How Iran Defeated the Sanctions: the Chinese Connection

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A Chinese citizen faces U.S. criminal charges that he conspired to export to Iran products that could be used in that country’s nuclear program, the U.S. Justice Department.  Sihai Cheng supplied thousands of parts that have nuclear applications to Eyvaz, a company involved in Iran’s nuclear weapons program, in violation of U.S. sanctions on Iran, federal prosecutors said.

Sihai Cheng of Shanghai and Seyed Abolfazl Shahab Jamili of Tehran allegedly plotted between 2009 and 2011 to send pressure measuring sensors, or transducers, ordered from MKS Instruments Inc. in Andover, USA, to Eyvaz Technic Manufacturing Co., a Tehran-based business that has supplied parts to Iranian nuclear facilities.  Transducers are used in commercial products, but can also be used in gas centrifuges to convert natural uranium into a form suited for nuclear weapons, the indictment states.

Prosecutors said MKS Instruments sent the transducers to China without knowing they were ultimately bound for Iran.

In February 2009, Jamili wrote to Cheng that Eyvaz Technic was seeking to obtain a type of transducer. Eyvaz has “supplied parts for Iran’s development of nuclear weapons,” the indictment states.  After receiving the 2009 e-mail, Cheng allegedly plotted with unidentified coconspirators at MKS-Shanghai, a wholly owned Chinese subsidiary of MKS in Andover, to set up front companies to pose as the intended recipients of the materials, which were ordered from the Andover office.  In addition, MKS-Shanghai employees listed other legitimate Chinese companies as recipients in purchase orders sent to Andover, authorities said.  More than 1,000 orders for MKStransducers with a combined value of over $1.8 million were placed between April 2009 and January 2011, the indictment said. Once the parts arrived in China, Cheng had them shipped to Eyvaz, the Iranian company accused of supplying material for Iran’s nuclear enrichment facilities.

Prosecutors wrote that MKS in Andover “unwittingly assisted MKS-Shanghai in fraudulently obtaining an export license for a large quantity of pressure transducers.”  Authorities say there is evidence MKS products reached the Natanz nuclear enrichment facility in Iran, which began operating thousands of gas centrifuges as early as 2007.  “Publicly available photographs of Natanz [with then President Mahmoud Ahmadinejad] show numerous MKS pressure transducers attached to Iran’s gas centrifuge cascades,” the indictment says.

Excerpt from Chinese national indicted in US over exports to Iran,  Reuters, Apr. 4, 2014 and from Travis Andersen and Jennifer Smith,Men accused of sending nuclear supplies to Iran, Boston Globe, Apr. 5, 2014

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