The United States government announced today that it has imposed sanctions on 35 entities and vessels involved in the illicit transport of Iranian petroleum. This move aims to impose additional costs on Iran's petroleum sector, which is a significant source of revenue for the country's controversial nuclear program, advanced weapons development, and support for regional terrorist proxies.
The sanctions follow an attack by Iran against Israel on October 1, 2024, and Iran's subsequent nuclear escalations. They build upon earlier sanctions issued on October 11, 2024. Acting Under Secretary for Terrorism and Financial Intelligence Bradley T. Smith stated, "The United States remains committed to disrupting the shadow fleet of vessels and operators that facilitate these illicit activities, using the full range of our tools and authorities."
The sanctions are enacted under Executive Order 13902, which grants the Secretary of the Treasury, in consultation with the Secretary of State, the authority to target key sectors of Iran's economy. The Office of Foreign Assets Control (OFAC) has also released guidance to assist the maritime industry in identifying and preventing sanctions evasion.
The entities sanctioned include a network of tankers and ship management firms across multiple jurisdictions, known for using deceptive practices such as manipulating vessel tracking systems, changing vessel names, and using false documentation. Among the vessels named are the Marshall Islands-flagged JAYA, Guyana-flagged PHONIX, and the Cook Islands-flagged BERTHA, among others.
Several companies managing these vessels have been designated under the executive order, including UAE-based Galileos Marine Services L.L.C, Panama-based Ocean Glory Giant OGG SA, India-based Vision Ship Management LLP, and others. These entities are accused of managing ships that transported Iranian oil, evading sanctions through various means.
The sanctions result in the blocking of any U.S. assets held by these entities and generally prohibit all transactions involving these entities by U.S. persons or within the United States. The enforcement of these sanctions could also lead to penalties for U.S. persons who violate them and for non-U.S. persons who attempt to cause U.S. persons to engage in sanctioned activities.
OFAC emphasizes that the goal of these sanctions is not punitive but to encourage a change in behavior. The agency also outlines the process for entities seeking removal from the sanctions list, which is contingent on a change in conduct in line with U.S. law and policy.
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