Bloomberg’s Revelation About Hossein Shamkhani in Oil Exports
Bloomberg reported that the Milavos Group in Dubai, led by Hossein Shamkhani, son of Ali Shamkhani, advisor to Khamenei and former secretary of the Supreme National Security Council, has gained billions of dollars from selling goods originating from Iran, Russia, and some other countries.
On Friday, September 9, Bloomberg wrote that when the Milavos Group rented a floor in a luxurious Dubai tower two years ago, few had heard of this company. However, within months, the company gained significant influence in global energy markets and is now regarded as one of the kings of Iranian oil sales worldwide.
According to this report, based on statements from more than 12 informed sources, Shamkhani’s son holds the highest managerial levels in this company, but few traders know Hossein Shamkhani’s true identity, recognizing him only as Hector.
Additionally, even fewer traders fully comprehend the vast extent of his international network.
According to those directly informed about Hossein Shamkhani’s activities, the Shamkhani empire controls substantial portions of global crude oil exports from Iran and Russia.
Based on statements from informed sources, the companies within his network also sell oil and petrochemical products from non-sanctioned countries and sometimes mix crude oil from different fields, so even buyers testing the barrels may not identify the country of origin.
Bloomberg’s report is based on interviews with over 36 people familiar with the operations of Shamkhani’s network of companies, both inside and outside Iran, and on documents viewed by Bloomberg.
Bloomberg wrote that Shamkhani’s son’s activities also indicate increased cooperation between Tehran and Moscow, especially as global powers have intensified sanctions against both countries.
Shamkhani’s rise also signifies the emergence of a shadow economy and a black oil fleet following the onset of the Ukraine conflict.
The news agency added that Washington faces challenges in limiting this trade as Hossein Shamkhani is not under U.S. sanctions, and UAE law does not prohibit companies from purchasing Iranian or Russian crude oil.
Additionally, some informed individuals told Bloomberg that entities within Shamkhani’s network conduct significant trade with Chinese buyers, with many of these transactions occurring in yuan and beyond the reach of U.S. sanctions.
Informed individuals said that nonetheless, the U.S. has previously sanctioned ships believed to be under Shamkhani’s control, and the FBI and U.S. Treasury Department are investigating parts of his trade network, including Milavos, which operates within the dollar system.
Mohammad Al-Hashemi, CEO of Milavos, told Bloomberg that the company has no connection with Shamkhani.
Hossein Shamkhani also stated in a statement issued by his lawyer that he primarily works in logistics and said, ‘I am not involved in the commodities industry as Bloomberg reported. Regarding trade, I operate in countries that are not under sanctions.’
According to familiar individuals and the Milavos brochure reviewed by Bloomberg, Shamkhani’s influence is so extensive that products offered by entities within his network have reached major global companies based in the United States and the United Kingdom.
Saeed Aghnaji, an Iranian researcher, told Bloomberg that Shamkhani’s network can be considered one of the three largest oil companies in Iran. They have a maritime fleet with dozens of tankers and hidden trade with major oil companies. If any of their entities are sanctioned, the entire oil market would be disrupted.
People familiar with Shamkhani’s activities said he effectively manages an interconnected network of companies, with Milavos being one of the parent companies in this group.
These informed individuals added that information regarding commercial ownership, shareholding, and control is easily concealable, and other managers are officially registered as the owners and managers of the companies.
Hossein Shamkhani, born in Tehran, is now in his fifth decade of life.
According to archived LinkedIn profile information, Shamkhani completed his university education in Moscow and Beirut and, after returning to Tehran, obtained a master’s degree in business administration.
Hossein Shamkhani stated that his father has never had any connection with his business activities. Last year, Iran International reported that Hossein Shamkhani benefits from his father’s influence, earning over a billion dollars annually from Iran’s oil, gas, and petrochemical trade.
