Iran’s Defense Ministry Footprint in Food Exports to Venezuela

Etka Organization, affiliated with Iran’s Ministry of Defense, has launched a grocery store in Venezuela. This store operates in connection with Venezuela’s government emergency food program, which is managed by military personnel of the country.

The U.S. government states that this food program is a cover for money laundering activities and has sanctioned it since August 2019.

On the first day of Tir (June 21, 2020), Hojjat-Allah Soltani, Iran’s ambassador to Venezuela, announced the shipment of food supplies by an Iranian vessel to Venezuela and the opening of an Iranian grocery store in the country.

The Wall Street Journal reported on Sunday, July 5, 2020, that among the products in this large grocery store are brands ranging from tomato sauce and canned tuna under the “Delnoosh” label to sunflower oil under the “Varamin” brand, all of which are subsidiaries of Etka Organization.

Isa Rezaei has been the chief executive officer of Etka Organization since December 2018. Mr. Rezaei is a senior military official with a background working in the Basij Cooperative Foundation, Khatam al-Anbia Headquarters, and the Sepah (Revolutionary Guards) Cooperative Foundation.

The Wall Street Journal report mentioned that Etka Organization belongs to the Islamic Revolutionary Guard Corps. However, this claim is inaccurate, as Etka Organization is supervised by Iran’s Ministry of Defense.

The establishment date of Etka Organization dates back to 1955, when it began operations as a consumer cooperative for military personnel and later changed its activity to become a consumer cooperative organization for armed forces.

After the revolution, this organization became a subsidiary of the Ministry of Defense, and its chief executive officer and board members are appointed by the Defense Minister.

The presence of Iran’s Defense Ministry in the discussion of food exports to Venezuela occurs at a time when during the years 2017-2018, Amir Hatami, Iran’s Minister of Defense, had stated that based on orders from the Supreme Leader of the Islamic Republic, the ministry limited its economic activities and transferred more than 130 of its companies.

According to the Wall Street Journal report, the store affiliated with Iran’s Ministry of Defense was established in a location that previously belonged to Venezuela’s “Emergency Food Program” affiliated with Venezuelan military forces.

Venezuela’s “Emergency Food Program,” which was supposed to provide 15 percent of the country’s food needs, is managed by military personnel of the country.

In August 2019, the United States sanctioned this program, announcing that three stepchildren of Venezuela’s president, seven other merchants—one of whom is Colombian—had engaged in money laundering, audit manipulation, and embezzlement of state property under the cover of this program to cover for drug cartels.

One of the most important merchants active in this program was Alex Saab, a Colombian businessman and associate of Nicolas Maduro, Venezuela’s president, who was arrested in late June of this year at Cape Verde Islands airport by Interpol police while en route to Iran.

Beyond charges of bribery and money laundering in Venezuela, he is accused of collaborating with drug trafficking cartels.

Venezuela’s government stated that he was a representative and liaison between Iran and the country for the provision of food, pharmaceutical, and humanitarian supplies, and condemned his arrest.

According to the Wall Street Journal report, Etka Company previously entered the markets of Iraq and Tajikistan and initiated negotiations with Moscow and Damascus to enter Syria’s food market.

Iran and Venezuela are both under severe U.S. sanctions. In recent weeks, the United States has sanctioned dozens of tankers as part of a broad program to cut off Iran-Venezuela oil ties.

Nevertheless, Ali Rabiee, spokesman for the Iranian government, stated on July 4, 2020, in an interview with Russian news agency Sputnik that American pressure would not prevent trade relations between the two countries, and if the Venezuelan government requests the shipment of goods, it will be “seriously” considered.

Iran’s Ministry of Defense sent food products to Venezuela via the Golestan vessel. The Golestan, which unloaded its cargo in Venezuela on July 4, belongs to the Islamic Republic of Iran Shipping Company.

On June 10, 2020, the U.S. State Department announced that sanctions against the Islamic Republic of Iran Shipping Company had been implemented. The company was placed on the U.S. sanctions list due to transporting weapons and participation in the Revolutionary Guards’ missile program.

The Wall Street Journal, in another section of this report, referenced a U.S. intelligence document stating that Iranian companies require approval from the Revolutionary Guards to operate and conduct business abroad, and that Iranian officials appoint retired military personnel to manage companies to circumvent sanctions.

“Several senior officials” told the newspaper that the United States, beyond Iran’s efforts to circumvent sanctions, is also concerned about the transfer of technology and experience in building Revolutionary Guards weapons to Venezuela.

A Western diplomat stated that an intelligence report shows that Iran, alongside equipment and services it sent via Mahan Airlines for the resumption of some Venezuelan refineries, also transported military equipment.

Mahan Airlines, which is sanctioned for transporting Revolutionary Guards personnel and weapons to Iran’s proxy forces in the region, sent engineering equipment to Venezuela a few months ago to revive Venezuelan refineries. According to Wall Street Journal sources, alongside this equipment, weapons manufacturing technology was also sent.

News agency Reuters also reported last month that Iran, by sending equipment, engineers, and services via Mahan flights, revived part of the defunct capacity of Venezuelan refineries. This equipment and services belonged to the Revolutionary Guards’ Khatam al-Anbia Headquarters.

The shipment of gasoline from Iran to Venezuela has been another challenge in recent months.

Last month, five Iranian tankers transported 1.5 million barrels of gasoline and chemical products for octane enhancement to Venezuelan refineries.

U.S. officials say that simultaneously with gasoline shipments, Venezuela sent 9 tons of gold to Iran via Mahan flights.

Mike Pompeo, U.S. Secretary of State, in response to these transactions, describing the surroundings of Venezuela’s president as “thugs,” said they are “the world’s biggest thieves” and are partnering with the Islamic Republic, which is considered “the world’s biggest regime supporting terrorism.”

The U.S. government also placed five Iranian ship captains on its sanctions list on July 4 for violating sanctions against the Islamic Republic’s Shipping Company and the National Iranian Oil Tanker Company, as well as transporting gasoline to Venezuela.

On the other hand, U.S. federal prosecutors on July 2 filed legal cases for the confiscation of cargo from four tankers that were moving from Iran to Venezuela.

The Wall Street Journal previously reported that American prosecutors intend to prevent Iran’s oil revenue shipments to Venezuela from being received and thus halt such shipments in the future.

Source: Radio Farda