US sanctions network smuggling Iranian LPG to Asia

The United States imposed significant new sanctions on Friday targeting a complex international network accused of smuggling hundreds of millions of dollars worth of Iranian liquefied petroleum gas (LPG) to buyers in South and East Asia. The action, taken by the Treasury Department’s Office of Foreign Assets Control (OFAC), designates individuals, front companies, and vessels involved in a scheme that disguised Iranian fuel as Omani product to evade existing sanctions.

According to Treasury officials, the network was operated by two key individuals: Afghan national Sarbaz Abdul Zada and Turkish national Mohammad Shakol Mihandoust. They managed a series of front companies based in the United Arab Emirates, including Butani Trading LLC, Dundlod Trading FZE, and ADH Energy FZE, which allegedly exported millions of barrels of Iranian LPG. A Chinese entity, Shanghai Qianye Energy Co., Ltd., was also named. The operation relied on falsified shipping documents and a fleet of tankers, several of which were flagged by Panama, to conceal the cargo's origin.

Bangladesh was identified as a major destination for the smuggled fuel. Treasury officials cited one shipment involving 750,000...