The Oil King of Iran and Managing Millions of Dollars from London
The Dubai International Financial Centre (DIFC) has suspended several companies that informed sources claim are part of a network managed by Hossein Shamkhani, known as the Sultan of Iranian Oil Sales.
According to Bloomberg, citing these sources, the Dubai financial center, under increasing pressure from international regulatory bodies, has taken action against Millavous Group and Ocean Leonid Investments. Both companies have recently appeared as inactive and suspended in the DIFC free zone registration system, although the start date of these suspensions is not specified in the registration system.
Although these two companies are among the most important parts of the network managed by Hossein Shamkhani, it is still unclear how much the actions of the Dubai financial center will affect their activities. However, according to informed sources, many other companies related to the Sultan of Iranian Oil Sales remain active because the Dubai financial center’s jurisdiction is limited to the Dubai financial free zone, and other companies in Shamkhani’s network operate outside this area.
The suspensions mean that these companies must either cease their activities or provide more information to regulatory bodies and explain why the suspensions are mistaken and why they should continue their activities. Currently, these companies are not allowed to operate, and if they provide convincing information to the regulatory bodies, there is a possibility of lifting the suspensions.
Millavous Holding and Millavous Raw Materials Holding, registered at the same address as the Millavous Group, have also recently appeared as inactive and suspended in the Dubai financial center registration system.
A spokesperson for Ocean Leonid stated in a declaration that Ocean Leonid has filed an official objection with the Dubai financial center registry. The company is actively negotiating with the Dubai financial center to provide all the necessary information in all areas of interest. The company’s activities are fully compliant with all relevant laws and regulations, and it has been transparent about all its activities with the relevant bodies, including the Dubai financial center. Ocean Leonid has nothing to hide and is confident that it can present the facts to the Dubai financial center to have the suspension lifted based on legal evidence.
Bloomberg previously reported that Ocean Leonid is an investment fund managed by Hossein Shamkhani, operating in London, Dubai, Geneva, and Singapore. Earlier this month, a spokesperson for Ocean Leonid denied this report, stating that the company strongly rejects the claims that Hossein Shamkhani is involved with or overseeing this company.
Hossein Shamkhani’s lawyer also stated that his client has no connection with Millavous or Ocean Leonid companies.
In August, Bloomberg reported, citing more than a dozen informed sources, that Hossein Shamkhani, the son of Ali Shamkhani, former Secretary of Iran’s Supreme National Security Council, holds high managerial positions in Millavous, and thanks to his presence, the company has managed to make billions of dollars from the sale of Iranian and Russian oil and oil products.
According to this report, few people in Dubai and global trade circles are aware of Hossein Shamkhani’s true identity, and most know him as Hector, with even fewer being aware of his extensive influence. However, a few informed sources about Hector’s activities told Bloomberg that he handles significant portions of Iranian and Russian oil transactions. According to these sources, the companies in his trade network also deal in oil from non-sanctioned countries and sometimes mix crude oil from various fields so thoroughly that even buyers testing these barrels cannot determine their origin.
Shamkhani has denied most of Bloomberg’s reports, including ownership of any oil company, controlling a trade network, or having a company involved in commodity transactions with Iran or Russia.
In a statement sent to Bloomberg by his lawyer, Hossein Shamkhani said, ‘I am not involved in trade as Bloomberg claims, and I operate in countries that are not under sanctions.’
Source: Bloomberg
