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.