October 16, 2008

US Sanctions extend to Russian branches of Iranian banks

It is reported that the US sanctions that targeted Iran’s largest banks have also extended to the Moscow branch of Bank Melli Iran, ZAO Bank Melli Iran.

Similar to other banks on the black list of the United States, the Moscow branch is banned from making any transactions or transferring money to the US companies or individuals and all assets that are under the US jurisdiction have been frozen.

The sanctions announced by US Treasury Secretary Henry Paulson and Secretary of State Condoleezza Rice target three state owned banks.
1. Bank Melli
2. Bank Mellat
3. Bank Saderat

Bank Melli has several subsidiaries, including Bank Kargoshaee in Tehran, ZAO Bank Melli Iran in Moscow, Melli Bank in London and Arian Bank, a JV with Bank Saderat in Kabul.

The new sanctions are also in force for the Islamic Revolutionary Guard Corps, which Washington accuses of proliferating mass destruction weapons and of supporting terrorism.

Overall, the sanctions hit more than 20 companies, banks and individuals of Iran as well as the Defense Ministry of the country. The timing of Washington pressurizing is interesting. The United States has toughened the sanctions against Iran when pressing for the third resolution of the United Nations that will impose wider economic pressure on Tehran in another effort to force it to halt the nuclear program.