Editorial: Nuclear Row

9/16/2008

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Iran just received another warning that it cannot continue its illicit nuclear program with impunity.

The Treasury Department has designated the Islamic Republic of Iran Shipping Lines (IRISL) and 18 affiliated companies as “entities of proliferation concern” for aiding Iran’s ballistic missile program. IRISL is Iran’s largest shipping provider with more than 120 ocean-going vessels connecting Iranian exporters and importers with companies throughout the world.

“Not only does IRISL facilitate the transport of cargo for U.N.-designated proliferators, it also falsifies documents and uses deceptive schemes to shroud its involvement in illicit commerce,” said Stuart Levey, under secretary for terrorism and financial intelligence. “IRISL’s actions are part of a broader pattern of deception and fabrication that Iran uses to advance its nuclear and missile programs.”

The Treasury Department’s sanctions are likely to significantly increase the cost of trade for Iran, as U.S. banks must now be circumvented. Also, all transactions between the designated entities and any U.S. person are prohibited, and any assets they have under U.S. control must be frozen. IRISL ships must be blocked if they enter U.S. jurisdiction. Ports that continue to service IRISL vessels could face sanction, and other ships using those ports could face increased scrutiny before entering U.S. ports.

While an important step, the sanctions must be followed by more intense pressure from our allies. Several affiliates of IRISL are located in Europe and Asia and should be closed by their host governments. In addition, foreign banks and insurance companies need to reevaluate the risks associated with continuing to do business with IRISL.

Tough U.S. and international sanctions remain the best way to persuade Iran to forgo its pursuit of a nuclear weapons capability. Iran continues to work to master nuclear technology, but has left itself extremely vulnerable to economic pressure.

U.N. and U.S. sanctions on Iran have already created difficulties for trade financing, discouraged foreign investment and adversely affected the profitability of targeted financial institutions, according to a recent International Monetary Fund report.

Until Iran verifiably suspends its efforts to enrich uranium—a key step toward producing a nuclear bomb—more sanctions are needed. Economic, political and diplomatic pressure must all be applied, and applied now, before it’s too late.  •NER•

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