Bloomberg’s Revelation About Hossein Shamkhani in Oil Exports
Bloomberg reported that the Milavos Group in Dubai, led by Hossein Shamkhani, the son of Ali Shamkhani, an 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 the company. However, within months, the company gained significant influence in global energy markets and is recognized as one of the key players in selling Iranian oil worldwide.
According to this report, based on statements from more than 12 informed sources, Shamkhani’s son holds the highest management positions in this company, but few traders know Hossein Shamkhani’s true identity, knowing him only as Hector.
Moreover, even fewer traders fully understand the extensive dimensions of his international network.
According to individuals directly informed about Hossein Shamkhani’s activities, the Shamkhani empire controls significant amounts of global crude oil exports from Iran and Russia.
According to informed sources, companies within his network also sell oil and petrochemical products from non-sanctioned countries and sometimes mix crude oil from different fields, making it difficult for buyers who test the barrels to identify the country of origin.
Bloomberg’s report was prepared based on interviews with more than 36 people familiar with the operations of Shamkhani’s network of companies, both inside and outside Iran, and on documents seen by Bloomberg.
Bloomberg wrote that the activities of Shamkhani’s son also indicate increased cooperation between Tehran and Moscow at a time when global powers have intensified sanctions against both countries.
Shamkhani’s rise also indicates 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. Hossein Shamkhani is not under U.S. sanctions, and UAE law does not prohibit companies from buying Iranian or Russian crude oil.
Additionally, some informed individuals told Bloomberg that entities within Shamkhani’s network conduct significant trade with Chinese buyers, and many of these transactions are in yuan, beyond the reach of U.S. sanctions.
Informed individuals said that, nevertheless, the United States 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 operate within the dollar system.
Mohammad Al-Hashemi, CEO of Milavos, responded to Bloomberg, saying that the company has no connection with Shamkhani.
Hossein Shamkhani also stated in a statement issued by his lawyer, noting that he primarily works in logistics, ‘I am not involved in the commodity industry as Bloomberg reported. Regarding trade, I operate in countries that are not under sanctions.’
According to individuals familiar with the matter and a 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 Aghanj, an Iranian researcher, told Bloomberg that Shamkhani’s network can be considered one of the three major oil companies in Iran. They have a maritime fleet with dozens of tankers and covert trade with major oil companies. If any of their entities are sanctioned, the entire oil market will be disrupted.
Individuals familiar with Shamkhani’s activities said that he effectively manages an interconnected network of companies, with Milavos being one of the parent companies in this structure.
These informed individuals added that information related to ownership, shareholding, and control is easily concealable, and other managers are officially registered as 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 obtained his master’s degree in business administration upon returning to Tehran.
Hossein Shamkhani has stated, ‘My father has never had any connection with my business activities.’ Last year, Iran International reported that Hossein Shamkhani, using his father’s influence, earns over a billion dollars annually from Iran’s oil, gas, and petrochemical trade.