September 15, 2010 | Press Release

FDD Releases Report on China’s Energy Ties with Iran

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Press Release

September 15, 2010

CONTACT:

Judy Mayka

202-621-3948
[email protected]

 

FDD Releases Report on China’s Energy Ties with Iran


Washington, D.C. (September 15, 2010) – The Foundation for Defense of Democracies (FDD) released a report today identifying 10 major Chinese energy companies that continue to do business with Iran in spite of international sanctions. The report, co-authored by FDD’s Executive Director and Iran Energy Project head Mark Dubowitz and FDD Research Associate Laura Grossman, documents these companies and their Iranian ties in detail. It provides a glimpse into how Chinese companies do business with Iran while enjoying access to North American markets, and in some cases, even U.S. government contracts.

“Without robust sanctions enforcement, it will be difficult to persuade the Iranian regime to halt its nuclear weapons program, human rights abuses, and support for terrorist activities,” says Dubowitz. “The U.S. State Department estimates that companies have terminated between $50 and $60 billion in energy projects in Iran owing to the threat of sanctions, but European businesses remain concerned that Chinese companies will snap up their voided Iranian contracts if and when they withdraw.”

“After investing tremendous political capital to enact tough new sanctions against Iran, and encouraging U.S. allies to follow suit, the Obama administration faces a choice,” Dubowitz continues. “Maintain the broadest coalition possible, with Chinese companies punching enormous holes in the sanctions regime, or punish Beijing for undermining Washington’s policy toward Tehran. If the U.S. does not counter Beijing, then the progress the administration has made with the Europeans, Japanese, South Koreans, Canadians and Australians, as well as the scores of companies that have terminated their business ties with Iran, could unravel.”

“The companies FDD has identified warrant further investigation under the Comprehensive Iran Sanctions, Accountability, and Divestment Act, which President Obama signed into law on July 1, 2010, as well as the Iran Sanctions Act (formerly The Iran-Libya Sanctions Act of 1996)” says Dubowitz.

Through sanctions, Washington seeks to persuade foreign companies to terminate their support for the Iranian energy industry, a major source of funding for the regime. The Comprehensive Act expands energy sanctions authority to exploit Iran’s dependence on foreign gasoline suppliers, from whom it imports 30 percent of its annual consumption.

A downloadable PDF version of the report is available here.

FDD’s Iran Energy Project maintains a more comprehensive list of international companies operating in Iran’s energy sector at www.iranenergyproject.org. Through the project, FDD provides leading research and analysis in support of strong, broad-based energy sanctions, including sanctions on gasoline, natural gas, and oil, and focuses on the prominent role of Iran’s Islamic Revolutionary Guard Corps (IRGC) in the country’s energy industry.

To book an interview or for more information on the Foundation for Defense of Democracies’ Iran Energy Project, please contact Judy Mayka at (202) 622-3948 or [email protected].

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The Foundation for Defense of Democracies is a non-profit, non-partisan policy institute dedicated exclusively to promoting pluralism, defending democratic values, and fighting the ideologies that drive terrorism. Founded shortly after the attacks of 9/11, FDD combines policy research, democracy and counterterrorism education, strategic communications, and investigative journalism in support of its mission. For more information, please visit www.defenddemocracy.org.