Deputy Oil Minister Ali Maarij al-Bahadly: US designation for diverting oil to Iran-linked networks and Iraqi illicit-enrichment conviction (2026)
On 7 May 2026 OFAC designated Ali Maarij al-Bahadly, Iraq's Deputy Minister of Oil (earlier head of parliament's oil and gas committee and, since 2018, head of the ministry's licensing and contracts office, deputy and acting minister), for facilitating the diversion of Iraqi oil products to benefit Salim Ahmed Said, whom the US Treasury describes as an oil smuggler, and the militia Asa'ib Ahl al-Haq. He was detained in the June 2026 Green Zone raids. On 30 August 2026 the Integrity Commission announced he had been sentenced to seven years for illicit enrichment ("تضخم الأموال والكسب غير المشروع"), valued at about IQD 26.5bn, and ordered to pay IQD 53bn (repayment plus an equal fine).
- Period
- From 2018 to August 2026
- Sector
- Oil and gasOil products allocations and export rights
- Kind of case
- Criminal prosecution
- Jurisdiction
- More than one jurisdiction
How the money moved
Granting export rights or allocations to favoured companies (including trucking oil from the Qayyarah field to a Khor al-Zubair terminal, according to Treasury) in exchange for bribes; forged provenance documents; unexplained personal wealth.
What happened
Convicted in Iraq (first instance, 2026); US sanctions in force.
Open questions
- Appeal status; whether the oil-diversion conduct itself (not only illicit enrichment) was charged.
- Other ministry officials involved in allocations to VS Oil.
People and companies
| Name | Role in the case | Legal status | Detail | As of |
|---|---|---|---|---|
| Ali Maarij Sweij al-Bahadly علي معارج سويج البهادلي | Deputy Minister of Oil (distribution); former chair, parliamentary oil & gas committee | Convicted (reported) | OFAC designation 7 May 2026 (Executive Order 13902); arrested June 2026; sentenced to 7 years for illicit enrichment, IQD 53bn repayment and fine (announced 30 August 2026). | 25 September 2026 |
| Salim Ahmed Said سليم أحمد سعيد | Iraqi-British businessman (VS Oil) | Under sanctions | OFAC designation July 2025 (Executive Order 13902); Treasury says he bribed Iraqi officials and reportedly installed Maarij. | 25 September 2026 |
Sources
- US Department of the Treasury7 May 2026Sanctions noticeTier A
Economic Fury Targets Iraqi Oil Official, Iran-Backed Terrorist Militias in Iraq (sb0492)
OriginalSHA-256 4b8d25a1c82fOFAC today designated Iraq’s Deputy Minister of Oil, Ali Maarij Al-Bahadly (Maarij), who has been instrumental in facilitating the diversion of Iraqi oil products
- Alsumaria News (reporting Integrity Commission statement)30 August 2026Press reportTier D
الحكم على وكيل وزارة النفط علي معارج بالسجن لمدة 7 سنوات وغرامة مالية
Originalلإدانته بجريمة تضخم الأموال والكسب غير المشروع