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Biden and Iran Sanctions

by Mitchell Bard

During his campaign, Joe Biden said his administration would impose “targeted sanctions against Iranian support for terrorism and Iran’s ballistic missile program” and promised “ironclad support for Israel.” He also said the U.S. could snap back sanctions if necessary.

On March 9, 2021, Secretary of State Tony Blinken announced sanctions on Islamic Revolutionary Guard Corps (IRGC) interrogators Ali Hemmatian and Masoud Safdari “for their involvement in gross violations of human rights, namely the torture and/or cruel, inhuman, or degrading treatment or punishment (CIDTP) of political prisoners and persons detained during protests in 2019 and 2020 in Iran.” The two men and their families are now barred from entry into the United States.

Also, in March, the administration approved a 120-day sanctions waiver to allow Iraq to purchase natural gas and electricity from Iran. President Trump approved similar waivers in 2019 and 2020.

In April 2021, negotiations on returning to the nuclear deal (JCPOA) with Iran began in Vienna. During those talks, the United States and Iran agreed through intermediaries to establish a working group to discuss the lifting of sanctions imposed by President Trump. At the outset, the State Department said the administration was prepared to lift all the sanctions reimposed and new ones enacted by President Trump. Iran, meanwhile, insisted that all sanctions U.S. and international sanctions be lifted before it would return to compliance with the nuclear deal.

In what was viewed as an effort to encourage Iranian cooperation in the negotiations, the Treasury Department repealed sanctions on former senior National Iranian Oil Co. officials and several companies involved in shipping and trading petrochemical products on June 10, 2021. The administration denied there was any connection to the negotiations. “These actions demonstrate our commitment to lifting sanctions in the event of a change in status or behavior by sanctioned persons,” Secretary of State Blinken said in a statement accompanying the notice of the action.

Nevertheless, opponents of the nuclear deal were critical. “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. Likewise, Senator Ted Cruz criticized the move to dismantle sanctions “before even the pretense of a deal.”

Iranian sources claimed in late June that Biden negotiators had agreed to lift all sanctions imposed by President Trump, including those related to insurance, oil, and shipping. Officials in the administration did not directly deny the claim; instead, they only said negotiations were continuing. U.S. National Security Adviser Jake Sullivan said there was still “a fair distance to travel” in the talks, including the lifting of sanctions.

Meanwhile, on June 22, 2021, the Justice Department seized 33 of Iran’s state-linked news website domains, which it said were “disguised as news organizations or media outlets, targeted the United States with disinformation campaigns and malign influence operations.”

In June 2021, Iran elected Ebrahim Raisi president. The United States imposed sanctions on Raisi in 2019 over his human rights record, which included “administrative oversight over the executions of individuals who were juveniles at the time of their crime and the torture and other cruel, inhuman or degrading treatment or punishment of prisoners in Iran, including amputations.”

The sanctions could complicate U.S. relations with Iran as they prohibit dealings with him.

In September 2021, in response to a plot to kidnap a U.S.-based journalist and human rights activist, sanctions were imposed on senior Iran-based intelligence official Alireza Shahvaroghi Farahani, who led a network of affiliates, including Mahmoud Khazein, Kiya Sadeghi, and Omid Noori, tasked with planning this kidnapping on U.S. soil as well as targeting Iranian dissidents in the United Kingdom, Canada, and the United Arab Emirates.

In October 2021, the Treasury Department announced sanctions against Iranian companies and their executives linked to the development of armed drones for attacks on U.S. forces and allies used by terror groups supported by Iran, including Hezbollah in Lebanon, Hamas in the Gaza Strip, and the Houthis in Yemen. According to Haaretz, Israel passed intelligence on the Iranian drone program to the United States, including those sanctioned.

Three individuals linked to the Islamic Revolutionary Guard Corps – Yousef Aboutalebi, Saeed Aghajani (Air Force), and Abdollah Mehrabi (Aerospace Force Self Sufficiency Jihad Organization). Mohammad Ebrahim Zargar Tehrani was subject to secondary sanctions for his involvement in the Kimia Part Sivan Company. That company was also sanctioned for its links to the Islamic Revolutionary Guard Corps (Irgc)-Qods Force. Another company, Oje Parvaz Mado Nafar Company, was sanctioned for its connection to the Islamic Revolutionary Guard Corps.

In December 2021, the Biden administration targeted government officials and organizations involved in repressing protesters, political activists, and prisons where activists have been held in brutal conditions. The following entities were added to the U.S. sanctions list: Iran’s Counter-Terror Special Forces, The Isfahan Central Prison (CAATSA-Iran), The Zahedan Prison (CAATSA-Iran), and Special Units Of Iran’s Law Enforcement Forces were added to the list of sanctioned Iranian organizations. At the same time, several individuals associated with these organizations were also sanctioned: Seyed Reza Mousavi Azami (Special Units Of Iran’s Law Enforcement Forces), Mohsen Ebrahimi (Iran’s Counter-Terror Special Forces), Ali Hemmatian (IRGC), Hassan Karami (Special Units Of Iran’s Law Enforcement Forces), Mohammad Karami (CAATSA – IRAN), Soghra Khodadadi (CAATSA – IRAN), Masoud Safdari (IRGC), and Leila Vaseghi (IRAN-HR).

The administration also began taking measures to tighten existing sanctions. A delegation was sent to the UAE, Iran’s second-largest trade partner and a conduit for Iran’s trade and financial transactions with other countries, with the message that petrochemical companies and banks circumventing sanctions will “face extreme risk if this continues.”

The failure of sanctions, however, was exemplified by the fact that Iran’s oil revenue increased 40% to about $25 billion in 2021. Iran’s oil minister expected the country’s production would reach the level it had before the U.S. withdrew from the nuclear deal in May 2018 and the imposition of unilateral sanctions.

