After Iraqi Oil Blending Scheme, Iran Found Better way to Evade US Sanctions

An apparent scheme by Iran and its shipping industry allies to blend U.S.-sanctioned Iranian oil with Iraqi oil in 2020 was short-lived, Tehran dropped it in favor of a more efficient way to evade sanctions on its oil exports. UAE-based businessman and several companies he either owns or is connected to via common email and corporate addresses were engaged in blending Iranian and Iraqi oil on tankers through ship-to-ship transfers of crude and refined oil products in the Persian Gulf as recently as 2020. It said the scheme enabled those involved to disguise the blended oil’s Iranian origin and brand the product as Iraqi in order to avoid U.S. sanctions targeting Iranian oil. The operation in which an Iran-owned tanker named Polaris 1 transferred Iranian fuel oil, a refined product, onto another tanker carrying Iraqi oil in March 2020. The second tanker was named the Babel and was operated at the time by Rhine Shipping DMCC, a company run by UAE-based businessman Salim Ahmed ...