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Media Note
Office of the Spokesman
Washington, DC
March 30, 2007


Iran's Defense Industries Organization Designated by State

Today, the Department of State designated Iran's Defense Industries Organization (DIO) under Executive Order (E.O.) 13382 for engaging in activities that have materially contributed to the development of Iran's nuclear and missile programs. E.O. 13382 is an authority aimed at freezing the assets of proliferators of weapons of mass destruction (WMD) and their supporters.

This action is the latest step taken by the United States to implement United Nations Security Council Resolution (UNSCR) 1737, which requires UN Member States to prevent support to Iran's nuclear and missile programs and specifically requires states to freeze the assets of named entities and individuals associated with Iran's nuclear and missile programs, as well as the assets of entities owned or controlled by them. DIO is one of seven nuclear-related entities listed in the Annex to UNSCR 1737. These and other actions - including the March 24, 2007 UNSC adoption of UNSCR 1747, which reinforced these sanctions - are intended to pressure the Iranian regime to comply with its international nuclear obligations.

DIO was sanctioned previously by the United States for WMD or missile-related activities under the Iran and Syria Nonproliferation Act (ISNA), the Arms Export Control Act, and the Export Administration Act.

DIO also has been identified by the IAEA as involved in centrifuge component production for Iran's nuclear program. A June 2004 report from the Director General of the International Atomic Energy Agency (IAEA) on Iran's implementation of IAEA resolutions noted that Iranian authorities acknowledged that composite rotors for use in P-2 centrifuges had been fabricated in a workshop situated on a DIO site.

The United States will continue to take all steps necessary to implement UNSCR 1737 and UNSCR 1747 to prevent proliferation-related activity by Iran in the future.

DIO will be added to the Department of the Treasury's Office of Foreign Assets Control (OFAC) List of Specially Designated Nationals (SDN) and Blocked Persons. For further details, please go to the Department of the Treasury's website at www.treasury.gov.

2007/247

Released on March 30, 2007

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