Iran Explores Oil Trustees Amid Rising Tensions with the United States

Iranian Authorities Create Unofficial Channels for Oil Sales Amid Sanctions

Tehran, Iran – Iranian authorities have established new unofficial channels to sell oil and import essential goods under the influence of US sanctions. The move has raised concerns among judges and experts about potential corruption.

According to oil executives, lawmakers, and judicial officials, a network of state-linked “trustees” has been handling shadowy deals to export Iranian petroleum and other sanctioned products. These trustees have been responsible for billions of dollars in proceeds that have yet to be returned to the country.

Judiciary chief Gholam-Hossein Mohseni-Ejei recently addressed judges and provincial officials, stating that he is investigating the unnamed trustees through financial authorities and demanding their return of the money. He questioned those involved at the Central Bank and economy ministry about their role in auditing the trustees.

Iran’s struggle to return foreign currency revenues from selling its vast oil resources has worsened the country’s ailing economy, marked by inflation and a depreciating national currency. A former senior oil executive described a major shift in handling oil money during an interview with local media.

Ali Akbar Pour Ebrahim, a former CEO of Naftiran Intertrade Company (NICO), stated that the Ministry of Petroleum lost its agency in handling funds during the administration of President Hassan Rouhani. The ministry was then replaced by bank trustees operating under the Central Bank’s purview.

Pour Ebrahim claimed that $11 billion in oil proceeds were not returned after being handled by the trustees, and that nationals from neighboring Pakistan and Afghanistan were used to open bank accounts in the UAE and funnel funds through shell companies. He also stated that some agent banks have been colluding with the trustees to declare receipt of oil money without depositing funds.

A member of the parliament’s economic commission confirmed that some agent banks had collaborated with the trustees to declare receipt of oil money, even when no funds were deposited. A career oil official estimated that an independent audit would reveal misappropriated funds amounting to more than $11 billion.

Source: Al Jazeera