In recent years, Hossein Shamkhani, along with his family, has built an international network of companies to facilitate the sale of Iranian and Russian crude oil. This strategy has empowered the Shamkhanis to circumvent U.S. and European sanctions while becoming influential players in the global energy market. The family’s activities came under fresh scrutiny following a recent report from Bloomberg, which detailed the operations of Ocean Leonid, a London-based oil company directly linked to Shamkhani and the Iranian regime.
Establishing a Global Network for Oil and Petrochemical Sales
Hossein Shamkhani’s business activities operate through a wide network, including companies like Ocean Leonid. Founded in 2018 in London, Ocean Leonid now employs dozens of individuals and plays a critical role in assisting Iran’s Revolutionary Guard Corps (IRGC) in sidestepping Western sanctions. According to Bloomberg, the company deals in the covert sale of Iranian and Russian oil and petrochemical products, using various means to disguise the origins of these goods.
Ocean Leonid has thrived financially, with company assets growing rapidly in recent years, largely due to strategic investments in oil, coal, and even bitcoin. Bloomberg’s report highlights that Ocean Leonid’s return on capital surpassed 30% in 2022.
Further investigation reveals that many employees were initially unaware of the company’s true ownership, only discovering its connections to Shamkhani and the Iranian regime after noticing unusually high transaction volumes. For example, Mahdiar Zareh Mojtahedi, an Iranian citizen with a Dominican passport and former director general at Iran’s state-owned petrochemical enterprise, is now a senior manager at Ocean Leonid, according to sources close to Bloomberg. His past work ties him directly to the Shamkhani family.
An Expansive Dubai Operation
The family’s presence extends beyond London to Dubai, where Hossein Shamkhani has established the Milavous Economic Group. Known to business contacts as “Hector,” Shamkhani has leased a luxurious office on the 38th floor of a prominent Dubai tower. Within just a few months of setting up operations, Milavous has reportedly gained considerable influence within international energy markets. This building also houses Ocean Leonid’s Dubai branch, linking the two companies as part of a coordinated effort to distribute sanctioned Iranian and Russian crude oil.
Hidden Ownership and Evasion Tactics
The complexity of the Shamkhanis’ corporate network has led to challenges for regulatory authorities. Nest Wise Trading Ltd, a London-based subsidiary linked to Hossein Shamkhani, faces dissolution after the UK Companies Registration Center demanded clearer ownership disclosures. Bloomberg reports that British authorities suspect Shamkhani is the ultimate owner, triggering calls for further investigation.
The company’s strategy involves mixing crude oil from sanctioned and non-sanctioned nations to obscure its origins, making it difficult for buyers to trace the oil back to Iran or Russia. This blending technique, combined with the use of shell companies, has allowed the Shamkhanis to continue profiting from oil sales despite the restrictions imposed by Western nations.
A Monopoly on Iran and Russia’s Oil Export Channels
With backing from the Iranian regime, the Shamkhani family has monopolized substantial portions of Iranian and Russian crude oil exports. Formerly Iran’s Secretary of the Supreme National Security Council, Ali Shamkhani, who now serves as an advisor to Supreme Leader Ali Khamenei, has acknowledged that his sons, Hossein and Hassan, are prominent in the energy sector. The family’s operations extend to large-scale shipping companies as well, further diversifying their control over regional and global energy logistics.
Despite his high-profile position, Ali Shamkhani has faced numerous allegations of financial corruption. Iranian media have published reports of significant financial embezzlement implicating him, his children, and other relatives, underscoring the extent of the family’s economic influence and wealth accumulation.
The Future of the Shamkhani Empire
The recent Bloomberg reports have shed light on an intricate web of businesses and connections that the Shamkhani family has used to become one of the foremost actors in circumventing sanctions. Few outside their direct circles understand the full scope of the family’s operations, but evidence suggests that they control a considerable share of Iran and Russia’s oil exports and have significant sway in the broader energy market.
This network remains largely hidden under aliases, shell companies, and clever logistics maneuvers, helping the Shamkhanis avoid detection by authorities and maintain their lucrative energy empire.
