The U.S. placed sanctions on an Iraqi airline company after it allegedly helped Iran’s Mahan Air buy second-hand planes.
The sanctions come after the purchases by Mahan Air, which is under U.S. sanctions, of nine planes with the reported help of Iraq-based Al-Naser Airlines.
The U.S. Department of Treasury said Thursday that Al-Naser, in early May, transferred at least eight Airbus A340 and one Airbus A320 aircraft to Mahan Air in Iran.
Sanctions relief under an interim nuclear deal between Iran and global powers, first struck in November 2013 and since extended amid talks on a potential final agreement, allows for the sale of spare parts, but a ban on the sale of planes remains.
Al-Naser has previously denied the allegations; it couldn’t be reached for comment.
Since at least late 2013, Treasury said, Al-Naser has “worked as a cutout” to help procure the aircraft from unwitting European vendors, for which Mahan Air paid tens of millions of dollars each.
“We will continue to actively counter Iranian sanctions evasion, whether in support of terrorist entities or other sanctioned parties,” said Adam Szubin, acting undersecretary of Treasury for terrorism and financial intelligence, in a statement.
In addition to targeting Al-Naser, the U.S. Treasury identified the nine aircraft it allegedly transferred to Mahan Air, citing secondary sanctions authority that blocks Mahan’s U.S. property.
Alongside the Treasury’s sanctions designation, the U.S. Department of Commerce’s Bureau of Industry and Security issued an order denying export privileges to Al-Naser Airlines and two others for their ongoing efforts to illegally export civilian aircraft to Mahan Air.
Treasury also said it imposed sanctions on Syrian businessman Issam Shammout and his company, Sky Blue Bird Aviation, for helping Mahan Air buy aircraft and parts. Neither Mr. Shammout nor Sky Blue Bird could be reached.