The Oil King of Iran and the Management of Millions of Dollars from London
The Dubai International Financial Centre (DIFC) has suspended several companies that informed sources claim are part of the network managed by Hossein Shamkhani, known as the Sultan of Iran’s oil sales.
According to Bloomberg, citing these sources, the Dubai financial center, under increasing pressure from international regulatory bodies, has taken actions against Millavous Group and Ocean Leonid Investments. Both companies have recently appeared as inactive suspended entities in the DIFC free zone registry, though the start date of these suspensions is not specified in the registry.
Although these two companies are key components of the network managed by Hossein Shamkhani, it is not yet clear how much the actions of the Dubai financial center will impact their activities. However, according to informed sources, many other companies associated with the Sultan of Iran’s oil sales remain active because the jurisdiction of the Dubai financial center 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, but the suspensions may be lifted if convincing information is provided to regulatory bodies.
Millavous Holding and Millavous Raw Materials Holding, registered at the same address as the Millavous Group, have also recently appeared as inactive suspended entities in the Dubai financial center registry.
A spokesperson for Ocean Leonid stated in a statement that Ocean Leonid has formally objected to 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 concern. The company’s activities fully comply with all relevant laws and regulations, and it has been transparent with all relevant bodies, including the Dubai financial center, about its activities. Ocean Leonid has nothing to hide and is confident 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 was 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 claims that Hossein Shamkhani is involved with or oversees the 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, son of Ali Shamkhani, the former secretary of Iran’s Supreme National Security Council, holds a high managerial position in Millavous. Thanks to his presence, the company has been able to earn billions of dollars from selling Iranian and Russian oil and oil products.
According to the report, few in Dubai and global trade circles are aware of Hossein Shamkhani’s true identity, and he is mostly known as Hector. Even fewer are aware of his extensive influence. However, several informed sources told Bloomberg that Hector controls significant portions of Iranian and Russian oil transactions. According to these sources, companies in his trade network also deal in oil from non-sanctioned countries and sometimes mix crude from different regions so well that even buyers testing these barrels cannot determine their origin.
Shamkhani has denied most details of Bloomberg’s reports, including owning any oil companies, controlling a trade network, or having a company involved in commodity trading 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