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Reuters

Reuters

Fuel oil smuggling network rakes in $1 billion for Iran and its proxies

Reuters
Summary
Nutrition label

75% Informative

Fuel oil smuggling network has flourished in Iraq since Prime Minister Mohammed Shia al-Sudani took office in 2022 , sources say.

Iran views its neighbour and ally Iraq as an economic lung and wields considerable military, political and economic influence there.

The illicit trade potentially puts Iraqi institutions and officials at risk of U.S. sanctions for helping Iran .

Fuel oil smuggling existed before Sudani came to power in October 2022 .

It has grown in complexity and become more formalised since he took office.

Central to the scheme is the State Company for Mining Industry , which operates asphalt plants as a joint venture with private companies.

Some of the plants allegedly involved are controlled by AAH or Kataib Hezbollah , another Iraqi militia backed by Iran 's Revolutionary Guards .

The blending is done by Iraqi engineers, typically during ship-to-ship transfers.

The fuel oil is then shipped to clients mainly in Asia , two of the intelligence reports said.

In July , Sudani 's government ramped up the price of subsidised fuel oil to $ 369 per ton.

VR Score

84

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90

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formal

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English

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61

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not detected

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short-lived

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