Babak Zanjani

Babak Zanjani
Born	(1974-03-12) March 12, 1974 Iran
Occupation(s)	Entrepreneur, Business magnate
Known for	Managing director of Sorinet Group; involvement in major corruption case

Babak Zanjani (, born 12 March 1974) is an Iranian billionaire entrepreneur and business magnate. He served as the managing director of Sorinet Group, a major conglomerate based in the UAE with significant operations in Iran. In late 2013, he was detained on charges of withholding $2.7 billion linked to Iran's Ministry of Petroleum revenues, funds impacted by sanctions against Iran.

Zanjani was found guilty of corruption and sentenced to death; however, in 2021, his execution was postponed pending the repayment of debts owed to the government. After returning roughly $2.1 billion in assets, his death sentence was reduced to a 20-year prison term on 30 April 2024. Experts have speculated that Zanjani might be serving as a "fall guy" amid wider corruption scandals involving influential figures from the Ahmadinejad administration.

Sorinet Group

Sorinet Group () ranks among Iran's largest conglomerates, with diversified interests spanning cosmetics, finance, banking, hospitality, commercial aviation, infrastructure, construction materials, information technology, and international real estate development. The company maintains a presence in Iran, the UAE, Turkey, Tajikistan, Malaysia, and China. It also owned Qeshm Air and Rah Ahan Sorinet F.C. within Iran.

In 2013, Babak Zanjani declared his personal net worth at $13.5 billion.

EU sanctions against Iran

In December 2012, the Council of the European Union placed Zanjani under European Union sanctions against Iran for allegedly facilitating breaches of EU regulations related to Iran and providing financial support to the Iranian government. He was identified as a "key facilitator" in Iranian oil transactions and in transferring oil-related funds. Accusations included using Malaysia-based First Islamic Bank to route payments connected to Iranian oil exports.

Zanjani refuted these allegations, denying any affiliation with the Iranian government and labeling the sanctions as "a mistake." The intricate financial dealings of his companies reportedly led to misunderstandings by EU authorities. Notably, his enterprises were linked to an oil smuggling network operating between Labuan and Iran in Malaysia, where Labuan functioned as a transit point for Iranian crude.

Alleged dual nationality

In January 2013, an Iranian news outlet, Baztab, alleged that Zanjani possessed a Danish passport in addition to his Iranian one; he denied this claim. He asserted that the passport copy was "fake," disputing details such as the absence of a necktie in the photograph—a feature he mistakenly believed was mandatory for European passports.

Arrest, initial conviction, and release

On 30 December 2013, Iranian authorities apprehended Zanjani over his purported role in a "gold for gas" operation designed to bypass international sanctions via transactions in Turkey and Malaysia. He faced accusations of embezzling more than €2.7 billion through entities including the National Bank of Tajikistan. The bank subsequently denied involvement and claimed documents linking it to Zanjani were fabricated. Tried before an Islamic Revolutionary Court, he was convicted on 6 March 2016 and sentenced to death for embezzlement and "spreading corruption on earth." The Supreme Court of Iran upheld this verdict in December 2016.

Execution was delayed pending repayment of stolen funds, with potential for pardon contingent upon full restitution. The Supreme Court indicated that once debts to the state were cleared, the death sentence would be commuted. On 30 April 2024, after approximately $2.1 billion from illicit oil sales had been returned, Zanjani’s sentence was reduced to twenty years’ imprisonment. Soon after, reports emerged regarding his conditional release.

By January 2025, photographs showing Zanjani post-release were circulated by Iranian media outlets.

Return to business activities

Following his early prison release, Zanjani resumed his involvement in the business world by establishing Avan, a holding company founded on November 17, 2024, with an initial capital of 30 billion tomans (£375,000). Within a span of five months, Avan created ten subsidiaries operating in sectors such as transportation, commerce, and technology, with Avan Rail standing out prominently. In April 2025, Avan Rail secured a groundbreaking contract valued at 61 trillion tomans ($800 million) with Islamic Republic of Iran Railways for the supply of 300 diesel self-propelled passenger locomotives, 50 freight locomotives, and 600 tank freight wagons—marking the largest private-sector investment in Iran's railway industry.

This agreement attracted scrutiny due to Avan's relatively modest capital base and unclear funding sources, reportedly linked to an undisclosed foreign backer. Despite official denials, conflicting statements and corporate documents suggested Zanjani’s ongoing managerial role. According to IranWire, he retained ownership interests in at least eleven Iranian firms, indicating a diverse business network. His reentry into the market drew criticism from various political factions, including conservative figures who viewed the railway contract as a potential threat to President Masoud Pezeshkian’s government.

See also

• Reza Zarrab
• Alireza Zibahalat Monfared
• Money laundering in Iran