U.S. Imposes Sanctions on Network Behind Fuel Smuggling in Mexico

The United States Treasury Department has imposed sanctions on two Mexican nationals and nine companies accused of operating a fuel smuggling network that funnels gasoline from the U.S. into Mexico. U.S. authorities claim these entities are connected to the powerful Cartel de Jalisco Nueva Generación (CJNG).

According to a statement from the Treasury, the network is involved in an illicit business that generates hundreds of millions of dollars annually for the cartel. The U.S. government highlighted that the smuggling of fuel and stolen crude oil has become the second-largest source of income for Mexican drug cartels, surpassed only by narcotics trafficking.

"Today's action demonstrates the extent to which Mexico's cartels are expanding their activities beyond traditional drug trafficking to generate revenue for their criminal organizations, which continue to smuggle deadly drugs that kill Americans," stated Treasury Secretary Scott Bessent. The Treasury Department detailed that Mexican cartels and their networks circumvent Mexico's import duties, known as IEPS, on goods like diesel and gasoline by falsifying customs documents and bribing public officials.

Fuel smuggling has become a critical focus for U.S. law enforcement as it provides significant funding for cartel operations, enabling them to continue activities such as drug trafficking and other illicit enterprises. The sanctions aim to disrupt these financial flows and dismantle the infrastructure supporting these criminal networks.

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Today's action demonstrates the extent to which Mexico's cartels are expanding their activities beyond traditional drug trafficking to generate revenue for their criminal organizations, which continue to smuggle deadly drugs that kill Americans.