US imposes sanctions on Mexican oil smuggling, drug network linked to cartel

May 02, 2025 01:35 AM IST

The US Treasury department imposed sanctions on hazardous materials transportation companies Servicios Logisticos Ambientales and Grupo Jala Logistica

The U.S. Treasury Department on Thursday imposed sanctions on two entities and three Mexican nationals it said are involved in a drug trafficking and oil smuggling network linked to the Cartel Jalisco Nueva Generacion gang.

The US Treasury department has imposed sanctions on two entities and three Mexican nationals it said are involved in a drug trafficking and oil smuggling network(AFP)

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U.S. authorities say CJNG is one of the two major Mexican drug gangs, along with the Sinaloa Cartel, responsible for pushing fentanyl onto U.S. streets over the past few years.

The Treasury imposed sanctions on hazardous materials transportation companies Servicios Logisticos Ambientales and Grupo Jala Logistica, saying they have transported fuel and crude oil between Mexico and the United States on behalf of individuals linked to Mexican cartels.

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The network generates hundreds of millions of dollars annually benefiting CJNG, through fentanyl trafficking, fuel theft, and smuggling stolen crude from Mexico across the southwest border, Treasury said.

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“Fuel theft and crude oil smuggling are cash cows for CJNG’s narco-terrorist enterprise, providing a lucrative revenue stream for the group and enabling it to wreak havoc in Mexico and

the United States,” said Treasury Secretary Scott Bessent. He said the U.S. would use all available tools to target the cartels.

The administration of President Donald Trump in February designated CJNG as a foreign terrorist organization and specially designated global terrorist.

Attempts by Reuters to reach the companies were not successful.

The sanctions block all U.S. property and interests of the persons and entities and prohibit Americans from any transactions with them.

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