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Babak Zanjani

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Babak Zanjani
Zanjani in 2013
Born
Babak Zanjani

(1974-03-12) 12 March 1974 (age 51)[1]
Tehran, Iran[2]
NationalityIranian
OccupationBusinessman
Criminal statusStayed (2021)[needs update]
Criminal chargeSpreading corruption on earth
PenaltyExecution
Date apprehended
2013
Websitewww.babakzanjani.com

Babak Zanjani (Persian: بابک زنجانی, born 12 March 1974)[1] is an Iranian billionaire and business magnate. He was the managing director of the UAE-based Sorinet Group, one of Iran's largest business conglomerates.[citation needed] In late 2013, he was arrested and accused of withholding $2.7 billion of government money owned by the Ministry of Petroleum, while facilitating Iran's oil revenue, which was hindered by the sanctions against Iran.

Zanjani was convicted of corruption and sentenced to death. In 2021, while awaiting execution, the Supreme Court of Iran indicated that the sentence would be commuted when his debts to the Iranian government were paid, and stayed his sentence, pending return of the embezzled funds. After the return of around $2.1 billion in assets, his sentence was commuted to 20 years of imprisonment on 30 April 2024.[3] Several commentators have stated that Zanjani is perhaps a "fall guy" for corruption scandals in Iran.[4][5][6]

Sorinet Group

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Sorinet Group (Persian: گروه شرکت‌های سورینت) is an Iranian business conglomerate. The company is one of Iran's largest business conglomerates. Sorinet businesses include cosmetics, finance and banking, hospitality, commercial aviation, infrastructure, building material, information technology and international real estate development. It operated in Iran, the United Arab Emirates, Turkey, Tajikistan, Malaysia, and China. He also owned Qeshm Air and Rah Ahan Sorinet F.C. in Iran.[7][8]

In 2013, Zanjani stated that his net worth was $13.5 billion.[9]

EU sanctions against Iran

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Zanjani was named in the restrictive measures against Iran in December 2012 by the Council of the European Union on the grounds that he "is assisting designated entities to violate the provisions of the EU regulation on Iran and is providing financial support to the government of Iran".[10] Zanjani was claimed to be "a key facilitator for Iranian oil deals and transferring oil-related money".[11] He denied the accusation, declining any ties with the Iranian government and calling the Europeans' decision "a mistake".[12]

The EU sanctions against Iran describe Zanjani as "a key facilitator for Iranian oil deals"[13] and transferring oil-related money and accused the Malaysia-based First Islamic Bank of being used to channel Iranian oil-related payments.[12] Zanjani said the complex nature of his companies' large sums of transactions might have misled EU authorities. Zanjani's companies were involved in the Labuan—Iran oil smuggling route on the eastern coast of Malaysia. Labuan had been serving as a drop-off spot for Iranian crude.[14]

Alleged dual nationality

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In January 2013, an Iranian news website, Baztab, reported that Zanjani holds a Danish passport in addition to his Iranian one, a claim which Zanjani later denied. He called the passport's copy "fake", saying in an interview with the news website of Rahahan F.C., his football team: "This story [the copy of my passport] is too badly fabricated that they even put my picture on the passport without a tie. However, it is obligatory to tie a necktie to take pictures for European passports," which is untrue.[15]

Arrest, initial conviction, and release

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On 30 December 2013, Zanjani was arrested by Iranian police for his alleged role in the "gold for gas" sale of Iranian oil that avoided international sanctions in schemes Turkey and Malaysia. He was accused of embezzling more than €2.7 billion,[16][17] involving, among others, the National Bank of Tajikistan.[18] Some days later, a spokesman from the National Bank of Tajikistan denied any cooperation between Zanjani and the bank and claimed all documents presented by Zanjani about their two-way communications were fake.[19] He was tried in an Islamic Revolutionary Court. On 6 March 2016, he was convicted and sentenced to death for embezzlement and "spreading corruption on earth".[20][2] In December 2016, the Supreme Court of Iran confirmed the sentence.[21]

However, his sentence has been stayed pending his return of the embezzled money,[22] after which he may receive a pardon.[23] Iran's Supreme Court indicated that his sentence would be commuted when his debts to the Iranian government were paid.[24] On 30 April 2024, Zanjani's sentence was commuted to 20 years' imprisonment after returning around $2.1 billion in assets from illegally selling oil.[3] Shortly after, reports emerged of his conditional release.

As of January 2025, photos of the newly-freed Zanjani were seen circulating in Iranian media.[25]

Return to business activities

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Following his early release from prison, Zanjani reemerged in the corporate sector through a newly established holding company named Avan, registered on November 17, 2024, with a declared capital of 30 billion tomans (£375,000). Within five months, Avan expanded into ten subsidiaries across transportation, trade, and technology sectors, most notably Avan Rail. In April 2025, Avan Rail signed what was described as the largest private sector investment in the history of Iranian railways—a 61 trillion toman ($800 million) contract with Islamic Republic of Iran Railways to procure 300 diesel self-propelled passenger locomotives, 50 freight locomotives, and 600 tank freight wagons.[26]

The deal quickly drew scrutiny due to the company’s limited capital and the opaque nature of its financing, which representatives attributed to an unnamed foreign investor. Despite official denials of Zanjani’s involvement, contradictory statements and corporate registration records indicated he held executive roles within the group. Reports from IranWire revealed that Zanjani retained stakes in at least 11 companies in Iran, suggesting a broad and active business portfolio. His resurgence sparked criticism across the political spectrum, including from conservative figures, who viewed the railway deal as a potential liability for President Masoud Pezeshkian’s administration.[26]

