Fresh Iran Oil Sanctions

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Posted Thursday, February 6, 2025 10:54 am

Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on an international oil smuggling network that has facilitated the shipment of millions of barrels of Iranian crude oil, worth hundreds of millions of dollars, to the People’s Republic of China (PRC). These shipments were conducted on behalf of Iran’s Armed Forces General Staff (AFGS) and its front company, Sepehr Energy Jahan Nama Pars (Sepehr Energy). The sanctions target entities and individuals across China, India, and the United Arab Emirates (UAE), as well as several vessels.

According to the Treasury, oil sales generate billions of dollars annually for Iran, funding its nuclear program, ballistic missile production, and the activities of regional terrorist organizations, including Hamas, the Houthis, and Hizballah. The AFGS relies on networks of foreign-based front companies and brokers to disguise its oil shipments and evade sanctions.

“The Iranian regime continues to use oil revenues to advance its destabilizing agenda,” stated Treasury Secretary Scott Bessent. “The U.S. is committed to blocking Iran’s access to funds that support its malign activities.”

Key Sanctions and Designations

The designations are based on Executive Order (E.O.) 13224, as amended, and E.O. 13902, which empower the Treasury to impose sanctions on sectors of Iran’s economy linked to terrorism financing. This action aligns with the February 4 National Security Presidential Memorandum, which mandates maximum economic pressure on Iran to prevent its nuclear advancement and regional destabilization.

Sepehr Energy was previously designated on November 29, 2023, for providing financial and logistical support to Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL).

The SIRI Oil Tanker and Evasion Tactics

Sepehr Energy operates a network of vessels to transport Iranian crude oil while concealing its origins. One such vessel, the Comoros-flagged ANTHEA (IMO: 9281683), now known as the SIRI, is currently stationed off Singapore, carrying millions of barrels of Iranian crude. The ship has been rebranded as the NEW PRIME in an effort to obscure its sanctioned status.

Iranian national Arash Lavian, the vessel’s master, has been implicated in falsifying maritime records and physically concealing the SIRI’s true identity. Lavian is now designated under E.O. 13224, as amended.

The India-based Marshal Ship Management Private Limited, which operates in the Philippines and UAE, has supplied crew members to the SIRI and other Sepehr Energy-linked vessels, including the ELSA (IMO: 9256468), HEBE (IMO: 9259185), and BOREAS (IMO: 9248497). Company director Ryan Xavier Aranha has also been designated.

Iran’s Continued Oil Trade with the PRC

Despite existing sanctions, Sepehr Energy continues to facilitate large-scale oil shipments. In December 2024, it arranged the transport of nearly two million barrels of Iranian heavy crude oil (valued at over $100 million) via the Cameroon-flagged OXIS (IMO: 9224805) and the Panama-flagged GIOIOSA (IMO: 9198082) for delivery to China.

The Seychelles-based Miletus Line Ltd, Hong Kong-based Gozoso Group Ltd, and Kazakhstan-based Umbra Navi Ship Management Corp coordinated these transactions and have now been sanctioned. The OXIS and GIOIOSA have been designated as blocked property under E.O. 13224, as amended.

Expanded Oversight by Iran’s Military

The AFGS oversees Sepehr Energy and its affiliates, including Sepehr Energy Hamta Pars, Sepehr Energy Jahan Nama Taban, and Sepehr Energy Paya Gostar Jahan, which facilitate Iranian oil sales. AFGS Brigadier General Jamshid Eshaghi, who previously coordinated crude oil sales with Iran’s Islamic Revolutionary Guard Corps (IRGC), remains a key figure in these operations.

These affiliated companies, along with their leadership—including Farshad Ghazi, Farbod Mohseni Ahari, and Mohammad Ali Riazi Kolahdozmahaleh—are now sanctioned.

Shadow Fleet and Additional Vessel Sanctions

Two additional vessels used to transport Iranian crude oil have been identified as blocked property:

• CH BILLION (IMO: 9276585) – Panama-flagged

• STAR FOREST (IMO: 9237632) – Hong Kong-flagged

These vessels recently transported Iranian crude oil to China, contributing to Iran’s military revenue stream. Hong Kong-based Young Folks International Trading Co., Limited and PRC-based Lucky Ocean Shipping Limited, which manage these vessels, have also been designated under E.O. 13902 for their role in Iran’s petroleum sector.

Click here for OFAC Announcement.

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Vol 45 No. 11 March 17, 2025

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