U.S. Says Syria Is Buying Oil From Islamic State -- 2nd Update
November 25 2015 - 03:17PM
Dow Jones News
By Jay Solomon
WASHINGTON--The Obama administration on Wednesday accused
Syria's government of purchasing oil from the Islamic State and
sanctioned a Syrian businessman for allegedly facilitating these
transactions.
The U.S. Treasury Department also sanctioned Russian and Cypriot
businessmen and companies for allegedly helping the Syrian central
bank evade international sanctions through a web of companies based
in Russia, Cyprus and Belize.
Among those blacklisted is Kirsan Ilyumzhinov, a former
president of the autonomous Russian Republic of Kalmykia. Mr.
Ilyumzhinov is a long-serving president of the World Chess
Federation, according to the Treasury Department.
Treasury's actions bar U.S. nationals from doing business with
the designated entities and freeze any assets they hold in the U.S.
financial system.
U.S. officials have long voiced concerns that the regime of
Syrian ruler Bashar al-Assad was strengthening the Islamic State's
finances by purchasing oil produced by the group on territory
previously controlled by Damascus. However, Wednesday's charges are
the most explicit and direct accusations by the U.S., and the first
time sanctions have been imposed for the regime's oil trade.
The Treasury Department's sanctions procedures resemble law
enforcement investigations, in that officials release findings as
they compile evidence. However, the timing of the charges against
the Assad regime of buying oil from Islamic State extremists gives
U.S. policymakers and allied diplomats new leverage to use against
Russia as the West pressures Moscow to distance itself from
Damascus. French President François Hollande is due to meet Russian
President Vladimir Putin in Moscow Thursday to discuss recent
terror attacks targeting both countries.
On Wednesday, Treasury accused a Syrian-born businessman, George
Haswani, of using his Damascus- and London-based firm, HESCO
Engineering and Construction Co., for facilitating oil trades
between the Assad regime and Islamic State.
The European Union sanctioned Mr. Haswani in March. Mr. Haswani
has appealed. He couldn't be reached for comment and his lawyer
didn't return a request for comment.
The Treasury Department also blacklisted a network of Syrian,
Russian and Cypriot businessmen and their companies for allegedly
helping the Central Bank of Syria and some of its top executives
evade international sanctions.
The U.S. sanctioned Syria's central bank over a decade ago for
its alleged involvement in money laundering. Adib Mayaleh, the
governor of Syria's central bank, was sanctioned in 2012 for
allegedly using his job to move funds out of the country.
The Treasury on Wednesday accused Mr. Ilyumzhinov of working
closely with the Assad regime's business associates in Syria and
Russia to help the Syrian central bank avoid sanctions. This
included the use of Moscow's Russian Financial Alliance Bank, of
which he is a major shareholder.
"Kirsan Ilyumzhinov was designated today for materially
assisting and acting for or on behalf of the Government of Syria,
Central Bank of Syria" and two central bank officials, the Treasury
statement said.
Mr. Ilyumzhinov could not be reached through the Russian
Financial Alliance Bank on Wednesday. An aide to Mr. Ilyumzhinov at
the World Chess Federation, reached in Rome, declined to
comment.
The Treasury also sanctioned three Cyprus-based companies and a
Belizean firm for allegedly assisting the Syrian government in
money laundering activities.
"The United States will continue targeting the finances of those
enabling Assad to continue inflicting violence on the Syrian
people," the Treasury Department's acting undersecretary for
terrorism and financial intelligence, Adam Szubin, said
Wednesday.
Benoît Faucon contributed to this article.
Write to Jay Solomon at jay.solomon@wsj.com
(END) Dow Jones Newswires
November 25, 2015 15:02 ET (20:02 GMT)
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