The U.S. Department of the Treasury announced on Wednesday that it removed counter-terrorism sanctions from Iraq-based Fly Baghdad Airlines and two Boeing 737 aircraft. The sanctions had been imposed in 2024 on grounds of links to Iran’s Islamic Revolutionary Guard Corps Quds Force.
In a statement, Treasury officials said the airline and related entries were taken off the Treasury’s Specially Designated Nationals list after the carrier demonstrated significant alterations to its operations. The removal affects Fly Baghdad Airlines Co, the entity listed as Iraq Express, and two specific Boeing 737 aircraft that had previously been designated.
A Treasury official explained the decision by saying the airline had shown material changes to its behavior that rendered the prior listing no longer warranted. The official added that the carrier had addressed the conduct that had made it subject to sanctions.
The official was careful to note limits to the action’s meaning. The removal does not represent any change in U.S. policy toward Iran’s government, the Islamic Revolutionary Guard Corps or other groups designated as terrorist. The official also said the decision was unrelated to any U.S. negotiations with Iran over a potential agreement to halt hostilities in the Gulf.
The action is part of the Office of Foreign Assets Control’s process for reviewing sanctions when an entity’s behavior changes. The Treasury did not disclose the specific operational or compliance changes the airline made that led to the delisting. Officials also warned that sanctions could be restored at any time should circumstances warrant it.
Summary
U.S. Treasury officials removed Fly Baghdad Airlines, Iraq Express and two Boeing 737 aircraft from the Specially Designated Nationals list after concluding the carrier altered sanctionable behavior that led to its 2024 designation over alleged ties to the IRGC Quds Force. The Treasury emphasized the decision does not signal a broader policy shift toward Iran and that sanctions remain reversible.
- Key point: The Treasury delisted Fly Baghdad, Iraq Express and two Boeing 737s after finding major changes in the airline’s conduct.
- Key point: The 2024 sanctions had been imposed due to alleged links with Iran’s Islamic Revolutionary Guard Corps Quds Force.
- Key point: Officials said the action is not a change in U.S. policy toward Iran and is unrelated to negotiations over Gulf hostilities.
- Risk/Uncertainty: The Treasury did not provide specifics on the changes that prompted the delisting, leaving uncertainty about compliance steps taken.
- Risk/Uncertainty: Sanctions can be reimposed at any time, creating ongoing regulatory and operational uncertainty for the airline and counterparties.