JAKARTA - The United States (US) blacklisted two Chinese citizens and six companies. The reason is that they have dealt with the Iranian shipping company, Islamic Republic of Iran Shipping Lines (IRISL).
Previously, the US had indeed threatened to impose sanctions on companies operating in the US when dealing with Iran. The threat emerged after the United Nations' lifting of the embargo on Iranian arms restrictions was lifted.
Quoting Reuters , Tuesday, October 20, the US State Department named the six blacklisted companies, namely Reach Holding Group (Shanghai) Company, Reach Shipping Lines, Delight Shipping Co, Gracious Shipping Co, Noble Shipping Co, and Supreme Shipping Co.
Meanwhile, the two people the US has designated as blacklist are Eric Chen alias Chen Guoping, chief executive of the Reach Holding Group (Shanghai) Company, and Daniel Y. He alias He Yi, the company's president. In some cases, they are reported to be helping Iranian companies evade US sanctions.
The sanction for those who are blacklisted is that all assets, whether owned by companies or individuals under US jurisdiction, are frozen. Americans are also generally prohibited from dealing with them.
"Today, we repeat the warning to stakeholders around the world: If you do business with IRISL, you risk US sanctions," Secretary of State Mike Pompeo said in a statement.
Meanwhile, the US State Department also accused the six companies of providing "essential goods or services" used in connection with Iran's shipping sector. He also accused Reach Holding Group and its Reach Shipping Lines unit of helping IRISL and its subsidiaries evade US sanctions.
New sanctions
The sanctions are new to the US. The regulations were intensified following President Trump's decision in 2018 to abandon the 2015 Iran nuclear deal that Iran made with six major powers.
The agreement prevents Iran from limiting the acquisition of nuclear weapons. In return, Iran's economic sanctions will be relaxed.
But Trump argues the 2015 deal doesn't even limit Iran's ballistic missile activity. The US feels that economic pressure will instead force Iran into a broader deal.
US embarrassment towards Iran peaked when the United Nations lifted an embargo restricting Iranian purchases of arms. The embargo was in place for 13 years and now Iran can sell and buy conventional weapons including missiles, helicopters and tanks.
The US State Department threatens all countries and companies not to trade arms with Iran. If this continues, they will run the risk of sanctions from the US Treasury.
In theory, Iran is now free to buy tanks, armored fighting vehicles and high caliber artillery systems, warplanes and naval vessels without the need for UN approval. Iran's defense spending last year was around $ 18.4 billion or about 3.5 percent of the country's GDP, although the exact value is disputed. However, Iran's economy has recently deteriorated due to COVID-19.
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