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Mahmoud Ahmadinejad speaking - Source: Reuters
South Korea blacklisted today 102 companies, including the Seoul
branch of Iran's Bank Mellat, and 24 individuals accused of
facilitating Iran's efforts to develop nuclear weapons.
Bank Mellat has been at the heart of US demands for tougher South
Korean sanctions, as it has been accused of facilitating hundreds
of millions of dollars in transactions for Iranian nuclear, missile
and defence entities.
"We based the measures on the need to join in international efforts
related to Iran's nuclear programme," a government official told
reporters.
"Any transactions by Bank Mellat as small as $1 will require
government authorisation. It's our belief that normal transactions
by Bank Mellat will be difficult."
South Korea would also ban investment and construction contracts in
Iran related to petroleum resources, he said.
South Korea has agonised for weeks over to whether to back close
ally the United States and impose toughened sanctions on Iran, or
heed Iran's warning that new sanctions could risk business deals
and endanger oil supplies from a major source.
Iran is the fourth-largest source of crude oil for South Korea,
accounting for about 10% of its supplies.
Any disruption of shipments would have a big impact on Asia's
fourth-largest economy, which relies on imports for all its energy
resources.
The United States has demanded that South Korea adopt new sanctions
on Iran in addition to US-authorised measures to punish it for its
uranium enrichment programme.
Billions of dollars are at stake in Iranian contracts for South
Korean construction firms and shipbuilders.
The US Treasury Department on Tuesday said it had designated an
Iranian-owned bank in Germany as facilitating Iran's efforts to
develop nuclear weapons, a move that effectively prevents the firm
from doing business with international financial
institutions.
The International Atomic Energy Agency (IAEA) said in a report
obtained by Reuters on Monday that the Islamic Republic was pushing
ahead with its nuclear work in defiance of tougher international
sanctions.
Washington, which has spearheaded a new wave of punitive measures
imposed on the major oil producer since June, said the latest IAEA
report was "troubling".
The West hopes the new sanctions - including measures that target
the oil sector - will persuade the Iranian leadership to back down
and halt sensitive activity.
Iran has repeatedly rejected such demands and is sending mixed
signals about its readiness to negotiate with the West.
