SOMO denies receiving U.S. sanctions notification, says export controls ‘sound’

BAGHDAD — Iraq’s State Oil Marketing Organization on Monday denied receiving any official notification or threat of U.S. sanctions, saying its export control mechanisms are coordinated with international authorities.

SOMO Director General Ali Nizar al-Shatri told the Iraqi News Agency that “we have not received anything official regarding the existence of U.S. sanctions, and we rely on official documents and correspondence and do not rely on statements from here and there.”

He added that “all understandings and discussions, including with the U.S. Treasury Department, indicate the soundness of the mechanisms, documents and paperwork adopted by SOMO.”

Shatri said the company applies strict oversight measures on all tankers entering Iraqi territorial waters and issues daily reports detailing the nature of these vessels and their destinations. He said these procedures “provide full reassurance of the solidity of the institution and the protection of the budget’s lifeline.”

He noted that Iraq has become a major exporter of refined petroleum products and that revenues from exports are beginning to rival crude oil revenues.

The statement comes as political tensions continue over the nomination of Nouri al-Maliki for prime minister. President Donald Trump has warned that Washington may halt support for Iraq if Maliki returns to power.

On Feb. 19, Iraq’s Foreign Ministry said a verbal message delivered by U.S. officials in Washington “included a clear and explicit hint of the possibility of imposing sanctions on certain individuals and institutions” if the Coordination Framework insists on Maliki.