DESIGNATION OF FOUR ENTITIES AND ONE INDIVIDUAL

UNCLAS SECTION 01 OF 03 STATE 015554 SIPDIS, SENSITIVE E.O. 12958: N/A TAGS: KNNP MNUC IR GM PREL PARM EFIN SUBJECT: DESIGNATION OF FOUR ENTITIES AND ONE INDIVIDUAL RELATED TO IRANS ISLAMIC REVOLUTIONARY GUARD CORPS (IRGC) UNDER E.O. 13382 ¶1. (U) This is an action request. Please see paragraph three. -------------- SUMMARY -------------- ¶2. (SBU) The United States designated four entities and one individual related to the Iranian Revolutionary Guard Corps (IRGC) on February 10, 2010, under Executive Order (E.O.) 13382 (Blocking Property of Weapons of Mass Destruction Proliferators and Their Supporters). While consistent with the pressure track of the Administrations (and other P5+1 members) two-track Iran policy, these designations are also consistent with existing and long-standing U.S. legal authorities and requirements targeting the networks of entities that support Irans proliferation of weapons of mass destruction. They do not signify an intention to circumvent or prejudice efforts getting underway to pass a new UN Security Council resolution on Iran and implement new coordinated national measures that would build on a new resolution. They intend to demonstrate our commitment to the full implementation of our E.O. 13382 authorities and reiterate our concerns with the IRGCs role in Irans policies of proliferation and regional destabilization. We want to notify countries of these designations and urge all governments to take similar steps to prevent the IRGC from abusing the international financial and commercial system to further activities that could support Irans nuclear and missile programs. -------------- OBJECTIVES/ACTION REQUEST -------------- ¶3. (SBU) Posts are requested to pursue the following objectives and pass the non-paper in paragraph four to appropriate host government officials. The text of the non-paper was published by the State Department as a media note on February 10, 2010, and can be found at www.state.gov/r/pa/prs/ps/2010/02/136595.htm. It was also published by the Treasury Department as a press release on February 10, 2010, and can be found at http://www.treas.gov/press/releases/tg539.htm . -- Inform host government officials of the U.S. designations under E.O. 13382. -- Notify host government officials that these designations are part of our ongoing implementation of existing sanctions under E.O. 13382 and demonstrate that we will continue to implement laws and impose sanctions to impede Iranian proliferation activities. These designations are not meant to prejudice or circumvent efforts to apply additional pressure on Iran through a prospective new UN Security Council resolution on Iran or any subsequent coordinated national measures against Iran. -- Note that while these designations are a result of the IRGCs proliferation activities, the IRGCs growing presence in Irans financial and commercial sectors; its extensive economic interests in the defense production, construction, and oil industries; its support for terrorist groups; and its gross violations of human rights during recent protests mean that host governments should take appropriate steps to end any activities with the IRGC and its related entities. -------------- BACKGROUND AND NONPAPER -------------- ¶4. (U) Begin text of non-paper: Media Note Treasury Targets Irans Islamic Revolutionary Guard Corps On February 10, 2010, the U.S. Department of the Treasury took further action to implement existing U.S. sanctions against Irans Islamic Revolutionary Guard STATE 00015554 002 OF 003 SUBJECT: DESIGNATION OF FOUR ENTITIES AND ONE INDIVIDUAL RELATED TO IRANS ISLAMIC REVOLUTIONARY GUARD CORPS (IRGC) UNDER E.O. 133 Corps (IRGC) by designating an individual and four companies affiliated with the IRGC pursuant to Executive Order (E.O.) 13382, which freezes the assets of designated proliferators of weapons of mass destruction (WMD) and their supporters. This action focuses in particular on Khatam al-Anbiya Construction Headquarters, an arm of the IRGC designated pursuant to E.O. 13382 in 2007. These designations include IRGC General Rostam Qasemi, who is also the commander of Khatam al-Anbiya Construction Headquarters, the engineering arm of the IRGC that serves to help the IRGC generate income and