Identifier
Created
Classification
Origin
09BRUSSELS1374
2009-10-14 07:47:00
SECRET//NOFORN
USEU Brussels
Cable title:
EU/IRAN SANCTIONS: CURRENT STATE OF PLAY
VZCZCXRO9409 PP RUEHAG RUEHBC RUEHDE RUEHDIR RUEHKUK RUEHROV RUEHSL RUEHTRO DE RUEHBS #1374/01 2870747 ZNY SSSSS ZZH P 140747Z OCT 09 FM USEU BRUSSELS TO RUEHC/SECSTATE WASHDC PRIORITY INFO RUCNMEU/EU INTEREST COLLECTIVE PRIORITY RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY RUCNIRA/IRAN COLLECTIVE PRIORITY RUEHGG/UN SECURITY COUNCIL COLLECTIVE PRIORITY RUCPDOC/USDOC WASHDC PRIORITY RUEATRS/DEPT OF TREASURY WASHDC PRIORITY RUEAWJA/DEPT OF JUSTICE WASHDC PRIORITY RHEFHLC/DEPT OF HOMELAND SECURITY WASHINGTON DC PRIORITY RHEHNSC/NSC WASHDC PRIORITY RUEAIIA/CIA WASHDC PRIORITY RUEKJCS/DOD WASHDC PRIORITY
S E C R E T SECTION 01 OF 04 BRUSSELS 001374
NOFORN
SIPDIS
STATE FOR P, NEA/IR, ISN, EEB/ESC/TFS, EUR/ERA
TREASURY FOR TFI, TFFC, OIA, OFAC
EU POSTS FOR IRAN SANCTIONS OFFICERS
E.O. 12958: DECL: 10/12/2019
TAGS: ETTC KNNP PARM PREL PINR MNUC EFIN ETRD UNSC
IR, FR, UK, GM, IT, EUN
SUBJECT: EU/IRAN SANCTIONS: CURRENT STATE OF PLAY
REF: A. 2008 BRUSSELS 1910
B. EMAIL NEMROFF-CURRAN 2/24/2009
C. STOCKHOLM599
Classified By: CHARGE D'AFFAIRES CHRISTOPHER W. MURRAY FOR REASONS 1.4(
b) AND (d).
---------------
Summary/Comment
---------------
S E C R E T SECTION 01 OF 04 BRUSSELS 001374
NOFORN
SIPDIS
STATE FOR P, NEA/IR, ISN, EEB/ESC/TFS, EUR/ERA
TREASURY FOR TFI, TFFC, OIA, OFAC
EU POSTS FOR IRAN SANCTIONS OFFICERS
E.O. 12958: DECL: 10/12/2019
TAGS: ETTC KNNP PARM PREL PINR MNUC EFIN ETRD UNSC
IR, FR, UK, GM, IT, EUN
SUBJECT: EU/IRAN SANCTIONS: CURRENT STATE OF PLAY
REF: A. 2008 BRUSSELS 1910
B. EMAIL NEMROFF-CURRAN 2/24/2009
C. STOCKHOLM599
Classified By: CHARGE D'AFFAIRES CHRISTOPHER W. MURRAY FOR REASONS 1.4(
b) AND (d).
--------------
Summary/Comment
--------------
1. (C//NF) EU/Iran sanctions officials are currently focused
on internal review procedures, but the USG can help make
their discussions more forward-leaning by responding to EU
requests for information and engaging in high-level
diplomacy. On October 13, EU Council Director for
Politico-Military Affairs Robert Cooper phoned USEU Charge to
ask about Iran intelligence follow-up that he said the
Secretary discussed with EU High Representative Javier Solana
in New York last month. Over the next two weeks, the EU
approach to Iran sanctions will focus on renewing existing EU
lists of designated individuals and entities, with minor
updates. The EU's self-imposed legal requirement to review
existing designation lists must take place at least once
annually and should be complete by mid-October. The more
important question of whether to enact new measures or to
broaden the current autonomous designations list (REFS A and
B; see consolidated list below) will be discussed as a
separate exercise, driven by political,rather than legal,
timing considerations. Future EU/Iran sanctions
deliberations will depend on the P5 1 process and the UNSC
track. The USG can, however, energize and influence that
process. Key Member State and EU institutional contacts
recognize that prevention of an Iranian nuclear weapon may
require significant European economic sacrifice. They have
asked the U.S. to provide information on USG priority
sanctions measures and associated economic implications in
order to help frame internal EU discussion. USG non-papers,
along with outreach from senior White House, State, and
Treasury officials, may be an efficient way for us to spur
coordinated U.S.-EU action on Iran sanctions. END
SUMMARY/COMMENT.
