Matthew Levitt, a former US official now at the Washington Institute for Near East Policy.

US officials maintain the sanctions will not push up the price of Iran's oil exports.

By Daniel Dombey in Washington

© Financial Times 2008

 

Community Comments (0) - Comment on this article

The opinions of the authors expressed herein do not necessarily state or reflect Zawya. Read our Comment Policy.

 

 

 

close x

Loading ...

 

close x

Report Abuse

Loading ...

 

 

close x

Loading ...