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January 31, 2023

This month’s newsletter features a policy brief on the consequences of
triggering the snapback mechanism of U.N. Security Council resolution 2231.
Though it would not halt Iran’s nuclear advances, triggering snapback would
allow Europe and the United States to make use of the expanded measures
provided for in previous Security Council resolutions to combat the
pressing proliferation challenges posed by Iran.

The newsletter also includes profiles of companies sanctioned by the U.S.
Commerce Department in 2021 for supplying Iran with U.S.-origin items
useful to Iran's military industries, as well as news about a drone attack
on an Iranian defense facility, Iran’s growing stockpile of highly enriched
uranium, a year-end uptick in Iranian oil exports, and a European
Parliament vote supporting the listing of the Islamic Revolutionary Guard
Corps (IRGC) as a terrorist group. Additions to the Iran Watch library
include Western sanctions announcements related to drones and human rights
as well as several recent U.S. law enforcement actions.

Was this email forwarded to you? [2]Sign up to receive the newsletter in
your inbox, or [3]view the newsletter in your browser.

PUBLICATIONS

[4]

Flags of the JCPOA participant states in Vienna. (Credit: Islamic Republic
News Agency)

Policy Brief | [5]Trigger Warning: The Consequences of Snapping Back
Sanctions on Iran

With negotiations to restore the Joint Comprehensive Plan of Action (JCPOA)
stalled and more of its restrictions set to expire, Western parties to the
deal will likely face calls in 2023 to trigger the “snapback” mechanism of
U.N. Security Council resolution 2231, which underpins the accord. This
policy brief examines the direct and indirect consequences of taking such
action.

Though it would not halt Iran’s nuclear advances, triggering snapback
would allow Europe and the United States to make use of the expanded
restrictions provided for in previous Security Council resolutions to
combat the other pressing proliferation challenges posed by Iran, such as
its transfers of drones and other arms to Russia and across the Middle
East. Snapback would also align Europe’s Iran sanctions policy with that of
the United States and provide a sanctions benchmark for other countries. At
minimum, Britain, France, and Germany should not allow additional European
nonproliferation sanctions on Iran to sunset on schedule in October and
should instead reimpose other sanctions that the JCPOA had suspended.

[6]READ THE POLICY BRIEF

ENTITIES OF CONCERN

In December 2021, the U.S. Commerce Department added to its Entity List a
far-flung network of companies that have supplied Iran with U.S.-origin
items in support of its military industries.

[7]Shenzhen Rion Technology

A computer, communications, and electronics manufacturer based in China;
sells navigation systems and related products, including inertial
navigation systems and GPS navigation systems; part of RION Group, which
has overseas offices in Germany, South Korea, and the United Kingdom.[]

[8]LEARN MORE

[9]Thundsea Electric Limited

An electronic instrument manufacturer based in Hong Kong; serves the oil
and gas and mining industries; is developing a surveying machine based on
fiber optic gyroscopes and systems for thermal imaging and video
surveillance.

[10]LEARN MORE

[11]ROV Solutions

A subsea engineering consultancy based in the Republic of Georgia and Hong
Kong; provides upgrades to remotely operated underwater vehicles; shares an
address with Thundsea Electric Limited.

[12]LEARN MORE

IN THE NEWS

[13]

The damaged roof of a military industry facility in Isfahan. (Credit:
Screenshot from an IRIB news broadcast)

[14]Israel Launched Drone Attack on Iranian Facility, Officials Say | New
York Times

January 29, 2023: Israel carried out a strike against an Iranian military
facility in Isfahan using several small quadcopter drones, according to
U.S. officials. The facility's exact purpose was not clear, although Iran
said that it was an ammunition manufacturing plant. Iran also claimed that
the attack caused little damage.

[15]Iran’s Amassed Enough Material for ‘Several Nuclear Weapons,’ Says IAEA
Chief | CNN

January 25, 2023: Rafael Grossi, head of the International Atomic Energy
Agency, said that Iran has amassed 70 kilograms of uranium enriched to 60
percent fissile purity and 1,000 kilograms enriched to 20 percent, enough
for “several nuclear weapons.” Grossi plans to travel to Iran in February.

[16]EU Parliament Calls for More Sanctions Against Iranian Regime | Reuters

January 19, 2023: The European Parliament adopted a nonbinding resolution
calling for EU sanctions against all Iranian entities linked to human
rights violations, including Supreme Leader Ali Khamenei and President
Ebrahim Raisi. Earlier, the parliament passed a similar resolution calling
for the designation of the IRGC as a terrorist organization.

[17]Iranian Oil Exports End 2022 at a High, Despite No Nuclear Deal |
Reuters

January 15, 2023: Iran's oil exports in averaged 1.137 million barrels per
day in December, the highest figure for 2022, according to SVB
International, a company that tracks Iran's oil trade. By some estimates,
Iranian crude exports have reached their highest level since April 2019.
China remains Iran's biggest customer.

FROM THE LIBRARY

In December and January, Western governments announced more sanctions
against Iranian entities for violently suppressing protests.
* The [18]United States sanctioned Iran’s prosecutor general and a
company that manufactures equipment for Iran’s Law Enforcement Forces -
December 21.
* Canada [19]announced sanctions on Iran Newspaper and the Press
Supervisory Board, both linked to Iran’s state media - January 6.
* On January 23, [20]the European Union, [21]the United States, and
[22]the United Kingdom introduced sanctions against individuals and
institutions connected to the IRGC and the Basij - January 23.

The U.S. Treasury Department adopted more sanctions targeting Iran’s drone
industry.
* The [23]designations included six executives and board members of Qods
Aviation Industries, a defense manufacturer responsible for the design and
production of the Mohajer-6 drone - January 6.
* They also included Nader Khoon Siavash, [24]the director of Iran’s
Aerospace Industries Organization - January 6.

The U.S. government took action to enforce U.S. and international law.
* Behrouz Mokhtari, a naturalized U.S. citizen, [25]pleaded guilty to two
conspiracies to violate sanctions imposed by the United States on Iran,
including by attempting to facilitate Iranian petrochemical sales - January
9.
* The U.S. Navy [26]intercepted a dhow in the Gulf of Oman that it says
came from Iran and that was carrying more than 2,000 AK-47 assault rifles -
January 10.

Iran Watch is a website published by the Wisconsin Project on Nuclear Arms
Control. The Wisconsin Project is a non-profit, non-partisan organization
that conducts research, advocacy, and public education aimed at inhibiting
strategic trade from contributing to the proliferation of weapons of mass
destruction.

Copyright © 2023 - Wisconsin Project on Nuclear Arms Control

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