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By John Lee.

The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) designated critical nodes of a key financial facilitation network of the Islamic State of Iraq and Syria (ISIS), which included four individuals and two entities in Türkiye, who have enabled the terrorist group's recruitment and financial transfers to and from Iraq and Syria.

This network played a key role in money management, transfer, and distribution for ISIS in the region. Concurrently, the Turkish Ministry of Treasury and Finance, together with the Ministry of Interior, have implemented an asset freeze against members of this network.

"Today's action reaffirms Treasury's commitment to degrade ISIS's ability to operate globally," said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson. "These designations and accompanying asset freezes are a result of close coordination and collaboration with our Turkish partners to target ISIS activity in the region."

This follows OFAC's November 7, 2022 designation of four individuals and eight companies as part of an ISIS cell in South Africa, which was providing technical, financial, or material support to the terrorist group. These individuals and entities are being designated pursuant to Executive Order (E.O.) 13224, as amended, which targets terrorist groups and their supporters.

ISIS FINANCIAL FACILITATOR BRUKAN AL-KHATUNI

Abd Al Hamid Salim Ibrahim Ismail Brukan al-Khatuni (Brukan al-Khatuni) is an Iraqi national illegally living in Türkiye, who has engaged in financial facilitation and recruitment activities for ISIS. Brukan al-Khatuni has played a significant role in transferring funds through his network in support of ISIS and ISIS senior leaders.

Brukan al-Khatuni has served as the head of foreign financing in ISIS's so-called Wilayat al-Jazirah in Iraq.  In 2016, Brukan al-Khatuni moved to Türkiye to manage ISIS's financial facilitation network there and transferred funds from Arabian Gulf-based donors to ISIS. Also in 2016, Brukan al-Khatuni joined an ISIS recruitment cell, which was tasked with spreading the ideology of ISIS's previous emir Abu Bakr al-Baghdadi.

As of 2018, Brukan al-Khatuni had assumed an important role in managing ISIS financing in Türkiye. That same year, ISIS transferred millions of dollars to Brukan al-Khatuni. Brukan al-Khatuni managed hawala offices and played roles in ISIS money management, transfer, and distribution.

In 2021, Brukan al-Khatuni sent funds to Yasir 'Ali Ahmad Nuwayran al-Farraji, an ISIS cell member arrested by the Kurdistan Regional Government Counterterrorism Directorate on March 29, 2021 for planning attacks against Kurdish military and security forces in Erbil, Iraq. Al-Farraji later confessed to planning attacks in Erbil in a public statement on April 12, 2021.

Abd Al Hamid Salim Ibrahim Ismail Brukan al-Khatuni is being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material or technological support for, or goods or services to or in support of, ISIS.

AL-KHATUNI NETWORK

Muhammad Abd Al Hamid Salim Brukan al-Khatuni (Muhammad Abd Al Hamid) and Umar Abd Al Hamid Salim Brukan al-Khatuni (Umar Abd Al Hamid), Brukan al-Khatuni's sons, coordinated with an ISIS finance official to facilitate the transfer of over $500,000 in June 2021. Muhammad Abd Al Hamid and Umar Abd Al Hamid were both affiliated with a money service business in Mersin, Türkiye, which Brukan al-Khatuni later re-branded as Wadi Alrrafidayn for Foodstuffs (Wadi Alrrafidayn). Brukan al-Khatuni and his sons all worked at Wadi Alrrafidayn.

Umar Abd Al Hamid Salim Brukan al-Khatuni, and Muhammad Abd Al Hamid Salim Brukan al-Khatuni are being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material or technological support for, or goods or services to or in support of, ISIS.

Wadi Alrrafidayn for Foodstuffs is being designated for being owned, controlled, or directed by, directly or indirectly, Brukan al-Khatuni.

Türkiye-based Sham Express, a company founded in 2020 by Brukan al-Khatuni, has also been used by ISIS-affiliated individuals to transfer funds for the group. Particularly, ISIS financial facilitator Lu'ay Jasim Hammadi al-Juburi (Lu'ay Jasim) used Sham Express to transfer money on behalf of ISIS between Türkiye, Syria, and Iraq.

Prior to his arrest in July 2021, then-ISIS finance leader 'Abd-al-Rahman 'Ali al-Ahmad al-Rawi (al-Rawi) established financial channels throughout Russia, Europe, China, and Africa to transfer existing ISIS funds and generate additional ISIS revenue. Al-Rawi worked with Sham Express in connection with these activities. Treasury designated al-Rawi pursuant to E.O. 13224 on April 15, 2019.

ISIS financial facilitators also used Sham Express to support the smuggling of gold from Syria and Sudan via Iraq, Egypt, and Libya to generate additional revenue for ISIS. Sham Express is being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material or technological support for, or goods or services to or in support of, ISIS.

