September 28, 2022

A US ally described by the State Department as being “on the same page” is moving goods to Iran, allowing the pariah country to get around severe sanctions imposed by the United States and others, according to the Wall Street Journal.

The United States has imposed Data from the US Treasury shows broad sanctions against Iran that include the export of nearly all goods and services to Iran and sanction Western companies that attempt to do business with Iranian organizations. But the United Arab Emirates, with which the United States cooperates on a variety of defense and economic issues according to To the State Department, he is said to have built extensive commercial infrastructure in the Persian Gulf, creating an economic gray zone where goods coming from the West could reach Iran indirectly, The Wall Street Journal mentioned.

“We are the Iranian Amazon,” the captain of a cargo ship that transports illegal goods from the UAE to Iran reportedly told the Wall Street Journal. “Business is booming.”

Iranians can buy items that Western companies would not normally sell to Iran online through Amazon or local e-commerce sites, the Wall Street Journal reported. These goods are then shipped via an informal trade route in the Gulf that includes warehousing and informal payment methods.

“We believe we are on the same page with the UAE,” a State Department spokesperson told the Wall Street Journal despite the state’s actions.

The UAE overtook China as the largest supplier of Iranian exports in the twelve months prior to June, accounting for 68% of Iran’s non-oil imports valued at about $16.5 billion, according to the Wall Street Journal. In 2020, the value of imports from the UAE was estimated at about half of those from China, according to Data from the Economic Complexity Observatory.

US directives on transshipments to Iran explicitly prohibits Exports to Iran, either directly from the United States or through a third party country. This includes exports made with “knowledge or reason to know” that these goods or services are intended to reach Iran, according to the regulation.

In December, the United States sent a representative to the United Arab Emirates to discuss enforcement of sanctions, indicating that the United States may take tough action against punishing Emirati organizations trying to do business with Iran, according to Reuters. mentioned. It was clear that the State Department spokesman at the press conference at the time did not accuse Effective organization to evade sanctions.

“We are going to the UAE to discuss private sector entities and financial institutions, to make sure that the US and our Emirati counterparts … have a full understanding of what these entities are doing,” the spokesperson said.

In June, the United States sanctioned four UAE-based companies accused of facilitating oil trade between Iran and East Asian buyers, as prospects for a renewed nuclear deal with Iran dwindled that would ease some of the sanctions pressure.

UAE and Iran are competing. The UAE is said to be allying with a political bloc that includes Saudi Arabia and Israel to combat the perceived national security threat from Iran. However, the two countries discussed trade relations recently in January, Reuters mentioned. (Related: UAE says it intercepted rebel ballistic missile amid Israeli president’s first visit)

The US Treasury, the State Department and the UAE Ministry of Economy did not immediately respond to The Daily Caller News’ requests for comment.

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