On September 11, 2024, the U.S. Department of the Treasury’s Office of Foreign Assets Control sanctioned a network of individuals, entities, and vessels that facilitated the shipment of oil and liquified petroleum gas (“LPG”) to the Government of Syria in an effort to generate revenue for Hizballah, a group designated by the State Department as a Specially Designated Global Terrorist group in 2001. OFAC reported that the network’s oil and LPG smuggling operations generate hundreds of millions of dollars for Hizballah – funds that the group allegedly uses to support terrorist activities.
OFAC sanctioned three individuals, five companies, and two vessels allegedly involved in Hizballah’s oil and LPG smuggling operation. The designations include Hizballah official Muhammad Ibrahim Habib al-Sayyid who has reportedly assumed responsibility for managing certain commercial businesses from Muhammad Qasim al-Bazzal, a prominent Hizballah official who was designated by the United States in 2018 for his role in managing Hizballah’s finance operations as well as a channel used to transport oil and LPG for Hizballah. According to OFAC, al-Sayyid oversees the operations of two Lebanese businessmen – Ali Nayaef Zgheib and Boutros Georges Obeid – who participate in Hizballah energy deals and the shipment of oil and LPG to Syria. In addition to al-Sayyid, OFAC designated Zgheib and Obeid, four companies that they own or control, and European Lebanese International Trade SARL (“ELIT”), a company represented by al-Bazzal. OFAC also sanctioned two LPG tankers, Alpha Gas and Marina, that are controlled by ELIT and allegedly used by al-Bazzal to make dozens of LPG shipments to Syria.
These designations were imposed pursuant to Executive Order 13224, as amended, which targets terrorist groups and their supporters. As a result of these designations, all property and interests in property of the designated persons within the United States or within the possession or control of a U.S. person are blocked, and U.S. persons are generally prohibited from engaging in transactions involving a designated person. Entities owned 50 percent or more by one or more blocked persons are also blocked.