The U.S. Sanctions 20 Companies and Financial Institutions Linked to the 'Basij Cooperative Foundation'

On Tuesday, October 16, the U.S. Treasury Department targeted a network of financial institutions and companies associated with the 'Basij Cooperative Foundation' with new sanctions, claiming they fund Iran's paramilitary forces. These forces are accused of training child soldiers and using them to fight alongside the Islamic Revolutionary Guard Corps (IRGC). According to the U.S. Treasury, this network includes at least 20 companies and financial institutions operating under the 'Basij Cooperative Foundation'. Among these institutions are Iran Tractor Manufacturing Company, Mobarakeh Steel Company, Bank Mellat, and Mehr Eqtesad Novin. Other sanctioned entities include Parsian Bank, Mehr Eqtesad Iranians Investment Company, Tadbirgaran Atieh Investment Company, Royal Sahl Negin Company, Mehr Eqtesad Financial Group, Technator Engineering Company, Tektar Investment Company, Iran Tractor Manufacturing Company, Zinc Mines Development Company, and Bandar Abbas Zinc Production Company. The 'Basij Cooperative Foundation' is accused of using these companies to cover its multi-billion dollar businesses in the automotive, mining, steel, and banking sectors. The U.S. Treasury states that under these sanctions, American citizens are prohibited from trading with this network, and their assets will be seized. Steven Mnuchin, the U.S. Treasury Secretary, stated in a related announcement that the sanctions on these multi-billion dollar financial institutions are due to their support for Iran's paramilitary forces. He noted that Iran's military structure recruits child soldiers and trains them for activities within the IRGC. Members of the Basij Resistance Force, who are underage, are reportedly receiving military training outside the city of Qom. According to the U.S. Treasury's statement, 'the Basij Resistance Force provides religious teachings to students and trains Iranian and Afghan migrant children, some as young as 12, for military action in Syria.' Mnuchin also pointed out that this extensive network provides a financial structure for the Basij's efforts in recruiting, training, and indoctrinating child soldiers, who are integrated into military operations under the supervision of the IRGC. He added that the international community must understand that trading with the Basij Cooperative Foundation and the IRGC's front companies has serious humanitarian consequences, strengthening the regime's violent ambitions in the Middle East. According to Reuters, these sanctions are part of the U.S. economic campaign to exert pressure on Iran due to its 'aggressive approach in the region and human rights violations.' Mehr Eqtesad Novin Bank, formerly known as the 'Mehr Basij Loan Institute,' is affiliated with the Basij Cooperative Foundation. The Mehr Eqtesad Iranians Investment Company, also linked to the Basij Cooperative Foundation, holds shares in Mobarakeh Steel. This company had previously purchased shares in Tabriz Tractor Manufacturing in 2008. Mehr Eqtesad Iranians has also acquired shares in other companies, including Iralko, Sadra, Technotaz, Industrial Development Investment Company, and Jabir Ibn Hayyan Pharmaceutical Company. Meanwhile, a senior U.S. official stated that since the U.S. withdrawal from the JCPOA and the re-imposition of sanctions, Iran has seen a 'severe decline' in oil exports. The Trump administration exited the nuclear deal with six world powers known as the JCPOA on May 8 this year and reinstated the first round of sanctions against Tehran that had been suspended due to the JCPOA in mid-August. The second round of U.S. sanctions, primarily aimed at reducing Iran's oil sales to zero, will come into effect in mid-November.