Iraq Refutes U.S. Claims Of Assisting Iran in Oil Smuggling

Iraq has dismissed claims made by U.S. Congressmen that it is aiding Iran in circumventing U.S. sanctions by diverting some of its oil revenues to Iranian entities.

U.S. Congressmen's Accusations

Last week, five Congressmen urged President Joe Biden to prohibit the Iraqi oil minister from attending events in the United States due to his alleged involvement in evading Iranian sanctions. The group also called for an investigation into Minister Hayyan Abdul-Ghani and other Iraqi officials for their purported involvement in sanction evasion. The Congressmen wrote, “There are multiple public reports alleging that Abdul-Ghani and other officials in the Iraqi government are involved in industrial-scale sanctions evasion on behalf of the regime in Iran. Given these reports, we respectfully request that your administration prevent Minister Abdul-Ghani from attending events in the United States until these allegations are investigated and the findings are presented to Congress.”

Iraq's Response

In rebuttal, the Iraqi oil ministry stated, “The letter's contents have no foundation. The only accurate statement in the letter is that these are allegations and do not rise to the level of verified information,” as quoted by Shafaq News. The ministry further stated, “Iraq only engages with a select group of reputable global companies, including American firms, under contracts that follow international transparency and legal guidelines.”

Reports of Iraqi Oil Smuggling

Earlier this year, reports of Iraqi oil smuggling surfaced, with Reuters reporting that at least 200,000 bpd of crude from Kurdistan were being transported on trucks to Iran and Turkey. The report cited sources stating that the oil smuggling was likely occurring with the knowledge of the regional and federal governments. Once in Iran, the oil is loaded onto ships at the Iranian ports in the Gulf at Bandar Imam Khomeini and Bandar Abbas, or transferred by road to Afghanistan and Pakistan, those sources said, estimating the monthly revenue from the scheme at approximately $200 million.

Bottom Line

This situation raises questions about the effectiveness of sanctions and the complexity of international relations. It also highlights the challenges faced by countries in adhering to international sanctions, especially when they share borders and have intertwined economies. What are your thoughts on this issue? Do you think Iraq is aiding Iran in evading U.S. sanctions? Share your thoughts with your friends and join the discussion. Remember, you can sign up for the Daily Briefing, which is delivered every day at 6pm.