Iran Evades US Sanctions Through Ship-to-Ship Oil Transfers to China
Iran avoids US sanctions via ship-to-ship transfers of oil, may receive payment for months - report
JpostImage: Jpost
Iran has been circumventing US sanctions by using ship-to-ship transfers of oil to China, involving a shadow fleet of tankers. This method allows Iran to continue receiving oil revenues, which constitute about 90% of its foreign oil sales, despite US efforts to impose sanctions.
- 01Iran's shadow fleet, consisting of older tankers, conducts ship-to-ship transfers to obscure identities and evade sanctions.
- 02Despite no official imports recorded, China has facilitated approximately $31 billion in oil revenue for Iran, accounting for 45% of Iran's government budget.
- 03The Eastern Outer Port Limits (EOPL) serves as a hub for these transfers, situated in a legal gray area where Malaysia has limited enforcement capabilities.
- 04China has encouraged its companies to ignore US sanctions, recently ordering firms not to comply with restrictions on five refineries.
- 05Even with US sanctions, Iran continues to receive payments for oil exports, expected to last until October 2023.
Advertisement
In-Article Ad
Iran has successfully evaded US sanctions through a network of ship-to-ship oil transfers, primarily to China. This operation involves a 'shadow fleet' of aging tankers that often switch flags and turn off tracking devices to conceal their identities. Reports indicate that despite China officially logging no imports of Iranian oil since 2022, Iran has generated around $31 billion in oil revenue, representing 90% of its foreign oil sales and 45% of its government budget. The transfers typically occur in the Eastern Outer Port Limits (EOPL), a region where Malaysian authorities have limited jurisdiction. China has been instrumental in supporting this operation, encouraging its companies to disregard US sanctions. As a result, Iran is expected to continue receiving payments for its oil shipments until October 2023, despite ongoing US efforts to curb its oil revenue. The US Treasury Department has stated that it is actively pursuing sanctions against Iranian oil operations, but analysts suggest that more stringent measures, including military blockades, may be necessary to effectively halt these revenue streams.
Advertisement
In-Article Ad
Iran's continued oil revenue generation has significant implications for its economy and the geopolitical landscape, affecting international relations and sanctions enforcement.
Advertisement
In-Article Ad
Reader Poll
What do you think about Iran's methods to evade US sanctions?
Connecting to poll...
Read the original article
Visit the source for the complete story.