US Lifts Sanctions on Iraqi Airline Previously Linked to Iran's Revolutionary Guards

The United States has removed sanctions previously imposed on Iraq's Fly Baghdad airline. The Treasury Department announced the lifting of sanctions on the airline and two of its aircraft, citing major operational changes that no longer warrant the designation. This decision follows an administrative reconsideration process initiated by the airline. Fly Baghdad had been sanctioned in January 2024 over allegations of providing support to Iran's Islamic Revolutionary Guard Corps (IRGC) Quds Force and its proxy groups operating in Iraq, Syria, and Lebanon. While the airline itself is now free from US sanctions, the Treasury Department has maintained sanctions against Basheer Abdulkadhim Alwan al-Shabbani, identified as the company's owner. A US Treasury official, speaking anonymously, emphasized that this move does not represent a shift in US policy towards the Iranian government, the IRGC, designated terrorist organizations, or their supporters. The official stated that Fly Baghdad's operational changes were significant enough to justify the removal from the sanctions list. The broader context involves ongoing US pressure on Iran through sanctions and military actions, which Iran has countered with actions like blocking the Strait of Hormuz and targeting US allies.

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FBA (Fly Baghdad Airlines) has demonstrated major changes to their operations such that their listing is no longer warranted.