US Changing Course? Three Entities Removed from Iran Sanctions List

The US Treasury removed Iraqi airline Fly Baghdad and two Boeing 737 aircraft from its sanctions list without public explanation. However, the company's CEO remains listed and is directly linked to the Quds Force of the Revolutionary Guards. The removal is a targeted relief, not a lifting of sanctions against its executives or the Revolutionary Guards.

The US Treasury today (Wednesday) removed Iraqi airline Fly Baghdad and two of its aircraft from the list of entities sanctioned for supporting terrorism. The move was published in the official document of the Office of Foreign Assets Control (OFAC), which lists changes to the US list of blocked persons and entities. Three entries were deleted: Fly Baghdad, Fly Baghdad Airlines Company, and Iraq Express, but these are not three separate companies but three names for the same company. Additionally, two Boeing 737 aircraft with tail numbers YI-BAF and YI-BAN were removed. Fly Baghdad was added to the sanctions list in January 2024, when the Treasury alleged that the company provided material support to the Quds Force of the Revolutionary Guards and pro-Iranian organizations in Iraq, Syria, and Lebanon. According to the original notice, the company's aircraft were used to transport fighters, money, and weapons, including Iranian-made missiles. The document published today provides no explanation for the decision, and no separate statement was issued about a change in US policy toward Iran. The company's CEO, Bashir Abd al-Khattab Alwan al-Shebani, was not removed from the list, and his entry was updated to link him directly to the Quds Force. The move is a targeted relief, not a lifting of sanctions against the company's executives or the Revolutionary Guards.