Washington: A Chinese businessman indicted in the United States over sales of missile parts to Iran is still making millions of dollars from the trade, say security officials who monitor compliance with Western and U.N. sanctions. These officials, speaking on condition of anonymity, said the businessman, Li Fangwei, has earned at least $10 million from illegal sales to Iran since his indictment by the New York County District Attorney in 2009. Trade sanctions are at the heart of international efforts to curb Iran’s nuclear programme for fear it is for military ends - a suspicion Iran rejects. Li’s alleged activities may point to Iran’s resourcefulness in circumventing those sanctions and turn a spotlight on China’s ability to police its own export restrictions.
It is hard to quantify the contribution of foreign firms and individuals to Iran’s nuclear and missile programmes, but analysts believe some vital components are all but impossible for Tehran to produce at home. Contacted by Reuters on Feb 4, Li said he continued to get commercial inquiries from Iran but only for legitimate merchandise, such as steel products. Li said his company, LIMMT, had stopped selling to Iran once the United States began sanctioning it several years ago.
He dismissed allegations by the security officials that he had used deception, including changes of company names, to supply Iran with Chinese and foreign-made parts such as high-grade alloys that can be used to enrich uranium and guidance devices suitable for missiles. “Sure, we did business with Iran, but we did not export the goods they said we did, missiles or whatever,” Li said. “We still get inquiries from Iranian clients, but we don’t respond to them.”
A Chinese Foreign Ministry spokeswoman said Beijing was adhering to trade restrictions, including a U.N. ban on helping Iran build missiles that can deliver nuclear warheads. Officials from Iran, including at firms the security officials said were clients of Li and at the embassy in Beijing, did not respond to requests for comment. A Chinese bank which the security officials said Li used for Iranian business denied it had breached U.N. sanctions.
In 2006, the US Treasury barred Li from the US financial system for allegedly selling goods with potential military uses to Iran.
Three years later, the New York County District Attorney unsealed a fraud indictment against Li and his metals company LIMMT on suspicion they had used false names to process further payments for sales to Iran through several US banks. The US banks employed by Li were innocent of any wrongdoing because Li and other suspects had concealed their identities, the then District Attorney, Robert Morgenthau, said. On Feb 4, 2013, Li said that at the time of the indictment he had felt there was no point in saying anything because US courts and prosecutors “don’t listen to reason. It’s useless.”
Three weeks ago, on Feb. 11, the US State Department issued fresh sanctions against Li, saying he had “engaged in missile technology proliferation activities that require the imposition of missile sanctions”, and placing additional restrictions on any missile technology trade involving him.
A State Department official said Li had been sanctioned because of his “proliferation to Iran” since his 2009 indictment. Li did not respond to calls seeking comment on the Feb 11 action.
China reacted with irritation to the Feb. 11 measures. Foreign Ministry spokeswoman Hua Chunying said the US step “seriously violates the norms of international relations and harms China’s interests” and urged the United States to immediately revoke “these irrational sanctions”.
China has no extradition treaty with Washington.
The security officials allege that since the 2009 indictment Li, working in concert with the Iranian embassy in Beijing, had supplied parts to firms that make Iranian missiles, in particular the U.N.-blacklisted Shahid Bakeri Industrial group (SBIG). SBIG did not reply to faxes and emails sent by Reuters for comment.
The goods allegedly supplied included 15 tonnes of high-grade aluminium alloy, more than 20 tonnes of ultra-high strength steel, and 1,700 kg of graphite cylinders. agencies
It is hard to quantify the contribution of foreign firms and individuals to Iran’s nuclear and missile programmes, but analysts believe some vital components are all but impossible for Tehran to produce at home. Contacted by Reuters on Feb 4, Li said he continued to get commercial inquiries from Iran but only for legitimate merchandise, such as steel products. Li said his company, LIMMT, had stopped selling to Iran once the United States began sanctioning it several years ago.
He dismissed allegations by the security officials that he had used deception, including changes of company names, to supply Iran with Chinese and foreign-made parts such as high-grade alloys that can be used to enrich uranium and guidance devices suitable for missiles. “Sure, we did business with Iran, but we did not export the goods they said we did, missiles or whatever,” Li said. “We still get inquiries from Iranian clients, but we don’t respond to them.”
A Chinese Foreign Ministry spokeswoman said Beijing was adhering to trade restrictions, including a U.N. ban on helping Iran build missiles that can deliver nuclear warheads. Officials from Iran, including at firms the security officials said were clients of Li and at the embassy in Beijing, did not respond to requests for comment. A Chinese bank which the security officials said Li used for Iranian business denied it had breached U.N. sanctions.
In 2006, the US Treasury barred Li from the US financial system for allegedly selling goods with potential military uses to Iran.
Three years later, the New York County District Attorney unsealed a fraud indictment against Li and his metals company LIMMT on suspicion they had used false names to process further payments for sales to Iran through several US banks. The US banks employed by Li were innocent of any wrongdoing because Li and other suspects had concealed their identities, the then District Attorney, Robert Morgenthau, said. On Feb 4, 2013, Li said that at the time of the indictment he had felt there was no point in saying anything because US courts and prosecutors “don’t listen to reason. It’s useless.”
Three weeks ago, on Feb. 11, the US State Department issued fresh sanctions against Li, saying he had “engaged in missile technology proliferation activities that require the imposition of missile sanctions”, and placing additional restrictions on any missile technology trade involving him.
A State Department official said Li had been sanctioned because of his “proliferation to Iran” since his 2009 indictment. Li did not respond to calls seeking comment on the Feb 11 action.
China reacted with irritation to the Feb. 11 measures. Foreign Ministry spokeswoman Hua Chunying said the US step “seriously violates the norms of international relations and harms China’s interests” and urged the United States to immediately revoke “these irrational sanctions”.
China has no extradition treaty with Washington.
The security officials allege that since the 2009 indictment Li, working in concert with the Iranian embassy in Beijing, had supplied parts to firms that make Iranian missiles, in particular the U.N.-blacklisted Shahid Bakeri Industrial group (SBIG). SBIG did not reply to faxes and emails sent by Reuters for comment.
The goods allegedly supplied included 15 tonnes of high-grade aluminium alloy, more than 20 tonnes of ultra-high strength steel, and 1,700 kg of graphite cylinders. agencies
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