UANI Calls on Wärtsilä to End Support for Construction of Iranian Tankers, Cease Flow of Technology to Iran

UANI has been publicly highlighting Wärtsilä's Iran exposure for several months, as the company is involved in providing technology and marine diesel engines to Chinese shipbuilders that are currently building oil tankers for the Iranian regime.

In recent correspondence with UANI, Wärtsilä stated that it has done "everything in its power to cease business activities in Iran."

UANI finds this statement to be disingenuous, given that Wärtsilä recently renewed its lucrative license agreement with China State Shipbuilding Co., Ltd; the prime contractor for six of Iran's twelve new VLCC-sized tankers. Since November 2012, Wärtsilä has renewed its license agreements with every major shipbuilding entity involved in the construction of new tankers for the Iranian regime.

UANI also notes that Wärtsilä continues to profit from its involvement in Iran's new tanker construction, by way of its 33.8% stake in Qingdao Qiyao Wärtsilä MHI Linshan Marine Diesel Co, Ltd. (QMD), which is owned by the shipyards building Iran's new VLCCs.

In its letter, Wärtsilä states that "Wärtsilä's support for the Iran embargo goes well beyond the strict requirements of applicable sanctions against Iran." The facts surrounding Wärtsilä's business activities appear to belie this representation.

It is unclear how Wärtsilä can claim to be in compliance with shipping sanctions imposed on the Iranian regime by the international community at a time when Wärtsilä 2-stroke engines are being constructed and fitted for the regime's new VLCCs. EU legislation specifically sanctions activities, such as the foregoing, that are carried out in support of Iran's construction of new tankers. ...

It is also unclear how Wärtsilä can claim to have done "everything in its power to cease business activities in Iran" in light of reports that Wärtsilä has renewed its lucrative license agreement with China State Shipbuilding Co., Ltd ("CSSC"), the prime contractor for 6 of Iran's 12 new VLCCs. In fact, since November 2012, Wärtsilä has renewed its license agreements with every major shipbuilding entity involved in the construction of new tankers for the Iranian regime, including China Shipbuilding Industry Corporation ("CSIC"), and engine manufacturers Qingdao Zichai Boyang Diesel Engine Co Ltd - China and CSSC-MES Diesel Co Ltd - China. These license agreements provide for the inclusion of designs and construction rights for the same low-speed 2-stroke Wärtsilä engines that Wärtsilä claims to be keeping out of Iranian hands. Clearly if Wärtsilä was doing everything in its power to support the international effort to isolate the Iranian regime, these licensing agreements would not have been renewed.

Finally, it is beyond dispute that Wärtsilä continues to profit from its involvement in Iran's new tanker construction. For example, Wärtsilä maintains a 33.8% stake in Qingdao Qiyao Wärtsilä MHI Linshan Marine Diesel Co, Ltd. ("QMD"), a Chinese engine supplier and subsidiary of CSIC, which is currently building Wärtsilä engines for Iran's new VLCCs. Surely Wärtsilä understands the disconnect whereby it claims to be acting responsibly while simultaneously investing in and profiting from Iran's efforts to increase its oil exports, the proceeds of which directly finance the Iranian regime's activities including its illegal nuclear weapons program and support for terror groups worldwide.

UANI has requested a response from Wärtsilä by March 30.