US Sanctions Iran’s Steel and Mining Industries
The US President on Wednesday, May 8, imposed sanctions on Iran’s steel and mining sectors through an executive order.
Donald Trump stated in this order that the United States is imposing sanctions against Iran’s iron, steel, aluminum, and copper industries, which represent the largest source of non-oil revenue for the regime.
He emphasized that Iran should expect further measures unless it fundamentally changes its behavior.
These sanctions were imposed hours after Tim Morrison, Special Assistant to the US President and Senior Director for Weapons of Mass Destruction and Biological Defense, stated at a conference that Washington’s work on Iran sanctions “is not finished” and “very soon” additional sanctions will be imposed against Iran.
Trump, referring to the US withdrawal from what he called the “terrible” nuclear agreement with Iran on May 8 last year, stated that under the agreement Iran had the opportunity to engage in or support terrorist networks and develop its missile force.
The US President added that the agreement also allowed Iran to fuel regional conflicts, unfairly detain US citizens, and brutally treat its own people.
Referencing US decisions over the past year regarding Iran in line with “American national security,” he said that as a result of these measures, the Iranian regime faces difficulties financing its violent campaigns, the economy is experiencing unprecedented recession, government revenues have declined, and inflation has spiraled out of control.
Washington has imposed two rounds of financial, banking, and oil sanctions against the Islamic Republic over the past year. The withdrawal from the Treaty of Amity in September last year, revocation of waivers for Iran oil buyers, imposition of new nuclear restrictions, and designating the Revolutionary Guards on the “Foreign Terrorist Organizations” list are among other measures the Trump administration has implemented as part of its “maximum pressure” campaign against Tehran.
The US President’s executive order states: “We have successfully advanced a very powerful maximum pressure campaign that we have seen thus far, which today’s sanctions strengthen.”
In this order, referencing the designation of the Revolutionary Guards on America’s terrorist list and the revocation of Iran oil buyer waivers in the past month, it is stated that today’s (Wednesday) sanctions target Iran’s revenue from industrial metal exports – 10 percent of its exports – and warn other countries that permission for Iranian steel and other exported metals to enter their ports will no longer be tolerated.
The US President added in his order that Washington, following its withdrawal from the nuclear agreement with Iran, which is irreversible, has presented 12 conditions that could form the basis for a comprehensive agreement with Iran.
Mike Pompeo, US Secretary of State, in late April last year presented 12 conditions for negotiations with Iran to reach a new agreement, including items such as “cessation of uranium enrichment,” “cessation of development of Iran’s ballistic missile program,” “release of all American citizens and citizens of America’s friends and allies,” “withdrawal from Syria,” and “cessation of support for Shiite militias in Iraq and Houthis in Yemen.”
Trump stated in the concluding section of his executive order: “I look forward to the day when I can meet with the leaders of Iran to reach an agreement and – more importantly – take steps to give Iran the future it deserves.”
The new US sanctions were announced on a day Iran announced it would suspend some of its commitments under the JCPOA.
Hassan Rouhani, President of the Islamic Republic, stated on Wednesday in this regard: “From today we will suspend the sale of heavy water and enriched uranium; this announcement is for 60 days; if the five countries come to the negotiating table and we achieve our interests, especially in oil and banking, we will return to the starting point.”
This decision prompted a reaction from three countries – France, Germany, and Britain, which remain in the JCPOA – and they expressed deep concern about Iran’s action.
Statistics on Iran’s Steel and Mining Product Exports
According to Iran’s Trade and Development Organization, iron and its alloy exports (cast iron and steel) in the past solar year amounted to approximately 3.9 billion dollars, and copper and copper product exports amounted to approximately 700 million dollars. Iran also had more than 840 million dollars in iron ore exports.
All mentioned items account for 14 percent of the country’s total non-oil exports, but government revenue from domestic and foreign sales of these products is collectively significant.
According to the Ministry of Industry website, Iran’s copper production in the past year was approximately 143 million tons, and Iran’s iron ore production was more than 35 million tons.
Production and export of Iranian aluminum is not particularly significant.
An important point in the steel sector is that Iran increased steel production last year compared to 2018 by approximately 18 percent, reaching 25 million tons. Iran had extensive plans to increase steel production and exports.
Source: Radio Farda
