NIAG 9028: ENTITY WITH TIES TO IRAN'S NUCLEAR

S E C R E T STATE 034336 E.O. 12958: DECL: 04/08/2034 TAGS: GM IR MNUC PARM PREL SUBJECT: NIAG 9028: ENTITY WITH TIES TO IRAN'S NUCLEAR PROGRAM ATTEMPTING TO PROCURE STAINLESS STEEL VALVES Classified By: ISN Acting A/S C.S. Eliot Kang, E.O. 12958 Reasons 1.4 (b),(c),and (d) ¶1. (S//REL Germany) SUMMARY: We have received information that the Iranian entity Rahtess Construction Company has approached the German firm Mit-Weimar in order to procure 1800 stainless steel valves on behalf of the Iranian company Rahkar-E Sanaye-Ye Novin, a front company for the Atomic Energy Organization of Iran (AEOI). AEOI is designated in UN Security Council Resolution 1737 for its involvement in Iran's nuclear program. The valves include bellows seal butterfly and globe valves, ranging in size from one-quarter inch to 20 inches. Such valves can be used for both nuclear reactor and uranium centrifuge enrichment applications. However, it is unclear from available information whether these valves are specifically controlled by the Nuclear Suppliers Group. ¶2. (S// REL Germany) ACTION REQUEST: Post is instructed to approach appropriate-level German officials and request that they investigate this transfer and take all necessary measures to prevent it. Post may draw from summary, objectives, and talking points/non-paper below. ¶3. (S//REL Germany) OBJECTIVES: Post should: -- Share information with German officials regarding an effort by an entity with links to Iran's nuclear program to procure items from a German firm with uranium enrichment and nuclear reactor applications. -- Emphasize that paragraph 4. c. of UNSCR 1737 requires each State to take the necessary measures to prevent the transfer of items that the State determines would contribute to Iran's uranium enrichment-related, reprocessing, or heavy water-related activities. -- Request that German officials investigate this transfer and take steps to prevent it, and share with the USG the results of any investigation conducted regarding this matter. -- Highlight that now is not the time for business as usual with Iran, particularly in sensitive, dual-use items. ¶4. (S//REL Germany) TALKING POINTS/NON-PAPER: -- We would like to share with you information we have received regarding efforts by an Iranian company to procure stainless steel valves from the German company Mit-Weimar. -- Our information indicates that the Iranian firm Sherkat-E Sakhtemani-Ye Rahtess (Rahtess Construction Company) is seeking approximately 1800 special stainless steel valves on behalf of the Iranian company Rahkar-E Sanaye-Ye Novin. Further, our information indicates that Rahkar-E Sanaye-Ye Novin is a front company for the Atomic Energy Organization of Iran AEOI) an entity designated in UN Security Council Resolution 1737 for its involvement in Iran's nuclear program. -- The types of valves sought include: --- Motorized bellows seal butterfly valves and bellows seal globe valves, ranging in size from one-quarter inch to 20 inches; --- Manual bellows seal globe valves, ranging in size from one-quarter inch to eight inches; and -- Non-bellows seal valves, ranging in size from one-quarter inch to 24 inches. -- While it is uncertain to us whether these valves are specifically controlled by the Nuclear Suppliers Group, valves of this type can be used for both nuclear reactor and uranium centrifuge enrichment applications. -- Given the possible involvement of an entity designated under UNSCR 1737, we request that you investigate this transfer and take all necessary measures to prevent it. We also request that you share with us the results of any investigation you conduct regarding this matter. We thank you for your time and diligence on this matter. END POINTS ¶5. (U) REPORTING REQUIREMENT: Post is requested to report the results of this effort within five business days of receipt of this cable. ¶6. (U) POINT OF CONTACT: Department point of contact for further information/follow-up is Mark Felipe, ISN/CPI, 202-647-5376, felipem2@state.sgov.gov. ¶7. (U) Department thanks Post for its assistance. Please slug all responses for EUR, ISN, NEA, and T. CLINTON NNNN End Cable Text