Iran exploiting sanctions loophole to import aluminum for missiles

Exploiting a loophole in Western sanctions, Iran is importing a high grade of refined alumina ore from several European countries, including Germany and France, and may be using the ore to make armor parts and missile components.

Western measures imposed on Iran over its disputed nuclear program have hit many sectors of its economy, including steel and other metals, where it is heavily dependent on imports.

The refined ore has been excluded from European Union sanctions, but tightened U.S. sanctions that came into effect on July 1 seek to close the loophole. According to a U.S. Treasury briefing, the latest measures will cover "raw or semi-finished metals" that include aluminum.

"After July 1, new sanctions will blacklist metals trade with Iran including aluminum, coal, steel, gold, silver and platinum amongst others, and should include alumina," said Mark Dubowitz, who has advised U.S. President Barack Obama's administration and U.S. lawmakers on sanctions.

Alumina is a refined version of the raw ore bauxite. It is typically used to make aluminum, but in its high purity or "chemical grade" form, it has non-metal applications that have sensitive military uses.

Export data from independent firm Global Trade Information Services showed that between January 2012 and March 2013, around 4,000 tons of alumina had been sold to Iran mostly from Germany and France, but also from Slovenia, Italy, Hungary and Belgium.

Experts and traders say the high price paid of $700 to $1,000 per ton and relatively low amounts involved indicated the exports were most likely high purity chemical grade alumina.

Mark Gorwitz, previously with the U.S. Department of Defense and now a consultant specializing in nuclear and missile-related technologies, says Iran is be able to manufacture weapons grade ceramic composites using chemical alumina.

"Iran definitely has the ability to manufacture missile parts locally," he said. "They've done quite a bit of work on ceramic composites made with alumina, and used for manufacturing armor parts and missile components like nozzles and radomes."

David Albright, a former UN weapons inspector and current president of U.S.-based think tank the Institute for Science and International Security, said Iran had been studying the use of chemical alumina for years, citing three scientific journal papers published by Iranian academics between 2008 and 2009.

"The documents show that there's an interest in mastering the use of chemical alumina for a broad set of uses which include military," he said.

A spokesman for EU foreign policy chief Catherine Ashton said the export of all forms of crude aluminum products as well as other aluminum products were prohibited under EU sanctions.

"Whereas the export of aluminum ore -- alumina -- is not," the spokesman said. "It is an area that may be looked at in the future."

As of July 1, the tightened U.S. sanctions might hamper the alumina trade with Iran as companies involved who have U.S. interests could be targeted by Washington.

"Any European companies found selling alumina, for example, will face the full weight of U.S. law," Dubowitz said. "Alumina previously has sailed past the radar under previous U.S. and EU sanctions and should not be overlooked again as an important target of pressure."

Meanwhile, Strategic Affairs, Intelligence and International Relations Minister Yuval Steinitz met with Germany's foreign and finance ministers in Berlin on Tuesday. The meetings focused on the economic sanctions imposed on Iran.

Steinitz stressed that since newly elected Iranian President Hasan Rouhani presents himself as an artist of diplomacy and negotiations, it was especially important to tighten sanctions.

According to Steinitz, Iran must be given the message that it will only be judged according to whether it meets the demands stipulated by the U.N. Security Council, not according to rhetoric and gestures.

טעינו? נתקן! אם מצאתם טעות בכתבה, נשמח שתשתפו אותנו