The Iraqi government expressed regret on Saturday over Washington’s decision to impose sanctions on a Popular Mobilization Forces (PMF) affiliated company and Iraqi groups and individuals accused by Washington of aiding the Iranian regime in evading U.S. sanctions.

On Thursday, the U.S. government announced a series of sanctions targeting the “Al-Muhandis” company affiliated with the PMF and Iraqi groups and individuals accused of close ties to Tehran and assisting in “avoiding U.S. sanctions, arms smuggling, and increasing corruption in Iraq.”

Bassam Al-Awadi, spokesperson for the Iraqi government, said in a statement today that “the Iraqi government views this unilateral action as very regrettable and inconsistent with the spirit of friendship and mutual respect that has long characterized bilateral relations between the two countries. Taking such a decision without prior consultation or dialogue sets a negative precedent in the approach to dealings between allied countries.”

Al-Awadi confirmed that “Iraq rejects any economic or financial activity outside the national legal framework, or exploited to finance armed groups, or for purposes that conflict with the supreme interests of our people,” emphasizing the government’s commitment “to transparent procedures that ensure the protection of public funds and prevent any party from acting outside the state’s system, without accepting any guardianship or interference in internal affairs.”

He added that “Prime Minister Mohammed Shia’ Al Sudani has ordered the formation of a high national committee, including representatives from the Ministry of Finance, Financial Control Bureau, Integrity Commission, and Central Bank, to review the related case and submit its report and recommendations within 30 days, including necessary legal and administrative measures.”

A statement issued by the U.S. Treasury Department said these “Iran-backed groups,” in addition to being responsible for killing Americans, “deliberately weaken the Iraqi economy, seize resources through exploiting influence and corruption, and reduce the possibility of an effective Iraqi government that would make the region safer.”

Among those targeted by these sanctions is the influential “Kata’ib Hezbollah,” which Washington considers a terrorist organization and which, according to former U.S. President Donald Trump, is linked to the release of the Israeli-Russian academic Elizabeth Tsurkov, who was kidnapped in March 2023.

“Kata’ib Hezbollah” is part of the PMF, a coalition of factions integrated into the regular forces, often accused of making decisions independently.

The sanctions also targeted Aqil Muftin, head of the Iraqi Olympic Committee, along with his brother Ali, both accused of having “close ties with intelligence officials in the Iranian Revolutionary Guard Corps,” and their banking institution was accused of laundering Iranian money.

The U.S. Treasury statement quoted John Herlihy, the Treasury’s Under Secretary for Terrorism and Financial Intelligence, saying: “We seek to disrupt the financing networks that enable these groups to operate. Successfully disrupting their financial flows is critical to protecting American lives and our national security.”

The U.S. sanctions include freezing assets owned directly or indirectly in the United States by the targeted companies and individuals, as well as prohibiting U.S. companies or citizens from dealing with them.

This ban also applies to foreign companies that use the dollar in their transactions with the sanctioned entities.