U.S. Sanctions Iraqi Airline For Supporting Iranian-Backed Militias

The U.S. Department of the Treasury on Jan. 22 announced sanctions against the Iraqi airline Fly Baghdad for providing materiel support to Iranian-backed militias, days after a U.S.-occupied base in western Iraq came under attack from dozens of missiles linked to a militia.

The sanctions from the department’s Office of Foreign Assets Control are for providing assistance to the Iranian Islamic Revolutionary Guard Corps-Quds Force and proxy groups in Iraq, Syria and Lebanon. John Kirby, spokesman for the White House’s National Security Council, said the sanctions are aimed at protecting not only the U.S. financial system, but also national security amid heightened tensions and increased attacks on U.S. forces in the region. As of Jan. 22, U.S. forces have been targeted by militias more than 150 times since early October.

'“Iran and its proxies have sought to abuse regional economies and use seemingly legitimate businesses as cover for funding and facilitating their attacks,” Brian Nelson, Treasury’s under secretary for terrorism and financial intelligence, said in an announcement. “The United States will continue to disrupt Iran’s illicit activities aimed at undermining the stability of the region.”

The sanctions specifically target Fly Baghdad CEO Basheer Abdulkadhim Alwan al-Shabanni and two of the airline’s aircraft, the Bombardier CRJ-200ER YI-BAF and Boeing 737-700 YI-BAN. The airline has specifically delivered to groups in Syria weapons including Iranian-made Fateh, Zulfiqar and al-Fajr missiles as well as AK-47s, RPG-7s and other grenades and machine guns, Treasury alleges in an announcement.

The militia Kata’ib Hizballah also used Fly Baghdad aircraft to transport fighters and money to Syria and Lebanon for the Syrian regime, including ferrying bags of U.S. currency and U.S.-made weapons from Iraq to Lebanon.

“In October 2023, following Hamas’s horrific terrorist attack on Israeli civilians, Fly Baghdad was involved in the transfer of hundreds of Iraqi fighters, including fighters affiliated with U.S.-designated terrorist organization and Iranian proxy militia Asa’ib Ahl al-Haq, in support of the Iranian proxies’ attacks on Israel,” the department says.

The U.S. sanctions come about two months after the European Union banned Fly Baghdad from operating within its borders for not meeting international safety standards.

Iranian-backed militias have increased the pace and scope of their attacks on U.S. forces, most recently with a major attack on Jan. 20 targeting al-Asad Air Base. Dozens of ballistic missiles and rockets targeted the installation, which used Patriot air defenses to respond.

“Most of the missiles were intercepted by the base’s air defense systems while others impacted on the base,” U.S. Central Command said in a statement. “Damage assessments are ongoing. A number of U.S. personnel are undergoing evaluation for traumatic brain injuries. At least one Iraqi service member was wounded.”

Al-Assad notably was the location of a January 2020 Iranian attack from Iran in response to the assassination of Quds Force Commander Qasem Soleimani. During that incident, more than 12 ballistic missiles from Iran were launched at the base and resulted in about 110 troops being injured, largely from traumatic brain injuries.