London Businessman Accused of Funding Iranian Petrochemical Operations

A businessman based in London, Arshiya Jahanpour, faces serious allegations of facilitating financial transactions that reportedly help the Iranian regime evade international sanctions. Jahanpour is accused of controlling a front company associated with Iran’s primary petrochemical firm, as detailed in a legal claim filed with the High Court in London.

The allegations suggest that Jahanpour allowed approximately £123 million to be misappropriated from Alliance Petrochemical (API), a Singaporean oil company. This accusation arises amid claims by the United States Treasury that the Mehr Petrochemical Company (MHPC), of which Alliance controls 60 percent, is part of a network of front companies that enables Iran to generate billions of dollars from petrochemical sales.

Court documents reveal that MHPC has been sanctioned by the US due to its connections with Iran’s state-owned oil sector. Jahanpour, who resides in a £7 million flat in London, has denied any wrongdoing and claims he has never controlled MHPC or acted as a shadow director of Alliance.

Legal Dispute and Counterclaims

This legal battle has developed into a complex international dispute that centers around the financial dealings between Alliance and MHPC. In 2023, an Iranian court ruled that Alliance owed MHPC $170 million (approximately £123 million), with both parties accusing each other of financial misconduct.

The situation intensified when Alliance accused Francesco Mazzagatti, a rival oil tycoon and head of North Sea energy group Viaro, of stealing the £123 million. Mazzagatti, who was a director at Alliance, allegedly retained control of the company even after resigning in 2020. In response, Mazzagatti has filed a counterclaim, further complicating the case.

A spokesperson for Jahanpour emphasized that he has never had any direct control over MHPC and categorically denied the allegations. The ongoing court proceedings have yet to yield any definitive conclusions regarding the claims made by both sides.

As the situation develops, it highlights the intricate financial landscapes and legal frameworks that govern international oil trade, particularly in regions subject to sanctions. The ramifications of this case could significantly impact the operations of companies involved in the global petrochemical market.

The case remains under judicial review, and as of now, no formal determinations have been made regarding the allegations against Jahanpour or Mazzagatti.