Kuala Lumpur, May 13: Malaysia says it has limited power to stop Iranian-linked oil tankers from carrying out ship-to-ship transfers near its waters, despite criticism that the country is helping Iran evade international sanctions.
US-based advocacy group United Against Nuclear Iran (UANI) said it tracked 42 transfers of Iranian oil since February 28 in waters about 70 kilometres off Malaysia’s Johor state.
The group used satellite imagery to monitor the operations in the Eastern Outer Port Limits (EOPL) area of the South China Sea, a major shipping route between Iran and China. China is believed to purchase around 90 per cent of Iran’s oil exports.
Critics, including shipping organisations and UANI, accuse Malaysia of weak enforcement against Iran’s so-called “shadow fleet” of tankers used to bypass sanctions.
The vessels reportedly avoid detection by switching off tracking systems, using false identities, operating at night, and concealing ownership details.
Malaysian Maritime Enforcement Agency chief Mohamad Rosli Abdullah rejected the criticism, saying most transfers occur in international waters outside Malaysia’s jurisdiction.
He said enforcement agencies operate strictly under Malaysian and international maritime law and do not provide special treatment to any country.
Although ship-to-ship transfers are not illegal, Malaysia discourages unauthorised operations outside designated areas because they raise environmental and safety risks, including oil spills involving aging vessels far from ports.
UANI adviser Charlie Brown said Malaysia could still take stronger action by enforcing environmental rules, requiring advance notification of transfers, and restricting local support services for sanctioned vessels.
He warned that Malaysia risks becoming “a facilitator” for illicit Iranian oil trade.
Indonesia, whose maritime territory borders the transfer area near the Riau Archipelago, said it is reviewing the legality of the activities.
Indonesian officials stressed that unlawful activities are not permitted in their maritime zones while maintaining international navigation rights under UNCLOS.
Earlier this year, Malaysian authorities seized two vessels involved in unauthorised oil transfers in Malaysian waters, though both were later released on bond. (AP)
