Nicosia: A Cyprus-based entity has been included in a sanctions list issued by the United States, which aims to pressure Iran to end its nuclear program. The sanctions are part of a broader strategy to curtail Iran’s petroleum industry activities. “As part of the maximum pressure campaign to end Iran’s nuclear threat, USA announced sanctions on those involved with Iran’s petroleum industry, including 1 Cyprus-based entity. US and Cyprus continue to work together to counter global challenges and threats,” the US Embassy in Cyprus stated on X.
According to Cyprus News Agency, the US Treasury described the sanctions list as the largest Iran-related package since 2018, targeting a “corrupt regime-linked shipping empire that has funneled billions to Tehran.” The Office of Foreign Assets Control (OFAC) within the Department of the Treasury designated more than 50 individuals and entities, including over 50 vessels, as part of a shipping network controlled by Mohammad Hossein Shamkhani. Hossein, son of Ali Shamkhani, a top political advisor to Iran’s Supreme Leader, utilizes his father’s influence to operate a large fleet of tankers and containerships. This network is responsible for transporting oil and petroleum products from Iran and Russia, generating significant revenue for Tehran.
Scott Bessent, Secretary of the Treasury, noted, “The over 115 sanctions issued today are the largest to-date since the Trump Administration implemented our campaign of maximum pressure on Iran. These actions put America first by targeting regime elites that profit while Tehran threatens the safety of the United States.”
According to OFAC, Hossein’s network controls a significant portion of Iran’s crude oil exports, with proceeds benefiting his family and the Iranian regime. His father, Ali Shamkhani, was already sanctioned by the U.S. in 2020. The Department of State concurrently designated 20 entities and identified 10 vessels as blocked property for their role in the trade and transport of Iranian petroleum and petrochemical products.
The network employs various tactics to disguise its operations and connections to the Shamkhani family, Iran, and Russia. Hossein uses aliases such as ‘H,’ ‘Hector,’ and ‘Hugo Hayek,’ which is the false name on his Dominica passport, to conduct business.
In this context, OFAC has designated a Cyprus-based entity within Hossein’s network. According to the press release, “UAE-based G M C G Shipping L.L.C and Cyprus-based GMCG Ltd. have incorporated and paid fees for front companies used by Hossein’s network, including Marshall Islands-based Neo Shipping Inc.”
As a consequence of the sanctions, all property and interests in property of the designated or blocked persons described above that are in the United States or under the control of U.S. persons are blocked and must be reported to OFAC. Additionally, any entities owned 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a license issued by OFAC, or exempt, U.S. persons are generally prohibited from engaging in transactions involving any property or interests in property of blocked persons.