US Sanctions Company Smuggling Iranian Oil: "Maximum Pressure Will Be Imposed"

The U.S. government has imposed sanctions on a company that smuggled Iranian oil by disguising it as Iraqi oil. This move is seen as an effort to block Iran's international sanctions evasion strategy and cut off its sources of funding.

Scott Baesent, U.S. Secretary of the Treasury. Photo by Reuters Yonhap News

The Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury announced on September 2 (local time) that it would impose sanctions such as asset freezes within the United States and a ban on transactions in the U.S. on a shipping company led by Walseed Al Samarai, a businessman with dual Iraqi and Saint Kitts and Nevis citizenship, as well as on related vessels.

These companies have been mixing Iranian and Iraqi oil to sell it as Iraqi oil in order to evade sanctions. According to the U.S. Treasury Department, this method enabled the Iranian regime and Al Samarai to generate at least $300 million in annual revenue.

The sanctions target Al Samarai personally, two companies-Babylon Navigation DMCC, based in the United Arab Emirates, and Galaxy Oil FZ LLC-as well as nine Liberia-flagged vessels and five associated paper companies.

Previously, in July, the Treasury Department also sanctioned 15 shipping companies from 17 countries, 52 vessels, and 12 individuals for their involvement in the sale of Iranian oil and other goods. Last month, it imposed sanctions on a Greek shipping company and two Chinese crude oil terminal operators for their involvement in Iranian oil exports.

U.S. Secretary of the Treasury Scott Baesent stated, "Iraq must not become a safe haven for terrorists. This is why the United States is working to counter Iran's influence in Iraq," adding, "The Treasury Department will continue to target Iran's oil revenue sources, further weakening the Iranian regime's ability to attack the United States and its allies." He continued, "We will maintain our efforts to block Iran's ongoing attempts to evade U.S. sanctions."

The U.S. State Department also stated, "The United States will continue to apply maximum pressure on the Iranian regime and take steps to cut off the revenue sources that fund their destabilizing activities."