Singapore-based Tanker Pacific has denied any wrongdoing in the sale of one of its tankers, after it fell afoul of the US State Department for allegedly selling the MT Raffles Park to Iran.
Tanker Pacific said yesterday that it was 'startled' to learn that the State Department had decided to impose sanctions on it and six other companies outside Singapore under the Comprehensive Iran Sanctions, Accountability, and Divestment Act 2010.
'(Tanker Pacific) had absolutely no idea whatsoever that the ship was going into Iranian hands,' said Edward Ion, the company's spokesman.
Tanker Pacific is closely affiliated to Israeli firm Ofer Brothers Group, which has also been sanctioned for its alleged role in the tanker sale, along with Monaco- based Associated Shipbroking.
The company said it believes that the decision being made by the American authorities is 'in error'. BT understands that it has been asked to an urgent meeting by the economic department of the American Embassy here, which will take place 'hopefully in the next 48 hours', according to Mr Ion.
'(Tanker Pacific) genuinely believes that this is a fundamental misunderstanding and they look forward to clearing it up,' said Mr Ion.
This will not be Tanker Pacific's first meeting with US Embassy officials. The firm met with the embassy earlier this year because of queries over the same vessel, which had been sold to a United Arab Emirates firm - Crystal Shipping FZE - last September.
'This had cropped up then, and (Tanker Pacific) said that they had absolutely no idea,' said Mr Ion.
The State Department, however, believes that the tanker (valued at US$8.65 million) had been sold to the Islamic Republic of Iran Shipping Lines (IRISL), which is 'an entity that has been designated by the United States and the European Union for its role in supporting Iran's proliferation activities', according to a State Department fact- sheet.
'Tanker Pacific has assured the American authorities that all appropriate action was taken at the time of the transaction to ascertain that the parties involved were not connected to the Iranian shipping company, IRISL, or any other entity subject to sanctions,' Tanker Pacific said in a statement yesterday.
The State Department, however, believes differently. 'We believe that Tanker Pacific and Ofer Brothers Group failed to exercise due diligence and did not heed publicly available and easily obtainable information that would have indicated that they were dealing with IRISL,' its fact-sheet said.
'The Secretary of State will hold companies accountable, as required by the Iran Sanctions Act, when they know or 'should have known' they were providing sanctionable goods or services to Iran.'
Ofer Brothers Group is an Israeli family-owned shipping business. During the State Department's conference call with the press in Washington on Tuesday, a journalist asked for specifics on the inclusion of the Israeli firm, saying: 'It seems odd that they would be involved in trade with Iran.'
In response, Deputy Secretary of State James B Steinberg said: 'It was for trade in petroleum products, and this was a company that engages in this kind of trade.'
Under the sanctions, Tanker Pacific and Ofer Brothers Group are barred from getting financing from the Export-Import Bank of the United States, from taking loans larger than US$10 million from US financial institutions and from receiving US export licences.
It is unclear if these sanctions are applicable with immediate effect. The other four companies being sanctioned for other alleged dealings with Iran are PCCI, Royal Oyster Group, Speedy Ship, and Petróleos de Venezuela.
Tanker Pacific said yesterday that it was 'startled' to learn that the State Department had decided to impose sanctions on it and six other companies outside Singapore under the Comprehensive Iran Sanctions, Accountability, and Divestment Act 2010.
'(Tanker Pacific) had absolutely no idea whatsoever that the ship was going into Iranian hands,' said Edward Ion, the company's spokesman.
Tanker Pacific is closely affiliated to Israeli firm Ofer Brothers Group, which has also been sanctioned for its alleged role in the tanker sale, along with Monaco- based Associated Shipbroking.
The company said it believes that the decision being made by the American authorities is 'in error'. BT understands that it has been asked to an urgent meeting by the economic department of the American Embassy here, which will take place 'hopefully in the next 48 hours', according to Mr Ion.
'(Tanker Pacific) genuinely believes that this is a fundamental misunderstanding and they look forward to clearing it up,' said Mr Ion.
This will not be Tanker Pacific's first meeting with US Embassy officials. The firm met with the embassy earlier this year because of queries over the same vessel, which had been sold to a United Arab Emirates firm - Crystal Shipping FZE - last September.
'This had cropped up then, and (Tanker Pacific) said that they had absolutely no idea,' said Mr Ion.
The State Department, however, believes that the tanker (valued at US$8.65 million) had been sold to the Islamic Republic of Iran Shipping Lines (IRISL), which is 'an entity that has been designated by the United States and the European Union for its role in supporting Iran's proliferation activities', according to a State Department fact- sheet.
'Tanker Pacific has assured the American authorities that all appropriate action was taken at the time of the transaction to ascertain that the parties involved were not connected to the Iranian shipping company, IRISL, or any other entity subject to sanctions,' Tanker Pacific said in a statement yesterday.
The State Department, however, believes differently. 'We believe that Tanker Pacific and Ofer Brothers Group failed to exercise due diligence and did not heed publicly available and easily obtainable information that would have indicated that they were dealing with IRISL,' its fact-sheet said.
'The Secretary of State will hold companies accountable, as required by the Iran Sanctions Act, when they know or 'should have known' they were providing sanctionable goods or services to Iran.'
Ofer Brothers Group is an Israeli family-owned shipping business. During the State Department's conference call with the press in Washington on Tuesday, a journalist asked for specifics on the inclusion of the Israeli firm, saying: 'It seems odd that they would be involved in trade with Iran.'
In response, Deputy Secretary of State James B Steinberg said: 'It was for trade in petroleum products, and this was a company that engages in this kind of trade.'
Under the sanctions, Tanker Pacific and Ofer Brothers Group are barred from getting financing from the Export-Import Bank of the United States, from taking loans larger than US$10 million from US financial institutions and from receiving US export licences.
It is unclear if these sanctions are applicable with immediate effect. The other four companies being sanctioned for other alleged dealings with Iran are PCCI, Royal Oyster Group, Speedy Ship, and Petróleos de Venezuela.