US lifts sanctions on Iraq's Fly Baghdad airline

The United States Treasury Department has lifted sanctions against the Iraqi airline Fly Baghdad and two of its aircraft. The airline, along with its CEO Basheer Abdulkadhim Alwan Al-Shabbani, had been under U.S. sanctions since 2024. The Treasury Department had accused the airline of supporting Iran's Islamic Revolutionary Guard Corps (IRGC) by transporting weapons and personnel, including ballistic missiles and rifles.

Despite the removal of sanctions, CEO Basheer Abdulkadhim Alwan Al-Shabbani remains sanctioned, with the State Department asserting he still has ties to the IRGC. A Treasury Department official emphasized that this decision does not indicate a change in U.S. policy toward Iran or the IRGC, nor does it signal a shift in negotiations concerning the Middle East conflict.

“

The removal of sanctions was not indicative of a shift in US policy towards Iran or the IRGC, or negotiations to end the conflict in the Middle East.

The delisting of Fly Baghdad Airlines Co. (FBA) and two Boeing 737 aircraft was described as part of the Office of Foreign Assets Control's (OFAC) standard process for reconsidering sanctions following behavioral changes. The official cautioned that the U.S. reserves the right to reimpose sanctions on the airline at any time.

Fly Baghdad remains banned from the European Union, having been placed on the EU Air Safety List by the European Commission. OFAC enforces sanctions against various foreign individuals and entities, blocking their assets and prohibiting U.S. entities from conducting business with them. Sanctioned parties can petition for removal from the list.

“

The US could reimpose sanctions on the airline at any time.