Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Billions in US public money 'spent in Iran'

Details emerge of billions awarded by the US to firms dealing with Tehran

Guy Adams
Monday 08 March 2010 01:00 GMT
Comments
(AP)

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

The US taxpayer has given more than $107bn (£71bn)during the past decade to companies which are also doing business with Iran, it was revealed yesterday. That sum includes at least $15bn (£9.9bn) of US Government funds that were channelled to corporations which have defied international sanctions to help Iran develop its vast and strategically important oil and gas reserves.

News of the payments comes as Washington seeks to coax Russia and China into supporting tough new measures against Mahmoud Ahmadinejad's regime as punishment for its nuclear programme.

Draft UN proposals, which are supported by the UK, would impose a full arms embargo and heighten restrictions against Iranian banks and businesses. Passing the proposed sanctions at the UN's Security Council this month was already set to be an uphill struggle, even before yesterday's New York Times revealed the extent of Washington's investment in companies dealing with Iran.

The US Government's ban on dealing with Iran does not cover their foreign subsidiaries. Neither does it prevent Washington from giving taxpayers' money to overseas corporations which may also deal with Iran.

In fact, when it has suited, both George Bush's and Barack Obama's administrations have been happy to cut deals with firms that break both the spirit, and occasionally the letter of the sanctions laws against Iran.

A New York Times analysis of federal records and company reports reveals that 74 companies have done business with both the US Government and Iran since 2000. And despite heightened recent tensions, 49 of them continue to do business there with no announced plans to leave.

Two-thirds of the US taxpayer money handed out in that period went to firms dealing in Iran's energy sector, a major source of revenue for both the Ahmadinejad regime and its Islamic Revolutionary Guard Corps, which oversees the country's nuclear and missile programmes.

Many US Government contracts, totalling at least $102bn (£67bn), went to firms such as the South Korean energy giant Daelim Industrial, which in 2009 won a $111m (£73m) deal to build housing at a US military base near Seoul, shortly after also winning a $700m (£463m) contract to upgrade an Iranian oil refinery.

Royal Dutch Shell, one of seven firms that has challenged the Iran Sanctions Act, is another major beneficiary of those contracts. None of the 74 companies is accused of breaking any laws.

But their dealings highlight the difficulties in reconciling America's commitment to oiling the wheels of global capitalism with its myriad diplomatic goals.

In 2004, controversy erupted over news that Halliburton, the Vice President Dick Cheney's former company, had used a Cayman Islands subsidiary to sell oil-field services to Iran.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in