--------------
Legal Box-Checking Exercise
--------------
2. (C//NF) Council and Commission contacts confirm that the
EU remains focused at the working level on reviewing existing
EU designations against Iran. That review, which must take
place at least once every twelve months under current
regulations, is slightly behind schedule. The Council's
Middle East working group (COMEM) finished reviewing the EU's
Iran asset freeze list on September 28. The
non-proliferation (CONOP) and external relations (RELEX)
working groups will now conduct their own reviews, mostly
along procedural lines (e.g. for translation into all 23
official languages),over the coming weeks. Our contacts
expect the process to be finalized by mid-October. Changes
will include citation of the new Head of the Atomic Energy
Organisation o Iran (AEOI). His recently retired
predecesso, Reza Aghazadeh, will remain designated, since
the EU deems his knowledge and potential for
proliferation-related activities to be genuine threats. The
new Iranian Defense and Interior Ministers should also be
included on the EU's updated list.
--------------
What's Next?
--------------
3. (C) Contacts indicate that additional autonomous EU
measures against Iran will not be up for discussion in the
immediate future. Lists of individuals and entities proposed
in late 2008 and early 2009 (REFS A and B; see lists, para 9)
BRUSSELS 00001374 002 OF 004
5. (C//NF) ore worrisome from the sanctions perspectiveQ
however, are internal EU deliberations over Qasic technical
questions, including, "How efficient have sanctions been?";
"How has Iran ada measures in legal challenges before EU courts?" Hence,
several EU MemberState and EU institutional contacts
continue to request privately that the USG provide either
technical experts for U.S.-EU discussions or written
materials outlining USG best practices and sanctions
decision-making approaches. (COMMENT: We believe these
discussions over effectiveness and implementation issues
reflect a combination of classic EU sanctions-delaying
tactics and genuine questions from EU diplomats who are new
to this regional or technical subject. Sweden, a notorious
EU sanctions skeptic, may be driving the rigor of the current
discussion (REF C). END COMMENT.)
6. (C//NF) On October 13, EU Council Director General for
Politico-Military Affairs Robert Cooper called Charge to
follow up what he said had been discussed between the
Secretary and EU High Representative for Common Foreign and
Security Policy Javier Solana in New York on the margins of
the UNGA. Cooper said that Solana told the Secretary that
the EU is working on a study of the Iranian economy. Solana
reportedly asked the Secretary for U.S.-origin intelligence
products and other information on the Iranian economy.
Cooper said the EU Council hopes to complete its study by the
end of October. He said, in referring to the Secretary's
conversation with Solana, that it would be most useful for
the EU to have information from the U.S. in regard to Iran's
economic vulnerabilities, trade patterns, government
ownership of enterprises, and other potentially
sanctions-relevant information. Cooper said he wanted to
start the text of the study by describing, "what the Iranian
economy looks like now." Mission would be pleased to assist
in transmitting such information to the Council Secretariat
in the framework of our U.S.-EU Agreement on the Security of
Information.
--------------
Helping to Move the Ball Forward?
--------------
7. (C//NF) In response to several past informal EU requests
for information, POLOFF asked a Council Secretariat contact
which kinds of information would help facilitate and expedite
EU decision-making. Topics of primary interest for the
Council include:
BRUSSELS 00001374 003 OF 004
-- existing U.S. sanctions against Iran;
-- efficiency of existing international sanctions against
Iran;
-- current Iranian trade flows; and
-- potential alternative Iranian trade relationships.
Such topics indicate an abiding fear, echoed by this same
contact, among EU interlocutors: that significant action on
the sanctions front will cost European firms a generation of
investment and trade opportunities. This fear is
particularly acute in light of a prospective shift in
U.S.-Iranian relations (i.e., towards positive engagement),
since European counterparts have no clear basis by which to
judge the intended U.S. role in the Iranian economy.
8. (C//NF) COMMENT: We believe that we can rally all 27 EU
Member States and EU institutions behind coordinated
sanctions against Iran if we engage not only EU institutions
in Brussels, but also, equally importantly, Member State
governments in capitals. Non-papers detailing our priority
sanctions measures and targets, along with objective
assessments of their economic implications could be an
efficient and effective means of influencing outcomes in
Brussels. END COMMENT.
