US sanctions UAE, Chinese cos to strangle Iranian energy network
Washington DC, June 5
US is targeting a sophisticated network that has allegedly smuggled millions worth of Iranian liquified petroleum gas to markets in South and East Asia.
Thomas Pigott, Spokesperson for the US Department of State, said that the network used front companies in the United Arab Emirates and China, along with Iran's shadow fleet of vessels, to disguise Iranian-origin fuel and circumvent US sanctions.
"Today, the United States is disrupting Iran's efforts to evade our sanctions and fund its destabilizing activities. The United States is targeting a sophisticated network that has smuggled hundreds of millions of dollars' worth of Iranian liquified petroleum gas (LPG) to markets in South and East Asia. This network used front companies in the United Arab Emirates and China, along with Iran's shadow fleet of vessels, to disguise Iranian-origin fuel and circumvent US sanctions," the Department of State said in a statement.
"We are also sanctioning an Iranian currency exchange house and its operators who work with other actors to help Iran facilitate billions of dollars in illicit financial transactions. These dealings enable the regime to move funds derived from oil sales while evading the international financial system," the statement added.
The statement further added that the action is a part of US campaign to exert maximum pressure on Iran.
"These sanctions are part of the Administration's Economic Fury campaign, which maintains maximum pressure on the Iranian regime and disrupts its ability to generate revenue for weapons development, support for terrorist proxies, and regional aggression. The United States will continue to take steps to hold accountable anyone who facilitates Iran's sanctions evasion, including foreign companies and financial institutions. We call on the international community to join us in enforcing these measures and preventing Iran from accessing resources that fuel terrorism, weapons proliferation, and instability across the region," the statement said.
"Today's action is being taken pursuant to E.O. 13902, which targets persons operating in Iran's financial and petroleum sectors. These designations will advance the Administration's Economic Fury and build on a series of OFAC actions targeting Iran's shadow banking and petroleum sales networks," as per the statement.
Earlier on May 30, Persian Gulf Strait Authority (PGSA), Iran's new body to manage the passage of vessels through the Strait of Hormuz, condemned the US sanctions on it and vowed to continue its operations "without interruptions".
— ANI
Reader Comments
I'm all for stopping weapons funding, but does the US really have the moral high ground here? They bomb civilians in Yemen and turn a blind eye to Israeli settlements. Hypocrisy much? India should stay neutral and diversify energy sources. Chabahar port is a perfect counter to this blockade mentality.
Honestly, the US sanctions regime is getting comical. They sanction Chinese and UAE companies, but the LPG still flows. It's like trying to stop water with a sieve. India should learn from this - we need to build strategic reserves and strengthen ties with Russia and Central Asia for energy.
The 'shadow fleet' framing is interesting. Aren't all sanctions-busting networks just a natural response to economic warfare? Iran is doing what any cornered nation would. But India needs to be careful - our banks could be next on the OFAC list. Time to fast-track the rupee-ruble-rial mechanism.
As much as I dislike the US playing world police, they have a point about Iran's proxies. But this approach never works - look at Cuba, North Korea. Sanctions just strengthen the regime's control over the economy. India should broker a middle path like we did with the Chabahar port exemption.
So the US is sanctioning companies for doing business with Iran, but its own allies like Saudi Arabia buy Iranian oil through intermediaries. Total double standards. India should join BRICS in pushing for alternative payment systems. SWIFT alternative is the need of the hour.
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