Aug 5 - The U.S. Treasury said on Wednesday it had removed counter-terrorism sanctions from Iraq's Fly Baghdad Airlines and two aircraft that were imposed in 2024 over links to Iran's Islamic Revolutionary Guard Corps Quds Force, citing changes in the airline's behavior.

A Treasury official said that the move was not indicative of any shift in U.S. policy towards Iran's government, the Islamic Revolutionary Guards or any organization designated as terrorist and was unrelated to U.S. negotiations with Iran over a possible deal to end hostilities in the Gulf.

The removal of Fly Baghdad Airlines Co (FBA), Iraq Express and two Boeing 737 aircraft from the Treasury's Specially Designated Nationals list was part of the Office of Foreign Assets Control's process to reconsider sanctions after behavior changes, the official said.

"FBA has demonstrated major changes to their operations such that their listing is no longer warranted," the official said. "They have addressed sanctionable conduct."

No details were provided on the specific FBA changes that warranted the lifting of sanctions, and the official said that sanctions could be reimposed at any time. REUTERS

US lifts sanctions on Fly Baghdad, previously linked to Iran's IRGC