--------------
Current Proposals for EU Target List
--------------
9. (S//NF) The following, reported REFS A and B, represents
USEU's understanding of the current list of potential
designations proposed by the EU-4 for EU consideration
(underway since at least December 2008):
BEGIN LIST:
NAMES SUBMITTED TO THE COUNCIL BY FRANCE
Individuals:
1. Hossein AKHGARI.
2. Mohammad Hassan ALLAHDAD (DPOB: 1946 Tehran),former VP
of AEOI, former Director of Kalaye Electric, and Pars Trash.
3. A.S. SABHARWAL, Manager of Mileace General TDG;
participates in procurement effort for centrifuges, liaison
with listed entities.
Entities:
1. Al Basir General Trading Office. Address: No Lobaah 218
Jebel Ali (Dubai); acquisitions for Kalaye Electric.
2. Alborz Manufacturer Trading.
3. Bank Mellat (see also UK list).
4. Bank Sadarat (see also UK list).
5. Export Development Bank of Iran.
6. Iran Air Cargo (see also UK list).
7. Iran Insurance Company.
8. Islamic Republic of Iran Shipping Lines (IRISL) (see also
UK list).
9. Iran Zamin Industrial Group Ltd, a front company of AIO.
10. Master (Address: 119 Abolhassani St., North Ostdad Hassan
Bana Ave., Ressalat Hwy (Tehran)).
11. Mileace General TDG.
12. Technical and Engineering Nikan Group (TENG).
13. Three Star Service (TSS Co.)
14. Societe Kala Naft, front company for dual use procurement.
NAMES SUBMITTED TO THE COUNCIL BY GERMANY
Individuals:
1. Alireza ABBASPOURRAD, researches carbon-nano tubes, which
are banned for trade and transfer per EU regulation 423/2007.
2. General Hossein HAMEDANI, Deputy Commander Basij Force.
3. Prof. Dr. Abdolhossein DALIMI, Director-General Razi
Institute.
4. Prof. Haji SAEID, Director of Yazd Radiation Processing
Center (YRPC).
5. Brig. Gen. Hassan TA'EB, Commander, Basij Force.
BRUSSELS 00001374 004 OF 004
6. Ahamad TALEZADEH, Director-General Iranian Space Agency.
7. Alireza ZAKANI (DPOB: 03/03.1966 Shahr Rey),nuclear
scientist.
Entities:
1. Benefication and Hydometalurgical Research Center (BHRC),
AEOI personnel at BHRC work on research concerning
mineralogical and metallurgical methods to extract uranium
ore.
2. Ghoods (Qods) Research Center.
3. Iran Computer Works Inc.
4. Iranian Space Agency, develops satellite carrier missile
technology which is applicable for non-civilian missile
systems.
5. Machine Sazi Arak, IRN state-owned manufacturing firm;
bought eight vertical turning and boring machines; the Czech
firm TST Kovosvit Semimovo Usti provided MSA with at least
five CNC drilling machines which are used in construction of
uranium centrifuges. (See also UK list.)
6. Physics Research Center (PHRC).
7. Razi Institute for Serum and Vaccine Production (RVSRI)
and sub-branches, evidence of biological research with
highest level of security (S4),which could be used for
acquiring knowledge of bioweapon systems.
8. Sharif University of Technology.
9. Yazd Radiation Processing Center (YRPC).
NAMES SUBMITTED TO@ITED KINGDOM
Entities:aakht Niroogahaye Atomi Iration to includ
a. Khatam Ol Ambialso France list.)
OUNCIL BY ITALY
EntTehran
2. Mechanical Engineering and Construction (aka M&C),TehranQ
3. Modern Industries Technology (aka MITEC),IQfahan
END LISTS.
MURRAY
.
NOFORN
SIPDIS
STATE FOR P, NEA/IR, ISN, EEB/ESC/TFS, EUR/ERA
TREASURY FOR TFI, TFFC, OIA, OFAC
EU POSTS FOR IRAN SANCTIONS OFFICERS
E.O. 12958: DECL: 10/12/2019
TAGS: ETTC KNNP PARM PREL PINR MNUC EFIN ETRD UNSC
IR, FR, UK, GM, IT, EUN
SUBJECT: EU/IRAN SANCTIONS: CURRENT STATE OF PLAY
REF: A. 2008 BRUSSELS 1910
B. EMAIL NEMROFF-CURRAN 2/24/2009
C. STOCKHOLM599
Classified By: CHARGE D'AFFAIRES CHRISTOPHER W. MURRAY FOR REASONS 1.4(
b) AND (d).
