U.S. Sanctions Ships Linked To Illegal Shipment Of Iranian Oil To Syria & East Asia

The U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned over a dozen companies and ships for transporting Iranian crude oil and liquid petroleum gas to Syria and East Asia.

The companies and ships are linked to the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF) and Hizballah.

Four ships associated with Syria’s Abdul Jalil Mallah and his brother Luay al-Mallah, who still use their shipping business to support Iran’s illegal activities have been sanctioned.

Abdul Jalil Mallah was previously sanctioned on June 10, 2021, for supporting an IRGC-QF-backed financial network.

The Mallah family’s vessels have been used to transfer IRGC-QF-controlled oil between Syria and Iran. Luay al-Mallah was also sanctioned as part of a recent action.

Bradley T. Smith, Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence, highlighted the U.S. government’s commitment to disrupting these operations, saying Iran continues to depend on the illegal trade of oil and LPG by the IRGC-QF and Lebanese Hizballah to fund its terrorist proxies and destabilizing activities.

Smith reiterated the Treasury’s efforts to disrupt the networks of shippers and buyers involved in these schemes.

The sanctions target several companies, including Star Ocean Shipmanage Ltd., based in the People’s Republic of China (PRC), which operates the vessels ETERNAL SUCCESS, ETERNAL 8, and ETERNAL PEACE, all of which have been involved in illegal oil shipments.

Dragon Road Ltd. of the Marshall Islands and Tai Feng Hai Shipping Limited of Hong Kong were also sanctioned for managing vessels that transported IRGC-QF-owned products between Iran and East Asia.

The Mallah family’s ships, including CONFIDENCE P, NOVA, RIVAL, and TIYARA, have also facilitated illegal trade between Syria and Iran on behalf of the IRGC-QF and Hizballah.

All property of the sanctioned individuals and companies is blocked under U.S. jurisdiction. U.S. citizens are not permitted to do transactions with sanctioned companies unless OFAC specifically authorizes them. Non-U.S. citizens involved in transactions with these companies may risk further sanctions or enforcement measures.

The move was taken under Executive Order 13224, which targets individuals and groups that provide support to terrorist organizations. It shows the U.S. government’s intention to deter Iran’s financial support for its proxies through illegal oil trade.

Reference: U.S. Department of Treasury