The United States (US) Department of Commerce on Thursday blacklisted six Pakistani companies for “using or diverting” items subject to the Export Administration Regulations (EARs) to bolster Pakistan’s “unsafeguarded” nuclear and missile-proliferation activities.
The EARs impose additional license requirements and ensure that blacklisted entities have limited access to license exceptions for exports, reexports, and transfers. As a result, American companies must secure licenses before shipping to the companies on the list, which is made very difficult by the regulations.
The Department’s statement said it made the decision in pursuance of the US’ “security and foreign policy interests.” To this end, the Bureau of Industry and Security introduced a license requirement on American companies exporting to these entities in order to deter the export of items dedicated to nuclear and missile activities. Furthermore, it mandates screening customers in Pakistan to prevent “unauthorised end uses and end users.”
The Commerce Department additionally enlisted four Emirati companies for supporting Pakistan’s nuclear activities.
A similar announcement last month also blacklisted several Chinese and Pakistani companies for the same reason. Chinese embassy spokesperson Liu Pengyu opposed the decision, accusing the US of using its “catch-all concept of national security” and abusing “state power to suppress and restrict Chinese enterprises in all possible means.”
The Department’s decision comes amid the US’ concern about Pakistan’s nuclear programme. In October, American President Joe Biden said that Pakistan wields “nuclear weapons without cohesion,” which makes it “one of the most dangerous nations in the world.”
Similarly, Russian Senator Igor Morozov has expressed alarm about Ukraine’s decision to ask Pakistan for help in developing nuclear weapons.
Thursday’s order added one Latvian, 10 Russian, four Singaporean, one Swiss, and four Emirati entities. It also removed one entity from the list that was listed in Oman, Saudi Arabia, and the United Arab Emirates.
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The order blacklisted the Latvian, Swiss, and Russian companies over their significant contribution to the Russian military or defence. It said that the companies are “Russian or Belarusian military end users.”
To this end, the US imposed additional license requirements and introduced a license review policy “under a presumption of denial,” particularly on specifically-designated products other than food and medicines.
The Singaporean company, Falcon Trading International Trading Company, allegedly supplies to Pardazan System Namad Arman, an Iran-based company that is already blacklisted by the US.
The US also blacklisted five Chinese companies last month for supporting the “military modernisation of the People’s Liberation Army.” The Commerce Department added three other companies to the list for “acquiring and attempting to acquire US-origin items in support of military applications.” These moves were motivated by the US’ aim to stop China from securing equipment to enhance its maritime abilities and break encryption.