--------------
Summary/Comment
--------------
1. (C//NF) EU/Iran sanctions officials are currently focused
on internal review procedures, but the USG can help make
their discussions more forward-leaning by responding to EU
requests for information and engaging in high-level
diplomacy. On October 13, EU Council Director for
Politico-Military Affairs Robert Cooper phoned USEU Charge to
ask about Iran intelligence follow-up that he said the
Secretary discussed with EU High Representative Javier Solana
in New York last month. Over the next two weeks, the EU
approach to Iran sanctions will focus on renewing existing EU
lists of designated individuals and entities, with minor
updates. The EU's self-imposed legal requirement to review
existing designation lists must take place at least once
annually and should be complete by mid-October. The more
important question of whether to enact new measures or to
broaden the current autonomous designations list (REFS A and
B; see consolidated list below) will be discussed as a
separate exercise, driven by political,rather than legal,
timing considerations. Future EU/Iran sanctions
deliberations will depend on the P5 1 process and the UNSC
track. The USG can, however, energize and influence that
process. Key Member State and EU institutional contacts
recognize that prevention of an Iranian nuclear weapon may
require significant European economic sacrifice. They have
asked the U.S. to provide information on USG priority
sanctions measures and associated economic implications in
order to help frame internal EU discussion. USG non-papers,
along with outreach from senior White House, State, and
Treasury officials, may be an efficient way for us to spur
coordinated U.S.-EU action on Iran sanctions. END
SUMMARY/COMMENT.
--------------
Legal Box-Checking Exercise
--------------
2. (C//NF) Council and Commission contacts confirm that the
EU remains focused at the working level on reviewing existing
EU designations against Iran. That review, which must take
place at least once every twelve months under current
regulations, is slightly behind schedule. The Council's
Middle East working group (COMEM) finished reviewing the EU's
Iran asset freeze list on September 28. The
non-proliferation (CONOP) and external relations (RELEX)
working groups will now conduct their own reviews, mostly
along procedural lines (e.g. for translation into all 23
official languages),over the coming weeks. Our contacts
expect the process to be finalized by mid-October. Changes
will include citation of the new Head of the Atomic Energy
Organisation o Iran (AEOI). His recently retired
predecesso, Reza Aghazadeh, will remain designated, since
the EU deems his knowledge and potential for
proliferation-related activities to be genuine threats. The
new Iranian Defense and Interior Ministers should also be
included on the EU's updated list.
--------------
What's Next?
--------------
3. (C) Contacts indicate that additional autonomous EU
measures against Iran will not be up for discussion in the
immediate future. Lists of individuals and entities proposed
in late 2008 and early 2009 (REFS A and B; see lists, para 9)
BRUSSELS 00001374 002 OF 004
5. (C//NF) ore worrisome from the sanctions perspectiveQ
however, are internal EU deliberations over Qasic technical
questions, including, "How efficient have sanctions been?";
"How has Iran ada measures in legal challenges before EU courts?" Hence,
several EU MemberState and EU institutional contacts
continue to request privately that the USG provide either
technical experts for U.S.-EU discussions or written
materials outlining USG best practices and sanctions
decision-making approaches. (COMMENT: We believe these
discussions over effectiveness and implementation issues
reflect a combination of classic EU sanctions-delaying
tactics and genuine questions from EU diplomats who are new
to this regional or technical subject. Sweden, a notorious
EU sanctions skeptic, may be driving the rigor of the current
discussion (REF C). END COMMENT.)
6. (C//NF) On October 13, EU Council Director General for
Politico-Military Affairs Robert Cooper called Charge to
follow up what he said had been discussed between the
Secretary and EU High Representative for Common Foreign and
Security Policy Javier Solana in New York on the margins of
the UNGA. Cooper said that Solana told the Secretary that
the EU is working on a study of the Iranian economy. Solana
reportedly asked the Secretary for U.S.-origin intelligence
products and other information on the Iranian economy.
Cooper said the EU Council hopes to complete its study by the
end of October. He said, in referring to the Secretary's
conversation with Solana, that it would be most useful for
the EU to have information from the U.S. in regard to Iran's
economic vulnerabilities, trade patterns, government
ownership of enterprises, and other potentially
sanctions-relevant information. Cooper said he wanted to
start the text of the study by describing, "what the Iranian
economy looks like now." Mission would be pleased to assist
in transmitting such information to the Council Secretariat
in the framework of our U.S.-EU Agreement on the Security of
Information.
--------------
Helping to Move the Ball Forward?
--------------
7. (C//NF) In response to several past informal EU requests
for information, POLOFF asked a Council Secretariat contact
which kinds of information would help facilitate and expedite
EU decision-making. Topics of primary interest for the
Council include:
BRUSSELS 00001374 003 OF 004
-- existing U.S. sanctions against Iran;
-- efficiency of existing international sanctions against
Iran;
-- current Iranian trade flows; and
-- potential alternative Iranian trade relationships.
