US Lifts Sanctions on Iraqi Airline Fly Baghdad, Owner Remains Blacklisted

Washington:** The United States has announced the removal of sanctions imposed on Iraq’s private airline **Fly Baghdad**, while restrictions on the company’s alleged owner remain in place.

According to the latest sanctions update issued by the US Department of the Treasury, Fly Baghdad and two aircraft operated by the airline have been removed from the sanctions list. However, sanctions against the airline’s alleged owner, **Bashir Abdul Kazim Alwan Al-Shabani**, remain unchanged, with no official explanation provided for the decision.

The United States imposed sanctions on Fly Baghdad in January 2024, alleging that the airline had links to Iran’s Islamic Revolutionary Guard Corps (IRGC) Quds Force.

At the time, Washington claimed that some of the airline’s aircraft were used to transport Quds Force personnel, weapons, and military equipment to Iraq, Syria, and Lebanon. The US Treasury also accused the company of providing logistical support to Iranian-backed armed groups. Fly Baghdad and the Iraqi government strongly denied the allegations.

According to AFP, a senior US Treasury official, speaking on condition of anonymity, said Fly Baghdad demonstrated significant changes to its business practices and operational procedures during the Treasury Department’s sanctions review process.

The official stated that the airline had implemented substantial reforms, making it unnecessary to keep the company on the sanctions list.

US officials stressed that removing Fly Baghdad from the sanctions list does **not** signal any change in Washington’s policy toward Iran, the IRGC Quds Force, or organizations designated as terrorist groups by the United States.

The Treasury Department said the decision was based solely on a review of the airline’s current operations and compliance measures, while US sanctions against Iran and affiliated organizations remain fully in effect.

The lifting of sanctions is expected to improve Fly Baghdad’s access to international aviation services, including aircraft leasing, insurance, spare parts procurement, and cross-border financial transactions.

The announcement comes as indirect negotiations between the United States and Iran continue under Oman’s mediation, alongside broader diplomatic efforts to ease tensions across the Middle East.