Silke Mayr A new energy project in Albania is under investigation. It is linked to businesses from Turkey and Iran that are under sanctions. These businesses are connected to Iran’s military and are suspected of smuggling fuel.
Background of the Project
In 2022, the former U.S. Ambassador to Albania, Yuri Kim, supported a plan to bring two thermal generation ships to Albania. These ships were supposed to produce electricity. However, the process to buy these ships was rushed and seemed suspicious. The ships were from an American company. But they cost four times as much as the energy Albania already exported.
Delays occurred because the ships were not efficient. But the contract required them to operate. So, fuel had to be secured to make the ships work.
Fuel Procurement Raises Concerns
To get the fuel, the Albanian Power Corporation (KESH) ordered 21,000 tons of fuel. The total value was $11 million. The company that provided the fuel, EMAD Energy S.A., is based in Switzerland. EMAD Energy is tied to Iran. This raised red flags.
Emails and documents suggest that in 2021, EMAD Energy and a Turkish group, ASB Group, had supplied fuel to Albania. This Turkish group has links to Iran.
Fuel Smuggling Operation Revealed
Documents from Iran-Leaks show the connection between ASB Group and EMAD Energy. In 2021, they shipped fuel to Albania. The price was set by Sonatrach, Algeria’s oil company. Algeria and Iran have close ties, which deepens Albania’s connection to smuggling.
Albania became a hub for Iranian oil smuggling in 2020. ASB Group sold $36 million worth of Iranian oil through an Albanian company called MAC General Trading. Emails between the two groups confirmed this. One person from ASB Group was convicted by a U.S. court for breaking oil embargo sanctions.
Albania’s Involvement in the Scheme
Albania’s role in this is linked to its political ties. Prime Minister Edi Rama has a close relationship with Turkey’s President Erdoğan. Albania’s Energy Minister, Belinda Balluku, has been criticized for mismanaging the project. Through these connections, Turkish businesses accessed Albanian institutions like KESH.
Michael Rubin, a former Pentagon official, suggested that Ambassador Kim may have supported this project to stay on good terms with Erdoğan. He believes this may have influenced her actions.
This situation raises many questions. It seems Albania’s energy sector was misused for smuggling operations. Albanian leaders must answer for their involvement in this scheme. This could have serious effects on international sanctions.