It was recently revealed that for years a tanker fleet was helped by a Dutch attorney to circumvent sanctions imposed by the United States on Iran. This allowed billions of euros worth of oil to be transported secretly.
Iranian shadow fleet
A law firm, based in Capelle aan den IJssel, set up a subsidiary based in Suriname. Intermediaries were used as directors and were paid for it. In this way it was possible to conceal who the real beneficiary was. Subsequently, six companies were set up that managed oil tankers.
In October 2024, U.S. authorities put three companies on the sanctions list who were established by the attorney's Suriname subsidiary. The reason was that the Americans suspected that the companies would be involved in sanctioned trade in Iranian oil. Moreover, the proceeds would fund organizations such as Hamas and Hezbollah. Masoud T., owner of ILFT, said he is merely a service provider providing “solutions” for clients who “run into a legal issue” at the international level.
The executives of the companies managing the oil tankers included, on paper, a 26-year-old secretary and friend of an attorney at the firm. In all, Iran has hundreds of these “ghost ships". The Economist wrote that oil trade through these ships alone accounted for at least $50 billion last year.
Role law firm
According to Claire Jungman, head of the Iran Tanker Tracking Program at advocacy organization United Against Nuclear Iran, the vessels arranged through the attorney's firm for the Iranian ghost fleet are among “the most notorious” clandestine transporters of Iranian oil. It makes that claim after examining satellite and transponder data. ILFT's vessels are estimated to have collectively transported 160 million barrels of oil from Iran since U.S. sanctions went into effect. This would have shipped - at current market prices - more than $10 billion worth of oil.
Smokescreens
Oil tankers also have other tricks: for example, they have a transmitter that makes it appear as if the ship is in a completely different location than where it is actually sailing. That way, the ship Tifani could carry an estimated 28 million barrels of Iranian oil by 2020. These ships also transfer oil to other tankers on the high seas.
In 2018, the United States announced far-reaching sanctions against Iran. Americans have not been allowed to trade in Iranian oil since then. In addition, the United States is trying to enforce its own rules worldwide: companies not based in America but trading in Iranian oil, or doing business with other companies trading in Iranian oil, must take heed of measures. If they have interests in the United States, they may become targets for criminal action.
Suriname
At the time, there were no sanctions on (the trade of) Iranian oil in Suriname. Therefore, facilitation services in trade are not prohibited there - just like in the European Union, for that matter. ILFT therefore says it simply abides by the law. It strongly denies contributing to the financing of terrorism: “I see no objection to cooperating with Iran. Those who see their tax money flowing to Israel cannot be held responsible for any acts of terrorism committed by that country either,” Masoud T said.
Incidentally, there is an obvious reason for choosing Suriname: that country, unlike the Netherlands, has no obligation to include the ultimate interested parties in a register. It happens more often that vessel owners register their vessels in countries where the registration obligation is not as far-reaching as in the European Union.
Masoud T. does not want to reveal who the owner of the vessels is. His website does display the logo of an Iranian oil company under the heading “Major clients. He denies that this party owns the tanker fleet, and will not respond to questions further because he has a duty of confidentiality. He goes on to say, “The U.S. knows that as a legal services provider I am simply providing legal services and not supporting the Iranian regime.”
Sanctions
Under the Biden administration, the United States has still shown some restraint where sanctions are concerned. For example, only 3 ships of the subsidiary established in Suriname have been put on the sanctions list; there could have been more. Probably the idea behind this is to move Iran to the negotiating table. It remains to be seen whether the current U.S. Trump administration will deal with this issue in the same way....
Want to know more?
Do you have questions about sanctions or not on Iran? Or do you have another question about international trade? If so, feel free to contact attorney John Wolfs, who has extensive experience in this field.
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