US Treasury extends Iran sanctions to automotive and rail sectors
The US Treasury added Iran’s automotive and railway sectors to its sanctions framework and listed major manufacturers, operators and foreign suppliers. The measures cover Iran Khodro and SAIPA alongside railway businesses and suppliers in several countries. They block designated assets with a US connection and expose certain foreign financial dealings to secondary-sanctions risk.
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Two more sectors enter the sanctions framework
The US Treasury has expanded sanctions on Iran to automotive and railway industries, alongside manufacturing and metals networks. Its Office of Foreign Assets Control, the agency administering US financial sanctions, issued two sectoral determinations under Executive Order 13902. Activity in the named sectors is now a basis for designations. Treasury announced the measures under Operation Economic Outcast, its economic-pressure campaign, alleging that these industries provide the Iranian government with revenue and logistical capacity.[1], [2]
Manufacturers, operators and foreign suppliers
Iranian carmakers Iran Khodro and SAIPA were designated with associated businesses. The foreign suppliers include Troy Trading in Türkiye, Integrated Auto Parts in the United Arab Emirates and PT Golden Motorcycle International in Indonesia. Treasury says they supplied parts and other inputs to Iran’s automotive sector. Railway designations include the Islamic Republic of Iran Railways, Raja Passenger Trains and Railway Transportation Company. Manufacturing company HEPCO and its Chinese subsidiary were also targeted, alongside German and Emirati metals-trading businesses.[1]
What the blocking rules cover
Designated persons’ property in the United States, or under the possession or control of US persons, is blocked. The rule also covers entities owned at least 50 percent in aggregate by one or more blocked persons. Transactions involving that property by US persons or through the United States are generally prohibited unless licensed or exempt. Foreign financial institutions facilitating specified transactions can face secondary sanctions, extending the restrictions beyond direct dealings involving US persons.[1]
