A fuel oil smuggling network operating in Iraq has reportedly generated approximately $1 billion in annual profits for Iran, according to a Reuters report citing anonymous sources.
The operation began after Mohammed Shia al-Sudani assumed the role of Prime Minister of Iraq. The smuggling process involves diverting fuel oil from Iraqi asphalt plants and funneling it to Asia. The network is composed of companies and individuals in both Iran and Iraq, as well as several Gulf countries, the sources noted. Some of the information came from three Western intelligence reports, although the sources were not identified.
The smuggling network is said to be diverting between 500,000 and 750,000 metric tons of heavy fuel oil each month. This amounts to roughly 3.4 million to 5 million barrels of oil.
Accusations that Iraq is helping Iran evade sanctions by selling its oil have surfaced before. Earlier this year, a group of U.S. congressmen urged President Biden to bar Iraq’s oil minister, Hayyan Abdul-Ghani, from attending events in the U.S. due to his alleged role in sanction evasion. They also called for an investigation into Abdul-Ghani and other Iraqi officials.
The congressmen highlighted several public reports accusing Abdul-Ghani and other Iraqi officials of being involved in large-scale efforts to circumvent U.S. sanctions for Iran. They requested that the U.S. government prevent Abdul-Ghani from attending U.S. events until the allegations are investigated and the findings are shared with Congress.
The allegations center around Iraqi oil being shipped to Iran, where it is allegedly loaded onto ships or trucks and sent to destinations including Afghanistan and Pakistan.
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