By Ian Talley in Washington and Laurence Norman in Brussels
The Biden administration lifted sanctions on three former
Iranian officials and several energy companies amid stalled nuclear
negotiations, signaling Washington's willingness to further ease
economic pressure on Iran if the country changes course.
The U.S. Treasury Department on Thursday repealed sanctions on
former senior National Iranian Oil Co. officials and several
companies involved in shipping and trading petrochemical products.
The administration described the moves as routine administrative
actions, saying the officials were removed from U.S. blacklists
because they no longer held positions in the sanctioned
entities.
But officials familiar with talks under way in Vienna on the
future of the 2015 multilateral Iran nuclear agreement said the
Biden administration has been looking at how it could inject
momentum into the negotiations. Oil prices tumbled nearly 2% after
the news, but quickly regained their losses, continuing to trade
over $70 a barrel.
"These actions demonstrate our commitment to lifting sanctions
in the event of a change in status or behavior by sanctioned
persons," Secretary of State Antony Blinken said in a statement
accompanying the notice of the action.
The actions came as U.S., Iranian, European and Chinese
negotiators in Vienna are preparing to resume a sixth round of
talks to restore the 2015 nuclear deal with Iran, the U.S. and five
other world powers. Discussions are expected to start up again this
weekend in Vienna, according to people involved in the
negotiations.
State Department spokesman Ned Price told reporters later
Thursday that the actions have "absolutely no connection" to
ongoing negotiations on the nuclear agreement. A Treasury official
also said, "This is not a wider easing of sanctions on the oil
sector of Iran."
The Iranian mission to the United Nations didn't immediately
respond to a request for comment.
U.S. and European officials have said significant differences
remain between Washington and Tehran over how to restore the
nuclear deal, including the extent of any potential sanctions
relief.
Signed in 2015, the nuclear agreement known as the Joint
Comprehensive Plan of Action lifted international economic
sanctions on Iran in exchange for temporary constraints on the
country's nuclear program.
In 2018, President Trump withdrew the U.S. from the deal,
calling it one-sided and arguing it supplied Iran with funding
Tehran directed to its military, weapons programs and to militant
groups elsewhere in the region.
In an effort to push Iran back to the negotiating table for a
stricter deal, the Trump administration reimposed sweeping
sanctions on Tehran, hitting every major export sector and helping
pitch the country into a deep economic depression.
Besides the oil and banking sectors, the sanctions also included
the shipping, construction, auto, and metal industries and targeted
hundreds of Iranian officials, financial trusts and companies by
name. They effectively froze most international business dealings
with Iran, threatening U.S. and foreign companies if they traded
with Iran, including purchasing Iranian oil, natural gas or
petrochemical products.
Iran has remained a party to the deal, even while steadily
breaching many of its limits, including on uranium enrichment. The
country has consistently demanded the U.S. lift nearly all
sanctions upfront before it brings its nuclear activities back in
line with the 2015 agreement. The other parties to the deal, China,
France, Germany, Russia and the U.K., remain in it.
The Vienna negotiations now look very likely to drift past
Iran's presidential elections on June 18, which some Western
officials saw as a target date to complete the talks because of
their potential effect on Iran's position.
U.S. officials have said they would be prepared to lift most
sanctions on Iran's oil, petrochemical and shipping sectors as part
of a deal to restore the 2015 nuclear agreement. So far, the U.S.
has insisted it will maintain other antiterrorism sanctions,
including on the Islamic Revolutionary Guard Corps, a paramilitary
group that retains significant influence on Iran's government,
economy and foreign policy. Indeed on Thursday, even as it lifted
some sanctions the U.S. also levied new ones against a group of men
and companies that U.S. officials said are helping fund the Islamic
Revolutionary Guard Corps and Houthi rebels in Yemen.
Critics of the administration's Iran policy say Thursday's
lifting of sanctions would undermine Washington's leverage over
Iran in the talks.
"Lifting sanctions during negotiations shows weakness to Iran
and tells Tehran to continue its nefarious activities, including
nuclear extortion and sending conventional arms to U.S.
adversaries," said Anthony Ruggiero, a former top national security
adviser to President Trump now at the Foundation for Defense of
Democracies, a think tank that advocated for tougher sanctions.
Several Republican lawmakers said the action confirmed their
fears about the Biden administration's Iran policy.
"The Biden admin is rushing to dismantle sanctions on Iran,
including and especially their oil industry and shipping, before
even the pretense of a deal," said Sen. Ted Cruz, (R., Tx.), in a
tweet from his official account. "What happened to Biden's promise
not to give the Ayatollah unilateral concessions?"
Thursday's moves represent a sliver of the broad spectrum of
Iranian sanctions and aren't expected to yield any significant
financial or economic relief to the country. Combined with the
significant differences that remain between the parties negotiating
in Vienna on how to restore the 2015 deal, the sanction removals
themselves aren't expected to break the existing impasse.
Still, deletions from Iran sanction rolls are relatively rare,
according to data available on the Treasury Department's website,
with less than a handful in recent years. The last removal -- in
January last year -- involved a major Chinese shipping company that
vowed to no longer handle Iranian cargoes.
Thursday's action, therefore, signals to Iran that the Biden
administration not only has a willingness to act, but the
administrative and legal capability to do so, analysts said.
The NIOC officials were sanctioned in 2013 for allegedly evading
sanctions levied against the Iranian government as the Obama
administration sought to press Tehran into a nuclear deal. U.S.
officials at the time said the action was aimed at disrupting
Iran's nuclear and weapons programs. The companies that were
removed Thursday were blacklisted in 2020 for allegedly helping
Iran's sanctioned petrochemical trade, which the Trump
administration said Iran's government used to help it finance
groups designated by the U.S. as terrorists.
Courtney McBride in Washington contributed to this article.
Write to Ian Talley at ian.talley@wsj.com and Laurence Norman at
laurence.norman@wsj.com
(END) Dow Jones Newswires
June 10, 2021 18:36 ET (22:36 GMT)
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