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US firms tied to illicit fuel trade, Mexico’s president says

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Mexico’s President Claudia Sheinbaum said on Thursday that US individuals are involved in smuggling fuel into the country, following a Reuters investigation into the illicit trade that showed how narcos have penetrated the North American energy sector.

“Yes, there are US business people in the cases under investigation,” Sheinbaum said during her regular morning press conference in response to a question about the Reuters report. “One cannot explain otherwise how fuel comes from the US to Mexico and enters illegally.”

The Reuters investigation, published on Wednesday, uncovered the role of a Houston company, Ikon Midstream, in delivering diesel to Mexico and declaring the cargo as lubricants – a product exempt from the steep import duty levied on diesel and gasoline.

Ikon Midstream and its executive director, Rhett Kenagy, declined to comment for the story through their lawyer.

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