US enacts new sanctions on Iranian military, banks (3rd Roundup)

Oct 25, 2007, 17:33 GMT

Washington - The United States announced new sanctions on Iran Thursday, targeting an elite military unit and banks suspected of supporting terrorism and the development of nuclear weapons in the latest move by the Bush administration to isolate the Islamic state.

The sanctions cut off the Islamic Revolutionary Guard Corps, three banks and other entities from the US financial system and could expose foreign financial institutions to sanctions if they continue doing business with the Iranian banks.

US Secretary of State Condoleezza Rice, announcing the sanctions with Treasury Secretary Henry Paulson, accused Iran of pursuing technologies that can lead to a nuclear weapon, building dangerous ballistic missiles, and supporting terrorism in Afghanistan, Iraq, Lebanon and the Palestinian territories.

'The Iranian government continues to spurn our offer of open negotiations, instead threatening peace and security,' Rice said.

The sanctions also designated the elite al-Quds force of the Revolutionary Guard Corps (IRGC) as a terrorist organization and weapons proliferator. The US military believes the IRGC and al-Quds have shipped weapons into Iraq used to kill US soldiers and provided support and training to Shiite militants.

The sanctions enacted Thursday are the most sweeping since the sanctions that followed the seizure of the US embassy in Tehran in 1979. Among the more than 20 agencies, companies and individuals subject to the sanctions are three state-owned banks: Bank Melli, Bank Mellat and Bank Saderat.

'The IRGC is so deeply entrenched in Iran's economy and commercial enterprises, it is increasingly likely that, if you are doing business with Iran, you are doing business with the IRGC,' Paulson said.

'We call on all responsible banks and companies around the world to terminate any business' with the banks, Paulson said.

The fresh sanctions come as the United States and its allies struggle to persuade two veto-wielding powers on the UN Security Council, Russia and China, to enact tough international sanctions on Iran for its refusal to halt uranium enrichment, a process that can be used to build nuclear arms.

Washington has previously won two resolutions that included limited sanctions, but Moscow is concerned stiffer penalties will push Iran away from negotiating and undermine whatever cooperation Tehran has shown with the UN nuclear monitoring body known as the International Atomic Energy Agency (IAEA).

Rice emphasized the United States is still committed to finding a diplomatic solution to the dispute over Iran's nuclear activities, and would join unprecedented negotations with Tehran if it agrees to suspend enriching uranium.

'But if Iran's rulers choose to continue down a path of confrontation, the United States will act with the international community to resist these threats of the Iranian regime,' Rice said.

Iran insists its nuclear activities are solely for civilian energy use. Iranian President Mahmoud Abmadinejad steadfastly refuses to bow to US and Security Council demands by maintaining his country has a right to independently produce nuclear energy.

Washington has long considered the Iranian government as a state sponsor of terrorism and accused it of shipping arms to Hamas militants in the Palestinian territories and using the international financial system to funnel millions of dollars to terrorists.

'In dealing with Iran, it is nearly impossible to know one's customer and be assured that one is not unwittingly facilitating the regime's reckless conduct,' Paulson said.

President George W Bush has stepped up the rhetoric on Iran recently, warning last week that a nuclear-armed Iran would result in a conflict on the scale of World War III. Vice President Dick Cheney said Sunday that United States was 'prepared to impose serious consequences' if Iran did not comply with international demands to come clean on its nuclear ambitions.