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United Nations

Iran Denies Involvement in Iraqi Oil Smuggling Violating UN Sanctions

Strategic Insights

— 2 min read

Iranian officials have denied charges that the country is assisting Iraq in smuggling oil in violation of UN sanctions. The denials come after a US representative at the UN claimed to have evidence of Iranian complicity, citing a significant increase in oil smuggling through Gulf ports in 1994.

Key Takeaways:

  • Iranian officials, including a director of the National Iranian Oil Co., have categorically denied involvement in Iraqi oil smuggling, labeling the charges as baseless and without evidence.
  • The US representative at the UN, Eduard Gnehm, wrote to the chairman of the UN sanctions committee on Monday, citing evidence of Iranian complicity in the smuggling of refined Iraqi petroleum through Gulf ports.
  • The volume of Iraqi petroleum smuggling in the Gulf has reportedly grown steadily over the course of 1994, according to Gnehm.
  • The alleged Iranian involvement in the smuggling "undermines the international community's efforts to compel Iraqi compliance with its own obligations under various Security Council resolutions," Gnehm said.
  • H. Ghanimifard, the NIOC director, stated that the charges were "fabricated" with no supporting evidence or documentation.
  • The U.N. sanctions committee scheduled a meeting to discuss the issue on February 16.
  • The smuggling has been linked to a report associating the name of a son of Iraqi President Saddam Hussein with the trafficking.
  • The products were sold for profit within the region, often purchased with the proceeds of food and manufactured consumer goods smuggled into Iraq.
  • The U.N. Security Council imposed economic sanctions on Iraq on August 2, 1990.

Statistics:

  • The volume of Iraqi petroleum smuggling in the Gulf grew steadily over the course of 1994.
  • Refined Iraqi petroleum was loaded at the Iraqi ports of Al-Basrah and Khor al-Zubayr onto barges or small tankers.
  • A U.S. delegate said the alleged Iranian complicity in the smuggling "undermines the international community's efforts to compel Iraqi compliance with its own obligations under various Security Council resolutions."
  • The invasion of Kuwait by Iraq forces occurred in August 1990.
  • The invasion led to the U.S.-led Gulf War of January 1991.
  • Regional reports said refined petroleum products, including gasoline and kerosene, were "cheaper than water" in Iraq.
  • The products were sold for a significant profit within the region.

Sources:

  • Official Islamic Republic News Agency (IRNA)
  • U.S. representative at the UN, Eduard Gnehm, citing evidence from the UN sanctions committee
  • Middle East Economic Survey in Nicosia, Cyprus
  • Regional reports monitored in Athens
  • IRNA report quoted NIOC Director H. Ghanimifard
  • UN Security Council resolutions cited by Gnehm

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