Iraq's Prime Minister Mohammed Shia Al Sudani has ordered a “high-level" investigative committee to look into “suspicions of corruption" in the mixing and smuggling of crude oil and petroleum products.
The directive on Saturday comes after the US sanctioned Iraqi businessmen, accusing them of mixing Iranian crude with Iraqi shipments.
“We have emphasised that there will be no leniency in this matter,” Mr Al Sudani said in a statement, adding the committee will submit its recommendations to the Council of Ministers to take “appropriate actions in accordance with the law, in a way that supports the national economy and protects public funds.”
Ali Nazar Al Shatari, the head of Iraq's State Oil Marketing Organisation (Somo), said that Iraq is in “high-level” contact with Washington after it sanctioned the two Iraqi businessmen. “The communication is there and at a very high level and is positive, and the exchange of information is also positive”.
He defended his organisation, saying it is not involved in the activities covered by the sanctions and is committed to all laws and regulations. “All these allegations against the Iraqi government side are baseless, and any smuggling or mixing is not possible or available within Iraq's territorial waters,” he said on the sidelines of the Baghdad International Energy Forum.
“The sanctions issued do not mean that they are related to Iraqi ports or exports, but rather to specific companies and vessels owned by individuals,” he added.
On Tuesday, the US State Department announced new sanctions against companies and ships operated by an Iraqi businessman for allegedly smuggling Iranian oil falsely labelled as Iraqi.
Thomas Pigott, deputy spokesman for the US State Department, said that the US was “acting decisively to stem the flow of revenue to the Iranian regime for its destructive and destabilising conduct in Iraq, the Middle East, and around the world”.
Mr Pigott added that the US will keep pressuring Iran and use “all available tools” to counter “those who enable Iran’s illicit oil trade”. In July, the US took similar action again another businessman.
The latest sanctions are part Washington’s “maximum pressure” policy on Iran that was reimposed on February to pressure Tehran in order to offer concessions on its nuclear enrichment programmes before the Israeli and US attacks in June.
