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12 January 1999

TEXT: U.S. IMPOSES PENALTIES ON THREE RUSSIAN ENTITIES

(Elements in Russia contributed to Iran's WMD programs) (380)
Washington -- The United States is banning exports to and imports from
three entities in Russia for materially contributing to Iran's nuclear
weapons and missile programs, according to a statement released
January 12 by the White House press secretary.
President Clinton's July 1998 Executive Order on weapons of mass
destruction (WMD) is one of the authorities providing the basis for
this action.
The penalties apply only to the three entities, not to the Russian
government or Russia as a whole, the release stated.
Following is the text of the White House release:
(Begin text)
THE WHITE HOUSE
Office of the Press Secretary
January 12, 1999
STATEMENT BY THE PRESS SECRETARY
Trade Penalties Against Three Russian Entities
The U.S. Government has imposed trade penalties against three Russian
entities for materially contributing to Iran's nuclear weapons and
missile programs. These three entities are NIKIET (the Scientific
Research and Design Institute of Power Technology), the D. Mendeleyev
University of Chemical Technology, and the Moscow Aviation Institute
(MAI). Based on existing authorities, including President Clinton's
July 1998 Executive Order on weapons of mass destruction (WMD), the
United States is banning exports to and imports from these entities,
as well as U.S. Government procurement from and assistance to these
entities. Relevant notices to this effect will appear shortly in the
Federal Register.
The Clinton Administration is taking these actions as part of its
ongoing, high-priority effort to combat the threat to U.S. forces,
allies, and interests posed by Iran's aggressive pursuit of WMD and
their delivery systems. These penalties apply only to the
aforementioned entities, not to the Russian government or Russia as a
whole. These steps complement the Russian government's efforts to
enforce its laws and international commitments relating to
non-proliferation and export controls.
The United States will continue to work with Russia to strengthen
controls on such exports and to enforce compliance with the laws,
policies, and international agreements on such transfers. The United
States will continue to urge the Russian leadership to take aggressive
steps to curtail the flow of sensitive technology to Iran from Russian
entities in violation of the Russian government's laws and policies.
(End text)