April 20, 2010 | Quote

U.S. Sanctions IRGC Engineering Firms

The Foundation for the Defense of Democracies’ Mark Dubowitz said today’s designation was a good start, given the dominant role of the parent firm (whose full name is Gharargah Sazandegi-ye Khatam al-Anbia, or GHORB) in the Iranian energy sector. “To have any meaningful impact on the activities of the IRGC, targeted sanctions must focus on the Guard’s leaders and front companies active in Iran’s energy sector,” he said. “Oil provides about 80% of Iran’s export earnings and 50% of government revenue.”

“Given the dominance of the Revolutionary Guard in the Iranian energy sector, Asian and European companies might find it difficult to do business in this energy sector without transacting with IRGC companies,” he added.

In 2006, Dubowitz said, Ghorb received more than $7 billion in contracts including, as reported by International Oil Daily, a $2 billion contract to oversee the development of the South Pars gas project, and a $1.3 billion no-bid contract for a gas pipeline running from a port near South Pars to the border with Pakistan.