A Treasury Department official said that 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.
Follow us on Google The United States Department of the Treasury is seen in Washington, DC, US, August 30, 2020.(photo credit: Andrew Kelly/Reuters)ByLEO FEIERBERG BETTER, REUTERSAUGUST 6, 2026 02:11Updated: AUGUST 6, 2026 02:13The US Treasury Department removed an Iraqi IRGC-linked airline from its Office of Foreign Assets Control (OFAC) list of Specially Designated Nationals (SDN) on Wednesday.
Two aircraft operated by the airline were also covered by the sanctions, and were delisted Wednesday. CEO Basheer Abdulkadhim Alwan Al-Shabbani, however, remains sanctioned, with the State Department claiming he still has ties to the IRGC.
A Treasury Department official said that 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 removal of Fly Baghdad Airlines Co. (FBA), Iraq Express and two Boeing 737 aircraft from the Treasury's Specially Designated Nationals list was part of the Office of Foreign Assets Control's process to reconsider sanctions after behavior changes, the official said.
The official stressed that the US could reimpose sanctions on the airline at any time.
Members of special IRGC forces attend a rally marking the annual Quds Day, or Jerusalem Day, on the last Friday of the holy month of Ramadan in Tehran, Iran, April 29, 2022. (credit: MAJID ASGARIPOUR/WANA (WEST ASIA NEWS AGENCY) VIA REUTERS)Separately Fly Baghdad remains banned from the EU, placed on the EU Air Safety List by the European Commission placed it.
Airline had ties to IRGC, transporting weapons and personnel
The airline, Fly Baghdad, along with its CEO had been under US sanctions since 2024. At the time, the department said the airline supported IRGC operations through transporting weapons and personnel. These weapons included ballistic missiles, rifles, and other tools of war, according to a press release.
OFAC maintains enforces sanctions against several categories of foreign individuals and entities. The SDN list covers "individuals and companies owned or controlled by, or acting for or on behalf of, targeted countries" as well as "individuals, groups and entities... designated under programs that are not country-specific," according to OFAC.
Targeted individuals or groups have their assets blocked and US entities are banned from doing business with them. Those sanctioned as part of the SDN list can petition for removal.
The Treasury Department has listed IRGC-related groups as recently as late July.
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