Nuclear Issues

Over the past two decades, the United States has increasingly turned to targeted sanctions and export restrictions, such as those imposed against Iran and North Korea, in order to curb the spread of weapons of mass destruction. One vexing problem, however, is how to contend with jurisdictional hurdles when the violations occur overseas, in countries that are unable or unwilling to assist US enforcement efforts. To solve this problem, US prosecutors are turning to strategies with significant extraterritorial implications—that is, exercising legal authority beyond national borders. One such tool is to use civil legal procedures to seize assets linked to sanctions or export-control violations in jurisdictions that lack cooperative arrangements with US enforcement agencies. While this may be an attractive strategy to bolster enforcement efforts against overseas illicit procurement, using such tools is not without consequence. This article explores the political, legal, and technical implications of enforcing extraterritorial controls against overseas non-state actors by exploring the recent uses of civil-asset forfeiture against Iranian and North Korean procurement networks.

Since the 1979 revolution, Iran has sought to illicitly procure parts for the U.S. origin fighter aircraft sold to the country under the rule of the Shah. The U.S. has taken steps to quash this trade—these efforts have constituted a relatively large proportion of U.S. export control enforcement over the past near-to-four decades. 

In a televised speech on January 1, Iranian President Hassan Rouhani said that Tehran had imported 200 metric tons of yellowcake uranium and would import another 120 tons at an unspecified future date. The imports are permitted by the nuclear deal, the Joint Comprehensive Plan of Action (JCPOA), but nonetheless significantly exceed Iran’s needs for natural (that is, unenriched) uranium over the next 15 years. Iran’s import of such high levels of uranium suggests it may be stockpiling uranium to reach nuclear breakout before the deal’s initial limitations expire in 2031.

The JCPOA permits Iran to buy natural uranium to “replenish” its stocks as it sells enriched uranium on the international market. To date, Iran has had difficulties locating a buyer for its enriched uranium stocks – unsurprising, given the current excess of commercially available enriched uranium. This, however, has not stopped Iran from buying and stockpiling more yellowcake.

Iran plans to manufacture and install additional advanced centrifuges at its Natanz facility in about 10 years, substantially boosting the country’s uranium-enrichment capability, according to a confidential document leaked last week by the Associated Press. According to the plan – which Iran reportedly shared with the IAEA six months ago – Tehran’s breakout time will shrink to a few weeks or less.

Furthermore, days after those revelations, Iranian officials saidthat they are prepared to swiftly reinstall dismantled centrifuges should their counterparts not fulfill their commitments under the deal, known as the Joint Comprehensive Plan of Action or JCPOA. The head of Iran’s Atomic Energy Organization, Ali Akbar Salehi, even said that his country could restore its pre-JCPOA enrichment capacity within 45 days.

In this journal article for Survival, Aaron Arnold argues that the success of financial sanctions rests largely on the dominance of the US dollar and the correspondent banking system. Yet emerging trends could undermine Washington’s capacity to employ this tool.

Leading up to and during the 2016 Nuclear Security Summit, Belfer Center experts released reports, published commentary, and provided insight and analysis into global nuclear security. In advance of the Summit, the Project on Managing the Atom set the stage for discussion with the report Preventing Nuclear Terrorism: Continuous Improvement or Dangerous Decline?

An in-progress compilation of the expert commentary and analysis is available here.

The Project on Managing the Atom (MTA) at the Harvard Kennedy School of Government seeks Student Associates for the summer of 2016. These internships provide opportunities for undergraduate or graduate students to meet experts in nuclear policy, attend lectures and seminars, and assist MTA project faculty, staff, and fellows with their research. MTA will provide a modest hourly wage or academic credit for the internship.