U.S. sanctions imposed Oct. 1 on three Iranian rail companies block their property under U.S. jurisdiction and raise transaction risks for banks handling freight connections with Iran.
The designated companies are the Islamic Republic of Iran Railway Company, Raja Passenger Trains Company and Sherkat-E Rah Ahan-E Khamle-O-Naghle. A separate determination allows the Treasury’s Office of Foreign Assets Control (OFAC) to sanction other people and entities it determines operate in Iran’s rail sector.
U.S. persons are generally barred from transactions involving the designated companies’ blocked property unless authorized or exempt. Treasury also said foreign financial institutions could face secondary sanctions for certain dealings with designated parties.
The action followed the announced departure of a China-to-Iran container train. Uzbek operator O‘ztemiryo‘lkonteyner AJ said the train left Kazakhstan’s Altynkol station on Sept. 7 carrying 55 containers of passenger-car components, consumer goods and other cargo. It was scheduled to travel through Uzbekistan and Turkmenistan.
The operator put the route at more than 6,000 kilometers and projected a journey of 14 to 16 days. It said the shipment could lay the groundwork for regular container service, but announced no schedule.
Treasury said Iran had become more reliant on rail during a U.S. maritime blockade. That assessment was part of its rationale for targeting the sector; the Uzbek operator’s announcement described a departure before the sanctions, not a completed delivery.
Alireza Salavati, managing director of Middle East Analytica, told DW he would not describe overland freight as a replacement for sea shipping. “Reliability matters as much as speed,” he said, pointing to potential departure delays and difficulties involving banks or insurers.
In a separate February statement about the broader Uzbekistan–Turkmenistan–Iran–Turkey corridor, Uzbekistan’s Transport Ministry called for coordinated infrastructure, digital freight documents and simpler border procedures. The ministry said officials from Uzbekistan, Iran and Turkey agreed to establish an expert working group. It announced no meeting date.
