According to a report by
published at the “Washington Free Beacon” website: The Trump administration is considering new sanctions on Iran to stop it from using backdoor financial methods as a means to skirt U.S. economic sanctions on its business dealings with leading European nations, according to multiple U.S. officials who told the Free Beacon that Tehran is operating a “nuclear racket.”
The new sanctions would directly target Iran’s Special Trade and Finance Institute (STFI), an alternate financial body established by Tehran to ensure it can continue engaging in lucrative trade deals with Europe in the face of heavy U.S. sanctions. The STFI was meant to replace the Instrument in Support of Trade Exchanges (ISTEX), which France, Germany, and the United Kingdom created in January to facilitate trade with Iran.
The Trump administration is already said to be examining sanctioning the STFI, which it views as a front for the Central Bank of Iran, an entity sanctioned by the United States for its role in Iran’s nuclear program and the funding of regional terror operations, according to multiple sources familiar with the matter.
Administration allies in Congress are working toward a similar goal, with Sen. Ted Cruz (R., Texas) having already filed a new measure that would, in addition to any potential White House action, formally sanction the STFI vehicle and make it impossible for Europe to continue engaging in business with Iran, congressional sources confirmed to the Free Beacon.
The issue of these financial bodies has emerged as a crucial tension point in the debate over Iran, as traditional American allies such as Germany, France, and Britain seek to use the STFI to skirt Trump’s sanctions. With Iran giving Europe a 10-day deadline provide it with cash windfalls from the landmark nuclear deal or face increased uranium enrichment, any new sanctions would disrupt Europe’s efforts to keep the door open to future business with Tehran.
“The Iranians are running a nuclear racket: Iran threatens to expand its nuclear program unless Europe pays it not to,” according to one U.S. official, who would only speak about the new sanctions on background. “INSTEX is supposed to be how Europe pays the racket, but who’s going to get involved in a scheme like that and likely face U.S. sanctions?”
Cruz’s new measure, which was viewed by the Free Beacon, would complement any new Trump administration sanctions, according to the senator’s office.
“Sen. Cruz has been explicit that the U.S. should use every tool available to protect the integrity of our sanctions regime and our maximum pressure campaign against the Ayatollahs, including from the INSTEX and STFI vehicles,” a Cruz spokesman said. “The administration and Congress have a range of options, from visa denials, to outright terror designation of the vehicles. Sen. Cruz will continue to work with the Trump administration and his colleagues to ensure that the right options are selected and used.”
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Adam Kredo
Adam Kredo is senior writer reporting on national security and foreign policy matters for the Washington Free Beacon. An award-winning political reporter who has broken news from across the globe, Kredo’s work has been featured in the Wall Street Journal, the Weekly Standard, Commentary Magazine, the Drudge Report, and the Jerusalem Post, among many others. His Twitter handle is @Kredo0. His email address is kredo@freebeacon.com.
