U.S. Sanctions Firms and Vessels Illegally Transporting Iranian Oil
Table of Contents
- U.S. Sanctions Firms and Vessels Illegally Transporting Iranian Oil
- Entities Targeted for Sanctions
- iran-Iraq Oil Smuggling Network
- IRGC-QF Oil Sales and the Al-Qatirji Company
- Sanctions Implications and Enforcement
- Vessels and Companies Involved
- Background on iranian Oil Sanctions
- Frequently Asked Questions About Iranian Oil Sanctions
- What are secondary sanctions, and how do they affect foreign financial institutions?
- How can companies ensure they are not violating U.S. sanctions related to Iranian oil?
- What role does the Strait of Malacca play in the transport of Iranian oil?
- How do ship-to-ship transfers contribute to sanctions evasion?
- What is the impact of these sanctions on the global oil market?
WASHINGTON-in a move to intensify pressure on Iran’s oil revenue streams, the U.S.Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced sanctions today against multiple entities involved in the illicit transport and sale of iranian oil. These actions target networks that have collectively handled billions of dollars’ worth of Iranian oil, with some proceeds benefiting the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF), a designated Foreign Terrorist Organization.The sanctions aim to disrupt Iran’s access to financial resources that fuel its destabilizing activities, according to the Treasury Department.
Entities Targeted for Sanctions
The sanctions, enacted under Executive Order (E.O.) 13902 and counterterrorism authority E.O. 13224, target companies and vessels involved in the iranian petroleum sector. This marks the eighth round of sanctions on iran’s oil trade since the issuance of National security Presidential Memorandum 2, which directed a campaign of maximum pressure on Iran. Concurrently, the Department of State is designating six entities and identifying four vessels under E.O. 13846 for engaging in important transactions related to Iranian petroleum.
Did You No? The global crude oil market is projected to reach $3.2 trillion by 2028,highlighting the significant financial stakes involved in the trade of petroleum products Fortune Business Insights.
Key Entities and Vessels Sanctioned:
- salim Ahmed Said: An iraqi-British national running a network selling Iranian oil falsely declared as Iraqi oil since at least 2020.
- Trans Arctic Global Marine Services PTE. LTD.: A Singapore-based company arranging piloting services for NITC vessels.
- VIZURI (IMO 9197909), FOTIS (IMO 9306548), THEMIS (IMO 9264570), and BIANCA JOYSEL (IMO 9196632): Vessels that have collectively shipped tens of millions of barrels of Iranian oil.
- Egir Shipping Ltd,Fotis Lines Incorporated,and Themis Limited: Companies owning the VIZURI,FOTIS,and THEMIS,respectively.
- Betensh Global Investment Limited And Dong Dong Shipping Limited: Owners of the BIANCA JOYSEL.
- White Sands Shipmanagement Corp, Grat Shipping Co Ltd, and Dima Shipping & Trading Company: Companies managing vessels involved in Iranian oil transport.
iran-Iraq Oil Smuggling Network
Salim Ahmed Said, an Iraqi-British national, operates a network of companies that have been selling Iranian oil falsely labeled as Iraqi oil since at least 2020. Said’s companies use ship-to-ship transfers and other methods to conceal their activities. They blend Iranian oil with Iraqi oil, selling it to Western buyers via Iraq or the UAE with forged documentation to circumvent sanctions. Said has also reportedly bribed Iraqi government officials to facilitate these activities.
pro Tip: Ship-to-ship transfers are a common tactic used to obscure the origin of oil and evade sanctions,making it challenging to track the movement of illicit petroleum products.
IRGC-QF Oil Sales and the Al-Qatirji Company
The IRGC-QF has utilized the al-Qatirji Company to facilitate oil sales, generating significant revenue. Vessels such as the ELIZABET (IMO 9216717),ATILA (IMO 9262754),and GAS MARYAM (IMO 9108099) have been used to transport Iranian petroleum products,frequently enough disguising the origin of the oil. These activities support the U.S.-sanctioned Sa’id al-Jamal network, which has materially assisted the IRGC-QF.
