U.S. prepares 'sanction party' for Iran

Turning the screw on Iran and its nuclear program, the Obama administration imposed new sanctions on Iran’s currency and auto industry, seeking to render Iranian money useless outside the country and to cut off the regime from critical revenue sources.

The executive order from President Barack Obama broadens what is already a concerted and multifaceted sanctions campaign aimed at crippling Iran’s economy, forcing it to comply with international demands that it prove its nuclear program is peaceful. The U.S. believes Iran is working to develop nuclear weapons, a charge that Iran denies.

Officials described the move as part of a dual-track effort to offer meaningful negotiations to the Iranian regime while continually upping the economic pressure.

“Even as we intensify our pressure on the Iranian government, we hold the door open to a diplomatic solution that allows Iran to rejoin the community of nations if they meet their obligations. However, Iran must understand that time is not unlimited,” said White House press
secretary Jay Carney, adding that more sanctions would be levied if the regime doesn’t change course.

The new sanctions marked the first time Iran’s currency, the rial, has been targeted directly with sanctions, the White House said. The sanctions apply to foreign financial institutions that purchase or sell significant amounts of the rial, as well as to those who hold significant amounts of the rial in accounts outside Iran.

Another set of sanctions will target those who enable Iran’s auto manufacturing sector by banning the sale or transfer of goods or services to be used in Iran’s auto sector. Officials said the auto sector is a key source of revenue for the regime. Many of the auto parts and components from subsidiaries are dual-use and can be used in centrifuges or missiles.Also subject to penalties will be anyone who provides material support to Iranians and others who have been blacklisted under previous U.S. sanctions. An exception will be made for some activities related to a pipeline project to move natural gas from Azerbaijan to Europe and Turkey.


/HurriyetDailynews.Com/