The United States on Wednesday blacklisted two Iranian foundations controlled by Supreme Leader Ayatollah Ali Khamenei, and their subsidies, saying the institutions enabled Iran's elite to sustain a "corrupt" system of ownership over large parts of the economy.
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The measure was introduced as Iran announced it has started producing uranium metal-based fuel for a research reactor – the latest breach of its nuclear deal with six major powers as the country presses for a lifting of US sanctions.
Iran has been accelerating its breaches of the deal in the past two months. Some of those steps were required by a law passed in response to the killing of its top nuclear scientist in November, which Tehran has blamed on its arch-foe Israel.
They are also, however, part of a process started by Tehran in 2019 of committing breaches in response to US President Donald Trump's 2018 withdrawal from the deal and his reimposition of US sanctions that the deal lifted in exchange for restrictions on Iran's nuclear activities.
The moves raise pressure on US President-elect Joe Biden, who takes office next week and has pledged to return the United States to the deal if Iran first resumes full compliance. Iran wants Washington to lift sanctions first.
International Atomic Energy Agency Director Rafael Mariano Grossi has "informed IAEA member-states about recent developments regarding Iran's plans to conduct R&D activities on uranium metal production as part of its declared aim to design an improved type of fuel for the Tehran Research Reactor," the IAEA said in a statement.
The agency issues ad hoc reports to member states when Iran commits a new breach of the deal, though it declines to call them breaches, leaving that call to parties to the 2015 accord.
The deal specifically imposes a 15-year ban on Iran producing or acquiring uranium metal, a sensitive material that can be used in the core of a nuclear bomb.
The IAEA's report further said Iran had indicated it plans to produce uranium metal from natural uranium and then produce uranium metal enriched up to 20% for fuel for the Tehran Research Reactor.
The deal also says that can only happen in small batches and in consultation with parties to the deal after 10 years.
Separately, Iran also plans to enrich uranium to 20%, a level it last reached before the 2015 deal, at its Fordo site buried in a mountain, and it started that process last week. It had so far only gone as far as 4.5%, above the 3.67% limit imposed by the deal but still far short of the 90% that is weapons grade.
Iran told the agency on Wednesday, however, that "there is no limitation on [its] R&D activities" and "modification and installation of the relevant equipment for the mentioned R&D activities have been already started" at its Fuel Plate Fabrication Plant in Isfahan, the IAEA report said.
The sanctions announced by the US Treasury Department target Execution of Imam Khomeini's Order (EIKO) and Astan Quds Razavi (AQR), their leaders and subsidies. They are the latest action to reinforce the "maximum pressure" campaign on Iran pursued by President Donald Trump's administration.
"These institutions enable Iran's corrupt leaders to exploit a system of ownership over a wide range of sectors of Iran's economy," US Secretary of State Mike Pompeo said in a statement.
The Trump administration has piled a barrage of sanctions on Iranian officials, politicians and companies but has so far failed to lure the Iranian government back to the negotiating table.
On Tuesday, Pompeo said without providing hard evidence that al Qaeda had established a new home base in Iran and that it was time "for America and all free nations to crush the Iran-al-Qaeda axis."
Republican Trump is due to hand over power on Jan. 20 to Democratic President-elect Joe Biden who has said the United States will rejoin the nuclear deal "if Iran resumes strict compliance."
Advisers to Biden believe the Trump administration is trying to make it harder for him to re-engage with Iran.
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