US Imposes Sanctions on Suppliers to Pakistan’s Ballistic Missile Program

The United States (US) has imposed sanctions on three Chinese and one Belarusian company over their alleged involvement in supplying components for Pakistan’s ballistic missile program, including its long-range missile program.

Notably, the Department of State, US has designated four entities pursuant to Section 1(a)(ii) of Executive Order 13382, which targets proliferators of weapons of mass destruction and their means of delivery.

The details of these entities are as under: 

  • Belarus-based Minsk Wheel Tractor Plant has worked to supply special vehicle chassis to Pakistan’s long-range ballistic missile program. Such chassis are used as launch support equipment for ballistic missiles by Pakistan’s National Development Complex (NDC), which is responsible for the development of Missile Technology Control Regime Category (MTCR) I ballistic missiles.
  • People’s Republic of China (PRC)-based Xi’an Longde Technology Development Company Limited, has supplied missile-related equipment, including a filament winding machine, to Pakistan’s long-range ballistic missile program that we assess was destined for NDC. Filament winding machines can be used to produce rocket motor cases.
  • PRC-based Tianjin Creative Source International Trade Co Ltd has supplied missile-related equipment to Pakistan’s long-range ballistic missile program, including stir welding equipment (which the United States assesses can be used to manufacture propellant tanks used in space launch vehicles), and a linear accelerator system (which the United States assesses can be used in the inspection of solid rocket motors). Tianjin Creative’s procurements were likely destined for Pakistan’s Space and Upper Atmosphere Research Commission (SUPARCO), which develops and produces Pakistan’s MTCR Category I ballistic missiles.
  • PRC-based Granpect Company Limited has worked with Pakistan’s SUPARCO to supply equipment for testing of large diameter rocket motors. In addition, Granpect Co. Ltd. also worked to supply equipment for testing large diameter rocket motors to Pakistan’s NDC.

Sanctions Implications

As a result of this action, and in accordance with E.O. 13382, all property and interests in property of the designated persons described above that are in the United States or in possession or control of U.S. persons are blocked and must be reported to the Department of Treasury’s Office of Foreign Assets Control (OFAC).

Additionally, all individuals or entities that have ownership, either directly or indirectly, 50 percent or more by one or more blocked persons are also blocked.

All transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons are prohibited unless authorized by a general or specific license issued by OFAC or exempt.

These prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person and the receipt of any contribution or provision of funds, goods, or services from any such person.

In addition, the entry of designated individuals into the United States is suspended pursuant to Presidential Proclamation 8693.

The power and integrity of US Government sanctions derive not only from the US government’s ability to designate and add persons to the Specially Designated Nationals and Blocked Persons List (SDN) List, but also from its willingness to remove persons from the SDN List consistent with the law.