Lu'ay Jasim, previously an al-Qa'ida member since 2008, joined ISIS in 2014 and worked in ISIS's financial administration for several years until he moved to Mersin, Türkiye, where he managed a business used by ISIS members in Türkiye to illegally transfer funds throughout the region, notably Iraq and Egypt.

Lu'ay Jasim Hammadi al-Juburi is being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material or technological support for, or goods or services to or in support of, ISIS.

SANCTIONS IMPLICATIONS

As a result of today's action, all property and interests in property of the persons named above, and of any entities that are owned, directly or indirectly, 50 percent or more by them, individually, or with other blocked persons, that are in the United States or in the possession or control of U.S. persons, must be blocked and reported to OFAC. Unless authorized by a general or specific license issued by OFAC or otherwise exempt, OFAC's regulations generally prohibit all transactions by U.S. persons or within the United States (including transactions transiting the United States) that involve any property or interests in property of designated or otherwise blocked persons. The prohibitions include the making or receiving of any contribution of funds, goods, or services to or for the benefit of those persons.

Furthermore, engaging in certain transactions with the persons designated today entails risk of secondary sanctions pursuant to E.O. 13224, as amended. Pursuant to this authority, OFAC can prohibit or impose strict conditions on the opening or maintaining in the United States of a correspondent account or a payable-through account of a foreign financial institution that has knowingly conducted or facilitated any significant transaction on behalf of a Specially Designated Global Terrorist (SDGT).

The power and integrity of OFAC sanctions derive not only from its ability to designate and add persons to the List of Specially Designated Nationals or Blocked Persons ("SDN List"), but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC's Frequently Asked Question 897. For detailed information on the process to submit a request for removal from an OFAC sanctions list.

View identifying information on the persons designated today.

(Source: OFAC)

By John Lee.

The Iraqi Minister of Oil, Hayan Abdul-Ghani (pictured), has announced revenues of more than $115 billion from exporting crude oil for the year 2022.

More than 1,209 billion barrels of crude oil were exported, giving a daily export rate is approximately 3.320 million barrels per day (bpd).

The oil was bought by companies of various nationalities including Chinese, Indian, South Korean, Turkish, Greek, American, British, French, Russian, Italian, Spanish, Dutch and others, as well as other Arab companies.

(Source: Ministry of Oil)

By Simon Watkins for the OilPrice.com. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

Iran Moves To Consolidate Its Grip On Iraq's Oil Sector

Iran has long held enormous political, economic, and military sway over neighbouring Iraq through its various military and political proxies, and since the discovery of vast reservoirs of oil in Iran first in the early 1900s and shortly after in Iraq, Tehran has an added incentive to retain this influence and to enhance it.

With Iran's longstanding former superpower ally, Russia, now looking to build out its remaining influence south of Europe, there is another reason for Iran to strengthen its ties with Iraq.

Click here to read the full report.

By Elena Mataro for Argus Media. Any opinions expressed here are those of the author(s) and do not necessarily reflect the views of Iraq Business News.

The EU's ban on Russian seaborne crude imports has opened the door to an increased flow of sour Middle East grades into the Mediterranean.

Iraq's Basrah grades have already emerged as a popular alternative to medium sour Urals, with many European refiners shunning Russian crude months ahead of the embargo.

Click here to read the full article.

Iraq: EU allocates additional €4 million in humanitarian funding to help vulnerable facing food insecurity

Political instability, climate change, as well as rising food prices, spurred by the drought and further aggravated with the Russia's unprovoked aggression towards Ukraine, has left many vulnerable Iraqis not able to meet their basic needs.

The funding announced today will help the most vulnerable people, particularly those internally displaced and living outside camps in informal settings in Iraq, to meet their basic needs.

Commissioner for Crisis Management, Janez Lenarčič said:

"More and more vulnerable people, especially displaced, are being affected by the increasing food insecurity in Iraq. Russia's war against Ukraine is having an impact on many lives across the world, especially on people who are already facing hardship. The EU is committed to help those who are in need. This is why we allocated an additional €4 million to help Iraqis in need get through this difficult time. "

The funding will help to support up to 4,000 displaced vulnerable families with monthly cash assistance as they go through the process of obtaining identity and civil documentation. In addition, cash assistance will also benefit up to 1,000 families with a chronically ill member, who are no longer able to meet their essential needs.

Since 2014, the EU allocated €530.5 million in humanitarian aid to help people in Iraq.

(Source: ECHO)

By Simon Watkins for the OilPrice.com. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

Iraq's New Prime Minister Doubles Down On Oil & Gas Deals With China And Russia

It is possible that U.S. Secretary of State, Antony Blinken, believed for a moment that his call to the new Iraqi Prime Minister, Mohammed Shia al-Sudani, saying that Washington "is eager to work with the government and people of Iraq to improve respect for human rights, increase economic opportunities, advance Iraq's energy independence, and address the climate crisis" might resonate in Baghdad.

