Iraq rejects US accusations that it allows smuggling of oil from Iran

Iraq has denied accusations by US congressmen that it has helped Iran evade US sanctions by diverting some of its oil revenues to Iranian entities.

Last week, five members of Congress asked President Joe Biden to ban Iraq’s oil minister from events in the United States because of his alleged involvement in Iranian sanctions evasion. The group also called for an investigation into Minister Hayyan Abdul-Ghani and other Iraqi officials over their alleged involvement in sanctions evasion.

“There are multiple public reports alleging that Abdul-Ghani and other Iraqi government officials are engaged in industrial-scale sanctions evasion on behalf of the regime in Iran,” the congressmen wrote.

“In light of 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 results presented to Congress.”

In response, the Iraqi oil ministry said: “The content of the letter has no foundation. The only accurate statement in the letter is that these are allegations and do not amount to verified information,” as quoted by Shafaq News.

“Iraq engages only with a select group of reputable global companies, including US firms, under contracts that comply with international transparency and legal guidelines,” the ministry said.

Reports of oil smuggling from Iraq emerged earlier this year, with Reuters reporting that at least 200,000 bpd of crude from Kurdistan was being trucked to Iran and Turkey. The report cited sources who say the oil smuggling likely happened with the knowledge of the regional and federal governments.

Once in Iran, the oil is loaded onto ships at Iran’s Gulf ports of Bandar Imam Khomeini and Bandar Abbas, or transferred by road to Afghanistan and Pakistan, those sources said, bringing monthly revenue from the scheme to about $200 million.

By Charles Kennedy for Oilprice.com

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