Iranian shipping line to cease Malta operation by November

The Iranian national shipping line’s Irisl’s container ships will enter Malta Freeport for the last time in November, as the company is believed to be preparing an exit from the island.

Industry sources say Freeport authorities are aware that the blacklisted Islamic Republic of Iran Shipping Lines – which made the freeport its Mediterranean transhipment hub – would cease operations in November, taking with it a sizeable amount of business. Over 30 vessels entered Malta every month chartered by the Iranian company.

It is not yet clear whether United States and United Kingdom efforts to blacklist all the ships previously owned by Irisl, later renamed Hafiz Darya Shipping, has led to the decision.

Earlier today, US secretary of state Hillary Clinton made note of Malta’s “strong efforts” in enforcing US sanctions against nuclear weapons proliferation. “The US knows of Malta’s leadership in the area to interdict prohibited Iranian cargo and shipping in the Mediterranean region.”

Malta has been highly cooperative in furnishing the US with information on the activities of Irisl, whose ships were renamed and passed on to a new company called HDS to bypass the US sanctions.

Former US ambassador Molly Bordonaro had noted that it would be “unusual for the GOM to decline to take action on a direct USG request” according to a leaked embassy cable published on Wikileaks.

Malta is revealed by the cables to have worked behind the scenes to strictly limit Iranian access, although it is also clear that there was no intention of shutting down Irisl’s operations in Malta.

The government formally adopted EU sanctions against various branches and subsidiaries of Irisl, which used a network of front companies in Malta to evade restrictions on its trade.

Irisl set up 42 companies in Malta registered on various addresses to transfer its ships’ ownership to these subsidiaries. Almost half of Irisl’s fleet was renamed and registered under the Maltese flag.

Irisl used a Maltese-owned company Royal-Med to serve as the agent for the private Iranian company Hafiz Darya Shipping Lines (HDS) which was created to take over all Irisl business in 2009 after it was hit by a US trading ban over its alleged role in supplying Iran’s nuclear weapons programme.

Despite the sanctions, the prohibition did not prevent the execution of contracts concluded before 26 October 2010.

According to US embassy cables, Malta also accepted a firm commitment with the United States to deny requests by Iranian banks to establish a subsidiary, branch, or representative office in Malta.

Iranian bank Melli had been ‘singled out’ in a United Nations Resolution as an “entity of particular concern”, with finance minister Tonio Fenech informing the US ambassador that Malta would block Melli’s request to use Malta’s payment system, via London.

The US also urged Malta to approach law firms so that they institute “enhanced vigilance” over transactions with Irisl. In February 2009, law firm Ganado and Associates terminated all aspects of its professional relationship with Irisl.