Iran denies buying ship from Israeli firm after US sanctions

Iran’s top trade official has denied that a public company in Iran, which does not recognize the Jewish state,
bought a ship from an Israeli firm as claimed by Washington, local media said on Sunday. “Based on the laws of the country, any kind of trade or economic transaction with the Zionist regime and its affiliated firms is against the law,” the chairman of Iran’s Chamber of Commerce, Industries and Mines (ICCIM), Mohammad Nahavandian, was quoted as saying. “The news regarding the activities of Zionist firms in regard to Iran is a new game which has surfaced in reaction to other nations welcoming establishing economic ties with Iran,” Mr. Nahavandian said.

“Thus they (West powers) are naming some Zionist firms as engaged in doing business with Iran.”

On May 24, the United States announced new sanctions against Iran, targeting foreign firms including the Israeli firm Ofer Brothers Group.

The firm is accused of selling a tanker for $8.6 million to Iranian shipping company Islamic Republic of Iran Shipping Lines (IRISL) in September 2010 in violation of UN sanctions imposed on Tehran over its controversial nuclear program.

According to the State Department, the Ofer Brothers Group, together with its subsidiary Singapore based Tanker Pacific, “failed to exercise due diligence and did not heed publicly available and easily obtainable information that would have indicated that they were dealing with IRISL.

Ofer Brothers Group has denied the allegation, and the Israeli authorities have opened an investigation.

Israel’s Haaretz daily said that over the past decade, at least 13 Tanker Pacific ships have docked in the Iranian ports of Bandar Abbas and Kharg Island, used to export Iran’s oil.

Tanker Pacific has said its ships are allowed under international law to dock in the Islamic state’s ports.

“Over the years, and as a small part of our business, ships operated by Tanker Pacific Management (Singapore) Pte Ltd have transported oil and petroleum product cargoes from and to various ports in Iran for our customers who are international oil companies, commodity traders and end users,” Tanker Pacific said in a statement.

“All such activities were fully permitted under international rules and regulations including those emanating from the US, EU and UN,” it said.

It added that Tanker Pacific decided in November 2010 to cease loading crude oil at Iranian ports altogether, “even though this continues to be a legitimate trade under international rules and regulations, and is customarily carried out by international shipping companies for major oil companies operating out of the EU, U.S. and elsewhere.”

The company noted that it shared information of its trading activities with Iran with U.S. authorities in January.

The Islamic republic does not recognize Israel’s right to exist and its animosity has hardened under the presidency of Mahmoud Ahmadinejad, who has launched repeated tirades against the Jewish state.

Israel has also been indirectly implicated in an attempt by a Spanish company to illegally export to Tehran military helicopters purchased in the Jewish state. The transaction was foiled last week by the Spanish authorities.

The sale of such helicopters to Iran is banned under the United Nations sanctions. Iran has so far not reacted to this news.

According to Israel’s Ometz organization that works for better governance, “Ofer Brothers Group is far from being the only Israeli company” to do business with Iran, either directly or indirectly.

Ometz in a letter to the state comptroller and prosecutor general requested an inquiry into Israeli firms suspected of contravening the Iran boycott.

The Tel Aviv-based Ofer Group, is a multibillion-dollar global holdings group. The family-run business owns Zim Integrated Shipping Services, one of the world’s largest shipping companies; a majority of the Israel Corporation, the country’s largest holding company; and more.

With the imposition of sanctions, Tanker Pacific and Ofer Brothers Group are barred from securing financing from the Export-Import Bank of the United States, from obtaining loans over $10 million from US financial institutions and from receiving US export licenses.

(Sara Ghasemilee, an editor at Al Arabiya, can be reached at sara.ghasemilee@mbc.net)