By Mengqi Sun 

Berkshire Hathaway Inc. has agreed to pay roughly $4.1 million to settle allegations that a Turkish subsidiary violated U.S. sanctions on Iran.

The U.S. Treasury Department on Tuesday alleged that Berkshire's indirect subsidiary -- Iscar Kesici Takim Ticareti ve Imalati Limited Sirket -- sold cutting tools and related inserts to two third-party Turkish distributors between 2012 and 2016, knowing that the goods would be shipped to a distributor in Iran for resale to end-users there.

Several of those recipients were identified later as Iranian government entities, according to the civil settlement agreement between Berkshire and the Treasury's Office of Foreign Assets Control. U.S. regulations prohibit any U.S. companies and their foreign subsidiaries from dealing with the government of Iran and its entities.

A spokesperson for Berkshire didn't immediately respond to a request for comment.

Write to Mengqi Sun at


(END) Dow Jones Newswires

October 20, 2020 13:57 ET (17:57 GMT)

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