Iranian Oil Tycoon Implicated in Arms Deliveries to Russia, Bloomsberg Uncovers

An investigative report by Bloomberg has exposed a complex network involving Iranian oil tycoon Hossein Shamkhani, allegedly pivotal in facilitating arms shipments to Russia via the Caspian Sea. Shamkhani, son of Ali Shamkhani—a key advisor to Iran's supreme leader, Ayatollah Ali Khamenei—has leveraged his extensive maritime logistics and financial networks in the West to support these activities.

The revelations come amidst increasing global concern over Iran's military collaboration with Russia, particularly following the significant role of Iranian drones and armaments in the ongoing conflict in Ukraine.

According to Bloomberg, Shamkhani's network, particularly through Dubai-based Crios Shipping LLC, has shifted its operational focus to the Caspian Sea in mid-2023. Among the vessels implicated are the Sea Castle and Sea Anchor, which have reportedly made frequent voyages from Iranian ports to Astrakhan in Russia. This strategic repositioning aims to bolster the military capabilities of Moscow, with payments for these arms apparently made through oil trade.

This controversial operation is part of a broader strategy by Shamkhani, who reportedly oversees an empire that not only involves a hedge fund with bases in London, Geneva, and Singapore but also commands a fleet of cargo and oil tankers. His corporate umbrella, Milavous Group Ltd, has been instrumental in masking and monetizing shipments of oil and armaments from Iran and Russia, navigating through sanctions and international scrutiny by operating in less regulated markets like the UAE.

The strategic military association between Tehran and Moscow has intensified since the Russian invasion of Ukraine, with Iran providing an arsenal that includes the notorious Shahed drones. These UAVs have been extensively used against Ukrainian targets, exacerbating the humanitarian and infrastructural toll in the region.

The U.S. Department of Defense corroborated these developments in September 2024, confirming the transfer of Fath 360 ballistic missiles from Iran to Russia, highlighting a sustained pattern of armament supplies.

These findings underscore the evolving geopolitical landscape where Iran, Russia, and other nations are tightening their military cooperation, challenging Western diplomatic and economic sanctions. The exposure of such networks prompts a critical reassessment of international relations and security policies, especially by entities directly impacted by these alliances.

As the situation unfolds, global watchdogs and nations involved in maintaining regional security are alerted to the implications of these under-the-table dealings, which not only influence the dynamics of the Ukraine conflict but also shape the broader contours of international diplomatic relations.

UPDATED to include Hossein Shamkhani's reply:

Hossein Shamkhani expands legal team following false, malicious and untrue claims published by Bloomberg L.P. between August and December 2024.

Dubai, 8 January 2025: Iranian-born businessperson and philanthropist, Hossein Shamkhani (Mr Shamkhani) has expanded his legal team and instructed specialist defamation lawyers following publication by Bloomberg of new articles during December 2024 that continue to include false accusations, inaccurate and defamatory content and which cite anonymous sources and unverified allegations.

Following the allegations made in an earlier article in August 2024, lawyers for Mr Shamkhani filed a complaint in the UAE in November 2024. Despite this, further inaccurate and unsubstantiated claims were made in Bloomberg articles about Mr Shamkhani and his business operation during December 2024. Newly appointed specialist defamation lawyers are exploring the options of issuing proceedings elsewhere.

Commenting on the instruction of specialist defamation lawyers, Mr Shamkhani said:

“There has been an unrelenting campaign against me since August 2024. My legal team sought to engage with Bloomberg, but it provided no corroboration or evidence to support its claims.

In December 2024, the global newswire ramped up its campaign of false, unverified and above all defamatory assertions that I have acted in breach of international sanctions, moved illegal cargoes and have supported war efforts. None of this is true and it puts both myself and my family at risk. I had no option but to instruct specialist lawyers to address these false allegations on my behalf.”

Hossein Shamkhani, 40, is a globally recognised businessperson born in Iran and resident in UAE who has an interest in agriculture, energy, logistics, consultancy and investment.

Update: 7 March 2024

Hossein Shamkhani’s lawyers send legal complaint to Bloomberg LP countering a series of damaging and defamatory accusations made against him which are entirely false [Dubai, 5 February 2025]: Lawyers representing Iranian-born businessperson and philanthropist, Hossein Shamkhani, have delivered a legal complaint to the publisher Bloomberg disputing a series of false, inaccurate and highly defamatory statements made in articles published by them between August and December 2024. These entirely false and egregious allegations have included fabricated and unfounded claims that he is some sort of ‘kingpin’ and an ‘oil tycoon’; that he has citizenships in Malta and Cyprus; that he is acting on behalf of his father – a former Iranian government minister; and most damaging of all, that he has acted in breach of international sanctions, moved illegal cargoes and supported “Russian war efforts”. Among the many inaccuracies published—many of which can be easily disproven through publicly available records—the following claims are entirely false: He does not own or operate any ships for the transport of any goods,including oil or arms He has no connection whatsoever to any businesses identified as owning sanctioned ships. He owns a logistics and road transportation company that exclusively moves general cargo to and from seaports in southern Iran, using trucks and railway wagons for inland transport only. He does not possess Maltese or Cypriot citizenship. He has absolutely no business interests or financial connections with his father, Ali Shamkhani. He has never, under any circumstances, been directly or indirectly involved in any arms trade. He has never provided any direct or indirect support to any parties involved in the Ukraine-Russia war. These are only a sample of the inaccuracies published about Shamkhani, without proper pre-publication research and without clear evidence and he awaits an immediate correction and eventual complete removal of these false and defamatory reports, which have caused great harm to him and his family. A spokesperson for Hossein Shamkhani said: “Bloomberg has made a huge number of defamatory assertions and falsehoods about Mr Shamkhani and his business activity. Even the most basic facts about Mr Shamkhani’s role in companies are entirely incorrect – stating he “oversees” or “controls” businesses he has no influence or connection to, proof of which can be found in publicly available sources. Mr Shamkhani values the importance of journalism in exposing the truth and reporting facts, and now urges Bloomberg to do its due diligence and re-examine every single assertion across the articles in order to remain truthful to its readers. He is surprised and hugely disappointed that a publication of Bloomberg’s reputation would allow such journalism to pass editorial controls.”