China, Rus­sia hit sanc­tions as ‘wrong’; state-run firms tar­geted by U.S.

The Washington Times Weekly - - National - By Bill Gertz

The gov­ern­ments of China and Rus­sia have de­nounced sanc­tions im­posed on their state-run com­pa­nies by the Bush ad­min­is­tra­tion over mis­sile and weapons of mass de­struc­tion sales to Iran and Syria.

“It is un­rea­son­able for the Amer­i­can gov­ern­ment to in­voke its do­mes­tic law to sanc­tion on Chi­nese com­pa­nies with­out pro­vid­ing any ev­i­dence,” Chi­nese For­eign Min­istry spokesman Liu Jian­chao said last week in Bei­jing.

“We ex­press res­o­lute op­po­si­tion and strongly urge the U.S. to cor­rect its wrong prac­tice,” he said.

The State De­part­ment two weeks ago im­posed sanc­tions on 23 for­eign com­pa­nies and one Rus­sian na­tional un­der a U.S. law aimed at pre­vent­ing the arm­ing of Iran and Syria.

The com­pa­nies in­cluded three Chi­nese state-run firms that have been the tar­get of U.S. sanc­tions in the past over arms and mis­sile sales, and three Rus­sian firms, in­clud­ing the state-run arms ex­porter Rosoboronex­port, whose sub­sidiaries will be barred un­der the sanc­tions from sup­ply­ing ma­te­rial to U.S. air­craft man­u­fac­tur­ers.

Sanc­tions against Rosoboronex­port, along with the Kolomna De­sign Bureau of Ma­chine-Build­ing, and Tula De­sign Bureau of In­stru- ment Build­ing are “il­le­gal,” ac­cord­ing to Rus­sia’s for­eign min­istry.

“Rus­sian com­pa­nies have reg­u­larly been ac­cused of al­leged as­sis­tance to mis­sile and WMD pro­grams or al­leged de­liv­er­ies banned by the in­ter­na­tional ex­port con­trol regime to Syria and Iran on the ba­sis of the U.S. Iran and Syria Non-pro­lif­er­a­tion Act,” the state­ment said.

“The U.S. has tried to ex­trap­o­late its do­mes­tic laws to for­eign com­pa­nies, to make them work un­der U.S. rules,” it said.

The min­istry said sanc­tions im­posed in Au­gust on Rosoboronex­port and the Sukhoi air­craft com­pany were altered based on Rus­sian re­sponses. Sanc­tions on Sukhoi were lifted, but those on Rosoboronex­port re­main in place.

“As a re­sult of politi­cized ac­tions, the U.S. de­prives it­self and U.S. com­pa­nies of co­op­er­a­tion with Rus­sia’s most ad­vanced com­pa­nies,” the state­ment said. “This is called the loss of op­por­tu­ni­ties in busi­ness.”

The State De­part­ment de­clined to pro­vide de­tails on what trig­gered the sanc­tions. But Bush ad­min­is­tra­tion of­fi­cials said they re­sulted from Rus­sian anti-tank mis­sile sales to Syria that ended up in the hands of Hezbol­lah ter­ror­ists and were used against Is­rael, as well as goods sent from China sold to Iran that were linked to Tehran’s nu­clear, chem­i­cal and bi­o­log­i­cal weapons and mis­sile sys­tems.

In ad­di­tion to the three Chi­nese firms and three Rus­sian com­pa­nies and one Rus­sian na­tional, the sanc­tions bar other in­ter­na­tional com­pa­nies from do­ing busi­ness with the U.S. gov­ern­ment or pur­chas­ing ex­port­con­trolled goods from the United States.

The com­pa­nies sanc­tioned in­clude four Ira­nian state-run com­pa­nies: De­fense In­dus­tries Or­ga­ni­za­tion, Iran Elec­tron­ics In­dus­tries, NAB Ex­port Co. and Sanam In­dus­trial Group, which has been linked in the past to il­le­gal pur­chases of nu­clear-re­lated goods.

An Iraqi com­pany, Abu Ha­madi and Iraqi na­tional Kal Al-Zuhiry also were sanc­tioned.

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