U.S. Lifts Sanctions on Russian Company

The United States has agreed to end sanctions issued earlier this year against a Russian company suspected of supplying WMD-related material to Iran, the Associated Press reported yesterday (see GSN, Aug. 7).

Jet maker Sukhoi was among seven companies from Cuba, India, North Korea and Russia accused of violating the Iran Nonproliferation Act of 2000.  All were barred from doing business with the U.S. government.

“The issue has been discussed.  (U.S. President George W.) Bush said that after additional investigation of the problem, it was decided to lift the sanctions from Sukhoi,” Russian Foreign Minister Sergei Lavrov said yesterday.

“We are still waiting for the decision on [weapons exporter] Rosoboronexport,” the other Russian firm sanctioned in August, Lavrov said.

Russia has denied any wrongdoing by its companies.  Lavrov said he expected that both companies ultimately would be freed from the sanctions.

Washington’s move to lift sanctions against Sukhoi after only a few months is likely aimed at persuading Russia to support U.S. sanctions on Iran over its nuclear program, analysts said.

Moscow had indicated last week that the sanctions against its companies were a barrier to its support for proposed U.N. Security Council penalties against Iran, AP reported.

“The U.S. met Russia halfway and eliminated these complications,” said independent defense analyst Pavel Felgenhauer.  “In response Russia could also meet the U.S. halfway” (Alex Nicholson, Associated Press/NASDAQ.com, Nov. 19).

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