fund its operations. Khatam al-Anbiya is owned or controlled by the IRGC and is involved in the construction of streets, highways, tunnels, water conveyance projects, agricultural restoration projects, and pipelines. Treasury also today designated four companies that are owned or controlled by, or that act on behalf of, Khatam al-Anbiya. As the IRGC consolidates control over broad swaths of the Iranian economy, displacing ordinary Iranian businessmen in favor of a select group of insiders, it is hiding behind companies like Khatam al-Anbiya and its affiliates to maintain vital ties to the outside world, said Under Secretary for Terrorism and Financial Intelligence Stuart Levey. Todays action exposing Khatam al-Anbiya subsidiaries will help firms worldwide avoid business that ultimately benefits the IRGC and its dangerous activities. The following are subsidiary companies that are owned or controlled by Khatam al-Anbiya, or that act on its behalf, and directly support various mining and engineering projects: -- Fater Engineering Institute -- Imensazen Consultant Engineers Institute (ICEI) -- Makin Institute -- Rahab Institute The IRGC has a growing presence in Irans financial and commercial sectors and extensive economic interests in the defense production, construction, and oil industries, controlling billions of dollars of business. The profits from these activities are available to support the full range of the IRGCs illicit activities, including WMD proliferation and support for terrorism. The U.S. has previously acted against the IRGC and the IRGC-Qods Force for their involvement in proliferation and terrorism support activities, respectively. In joint actions on October 25, 2007, the State Department designated the IRGC, under E.O. 13382, for having engaged, or attempted to engage, in proliferation- related activities, and Treasury designated the IRGC- Qods Force pursuant to E.O. 13224 for providing material support to the Taliban and other terrorist organizations. Treasury at that time also designated nine IRGC-affiliated entities, including Khatam al- Anbiya, and five IRGC-affiliated individuals as derivative designations of the IRGC. Those entities and individuals are: -- Khatam al-Anbiya Construction Headquarters -- Oriental Oil Kish -- Ghorb Nooh -- Sahel Consultant Engineering -- Ghorb-e Karbala -- Sepasad Engineering Co -- Omran Sahel -- Hara Company -- Gharargahe Sazandegi Ghaem -- General Hosein Salimi, Commander of the Air Force, IRGC -- Brigadier General Morteza Rezaie, Deputy Commander of the IRGC -- Vice Admiral Ali Akhbar Ahmadian, in his former capacity as Chief of the IRGC Joint Staff -- Brigadier Gen. Mohammad Hejazi, in his former capacity as Commander of Basij resistance force -- Brigadier General Qasem Soleimani, Commander of the Qods Force Elements of the IRGC have also been designated for UN sanctions pursuant to UN Security Council Resolutions (UNSCRs) 1737 and 1747. All UN Member States are required to freeze the assets of entities and individuals listed in the Annexes of those resolutions, or designated by the UNSCR 1737 Committee, as well as STATE 00015554 003 OF 003 SUBJECT: DESIGNATION OF FOUR ENTITIES AND ONE INDIVIDUAL RELATED TO IRANS ISLAMIC REVOLUTIONARY GUARD CORPS (IRGC) UNDER E.O. 133 assets of entities owned or controlled by them or by persons or entities acting on their behalf or at their direction and to prevent funds or economic resources from being made available for their benefit. The European Union has also designated IRGC-affiliated companies, including Khatam al-Anbiya, for their support to Iranian ballistic missile and nuclear programs. End text of non-paper. -------------- REPORTING DEADLINE -------------- ¶5. (U) Please report delivery of the U.S. non-paper and any response within seven days of receipt of this cable. Please slug replies for ISN, T, TREASURY, and NEA/IR. Please use SIPDIS caption on all responses. Reporting cables should be slugged for desk officers. -------------- POINT OF CONTACT -------------- ¶6. (U) Washington point of contact for follow-up information is Kevin McGeehan, ISN/CPI, (202) 647-5408, mcgeehankj@state.sgov.gov, and Jennifer Chalmers, ISN/CPI, (202) 647-9715, chalmersja@state.sgov.gov. ¶7. (U) Department thanks Posts for their assistance. CLINTON