Full Breakdown
U.S. Treasury Sanctions Mexican Nationals and Companies Tied to CJNG Fuel Smuggling Network
7/1/2026, 6:52:01 AM
Sanction Action Targets Fuel Smuggling Linked to CJNG
On June 30 2026 the U.S. Treasury announced sanctions against two Mexican nationals and nine Mexico-based entities for participation in a cross-border fuel-smuggling scheme linked to the Jalisco New Generation Cartel (CJNG). The individuals are Oscar Guillermo Juraidini Silva and J. Refugio Ruiz Villagomez. The designated entities are Centro Cambiario La Peseta, OJ Living Trust, RK Real King, Soma Transporte y Servicios, Ogui Fletes, OF Transportes, Cucumber Sweet Waves, Jomadi Logistics & Cargo, and Ahavat Logistics Solution.
Background: Tax Evasion and Cartel Revenue
Mexico levies the IEPS tax on imported diesel and gasoline. Cartels evade this levy by misclassifying customs documentation and bribing officials. Smuggled fuel is then sold through cartel-controlled petrol stations and unregulated roadside fuel stops, generating a profit margin. The Treasury says the scheme is the second-largest revenue source for Mexican cartels after drugs, producing hundreds of millions of dollars annually.
Scale and Economic Impact of the Illegal Fuel Trade
The Treasury estimates illegal fuel smuggling costs Mexico over $11 billion in lost tax revenue each year. The broader illegal fuel trade is said to cost the United States and Mexico tens of billions in lost revenue annually. Mexico imports more than 60 % of its domestic fuel, primarily from the United States, and an estimate from the nation’s largest fuel-distributor association suggests roughly one-third of all liters sold in Mexico are illegally sourced.
Official Treasury Statements
The Treasury highlighted that U.S. companies leveraged relationships with major refineries and fuel distributors to purchase fuel, then diverted it using networks of U.S. and Mexican front and shell companies. It also issued guidance for banks and financial institutions to identify red flags in cross-border fuel trade. Secretary of the Treasury Scott Bessent said the action underscores expansion of cartels beyond drug trafficking into revenue-generating activities that continue to traffic deadly drugs.
Criticism and Lack of Comment from Designated Parties
The designated individuals and companies did not respond to requests for comment. Several entities—Jomadi Logistics & Cargo, Soma Transporte y Servicios, OF Transportes, and Centro Cambiario La Peseta—did not provide statements when contacted.
Implications for Bilateral Cooperation and Future Enforcement
Mexican President Claudia Sheinbaum has recently expanded cooperation with U.S. agencies to address fuel smuggling. The sanctions, combined with the Treasury’s guidance for financial institutions, aim to disrupt the financial flows that support the CJNG network.
Verbatim Quote
> “Today's action highlights the extent to which Mexico's cartels are expanding beyond traditional drug trafficking to generate revenue for their criminal organizations, which continue to traffic deadly drugs that kill Americans.” — Scott Bessent, Secretary of the Treasury
Conflicting Reports & Gaps
The Treasury’s estimate of “hundreds of millions of dollars” in annual cartel revenue from fuel smuggling is not independently verified in the sources. Additionally, the exact volume of illegally sourced fuel remains an estimate (“about one-third of liters”) without a precise figure.