A moment only, however, as it transpires that key deals long planned between Iraq and China and Russia are to go ahead, regardless of U.S. wishes.

Click here to read the full report.

By John Lee.

More than 100 representatives of leading Iraqi and Russian businesses took part in the Russian-Iraqi Business Forum in Moscow last week.

According to a press release from The Chamber of Commerce and Industry of the Russian Federation, the Ambassador of Iraq in Moscow, Mr. Abdurakhman Al-Husseini, told delegates that Iraq is open to the development of business relations in all areas. This is not only the oil industry, but also various areas of industry, trade, and healthcare. The Iraqi ambassador also reminded that any Russian can apply for a visa at the airport upon arrival in Iraq.

The President of the Federation of Iraqi Chambers of Commerce and Industry, Abdurazzak Al-Zuheiri, speaking on behalf of the head of the Iraqi delegation, said there was a great desire to promote and strengthen Russian-Iraqi business relations, in particular, in the field of energy, construction, and food supplies.

Ali Warid, Director of the Technical Department of the Iraqi Oil Ministry, noted the long-standing Russian-Iraqi ties in the oil industry. According to him, they are only getting stronger, and most of the projects implemented by large Russian companies in Iraq are economically successful. Among the areas of development, Ali Varid outlined not only exploration, production, but also processing of oil and oil products.

Abbas Salim Hussein, Director of the Livestock Development Department of the Iraqi Ministry of Agriculture, spoke about the specifics of doing business in Iraq in his industry and called for developing cooperation in the poultry, meat, dairy and fish industries.

Aziz Nadim Al-Isa, director of the Industrial Development Department of the Iraqi Ministry of Industry, said that since 2003, the Iraqi economy has completely changed and has taken a course towards attracting investment in industry. The country is implementing 25 strategic technological development projects. He stressed that Iraq is interested in cooperation with Russia, primarily with high-tech companies.

Concluding the plenary part, Maksim Malyarchuk, Executive Director of the Russian-Iraqi Business Council at the Chamber of Commerce and Industry of the Russian Federation, spoke about the activities of the Council and assistance to Russian and Iraqi companies in the new conditions. In March, the Central Bank of Iraq banned settlements with the Russian Federation. But, despite this, according to Malyarchuk, today there are examples of direct deliveries from Russia to Iraq, and the issues of mutual settlements and logistics have been conceptually resolved. Also, he noted the growth of requests from the Iraqi side and the interest in importing Russian products.

(Source: The Chamber of Commerce and Industry of the Russian Federation)

By John Lee.

Iraq's Minister of Oil, Ihsan Abdul Jabbar Ismail, has stressed the importance of developing the Eridu (Arido) oilfield in Block 10, which is in the Muthanna and Dhi Qar provinces.

This came during a meeting with Lukoil's Vice President for Central Asia, Middle East, and North African affairs, Stepan Gorgi, and his accompanying delegation.

The Minister said that the ministry is awaiting the approval of the Council of Ministers of the joint development program for the field, commending the technical study of Lukoil.

He added the need to continue the development of West Qurna 2 field, and commended the cooperation between the Ministry and Lukoil to develop oil and energy sector.

The meeting was attended by the Senior Vice President of National Oil Company (INOC), Hamid Younis, the Director General of Petroleum Contracts and Licensing Directorate (PCLD), Ali Maarij. On the Russian side, the meeting was attended by Lukoil General Manager, Alexey Yakovlev, and the 10th block project manager, Edward Tcheloyansh, and vice manager of Iraq branch, manager of Lukoil reprentative office in Baghdad, Resan Sednavi.

(Source: Ministry of Oil)

By John Lee.

An official at the Russian Foreign Ministry has reportedly said that Russia is ready to supply Iraq with "isotope products", and to assist Baghdad in the field of non-energy nuclear technology.

According to RIA Novosti, Alexander Kinshchak, the Ministry's Director for the Middle East and North Africa, added that Russia's Rosatom and the Iraqi Agency for the Control of Radioactive Materials are working on a memorandum of understanding regarding cooperation in the peaceful use of atomic energy.

He noted that Russia is also ready "to implement major joint projects" with Iraq.

(Source: RIA Novosti)

By John Lee.

Mustafa Ghaleb Mokhif, the Governor of the Central Bank of Iraq (CBI) has met with the Russian Ambassador to Iraq, Elbrus Kutrashev, to discuss the payments due to Russian companies operating in Iraq.

In a statement after the meeting, both parties expressed the need to find appropriate solutions to this issue.

Payments to Russian companies have become more complicated as a result of sanctions imposed following Russia's invasion of Ukraine in February.

(Source: CBI)