US lifts sanctions on Iraqi airline linked to Iran's IRGC: What to know

The United States lifted counterterrorism sanctions on Iraq's Fly Baghdad airline on Wednesday, reversing a designation that accused the airline of supporting Iran's Islamic Revolutionary Guard Corps (IRGC). The Treasury Department announced the removal of sanctions from Fly Baghdad, two of its registered aircraft, and two aliases owned by the airline.

However, Fly Baghdad's chief executive, Basheer Abdulkadhim Al Shabbani, remains under sanctions, now linked to the IRGC instead of the airline. The decision to remove Fly Baghdad from the US sanctions list came after the airline completed the Office of Foreign Asset Control's reconsideration process, and the Treasury official stated that the listing was no longer necessary due to major changes in the airline's operations.

The US Treasury Secretary, Scott Bessent, launched a review of the sanctions program in May, aiming to streamline the program and remove outdated designations to avoid unintended consequences. In recent weeks, the Treasury Department has also removed sanctions from 84 companies and individuals, including 33 Iraq-related firms first listed in 1991 or 1992. Fly Baghdad did not respond to The National's request for comment.