UK stops trade with two Iranian firms

Despite the recent positive talks between Iran and the world major powers, Britain moves to enforce a halt in financial ties with two Iranian firms.

The United Kingdom on Monday said it had ordered financial companies to stop all business with Iran's Bank Mellat and the Islamic Republic of Iran Shipping Lines (IRISL).

The decision has been made in response to a "significant risk to the UK's national interest posed by activity in Iran that facilitates the development or production of nuclear weapons," said a statement by the Treasury.

Ali Akbar Javanfekr, a media advisor to Iranian President Mahmoud Ahmadinejad, dismissed Britain's decision and said sanctions in the long run would prove beneficial for Iran.

"If the British government decided to impose sanctions against Iran this would show that Britain is getting far from the realities of the current world and such a trend will be against the interests of the British people," he told Reuters.

Bank Mellat and IRISL have not so far commented on the UK decision.

“Iran continues to pursue its proliferation sensitive nuclear and ballistic missile activities in defiance of five UN Security Council Resolutions,” the Treasury said.

“On the particular entities in question, vessels of the Islamic Republic of Iran Shipping Lines (IRISL) have transported goods for both Iran's ballistic missile and nuclear program.”

“Similarly, Bank Mellat has provided banking services to a UN listed organization connected to Iran's proliferation sensitive activities, and been involved in transactions related to financing Iran's nuclear and ballistic missile program.”

Iran faces pressure to halt its nuclear enrichment activities, as some Western countries, spearheaded by the US and Israel, claim its program is aimed at building a nuclear bomb.

Tehran, however, has consistently denied seeking nuclear weapons and has called for the removal of all weapons of mass destruction from across the globe.

Washington, Tel Aviv and their European allies claim that Tehran has plans 'to build a nuclear weapon' and argue that the use of military force is a legitimate option in retarding Iran's nuclear progress.

Iran argues that the nuclear Non-Proliferation Treaty (NPT) — to which it is a signatory — gives the country the right to enrich uranium for peaceful purposes, adding that nuclear energy is essential for meeting its growing energy demand.