ITALIAN THOUGHTS ON TRADE WITH IRAN IN THE RUN-UP

S E C R E T ROME 000197 SIPDIS SIPDIS E.O. 12958: DECL: 02/15/2028 TAGS: ETRD ETTC PREL PARM IR IT SUBJECT: ITALIAN THOUGHTS ON TRADE WITH IRAN IN THE RUN-UP TO THIRD UNSC SANCTIONS RESOLUTION; REQUEST FOR GUIDANCE REF: A. REPORT 2/00/500385-08 ¶B. REPORT 2/00/500265-08 ¶C. 07 ROME 336 Classified By: Ecmin Thomas Delare for reasons 1.4 (b) and (d) ¶1. (U) This is an action request. Please see paragraph 4. ¶2. (S) During a February 8 meeting, Roberto Liotto, the Italian MFA official responsible for Italian participation in multilateral export control regimes, including the Wassenaar Arrangement, told Econoff the GOI has stopped issuing licenses for exports to Iran pending the outcome of UNSC deliberations on the imposition of a third round of sanctions against Iran. He acknowledged the continued export to Iran of commodities not requiring an export license, but said the GOI is subjecting these exports to higher scrutiny. Liotto noted that exports to the Persian Gulf region are being looked at closely by GOI authorities in an effort to minimize diversions to Iran via third countries in the region. ¶3. (S) Refs A and B detail continued Iranian efforts to purchase Italian high-performance marine diesel engines and engine parts, possibly as follow-up to the transactions reported in Ref C. As reported in Ref C, the GOI has previously argued that these engines are not covered by any of the multilateral export control regimes, and can be exported to Iran without a license. These exports may be of particular concern following the high-profile incidents involving U.S. Navy ships and Iranian speedboats that took place earlier this year. ¶4. (S) Action request: Post requests the Department scrutinize all-source reporting on suspicious Italian exports to Iran, including Refs A and B, and provide Post with instructions regarding any exports that warrant a demarche to the GOI. End action requested. SPOGLI