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Iraq Criticises US Sanctions on Company and Militias Over Ties to Iran

Khabor Wala Desk

Published: 12th October 2025, 8:39 AM

Iraq Criticises US Sanctions on Company and Militias Over Ties to Iran

Iraq on Saturday condemned US sanctions imposed on a company, individuals, and armed groups alleged to have ties with Iran-backed militias, describing the action as “deeply regrettable.”

The sanctions were announced by Washington on Thursday, targeting the Al-Muhandis company, a firm linked to the Hashed al-Shaabi or Popular Mobilisation Force (PMF)—armed groups trained by Iran during the war against the Islamic State (IS).

In addition, the United States targeted individuals and other Iraqi militias that the US Treasury said had assisted Tehran in:

  • Evading US sanctions
  • Smuggling weapons
  • Engaging in widespread corruption in Iraq

 

Iraqi government spokesman Basim Alawadi issued a statement criticising the move: “The Government of Iraq views this unilateral action as deeply regrettable, as it contradicts the spirit of friendship and mutual respect that has long characterised the bilateral relationship between the two countries.”

He added:”Taking such a decision without prior consultation or dialogue represents a negative precedent in the approach to relations between allied nations.”

 

Key Sanctioned Entities

Entity / Individual Alleged Ties Notes
Al-Muhandis Company Linked to Hashed al-Shaabi / PMF Part of Iran-trained groups from the war against IS
Kataeb Hezbollah Iraqi armed faction Listed as a terrorist organisation by the US; integrated into Iraq’s security forces but sometimes acts independently
Aqeel Muftin President, Iraq National Olympic Committee Accused of managing a commercial bank linked to Iran’s Islamic Revolutionary Guards’ Quds Force

 

Kataeb Hezbollah is a powerful Iraqi armed faction designated as a terrorist organisation by the United States. Though integrated into Iraq’s regular security forces alongside other PMF groups, the faction has a reputation for acting autonomously at times, which has drawn scrutiny from Washington.

 

Aqeel Muftin, the head of Iraq’s National Olympic Committee, was also sanctioned. He was accused of managing an Iraqi commercial bank with connections to Iran’s Islamic Revolutionary Guards’ Quds Force, raising concerns over financial networks facilitating Iran-backed operations in Iraq.

Key Points at a Glance

Aspect Details
Sanctioning Authority United States Government
Targeted Entities Al-Muhandis company, Kataeb Hezbollah, Aqeel Muftin, other Iran-linked militias
Reason for Sanctions Ties to Iran-backed militias, evading sanctions, smuggling weapons, corruption
Iraq’s Response Unilateral action “deeply regrettable”; contradicts spirit of bilateral friendship; taken without consultation
Context PMF trained by Iran during war against IS; some factions integrated into Iraqi security forces but act independently

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