See also

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References

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  1. ^ a b US Department of the Treasury (11 April 2013). "Treasury Targets Network Attempting to Evade Iran Sanctions". Archived from the original on 16 October 2022.
  2. ^ a b "Iran billionaire sentenced to death". BBC. 6 March 2016. Retrieved 6 March 2016.
  3. ^ a b "Iran commutes a tycoon's death sentence to 20 years in prison". Associated Press. 30 April 2024. Archived from the original on 14 April 2025. Retrieved 14 April 2025.
  4. ^ Sune Engel Rasmussen (14 March 2016). "How Babak Zanjani Went From Iran's Top Sanctions Buster to Dead Billionaire Walking". Newsweek. Retrieved 1 January 2017. Zanjani serves as a fall guy for the current government's attempt, at least in public, to break with the cronyism of the Ahmadinejad era.
  5. ^ Hamid Dabashi (10 March 2016). "Babak Zanjani and the collaboration of Iran". Al Jazeera. Retrieved 1 January 2017. The full exposure of such corruptions scandalizes not only the crook who engaged in such financial atrocities, but those who enabled him and are now using him as "the fall guy".
  6. ^ Michael Theodoulou (11 January 2014). "Downfall of Iran's billionaire sanctions-buster". The National. Archived from the original on 12 January 2014. Retrieved 1 January 2017. Scott Lucas, an Iran specialist at Birmingham University in England, suspects that Mr Zanjani will become the "fall guy" for corruption scandals involving powerful figures and institutions during the Ahmadinejad era. "More senior figures are likely to escape unscathed, provided Mr Zanjani pays the price," Mr Lucas said.
  7. ^ "Zanjani to Rahahan footballers: Raise your self-confidence". Rah Ahan Sorinet F.C. 18 January 2013. Retrieved 19 February 2013.[permanent dead link]
  8. ^ "Iran lawmakers accuse billionaire Zanjani of corruption". 30 December 2013. Archived from the original on 30 March 2014., originally published in Aseman magazine
  9. ^ Erdbrink, Thomas (5 October 2013). "To This Tycoon, Iran Sanctions Were Like Gold". The New York Times. Retrieved 21 October 2016.
  10. ^ "Council Implementing Regulation (EU) No 1264/2012 of 21 December 2012". Official Journal of the European Union. 23 December 2012. Retrieved 14 April 2025.
  11. ^ Barbara Lewis (23 December 2012). "Tougher EU sanctions against Iran come into force". Reuters. Retrieved 19 February 2013.
  12. ^ a b Humeyra Pamuk (23 December 2012). "Iranian businessman denies EU sanctions-busting accusation". Reuters. Retrieved 19 February 2013.
  13. ^ "Businessman sees the upside of sanctions". Radio Zamaneh. 13 April 2013. Archived from the original on 17 August 2013.
  14. ^ Hirten, Kevin (2 December 2019). "Diplomats for sale: How an ambassadorship was bought and lost". Al Jazeera. Archived from the original on 14 December 2019.
  15. ^ "Zanjani's comments on the recent allegations and accusations". Rahahan F.C. 6 February 2013. Archived from the original on 16 February 2013. Retrieved 21 February 2013.
  16. ^ بابک زنجانی بازداشت شد [Babak Zanjani was arrested]. Khabar Online (in Persian). 30 December 2013. Archived from the original on 3 January 2014.
  17. ^ "Jailed Billionaire's Helper Must Repay $1.3 Billion To Iran's Government". Radio Farda. 2 November 2019. Archived from the original on 3 November 2019.
  18. ^ اتهام جدید علیه بابک زنجانی: «جعل اسناد» پرداخت بدهی نفتی [New charge against Babak Zanjani: "forgery" oil debt payment]. Radio Farda (in Persian). 30 December 2013. Archived from the original on 1 March 2014.
  19. ^ "Tajik National Bank Denies Link With Iranian Businessman". Radio Free Europe. 30 December 2013. Archived from the original on 6 January 2017.
  20. ^ "Iranian billionaire Babak Zanjani sentenced to death for embezzlement". The Guardian. Reuters. 6 March 2016. Retrieved 6 March 2016.
  21. ^ "Iran's supreme court upholds tycoon's death sentence for graft". Reuters. 3 December 2016. Archived from the original on 14 July 2018.
  22. ^ "Billionaire To Be Hanged After Government Collects Its Money". Radio Farda. 14 December 2018. Archived from the original on 14 December 2018.
  23. ^ Davar, Faramarz (25 February 2019). "Will Sanctions Save Babak Zanjani from Execution?". Iran Wire. Archived from the original on 15 December 2019.
  24. ^ Maryam Sinaiee (17 July 2021). "Iran Billionaire Might Not Be Hanged If He Pays Debts To Government". Iran International. Retrieved 16 October 2022.
  25. ^ "Iranian jailed businessman Babak Zanjani resurfaces in video promoting cryptocurrency". www.intellinews.com. 22 January 2025. Retrieved 23 April 2025.
  26. ^ a b "After Stealing $3.1B, Iranian Tycoon Wins $800M Railway Deal". iranwire.com. Retrieved 23 April 2025.
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