OFAC designated Chinese national Ruan Runling and three associated Chinese companies for proliferation activities in support of a key designated Iranian defense entity. Ruan was sanctioned pursuant to E.O. 13382 because he has provided, or attempted to provide, financial, material, technological, or other support for, or goods or services in support of Iran's Shiraz Electronics Industries (SEI). OFAC designated SEI on September 17, 2008, for being owned or controlled by Iran's Ministry of Defense and Armed Forces Logistics, which was designated on October 25, 2007. SEI has engaged in the production of various electronics equipment for the Iranian military, including missile guidance technology.
Ruan is a Chinese proliferation agent and has supplied SEI with missile-applicable items and technology, to include U.S.-origin goods. Since at least 2015, Ruan has provided SEI with a wide range of missile-related technology and goods that include gyroscopes and other missile-applicable navigation technology. Gyroscopes can be used in missile systems for navigational, guidance, or stabilization purposes.
As part of today's action, OFAC designated three China-based companies associated with Ruan. Shanghai North Begins International, Shangai Gang Quan Trade Co., and Shanghai North Transway International Trading Co. are being designated pursuant to E.O. 13382 for having provided, or attempted to provide, financial, material, technological, or other support for, or goods or services in support of, SEI. Ruan used Shanghai North Begins International to sell $17 million worth of navigation-applicable technology and guidance systems, as well as other dual-use technology to SEI. Ruan, via Shangai Gang Quan Trade, sold goods to SEI. Ruan also used Shanghai North Transway to sell more than $1 million worth of items to SEI.
On August 16, 2010, OFAC issued the Iranian Financial Sanctions Regulations, 31 CFR part 561 (75 FR 49836, August 16, 2010) (IFSR) to implement provisions of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (Pub. L. 111–195) (22 U.S.C. 8501–8551). Since then, OFAC has amended the IFSR several times.