Such topics indicate an abiding fear, echoed by this same
contact, among EU interlocutors: that significant action on
the sanctions front will cost European firms a generation of
investment and trade opportunities. This fear is
particularly acute in light of a prospective shift in
U.S.-Iranian relations (i.e., towards positive engagement),
since European counterparts have no clear basis by which to
judge the intended U.S. role in the Iranian economy.
8. (C//NF) COMMENT: We believe that we can rally all 27 EU
Member States and EU institutions behind coordinated
sanctions against Iran if we engage not only EU institutions
in Brussels, but also, equally importantly, Member State
governments in capitals. Non-papers detailing our priority
sanctions measures and targets, along with objective
assessments of their economic implications could be an
efficient and effective means of influencing outcomes in
Brussels. END COMMENT.
--------------
Current Proposals for EU Target List
--------------
9. (S//NF) The following, reported REFS A and B, represents
USEU's understanding of the current list of potential
designations proposed by the EU-4 for EU consideration
(underway since at least December 2008):
BEGIN LIST:
NAMES SUBMITTED TO THE COUNCIL BY FRANCE
Individuals:
1. Hossein AKHGARI.
2. Mohammad Hassan ALLAHDAD (DPOB: 1946 Tehran),former VP
of AEOI, former Director of Kalaye Electric, and Pars Trash.
3. A.S. SABHARWAL, Manager of Mileace General TDG;
participates in procurement effort for centrifuges, liaison
with listed entities.
Entities:
1. Al Basir General Trading Office. Address: No Lobaah 218
Jebel Ali (Dubai); acquisitions for Kalaye Electric.
2. Alborz Manufacturer Trading.
3. Bank Mellat (see also UK list).
4. Bank Sadarat (see also UK list).
5. Export Development Bank of Iran.
6. Iran Air Cargo (see also UK list).
7. Iran Insurance Company.
8. Islamic Republic of Iran Shipping Lines (IRISL) (see also
UK list).
9. Iran Zamin Industrial Group Ltd, a front company of AIO.
10. Master (Address: 119 Abolhassani St., North Ostdad Hassan
Bana Ave., Ressalat Hwy (Tehran)).
11. Mileace General TDG.
12. Technical and Engineering Nikan Group (TENG).
13. Three Star Service (TSS Co.)
14. Societe Kala Naft, front company for dual use procurement.
NAMES SUBMITTED TO THE COUNCIL BY GERMANY
Individuals:
1. Alireza ABBASPOURRAD, researches carbon-nano tubes, which
are banned for trade and transfer per EU regulation 423/2007.
2. General Hossein HAMEDANI, Deputy Commander Basij Force.
3. Prof. Dr. Abdolhossein DALIMI, Director-General Razi
Institute.
4. Prof. Haji SAEID, Director of Yazd Radiation Processing
Center (YRPC).
5. Brig. Gen. Hassan TA'EB, Commander, Basij Force.
BRUSSELS 00001374 004 OF 004
6. Ahamad TALEZADEH, Director-General Iranian Space Agency.
7. Alireza ZAKANI (DPOB: 03/03.1966 Shahr Rey),nuclear
scientist.
Entities:
1. Benefication and Hydometalurgical Research Center (BHRC),
AEOI personnel at BHRC work on research concerning
mineralogical and metallurgical methods to extract uranium
ore.
2. Ghoods (Qods) Research Center.
3. Iran Computer Works Inc.
4. Iranian Space Agency, develops satellite carrier missile
technology which is applicable for non-civilian missile
systems.
5. Machine Sazi Arak, IRN state-owned manufacturing firm;
bought eight vertical turning and boring machines; the Czech
firm TST Kovosvit Semimovo Usti provided MSA with at least
five CNC drilling machines which are used in construction of
uranium centrifuges. (See also UK list.)
6. Physics Research Center (PHRC).
7. Razi Institute for Serum and Vaccine Production (RVSRI)
and sub-branches, evidence of biological research with
highest level of security (S4),which could be used for
acquiring knowledge of bioweapon systems.
8. Sharif University of Technology.
9. Yazd Radiation Processing Center (YRPC).
NAMES SUBMITTED TO@ITED KINGDOM
Entities:aakht Niroogahaye Atomi Iration to includ
a. Khatam Ol Ambialso France list.)
OUNCIL BY ITALY
EntTehran
2. Mechanical Engineering and Construction (aka M&C),TehranQ
3. Modern Industries Technology (aka MITEC),IQfahan
END LISTS.
MURRAY
.