Daniel Ortega

July 8 (UPI) — A Nicaragua-flagged oil tanker under investigation for allegedly transporting fuel subject to U.S. sanctions ran aground off India’s western coast after breaking free from its anchor during severe weather.

India’s Directorate of Revenue Intelligence said the vessel was unmanned when it ran aground, according to Nicaraguan news outlet 100% Noticias.

Indian authorities have identified the 597-foot MT Al Jafzia as part of a suspected “shadow fleet” used for clandestine maritime operations.

According to the investigation, the tanker allegedly switched off its tracking system to conduct ship-to-ship fuel transfers at sea, a practice commonly used to conceal the origin of oil cargoes.

The vessel ran aground near Manori Beach, north of Mumbai, drawing renewed attention to the government of Nicaraguan President Daniel Ortega.

Nicaraguan economist and opposition figure Juan Sebastián Chamorro wrote on X that the Al Jafzia’s use of the Nicaraguan flag showed Ortega’s government had joined what he described as a “shadow fleet” transporting Russian and Iranian oil to evade sanctions imposed by the United States and other countries.

“Ortega is now selling the Nicaraguan flag and joining the shadow oil fleet,” Chamorro wrote. He added that the case “demonstrates Ortega’s ties with Putin to evade sanctions.”

Press reports said the MT Al Jafzia was one of three vessels detained by Indian authorities after investigators detected suspected fuel smuggling, fuel theft and illegal ship-to-ship transfers at sea.

Such operations are commonly associated with networks that help sanctioned countries, including Iran and Russia, sell energy exports through illicit channels by using flags of convenience to avoid international scrutiny.

The incident prompted criticism from Nicaraguan opposition leaders and political analysts in exile, who said the case exposed what they described as the Nicaraguan government’s involvement in illicit international activities.

Political scientist José Antonio Peraza told 100% Noticias that the operation appeared to be an illegal transaction intended to evade sanctions or obtain favorable transport terms for the fuel.

“Nicaragua does not have a long tradition of merchant ships sailing under its flag around the world. Therefore, it is very difficult to believe this could happen without the involvement of the Nicaraguan authorities or the Ortega dictatorship,” Peraza said.

Economic analysts warned that the incident could increase the risk of additional international financial and commercial sanctions against Nicaragua if foreign governments conclude the country’s flag is being used to facilitate shipments of sanctioned Iranian oil.

Nicaraguan newspaper La Prensa reported that Ortega’s government had not commented publicly on the incident.

Nicaragua maintains close ties with Russia and Iran. Nicaraguan Vice Foreign Minister Valdrack Jaentschke was in Iran this week to attend the funeral of Ayatollah Ali Khamenei. Ortega has previously described Nicaragua’s revolution as the “twin” of Iran’s revolution.

May 28 (UPI) — Nicaragua’s government said it will return mining company BHMB Mining to its original owners after the operation was confiscated in September 2025 and later transferred to Chinese firms.

The announcement came from Nicaragua’s Attorney General’s Office and follows what local media and analysts described as efforts by President Daniel Ortega and Vice President Rosario Murillo’s government to avoid additional sanctions from the Trump administration.

According to the government, officials reached an agreement with BHMB Inc., a U.S.-British company incorporated in Florida, allowing operations to resume at the BHMB Palacaguina processing plant in northern Nicaragua.

“As a result of a process of dialogue and coordination carried out in an atmosphere of cooperation and mutual respect, an understanding has been reached aimed at the orderly and secure normalization and operational reactivation of the BHMB Palacaguina plant,” the government said in a statement.

The government added that the specific terms and conditions of the agreement remain confidential.

Nicaraguan newspaper La Prensa previously reported that authorities seized the facilities in September 2025. The company operated a gold processing plant in northern Nicaragua valued at more than $80 million under a 10-year operating permit.

The owners said that after the expropriation, Nicaraguan authorities transferred the plant to Chinese companies Zhong Fu Development and Santa Rita Mining.

Environmental and Indigenous rights advocate Amaru Ruiz wrote on X that “the Ortega-Murillo regime announces an agreement with BHMB Mining Nicaragua to free itself from the complaint filed before ICSID over the expropriation suffered by the company.”

Ruiz later told Nicaraguan outlet 100% Noticias that the decision represented an unusual reversal by the government. He said the administration “feared losing the case before ICSID” because of growing international pressure and the possibility of economic sanctions.

The International Centre for Settlement of Investment Disputes, or ICSID, is a World Bank institution that resolves legal disputes between sovereign states and foreign investors.

On April 16, the U.S. Treasury Department’s Office of Foreign Assets Control announced sanctions targeting individuals and entities tied to Nicaragua’s gold sector.

According to the Treasury Department, the sanctions responded to what it described as the Ortega-Murillo government’s use of the gold industry as a major source of financing for repression and corrupt enrichment of the ruling family.

Nicaraguan journalist Miguel Mendoza said the government’s decision to return the plant to BHMB appeared aimed at avoiding political and economic pressure from the U.S. Congress.

U.S. lawmakers are scheduled to hold a hearing June 4 titled “Confronting the Ortega-Murillo Totalitarian Regime,” focused on democratic backsliding in Nicaragua and rising tensions with Washington.

Mendoza added that BHMB shareholder Baruch Rapoport maintains relationships with figures in the Trump administration, including diplomat Richard Grenell, who served as Trump’s special envoy for Venezuela.

According to Mendoza, those ties may have contributed to recent U.S. sanctions against seven Nicaraguan mining companies, targeting one of the government’s most profitable sectors.