Hossein Shamkhani, an Iranian oil magnate with deep ties to the Western financial system, has emerged as a key figure in the delivery of weapons to Russia through the Caspian Sea, aiding Moscow in its ongoing war in Ukraine, Bloomberg reported.
Shamkhani orchestrates these operations through a network of firms, including Dubai-based Crios Shipping LLC. Since last year, these firms have transported missiles, drone components, and dual-use goods using at least two vessels, according to information from over a dozen US, UK, and European officials, as well as individuals familiar with Shamkhani’s activities. Due to the sensitive nature of the matter, these sources spoke under anonymity.
The shipments are reportedly paid for with petroleum cargoes, reflecting a barter trade system increasingly prevalent due to US and European sanctions targeting both Russia and Iran. This arrangement coincides with Russia’s growing reliance on Iranian weaponry in its assault on Ukraine.
A Network Built on Power and Influence
Hossein Shamkhani’s rise is closely tied to his father, Iran’s longest-serving defense minister and a key adviser to Supreme Leader Ayatollah Ali Khamenei. His network is believed to handle over a quarter of Iran’s arms deliveries to Russia. Beyond shipping, Shamkhani’s business empire includes a hedge fund with operations in London, Geneva, and Singapore, as well as a Dubai-based commodities trading firm engaged with Western oil companies.
While Iran and Russia have acknowledged closer defense cooperation, the full extent of their weapons trade remains undisclosed. Notably, participation in such trade, while sanctionable by Western governments, is not inherently illegal. “My understanding is the Shamkhani network ties into the drone contracts for use in Ukraine,” said John Bolton, former US National Security Advisor and current leader of the Washington-based Foundation for American Security and Freedom.
Neither representatives of the Iranian and Russian governments nor Crios responded to requests for comment. Shamkhani’s lawyer, while contesting Bloomberg’s prior reporting, declined to address specifics of this story.
Strategic Caspian Routes
Since mid-2023, Crios vessels—formerly operating in the Mediterranean and Black Sea—have shifted to Caspian Sea routes, ferrying goods between Iranian ports and Russia’s Astrakhan. Ship tracking data reviewed by Bloomberg indicates that vessels such as Sea Castle (also known as Tooka) and Sea Anchor (also known as Roja) have completed multiple voyages, with at least five trips recorded this year.
Though modest in size, these vessels are sufficient for transporting arms across the Caspian. Sea Anchor, built in 1984, and Sea Castle, constructed a year earlier, have capacities of 3,000 and 4,000 tons respectively. Both ships operate under the flags of Palau, a registry flagged internationally for lax oversight.
Opaque Operations and Barter Trade Challenges
The extent of weaponry transported via Shamkhani’s fleet remains unclear, as cargo manifests often omit these shipments to avoid leaving paper trails. However, his network reportedly controls a large fleet of oil tankers and cargo ships. Crios Shipping, founded in Dubai in 2020, plays a central role in these operations. Despite branding itself as an international ship management firm, the company’s ownership details remain undisclosed.
Other firms tied to Shamkhani include Oceanlink Maritime DMCC and Koban Shipping LLC, both linked to Iran’s Ministry of Defense Armed Forces Logistics. David Tannenbaum, a former US Treasury official specializing in Caspian shipping, noted that these entities operate in close coordination, referring to Shamkhani simply as “H” or “Hector.”
The US sanctioned Oceanlink earlier this year, blocking 13 of its vessels without directly connecting the firm to Shamkhani. However, efforts to curb cross-Caspian arms trade face unique obstacles. “Sanctions enforcement against these barter networks is a lot harder, particularly when you consider Russia’s historic dominance in the region,” said Behnam Ben Taleblu of the Foundation for Defense of Democracies. “The short-term goal should be exposing these networks to the limelight.”
Broader Implications
The weapons-for-oil trade highlights the deepening Iran-Russia partnership, which the US has repeatedly flagged as a threat to European security. A State Department spokesperson emphasized how Iran’s destabilizing activities extend far beyond the Middle East.
This investigation, part of Bloomberg’s year-long effort to uncover Shamkhani’s business activities, draws on interviews with over 50 individuals and a review of confidential documents and corporate records. The findings underscore the complexities of curbing illicit arms trade networks that operate in defiance of international sanctions and scrutiny.
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