Sanctions Implications and Enforcement
As a result of these actions, all property and interests in property of the designated persons within the U.S. or controlled by U.S. persons are blocked and must be reported to OFAC. Violations of U.S. sanctions may result in civil or criminal penalties. OFAC’s Economic Sanctions Enforcement Guidelines provide further details on enforcement. Financial institutions risk sanctions for engaging in transactions with designated persons. OFAC also has the authority to impose secondary sanctions on foreign financial institutions involved in significant transactions with sanctioned entities.
The power of OFAC sanctions lies in its ability to designate and remove persons from the Specially Designated Nationals and Blocked Persons List (SDN List). The ultimate goal is to encourage positive behavioral change. Data on seeking removal from an OFAC list is available on the OFAC website.
Vessels and Companies Involved
The following table summarizes the vessels and companies involved in the illicit transport of Iranian oil:
| Vessel (IMO) | Flag | Owner/Manager | Activity |
|---|---|---|---|
| VIZURI (9197909) | Cameroon | Egir Shipping Ltd | Shipped millions of barrels of Iranian oil |
| FOTIS (9306548) | Comoros | Fotis Lines Incorporated | Transported millions of barrels of Iranian LPG |
| THEMIS (9264570) | Panama | Themis Limited | Transported Iranian oil |
| BIANCA JOYSEL (9196632) | Panama | Betensh Global Investment Limited And Dong Dong Shipping Limited | Transported over ten million barrels of Iranian oil |
| ELIZABET (9216717) | Cameroon | White Sands Shipmanagement Corp. (Manager) | loaded Iranian oil via ship-to-ship transfer |
| ATILA (9262754) | Cameroon | Grat Shipping Co Ltd (Manager, Operator, Owner) | Transported Iranian oil disguised as malaysian oil |
| GAS MARYAM (9108099) | Palau | Dima Shipping & Trading Company (Manager, Operator, Owner) | Transported Iranian petroleum products |
Background on iranian Oil Sanctions
The U.S. has a long history of imposing sanctions on Iran to curb its nuclear ambitions and destabilizing activities in the Middle east Council on Foreign Relations.These sanctions have evolved over time, targeting various sectors of the Iranian economy, including oil, banking, and shipping.The goal is to limit Iran’s ability to finance its activities and pressure the regime to change its behavior. The effectiveness of these sanctions is a subject of ongoing debate, with some arguing that they have significantly hampered Iran’s economy, while others contend that they have had limited impact.
The current sanctions regime is part of a broader strategy of “maximum pressure” aimed at compelling Iran to negotiate a new nuclear agreement. However,these sanctions have also had unintended consequences,including economic hardship for the Iranian people and increased tensions in the region. The international community remains divided on the best approach to dealing with Iran, with some countries advocating for diplomacy and engagement, while others support a more confrontational approach.
Frequently Asked Questions About Iranian Oil Sanctions
What are secondary sanctions, and how do they affect foreign financial institutions?
Secondary sanctions are measures that the U.S. can impose on foreign individuals and entities that engage in certain transactions with sanctioned countries or individuals. For foreign financial institutions, this can mean being prohibited from opening or maintaining correspondent accounts in the United States, effectively cutting them off from the U.S. financial system.
Companies should conduct thorough due diligence on all transactions involving petroleum products to ensure they are not sourced from Iran or involve sanctioned entities.This includes verifying the origin of the oil,scrutinizing shipping documents,and implementing robust compliance programs.
What role does the Strait of Malacca play in the transport of Iranian oil?
The strait of Malacca is a critical waterway for global trade, including the transport of Iranian oil. Companies like Trans Arctic Global Marine Services PTE.LTD. facilitate the transit of NITC vessels through this strait, highlighting its strategic importance in the Iranian oil trade.
How do ship-to-ship transfers contribute to sanctions evasion?
Ship-to-ship transfers allow sanctioned entities to obscure the origin of oil by transferring it from one vessel to another, making it difficult to track and enforce sanctions. This tactic is frequently used to disguise Iranian oil as oil from other countries.
What is the impact of these sanctions on the global oil market?
Sanctions on Iranian oil can reduce the global supply of oil, perhaps leading to higher prices. Though, the actual impact depends on various factors, including the willingness of other countries to increase production and the effectiveness of sanctions enforcement.
What impact do you think these sanctions will have on Iran’s behavior? How effective are economic sanctions as a tool of foreign policy?
Disclaimer: This article provides general information and should not be construed as legal or financial advice. Consult with a qualified professional for specific guidance.
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