Syrian State-Run Oil Company Sanctioned under the Iran Sanctions Act

Press Statement
Patrick Ventrell
Acting Deputy Spokesperson, Office of Press Relations
Washington, DC
August 10, 2012

Today, the Administration imposed sanctions on the Syrian state-run oil company Sytrol under the Iran Sanctions Act (ISA), as amended by the Comprehensive Iran Sanctions, Accountability, and Divestment Act (CISADA), for conducting business with Iran’s energy sector. The United States remains deeply concerned about the close ties shared by the Iranian and Syrian regimes and is committed to using every tool available to prevent regional destabilization.

In April of this year, Syria and Iran engaged in two-way trade in the energy sector, in which Syria sent 33,000 metric tons of gasoline to Iran. The United States has determined that the value of the gasoline delivered by Sytrol to Iran in April was over $36 million, significantly exceeding the monetary thresholds for triggering sanctions under this law ($1 million threshold for individual transactions and the $5 million threshold for multiple transactions within a twelve-month period under U.S. law). This kind of trade allows Iran to continue developing its nuclear program while providing the Syrian government with resources to oppress its own people.

Though these sanctions are a direct result of Syria’s provision of gasoline to Iran, the United States views Iran’s broader support for the Assad regime as completely unjustifiable. Iran is actively advising, supplying, and assisting the Syrian security forces and regime-backed militias that are carrying out gross human rights abuses against the Syrian people. Iran is also providing the Assad regime with equipment to monitor opposition activity on the Internet. Iranian officials have boasted about Iran’s support to Assad. Iran’s actions in Syria underscore its fear of losing its only remaining ally in the Middle East and an important conduit to Hizballah.

Today’s sanctions action sends a stark message: the United States stands resolutely against sales of refined petroleum product to Iran and will employ all available measures to bring it to a halt. Moreover, any business that continues to irresponsibly support Iran’s energy sector or helps facilitate either nation’s efforts to evade U.S. sanctions will face serious consequences.

PRN: 2012/1289


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78 FR 16571

The Treasury Department's Office of Foreign Assets Control ("OFAC") is taking action to implement certain of the sanctions imposed on SYTROL by the Secretary of State pursuant to the Iran Sanctions Act of 1996 (Pub. L. 104-172) (50 U.S.C. 1701 note) ("ISA"), as amended by the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (Pub. L. 111-195) (22 U.S.C. 8501-8551) ("CISADA").

DATES:
OFAC's action to implement the sanctions on SYTROL was taken on August 10, 2012. The effective date of this action is March 7, 2013 or the date of actual notice, whichever is earlier.

[...]

Background

ISA, as amended by CISADA, requires the Secretary of State, pursuant to authority delegated by the President, to impose or waive sanctions on persons determined to have made certain investments in Iran's energy sector or to have engaged in certain activities relating to Iran's refined petroleum sector. Executive Order 13574 of May 23, 2011, "Authorizing the Implementation of Certain Sanctions Set Forth in the Iran Sanctions Act of 1996, as Amended," requires the Secretary of the Treasury, pursuant to authority under the International Emergency Economic Powers Act (50 U.S.C. 1701-1706) ("IEEPA"), to implement certain of the sanctions imposed by the Secretary of State under ISA, as amended by CISADA. On August 10, 2012, the President signed into law the Iran Threat Reduction and Syria Human Rights Act of 2012 (Pub. L. 112-158) (22 U.S.C. 8701-8795) (the "TRA"), which further amends ISA in order to strengthen the sanctions imposed against Iran. Executive Order 13628 of October 9, 2012, "Authorizing Additional Sanctions With Respect to Iran," requires the Secretary of the Treasury, pursuant to authority under IEEPA, to implement certain of the sanctions imposed by the Secretary of State under ISA, as amended by CISADA and the TRA.

The Secretary of the Treasury is responsible for implementing the following sanctions under ISA, as amended by CISADA and the TRA: (i) With respect to section 6(a)(3), to prohibit any United States financial institution from making loans or providing credits to a person sanctioned under ISA consistent with section 6(a)(3) of ISA; (ii) with respect to section 6(a)(6), to prohibit any transactions in foreign exchange that are subject to the jurisdiction of the United States and in which a person sanctioned under ISA has any interest; (iii) with respect to section 6(a)(7), to prohibit any transfers of credit or payments between financial institutions or by, through, or to any financial institution, to the extent that such transfers or payments are subject to the jurisdiction of the United States and involved any interest of a person sanctioned under ISA; (iv) with respect to section 6(a)(8), to block all property and interests in property that are in the United States, that come within the United States, or that are or come within the possession or control of any United States person, including any overseas branch, of a person sanctioned under ISA, and provide that such property and interests in property may not be transferred, paid, exported, withdrawn, or otherwise dealt in; (v) with respect to section 6(a)(9), to prohibit any United States person from investing in or purchasing significant amounts of equity or debt instruments of a person sanctioned under ISA; (vi) with respect to section 6(a)(11), to impose on the principal executive officer or officers, or persons performing similar functions and with similar authorities, of a person sanctioned under ISA the sanctions described in sections 6(a)(3), 6(a)(6), (6)(a)(7), 6(a)(8), 6(a)(9), or 6(a)(12) of ISA, as selected by the President, Secretary of State, or Secretary of the Treasury, as appropriate; and (vii) with respect to section 6(a)(12), to restrict or prohibit imports of goods, technology, or services, directly or indirectly, into the United States from a person sanctioned under ISA.

Prior to the enactment of the TRA, the Secretary of State imposed sanctions pursuant to ISA, as amended by CISADA, on SYTROL. See 77 FR 59034 (Sep. 25, 2012), which provides the name of the person subject to sanctions, as well as a complete list of the sanctions imposed on this person. Pursuant to Executive Order 13574, the Secretary of the Treasury is responsible for implementing certain of the sanctions imposed by the Secretary of State. Accordingly, the Director of OFAC, acting pursuant to delegated authority, has taken the actions described below to implement those sanctions set forth in Executive Order 13574 with respect to the person listed below.

1. SYTROL, Prime Minister Building, 17 Street Nissan, Damascus, Syria [SYRIA] [ISA]

The Director of OFAC has: (a) Blocked all property and interests in property that are in the United States, that come within the United States, or that are or come within the possession or control of any United States person, including any overseas branch, and which may not be transferred, paid, exported, withdrawn, or otherwise dealt in, of SYTROL; and (b) prohibited any transfers of credit or payments between financial institutions or by, through, or to any financial institution, to the extent that such transfers or payments are subject to the jurisdiction of the United States and involved any interest of SYTROL. SYTROL, which has been added to OFAC's List of Specially Designated Nationals and Blocked Persons, includes the identifying tag "ISA."

Dated: March 7, 2013.

Adam J. Szubin,
Director, Office of Foreign Assets Control.
[FR Doc. 2013-06023 Filed 3-14-13; 8:45 am]
BILLING CODE 4810-AL-P