According to the Wall Street Journal, “Iran established a clandestine banking and finance system to handle tens of billions of dollars in annual trade banned under U.S.-led sanctions, enabling Tehran to endure the economic siege and giving it leverage in multilateral nuclear talks.... [and] buying it time to advance its nuclear program even while negotiations were under way.”

On March 30, 2022, the Treasury Department sanctioned an Iran-based procurement agent and his network of companies that procured ballistic missile propellant-related materials for the Islamic Revolutionary Guard Corps Research and Self Sufficiency Jihad Organization (IRGC RSSJO), the IRGC unit responsible for the research and development of ballistic missiles, as well as Iran’s Parchin Chemical Industries (PCI), an element of Iran’s Defense Industries Organization (DIO). A critical Iranian intermediary involved in procuring parts used to develop a missile propellant on behalf of PCI was also sanctioned. 

The action followed Iran’s missile attack on Erbil, Iraq, on March 13, the Iranian-enabled Houthi missile attack against a Saudi Aramco facility on March 25, and other missile attacks by Iranian proxies against Saudi Arabia and the United Arab Emirates. “This action reinforces the United States’ commitment to preventing the Iranian regime’s development and use of advanced ballistic missiles,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence, Brian E. Nelson.  “While the United States continues to seek Iran’s return to full compliance with the Joint Comprehensive Plan of Action, we will not hesitate to target those who support Iran’s ballistic missile program.  We will also work with other partners in the region to hold Iran accountable for its actions, including gross violations of the sovereignty of its neighbors.”

Amid negotiations to return to the JCPOA, Russia said that Western sanctions imposed on it over its invasion of Ukraine had become an obstacle to completing the deal. Moscow insists that the U.S. and Europe carve out an exception from Ukraine-related sanctions so Russia can trade with Iran. In an apparent effort to ensure Russia supports renewing the nuclear agreement, the Biden administration agreed to exempt Russia’s $10 billion nuclear infrastructure deal with Iran.

Despite fears by critics of the JCPOA that Biden would ease other sanctions, he did not, and they continue to have a devastating impact on the Iranian economy. In June, the Iranian rial dropped to its lowest-ever value, 332,000 rials to the U.S. dollar. When the JCPOA was signed, the rate was 32,000 rials to the dollar.

Also, in June, Iran signed a 20-year cooperation agreement with Venezuela, which is also under U.S. sanctions. According to Reuters, The plan includes cooperation in the fields of oil, petrochemicals, defense, agriculture, tourism, and culture. It also includes the repair of Venezuelan refineries and the export of technical and engineering services.

Venezuela has shown exemplary resistance against sanctions and threats from enemies and Imperialists, Iranian President Ebrahim Raisi said. The 20-year cooperation document is testimony to the will of the two countries to develop ties.

As prospects for a new deal with Iran dimmed, the Biden administration imposed sanctions on a network of Iranian petrochemical producers. “Absent a deal, we will continue to use our sanctions authorities to limit exports of petroleum, petroleum products, and petrochemical products from Iran,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson. “The United States will continue to expose the networks Iran uses to conceal sanctions evasion activities.”

These sanctions build upon past designations of the Triliance Petrochemical Co. for facilitating the sale of Iranian petrochemical and petroleum products worth hundreds of millions of dollars from the National Iranian Oil Company to foreign customers, including China. Another set of sanctions imposed in July targeted “an international network of individuals and entities that has used a web of Gulf-based front companies to facilitate the delivery and sale of hundreds of millions of dollars worth of Iranian petroleum and petrochemical products from Iranian companies to East Asia.”

On August 1, 2022, the administration “took action against companies used by Iran’s Persian Gulf Petrochemical Industry Commercial Co. (PGPICC), one of the nation’s largest petrochemical brokers, to facilitate the sale of tens of millions of dollars worth of Iranian petroleum and petrochemical products from Iran to East Asia...The Department of State also designated two entities that have engaged in the purchase, acquisition, sale, transport, or marketing of Iranian petroleum and petroleum products, including providing logistical support to the Iranian petroleum trade.”

Even as negotiations for rejoining the nuclear deal continued, with reports on the sides being close to an agreement, the Biden administration continued to impose new sanctions. In September, the Ministry of Intelligence and its leader were sanctioned along with several Iranian companies in response to a cyberattack on government institutions in Albania. A few days later, 10 individuals and two entities affiliated with the IRGC were put on the sanctions list for ransomware activity. The State Department also posted a reward of up to $10 million for information identifying three individuals suspected of cyberactivities against U.S. critical infrastructure.

“Ransomware incidents have disrupted critical services and businesses globally. Ransomware actors and other cybercriminals target businesses and critical infrastructure and threaten the physical security and economy of the United States and other nations. The United States is taking actions today to combat and deter ransomware threats,” Blinken said.

Additional sanctions were imposed at the end of September on companies involved in Iran’s petrochemical and petroleum trade. Five are based in China. One operates a commercial crude oil storage facility for Iranian petroleum and another is a ship manager for a vessel that has transported Iranian petroleum products.

In response to the unrest in Iran following the death of a woman arrested for allegedly wearing a hijab improperly, the administration sanctioned seven senior leaders of Iran’s security organizations: the Morality Police, Ministry of Intelligence and Security (MOIS), the Army’s Ground Forces, Basij Resistance Forces, and Law Enforcement Forces. The Treasury Department said: These officials oversee organizations that routinely employ violence to suppress peaceful protesters and members of Iranian civil society, political dissidents, women’s rights activists, and members of the Iranian Baha’i community.


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