On Thursday, December 19, the U.S. Department of the Treasury issued a statement announcing sanctions on four entities and three ships involved in the trading of Iranian oil and petrochemical products.
The statement highlighted that these trades have generated billions of dollars in revenue for the Iranian regime, which is used to support Iran’s nuclear program, the development and proliferation of provocative ballistic missiles, as well as funding terrorist proxy groups like Hezbollah, Hamas, and Houthi militias. The ships transporting Iranian oil and petrochemical products often engage in deceptive practices to camouflage this trade, posing significant risks to the maritime industry.
According to the statement, the Iranian oil sector relies on various maritime partners to support its illicit oil trade, generating financial resources for its nefarious activities, including missile development, financing terrorist proxy networks, and nuclear weapon programs. The shadow fleet transporting Iranian oil is typically composed of old and poorly maintained ships that operate outside standard maritime regulations, combined with other deceptive transportation practices, creating a hazardous operational environment that could pose serious risks to other shipping activities.
The statement listed the four sanctioned companies: Journey Investment Company and Passada Maritime Limited registered in the Marshall Islands, Rose Shipping Limited registered in Liberia and Greece, and Master Joint Co., Limited based in Hong Kong.
It was noted in the statement that in early 2024, Iranian trading company Triliance Petrochemical Company utilized Master Joint Co., Limited to coordinate the sale of Iranian petrochemical products. Master Joint Co., Limited was designated to operate in Iran’s oil and petrochemical sector. Triliance Petrochemical Company was designated on January 23, 2020, by the U.S. Department of the Treasury under Executive Order 13846 for providing material support to the National Iranian Oil Company.
On the same day, the U.S. Department of State also issued a statement taking action against four entities across multiple jurisdictions involved in Iranian oil transportation and identified six vessels as blocked property. Iran’s oil exports are facilitated by an illicit maritime services network spanning multiple jurisdictions, where merchants load and transport Iranian oil through confusion and deception to sell to Asian buyers.
Bradley T. Smith, Acting Deputy Assistant Secretary for Counterterrorism and Financial Intelligence at the U.S. Department of State, stated, “Iran continues to rely on its shadow network of vessels, companies, and facilitators to fund the development of nuclear programs, the proliferation of weapon systems, and support for its proxies. The United States is committed to combating Iran’s primary sources of income for destabilizing activities.”
The entities sanctioned by the State Department include Shiny Sails Shipping Ltd based in Seychelles, Atlantic Navigation OPC Private Limited based in India, Galaxy Management NV based in Suriname, and Brecalin Hong Kong Co Ltd based in Hong Kong. These companies were sanctioned for knowingly engaging in significant transactions involving the purchase, acquisition, sale, transport, or marketing of oil or oil products from Iran.
The State Department highlighted that Brecalin Company is involved in Iranian oil transportation and serves as the commercial manager for the vessels PROGRESS V, SCORPIUS, TASCA, and ELIZA II, all of which have been frozen by the United States.
Furthermore, pursuant to Section 106 of CAATSA, the Secretary of State identified Iran’s Ghezel Hesar prison for severe human rights abuses, including cruel, inhuman, and degrading treatment against Iranians seeking freedom of speech. Therefore, the prison has been listed by the U.S. Department of State for sanctions, designated by the Office of Foreign Assets Control (OFAC) of the Treasury Department.
On Thursday, the OFAC updated the list of specially designated individuals, entities, and vessels subject to sanctions.