Nov 20, 2018

The Donald Trump administration today announced sanctions on individuals and businesses it accuses of participating in an illicit Iranian-Russian scheme to smuggle oil to Syria. The scheme allegedly provides millions of barrels of oil to Syria’s Bashar al-Assad government in defiance of US sanctions.

“Today we are acting against a complex scheme Iran and Russia have used to bolster the Assad regime and generate funds for Iranian malign activity,” Treasury Secretary Steve Mnuchin said in a statement announcing the sanctions on nine individuals and companies.

The statement goes on to issue an explicit warning to shipping companies around the world.

“We are issuing an advisory today identifying the grave risks to the maritime community if they participate in shipping oil to the government of Syria,” Mnuchin said.

Why it matters: The crackdown on the oil smuggling network comes after the United States reimposed sweeping oil sanctions on Iran earlier this month following President Trump’s withdrawal from the nuclear deal. The Trump administration has repeatedly vowed to aggressively pursue sanctions evaders. The United States hopes to discourage international investment in Iran as part of its maximum pressure strategy.