US Sanctions Three UAE-Based Shippers for Transporting Iranian Oil
State Department Blocks Three UAE-Based Shipping Companies and Their Vessels for Violating Sanctions Against Iran
US Sanctions UAE Shipping Firms for Transporting Iranian Oil
The United States has imposed sanctions and ordered a blockade against three shipping companies based in the United Arab Emirates for their alleged involvement in transporting petroleum and petrochemical products from Iran. The sanctions, announced by the State Department, target Al Anchor Ship Management FZE, Almanac Ship Management LLC, and Sea Route Ship Management FZE. This action is part of a broader enforcement under Executive Order 13846, which is designed to address violations related to Iran’s sanctions.
The decision follows Washington’s 2018 reinstatement of economic sanctions against Tehran, which occurred after the Trump administration withdrew from the Joint Comprehensive Plan of Action (JCPOA), an agreement aimed at the denuclearization of Iran. The U.S. sanctions are intended to pressure Iran by targeting critical sectors of its economy, including energy, shipping, shipbuilding, and finance.
The specific sanctions against the three UAE-based shipping companies involve a total of 11 vessels. Al Anchor Ship Management FZE, for instance, has been sanctioned due to its role as the commercial manager of the vessel Parine. According to the State Department, Al Anchor Ship Management engaged in a significant transaction in late October 2022, transporting petroleum products from Iran on the Parine. This action is seen as a clear violation of the sanctions imposed by the U.S. government.
Similarly, Almanac Ship Management LLC has been identified as the commercial manager of the vessel Berenice Pride, which is accused of carrying Iranian oil products in October 2022. The company is now subject to sanctions for its role in this transaction.
Sea Route Ship Management FZE has also been sanctioned for its role as the commercial manager of the vessel Astra. The State Department reported that Sea Route Ship Management was involved in a significant transaction in late November 2021, transporting petrochemical products from Iran on the Astra. This further underscores the U.S. government’s focus on disrupting illicit shipping activities that support Iran’s petrochemical sector.
In addition to these specific vessels, the sanctions cover a broader range of ships associated with the three companies. These include Arabian Energy, Baltic Horizon, Euro Fortune, Euro Viking, Harmony, Nile, Road, and Yamuna. The sanctions also block all properties and interests held by these companies within the United States or in possession of U.S. entities. Furthermore, any entities owned, directly or indirectly, 50 percent or more by these blocked companies are also subject to sanctions.
The Office of Foreign Assets Control (OFAC) of the U.S. Treasury Department enforces these sanctions and generally prohibits U.S. persons and entities from engaging in transactions involving property or interests related to blocked or designated persons. This regulation aims to ensure that no U.S. resources or financial systems are used to facilitate transactions with sanctioned entities.
The sanctions imposed in 2018 on Iran have targeted crucial sectors of its economy, with the goal of curbing Iran’s ability to generate revenue and engage in international trade, particularly in sectors vital to its economic stability. This move by the U.S. government reflects its ongoing strategy to isolate Iran economically and limit its influence in the region.
In addition to these recent sanctions, the OFAC had previously announced sanctions against other shipping companies involved in transporting oil and goods for Iran, Hezbollah, and Yemen’s Houthi movement. For example, in June of the previous year, the OFAC imposed sanctions on several entities linked to Sa’id al-Jamal, a known Houthi financial facilitator. Al-Jamal, who was added to the sanctions list in June 2021, was allegedly using a network of shipping firms to distribute commodities, including oil, to various jurisdictions, such as China and Syria.
Among the shippers sanctioned earlier were Shark International Shipping LLC, based in Oman and the UAE, accused of collaborating with the al-Jamal network to provide forged shipping documents for vessels carrying goods for the Houthis. The managing director of this company was also sanctioned.
Another entity, Rayyan Shipping Private Ltd. from India, was identified as the manager and technical operator of the Guyana-flagged vessel Olympics, previously known as Lady Sofia. The sanctions extended to this company as well.
Additionally, two more shippers were sanctioned for their alleged association with Hezbollah. Vessels owned by Hong Kong-based Lainey Shipping Ltd. and Panama-based Louis Marine Shipholding Enterprises SA were accused of transporting sanctioned cargo on behalf of Hezbollah-owned Concepto Screen SAL Off-Shore to Southeast Asia.
The captain of the vessel La Pearl, which was sanctioned earlier in June for transporting Iranian goods in coordination with the Iran military-linked Sepehr Energy Jahan Nama Pars Co., was also listed. The Treasury Department had added Sepehr Energy to its sanctions list in November for selling Iranian goods on behalf of Iran’s Armed Forces General Staff. La Pearl was identified as belonging to Panama-based Saone Shipping Corp.
Overall, these sanctions represent a concerted effort by the U.S. to enforce its policies and pressure Iran, Hezbollah, and other associated entities by targeting their economic activities and international trade networks.
